Why should I monetize data? You may ask! Well, did you know that by investing in your huge reserves of data, you can earn unlimited revenues?
And if you didn’t, then you have been leaving a massive opportunity on the table and missing out on the revenue outcomes it could otherwise bring!!
But how do you turn that data into a huge number of dollars?
Data monetization is the best way out!
In general ‘to monetize’ means to convert into or express in the form of currency. So, in the market of data monetization, it pertains to the act of generating revenue benefits from available data sources.
In the article below, we shall discuss the following:
Data Monetization: The Need of the Hour!
Why Should You Monetize Data?
How To Monetize Your Data?
Your Key Takeaways!
Certainly, every company operating today is a data-driven company. You have access to a bunch of data on your supply chains, operations, strategic partners, customers, and competitors.
Data Monetization: The Need of the Hour!
Like most companies, you monetize only one out of ten monetizing data. What are you losing behind? Consequently, you leave behind the profits you could otherwise earn by monetizing all possible data sets and so you need to start monetizing your data now.
Why Monetize Your Data?
1. It Creates Opportunities in the Market
More and more businesses are identifying the value of the data they are collecting. With adequate data volume it leverages the untapped and tapped information to develop new revenue sources.
2. Data Monetization Increases the Value of Data
Companies like Google and Facebook culminate all the activities associated with a user, thus deriving the interests, income level, buying preferences, and so on. Most companies identify partners to enhance internal data and increase the data value.
3. Helps in Sizing of the Market
This involves leveraging data from one business unit for use by another part of the company to optimize a broader system. Also it helps an external client with the ability to make better decisions by tapping into data-driven solutions packaged by the company.
4. Data Monetisation Optimizes the Use of Data and Maximizes Its Value Potential
Customer data monetization answers ‘how much is the data worth of a company’. It optimizes the usage of data and provides you with insights such as market demand, data’s shelf life, competition, potential customers etc. to attain maximum value potential.
5. Monetize Your Data to Increases Overall Productivity
You can use data to increase productivity or reduce consumption and waste. Also, it helps you to improve sales performance and minimize customer attrition. By monetizing your data, you understand your target customers and create meaningful segments slicing the data according to your target audience’s needs.
6. Creates Competitive Advantage in the Market
Companies such as Amazon, Netflix, and Disney monetize data by gaining a close understanding of their customers. With this, they can offer highly relevant products/services, delight their target audience at every touchpoint, and create a competitive advantage in the market.
7. Data Monetization Boosts Profitability
Data is intrinsically valuable, but comprehension derived from data enriches that value. This further segments customers, predict demand and churn, optimize prices, and manage cost. Further data can command higher margins when sold externally. Now what you get is overall profitability.
8. Improves Customer Experience and Strengthens Customer Loyalty
In addition, when you monetize your data, you are able to figure out the understanding of the customers. You can now use these insights into how best to improve products and services. Moving ahead, this improves the customer journey and makes the customer stick by your product.
9. Data Monetization Examples Witness a Boost in Revenue Streams
By segmenting the customer database based on gender, demography, prospects, industry, and so on into related target groups, the data owners make the most out of data. These classifications allow them to deliver highly targeted, personalized messaging, better user experience and outstanding revenues earned.
10. Helps in Strengthening Partnerships
Buying and selling of data take place in a data marketplace. If you are a data owner, you can set data-prices and consumers can choose from who they wish to buy data. It improves data sharing and collaboration between internal and external stakeholders
11. Streamlines Decision Making and Planning
The data marketplace segments audiences and provides the right set of customers for the right kind of data. It solves data pricing riddles by taking a free-market approach. It helps in stopping revenue leaks, inferring customer satisfaction, detecting fraud and piracy, minimizing churn, and increasing ROI.
12. Identifies and Mitigates Risk and Improves Compliance
Today, data is a vital asset for any organization, but it needs to be leveraged as per individual rights to privacy. Lastly, data monetization examples and business models take care of this and help you to go ahead without much privacy concerns and this is what sets it apart from other revenue generation methods.
How to Monetize Your Data?
Simply put up, how to monetize data? It occurs both internally and externally.
Internal data monetisation focuses on leveraging data to improve a data owner’s operations, efficiency, productivity. It enables ongoing communication with customers or his users.
External data monetisation involves making the data available to brands and agencies. It helps in the creation of new revenue streams and leveraging businesses.
Below is an illustration explaining the steps to monetize data in the simplest fashion.
Your Key Takeaways!
In conclusion, data monetization strategies are an unmissable trend and a proven sustainable revenue-driver for both Android and iOS apps in 2018. This is expected to anchor more like a mobile data monetisation trend in 2019.
Firstly, it takes place in the background of the app and site, so it creates an uninterrupted mechanism. Data monetization case studies reflect that monetized data has one of the highest CPMs in the industry.
You can focus on your work while earning money with your app or through websites. For acquiring more, you should go beyond standard strategies of monetization. Hence, monetizing data is the non-obvious way to monetize mobile apps and sites.
Finally, data monetization strategies help you in earning revenue over and over again. It helps you to generate higher revenue value from your target audiences, leading you to a win-win situation in this so-called Informative Era.
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