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 of course is your way out!.
In general ‘to monetize’ means to convert into or express in the form of currency. So, data monetization pertains to the act of generating revenue benefits from available data sources.
Let’s go through these questions for better understanding.
- Is Data Monetization the Need of the Hour?
- Why Should You Monetize Data?
- How Will You Monetize Your Data?
Is Data Monetization the Need of the Hour?
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 your competitors.
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 Should You Monetize Data? Check 12 Best Reasons Here
1. 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. 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 that enter the data monetization business identify partners who can 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. Optimizes the Use of Data and Maximizes Its Value Potential
Wondering ‘how much is the data worth of a company?’ Worry not, data monetization will tell you that. 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. Strategy 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. 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
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. Multiplies and Boosts 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 takes 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. Data monetization business models takes care of this and helps you to go ahead without much privacy concerns and this is what sets it apart from other revenue generation methods.
So, How Will You Monetize Your Data?
Simply put up, how to monetize data? It occurs both internally and externally.
Internal data monetization focuses on leveraging data to improve a data owner’s operations, efficiency, productivity. It enables ongoing communication with customers or his users. External data monetization 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.
Takeaway? Data Monetization Is an Unmissable Trend and Your Top Business Strategy!
- Data monetization strategies are now proven sustainable revenue-driver for both Android and iOS apps in 2018. This is expected to anchor more like a mobile data monetization trend in 2019.
- It takes place in the background of the app and site, so it creates an uninterrupted mechanism. Monetized data has one of the highest CPMs in the industry.
- You can focus on your work while earning money with your app or site. For acquiring more, you should go beyond standard strategies of app monetization. Hence, data monetization and mobile data monetization are the non-obvious way to monetize mobile apps and sites.
To sum up, data monetization strategies helps 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.
So, do you want to monetize your audience segments like a pro?
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