Lots of businesses have access to huge volumes of data generated from across their operational spheres.
Unless you are actively wringing profits from the information at your disposal, then you are missing a significant opportunity to generate revenues and fuel innovation.
Here is a guide to data monetization that looks at how this process emerged, how it is evolving, and what steps you can take to get involved, above and beyond the basics of marketing.
The evolution of monetizing data
Businesses have relied on information to inform the decisions they make and the markets they target for centuries. Yet, it is only within the past few decades that the digitization of data collection and analysis has created significant, rapid change in this arena.
In combination with the right SQL performance monitoring tool packages and expert administrators, big data tools and solutions have transformed many areas of the average organization’s operations.
Companies no longer need to rely on guesswork and anecdotal evidence to determine things like employee performance, process efficiency, and customer retention.
Likewise, there is no longer the need to go out and actively source data for any of these purposes; in most cases, it is automatically accumulated and stored, which takes a lot of the heavy lifting and expense out of the equation.
The upshot is that businesses of all sizes and across every industry can monetize data today rather than preserving the largest corporations.
What types of data are being collected?
The data deluge that modern firms find themselves floating in is made up of all sorts of distinct types of information. Looking into the available varieties and knowing how to organize them separately and interpret them as a whole is at the core of data-related revenue generation.
Data types can vary wildly, from sales figures collected during seasonal peaks and troughs in activities to interactions with content posted to your social media accounts and beyond.
The main thing to note is that every digital platform and solution will spew out data, whether it is customer-facing or solely used by staff internally. Just being aware of this raw resource is half the battle to tapping into its potential.
How to monetize your data
There are a few steps involved in monetizing data that belongs to your business, the first of which is to pinpoint what information is at your disposal. Think of it as a general data audit, which might also highlight areas in which you could focus your data collection efforts going forward, but which are currently underserved.
Next, you must make your data usable, which means unifying access to it, structuring it efficiently, and validating it to ensure that it is legitimately valuable. There are whole software ecosystems built to handle this process, so investigate your options.
It makes sense to carry out some in-house analysis before you start monetizing your data by selling it to someone else. This will let you skim off any juicy insights and leverage them yourself while also giving you a clear value proposition with which to hook third parties.
Lastly, look into the terms of use that you will need to monetize your data safely, securely, and without falling foul of regulators. Pricing should also be determined at this time, which you can either implement according to how much it has cost you to get to this point or on the value, you believe clients will get from the information you offer.
The benefits and drawbacks of monetizing data
The many benefits that come from monetizing data have already been mentioned, including the increase in revenue and the unlocking of otherwise overlooked insights for the use of you or your commercial clients.
Drawbacks exist, the first of which is that there are expenses to bear upfront, and you will need access to the right talent to extract the total value of your data vaults.
Conclusion
Companies cannot afford to ignore the prospects for revenue growth and increased influence within their industry provided by data monetization.
This fast-evolving process is becoming more efficient and effective with each passing year, so the sooner you get involved, the sooner you can realize the benefits.
