{"id":12956,"date":"2020-12-30T09:00:00","date_gmt":"2020-12-30T08:00:00","guid":{"rendered":"https:\/\/www.codemotion.com\/magazine\/?p=12956"},"modified":"2022-03-19T09:51:10","modified_gmt":"2022-03-19T08:51:10","slug":"data-monetization","status":"publish","type":"post","link":"https:\/\/www.codemotion.com\/magazine\/ai-ml\/big-data\/data-monetization\/","title":{"rendered":"5 Ways To Grow Your Business Through Data Monetization"},"content":{"rendered":"\t\t\t\t
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\n\t\t\t\t\t\t\tTable Of Contents\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t
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  1. Selling your data<\/a>
  2. Using data monetization to increase sales<\/a>
  3. Using data for risk management<\/a>
  4. Data monetization and marketing<\/a>
  5. Using data to improve the customer experience<\/a>
  6. Data monetization: recap<\/a><\/ol>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\r\n\r\n\r\n

    Earning revenue through big data<\/a> is a fast-growing industry<\/span> that all businesses need to be a part of. With more than 2.5 quintillion bytes<\/a> of data<\/span> created every day, a good data monetization strategy<\/span><\/strong> is crucial for any business, including those involving developers<\/span> and tech companies.<\/p>\r\n\r\n\r\n\r\n

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    \"opportunities<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n

    Companies that have the expertise to collect, analyze, and produce insights for their data can experience a massive boost to their company earnings. Data can create money for your company<\/strong> both now and in the future.\u00a0<\/p>\r\n\r\n\r\n\r\n

    In this article, we will be exploring various direct and indirect data monetization techniques<\/strong> that can help to grow your business.<\/p>\r\n\r\n\r\n\r\n

    Selling your data<\/h2>\r\n\r\n\r\n\r\n

    Licensing<\/span> your company data<\/strong> to external parties is known as direct data monetization or data syndication. For example, let\u2019s say you\u2019re a company that provides communication software such as a virtual phone system for small business<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Throughout your selling history, you have collected data on consumer behavior and preferences. This data would be incredibly valuable to a company that does not carry out this collection process.<\/p>\r\n\r\n\r\n\r\n

    Many companies have capitalized on direct data monetization, especially in retail, where data on consumer habits is invaluable. So it\u2019s no surprise that the size of the big data market<\/a> is set to increase from around $140 billion in 2020 to around $240 billion by 2025.<\/p>\r\n\r\n\r\n\r\n

    Right now, you might be thinking that data is a goldmine<\/strong>, but before your company begins cashing in, you first have to prepare a strategy. Organization and identification of the data are where its value lies.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Not only should you collect, identify, and organize the data from sources such as email<\/a> and social media<\/a> pages, but you should think about how companies can use this information<\/strong>. This will help you market it.<\/p>\r\n\r\n\r\n\r\n

    In many cases, consumers, aka the companies you\u2019re selling the data to, don\u2019t just want raw information. They want you to provide valuable insights<\/strong> that relate to their specific industry and\/or business.<\/p>\r\n\r\n\r\n\r\n

    Another aspect of direct data monetization you have to consider is the quality<\/span> of your data<\/strong>. If you\u2019re a gamification<\/a> company that has only sold two virtual reality headsets, it\u2019s going to be hard to produce consumer data that is representative. This means you can\u2019t, at this stage, begin to analyze, create insights, and sell your data.<\/p>\r\n\r\n\r\n\r\n

    One of the biggest concerns with selling data externally is the privacy<\/span> and security<\/span><\/strong> element. Companies that give out sensitive information can damage their reputation with customers and face legal repercussions.\u00a0<\/p>\r\n\r\n\r\n\r\n

    This is why any company looking to sell data must acquire the correct authorization. Also, some data may require you to anonymize<\/strong> it, which can be done through encryption or masking. This process will differ from business to business.<\/p>\r\n\r\n\r\n\r\n

    Now finally you\u2019re ready to sell. You\u2019ve collected, analyzed, gained the necessary permissions, and set your price point. Here are your options:<\/p>\r\n\r\n\r\n\r\n

    Partner up and sell\u00a0<\/h3>\r\n\r\n\r\n\r\n

    This process involves going directly to a company and selling them your valuable insights. This buyer can be anything from an existing partner to any vendor along the value chain. It\u2019s also important to note that the buyer doesn\u2019t have to directly relate to your company\u2019s industry.\u00a0<\/p>\r\n\r\n\r\n\r\n

    There are a variety of useful insights that can be drawn from various data points. For example, Nike<\/a> is collecting sports data that insurance companies are interested in because it can help to predict health insurance needs.<\/p>\r\n\r\n\r\n\r\n

    Get some help selling<\/h3>\r\n\r\n\r\n\r\n

    If partnering up is proving difficult, you can join a data marketplace<\/strong>. This will allow you to carry out transactions<\/span> with companies that you normally wouldn\u2019t be in contact with.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Alternatively, if you want to sell your data quickly, you can trade it with data aggregators. These are companies that will then sell your data to other businesses. This third-party option is a simple way to sell a large amount of data, but the price you will receive will be less.<\/p>\r\n\r\n\r\n\r\n

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    \"data<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n

    Using data monetization to increase sales<\/h2>\r\n\r\n\r\n\r\n

    One of the most important factors that decide whether or not a business will grow is sales. If you looked at a guide titled \u201chow to manage a small business effectively<\/a>\u201d, getting more sales would probably be step number one.<\/p>\r\n\r\n\r\n\r\n

    Increasing your sales will increase your revenue, which will cover your expenses and allow you to attract more talent to your business. This will, again, help it to expand.<\/p>\r\n\r\n\r\n\r\n

    In the previous point, we discussed direct data monetization<\/strong>. An effective way for you to indirectly monetize your data<\/strong> and grow your business is by using it to increase your sales.<\/p>\r\n\r\n\r\n\r\n

    Research<\/a> shows that big data is responsible for generating almost $190 billion in revenue in 2019, and this is expected to rise to $274 billion by 2022. Companies that adopt big data practices can increase their retail sales by up to 4%<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Here are some of the best ways you can use data to increase your sales:\u00a0<\/p>\r\n\r\n\r\n\r\n

    Collect and analyze traffic analytics<\/h3>\r\n\r\n\r\n\r\n

    This technique can provide a business with detailed information about their specific audience or audiences. The more information you have about your customers, the more you can target them specifically. Useful data points could include age, gender, geographical location, interests, and preferences.<\/p>\r\n\r\n\r\n\r\n

    Collecting and analyzing who your audience is will enable you to identify specific niches within this. This is known as segmentation<\/strong>. Research<\/a> shows that segmentation generates around 58% of all company revenue.<\/p>\r\n\r\n\r\n\r\n

    Collect data to show off<\/h3>\r\n\r\n\r\n\r\n

    Data isn\u2019t just for back-office internal use. Data can be exactly what a customer wants to see to make them purchase a product or service. Presenting data from a plethora of positive customer reviews is a great way to distinguish yourself from the competition and increase your sales.<\/p>\r\n\r\n\r\n\r\n

    Research<\/a> shows that:<\/p>\r\n\r\n\r\n\r\n