Can your company value its data? It’s probably precious, but who can tell how much is it worth? The value of data can grow every moment, by gaining more insights about customers, by selling it to the other parties, or by producing more data on your company’s own. Through data monetization, your business can start treating information as an asset and gain benefits from taking its value to the maximum.
DATA MONETIZATION USE CASES
We already mentioned it before, but we’re going to say it over and over again – data monetization pays off. If you’re a company that operates on customers’ data, you probably know that already. But if you don’t believe us, here are a few real-life data monetization examples of how companies can use data analysis to make profits.
TECHNOLOGICAL GIANTS AND THEIR DATA PRODUCTION
Companies like Google and Amazon are known of platforms that make the shopping experience easier for customers around the world. You type the known address, and you search items for purchase. But there is more to that for the mentioned companies. They continue to optimize their platforms experience through data, which they reinvest back into their platform. Creating new data-based features such as reviews, suggestions and personalized content makes more customers come back to the platform. More customers mean more companies willing to promote their products through Google and Amazon enriched with data which, once again, produces more data. Data production helps keep their platforms relevant.
Data monetization use cases are all around us, and here’s another proof. Uber, one of the most popular ridesharing services, knows the location of its users’ thanks to GPS but also based upon their pick-up and drop-off locations. With users’ permission, Uber may sell this data to other businesses. Other companies use this data to provide different vouchers, promotions or discounts, that encourage consumers to spend money on their products. Now, with Uber Eats, it is even more visible. Personalized messages, with the information tailored to the specific customer, about the particular discount – that helps both businesses profit from it.
TARGETING OFFERS IN TELECOMMUNICATIONS
Telecom players that have taken steps towards external monetization of data have done it through partnership models in B2B and B2C segments. In some cases, operators have also acquired start-ups for cooperation. One of the examples is a case of Telefonica. The company has engaged in partnerships with brands such as Linio, Heineken, and United Colors of Benetton. In 2017, it acquired leading UK geolocation data start-up Statiq. The start-up processes a large amount of location data to identify the places people visit and help with building consumer profiles. The gathered data allows advertisers to target messages to the specific users better, while also track whether the user visited a retail store after seeing a mobile ad. Brazilian banking and financial services company Bradesco was one of the first brands to test Telefonica’s sponsored data offer. The brand wanted to drive customers to use its mobile banking app. The whole action ended up in success – the number of app users was doubled to 400,000.
SMS MARKETING AT ITS BEST
And last, but not least, a bit different example of data monetization. Nevertheless, it also brought great value. On May 26, 2018, the cyclone Mekunu hit the southwestern part of Oman. Reaching the Oman residents with a call to evacuation as quickly as possible, became a matter of life or death. Omantel, the first and leading telecommunications services provider, decided to support local authorities, using one of the services from its portfolio. That’s why TASIL team redesigned the system at an unprecedented pace to meet the requirements resulting from a crisis. TASIL, using gathered data and real-time algorithms, managed to locate all people who were in the affected areas. Within three days, it had sent SMSes to 340,000 people saving peoples lives. You can see, commercial (in this case – telco) data can be worth even as much as people’s lives.
A PERFECT TOOL FOR DATA MONETIZATION
With all the data monetization use cases, gathered above, we can say definitely that this trend is around us in every way. So, is there the best idea on how to monetize it? That’s a tough one to assume. We can always assist your company in your data strategy to see visible profits. Before that, to become more convinced about the whole idea of data monetization, check our simulator and see how much is your data worth. The results may wow you!
We designed a calculator that can help with assessing your potential earnings in just two simple steps. Are you interested? Here’s how to do it!
- First, enter the number of opt-ins you have. What’s opt-ins, you may ask? It’s the number of people, your customers, that gave your company permission to receive any marketing or sales messages.
- Then, choose which type of revenue streams your company would like to use for monetizing the data. There are different types, like simple messages, dedicated offers within the app, mobile displays and more. The type of streams you can take into consideration depends on the business model you have.
And voila! Your company’s estimated earnings in five-years are ready. Of course, it cannot be taken with a 100% accuracy, because it varies accordingly to different factors. How about we make the amount even bigger?