Data monetization is a hot topic these days. Businesses small and large are collecting and aggregating so much data to drive their businesses, and it’s increasingly cheaper and faster to process and analyze, so it’s tempting to think about other ways to monetize it. After all, selling data can be a very simple, high margin, recurring-revenue business.
- Monetize your own data
Apply data to drive your business, through more efficient processes or by using data to gain a
deeper understanding of customer needs and provide a better customer experience. Every
business is thinking about using data in this way. The most valuable data-monetization
strategy is to drive your own business.
- Selling data to your customers
You know them and understand their needs, and if you can provide additional value you might
increase retention and stickiness. For example, many retailers package up sales data and sell it back to suppliers, improving coordination in the supply chain.
- Sell your data to other businesses that are not your customers or suppliers, and essentially start a new line of business
In practice, most activities involving this activity is likely be done in partnership with existing
information services companies (that have the customer base and go-to-market capabilities
already). They are in a stronger position to create industry consortia that can aggregate data
from different businesses and operators in a given vertical so the data buyer gets access to a
broader view than just an individual business’s slice of the market, turbocharging the value.
It makes sense if you can sell your data while managing the risks, especially if you can use your data to bolster partnerships with existing customers or create more efficiency across the whole value chain.
But never forget that the most valuable data-monetization strategy is to drive your own business.
We are a group of prior equity and corporate analysts and we have amassed extensive market
research, equity market and industry analysis experience. We can help validate startup ideas, assess data monetization potential for established enterprises through targeted analysis. (See more)
Market Research Packages
We’re currently testing packages for market analysis, research, target customer profiling, target
customer interviews and data monetization.
Resources needed for project
Typically a project will require some disbursements including purchase of third party information
and interview time with subject matter experts in fields such as data technology.