By | Bernard Marr
I’ve written a book on data strategy, and one of my primary jobs is guiding businesses through the process of using their data effectively.
One of the most common questions my clients ask me is “We have all this data. How do we monetize it?”
In this post, I’m going to break down the three primary ways you can monetize data to drive business performance.
Better Insights with Data
The first way I recommend companies monetize data is by using it to understand market trends and shifting customer demands. Data is a highly useful tool for discovering what customers want now, and what they will want in the future.
Looking at customer data on an ongoing basis enables you to create better, more relevant, more personalized products and services, which in turn drives revenue for your company.
Using this strategy for monetizing data is a great long-term move for your company, because your responsiveness establishes customer loyalty, which in turn increases the lifetime value of each customer.
Using Data to Cut Costs
You can also use data to streamline your operations and reduce business expenses.
Use data to optimize processes, automate jobs with AI, reduce transportation and logistics expenses, eliminate marketing costs, and more. Examine your data to identify where you might be able to use it to make your company more effective and efficient, and increase your profits.