Monetize Data In 5 Simple Steps
Data is a valuable asset in many different ways.
B2B marketers want to leverage the data they generate and are also interested in making profits from the data made available to them by other marketers.
Also, marketers are not the only ones who recognize the value of data. Brands all across the globe are increasingly finding ways to monetize this highly valuable asset. The ultimate goal might be clear, but the road to reach there is far less obvious. Let us look at the 5 critical metrics to consider before you monetize your data:
- Data is an asset and it should reflect on the balance sheet
Existing accounting practices do not consider data as an asset. However, few marketers have recently started using asset valuation techniques for putting a value to the data they gather and manage. This allows them to set clear expectations, evaluate managing approaches, and also regulate the strategic significance of the data. Such an approach has led to constitutional changes within these upcoming data-centric companies. As a matter of fact, data management and its application to business objectives at a strategic level is progressively becoming a differentiator on how a company operates at a tactical level.
- Regular data pruning
Regular data pruning is a healthy practice and should be mandatory. If a company has determined data monetization as a possible new source of income, then it should also identify the existing annual investment in collecting and managing current data. To do this, it needs to conduct an annual review of data sources to assess if the expense on collecting and managing it is justified.
- Process raw data into action-oriented insights
Couple of situations will determine how urgently a company needs data monetization.
– Can the organization easily single out a customer that calls into location for assistance, and can it connect this customer’s identity with their online behavior?
– Also, does the marketing team leverage the data connected to sale while devising new marketing campaigns?
If the answer is no, then data monetization can act as the catalyst to develop a data-driven mindset. It can also act as a new source of revenue that will fund change inside a budget-restrained organization. Marketers thus can begin prioritizing messages to customers based upon precise data-driven insights.
- Share data across different departments
Data usually exists in silos. Few organizations feel the need to share data across the organization for the betterment of its customers and the entire company. Most times, the structure of the company, budget restraints, or numerous other issues prevent data and subsequent insights from being leveraged comprehensively. However, data monetization can help in curbing departmental clashes over market insights while also empowering a new revenue source that has the capability to increase the profitability of the entire operation.
- Data as part of your strategic plan