We’ve all heard the idea that data is the new oil – mine it and you could make a fortune. But the reality is that many businesses simply don’t know what to do with all the data that is being collected about their customers, let alone make a profit from it. However, this has the potential to change as more and more organisations start using business intelligence to move to a proactive style of analytics that has the potential to generate revenue.
Moving into proactive analytics
Analytics provide the tools to make something from data. However, this only becomes possible once businesses begin to transition away from a reactive style of analytics. To get to proactive use of analytics it becomes necessary to start using data to identify patterns and trends, to engage with customers and to create products from those analytics or embed them into existing products to improve them. Monetising data can seem like a big leap but there are some simple ways to do it.
Analyse use of systems and products
Data can provide insights into those who are using most of the business’ products and services. This can be invaluable when it comes to making decisions about how to tailor those products and services to increase appeal.
Start sharing analytics with customers
This is the first step towards monetising data, sharing it with customers so that they can start to get a feel for the benefits that business intelligence can offer. The idea is to provide basic insights via a dashboard or a simple set of analytics.
Develop the analytics that you offer
It may be that customers come to you asking for a specific piece of data or insight. Or you may begin to notice that after some time there is a piece of intelligence that could be especially useful to customers. The idea is to take the taste of analytics that you have given customers and develop this so that they feel a need to learn more. Your business can fulfill that need but it will be for a fee.
Identify unique information you have that customers may want
For example, they may want to see how their performance compares to that of a competitor. This is valuable insight that most will happily pay for.
Look for personalisation opportunities
The more you can personalise the data you have the more valuable it’s likely to be to customers and the simpler it is to monetise. This could involve drawing in a range of external data sources, such as data on demographics or even the weather.
Always be alert to potential new data products
Once you start providing analytics products to customers the opportunities to create new ones will start to become increasingly obvious. Listen to what customers are asking for, whether that’s churn analysis or more historical views.
The best way to monetise data is to make it valuable to your customers. Demonstrate the benefits of the analytics you’re developing and the data you have can become a revenue generating product.