How to Monetize Customer Data
In today’s world companies throughout the world are collecting more client data than they ever have before—yet many companies have failed to recognize (and leverage) it’s value.
Yes, you have a ton of customer data, but do you really know what to do with it?
You likely already know that customer data is an integral component of managing your relationship with your client; it can help you enhance their experience as a customer and it allows you to improve the quality of your service.
Data helps you upsell and it can also assist with product and/or service innovation.
At the same time, you may not realize that client data can be traded or sold, which will allow you to further monetize it.
You also have the option of monetizing that data in a more indirect way—which would involve creating new information or products, that leverage the data you currently have. In this case, the data may not be sold, but that’s not to say it won’t provide value.
Fact: Experts predict that more than a third of businesses have been monetizing their customer’s data since 2016
It’s a lot simpler than you think.
Remember the day you signed up for the rewards program that’s offered by your local grocery store? When you filled out the application, you provided some key information, such as your age, gender, race and annual income.
Every time you punch in your phone number, so you can receive the “special rewards member” pricing, you’re providing that store the ability to track the types of things you’re buying in addition to how frequently you’re making those purchases.
Not only does this help the store’s buyers decide which inventory they should be stocking (and how much of that inventory they’ll want to buy on a weekly basis), it allows them to understand certain trends.
Have you always purchased one brand of dish soap, but lately, you’ve realized that you’ve been getting coupons on the back of your store receipt, that offers X percent off the same product that’s offered by a competitor?
This example highlights two ways your friendly neighborhood grocery store is monetizing your data.
The bottom line is this, if you’re not currently monetizing your client data, you may want to explore doing so in the future.
If you have additional questions about how to monetize your client data, call Pathways International today
Pathways International was founded in 2012 with one idea in mind: we wanted to find ways for our clients to develop, deploy and maintain business intelligence systems for our clients.
We feel that the best way to do this involves an iterative development process, because it helps maximize both value and efficiency.
Since the day we opened our doors, Pathways International has developed more than 200 business intelligence solutions for a myriad of clients across a myriad of industries.