If your business works with big data discovery, chances are you are strategizing ways to monetize that data.
Moving forward, the most successful firms will have a clear data monetization strategy and tools that deliver clean and valuable insights on data quickly. So let’s define data monetization, discuss different approaches, and offer key considerations ahead of launching a data monetization strategy for your firm.
Data Monetization: The What and How
Data monetization, put simply, is turning a firm’s collected data into currency. The actual type of currency can differ depending upon a company’s strategy. Forms of data monetization include:
Data for Dollars: This is exactly what it sounds like. Companies pull together significant data from their work and sell it to other firms in their line of business, as well as firms in ancillary fields. This type of data monetization has been around for quite some time as a way to introduce additional revenue streams. An easy way to think about this would be a retailer selling their point-of-sale data.
Bartering Data: Like selling data, the trading of data is another form of direct monetization. Here, companies exchange their collected data for goods or services from another vendor. An example of data bartering is when a company shares its data with a vendor. That vendor will then generate industry reports or benchmark metrics that are valuable to the company.
Data as Product or Service: Companies compile data and then leverage it to provide either a new product or new service tied into an existing product at no extra charge (also known as data wrapping). This can either lead to direct monetization, where customers purchase a new product, or indirect monetization: a company includes new data “wrapped” around their product in the hopes that it will increase switching costs, as well as lead to more market share and wallet share.
Key Considerations Ahead of Data Monetization
As lucrative as monetizing your data can be, it is not without its challenges. Any business developing a data monetization strategy must consider all the regulatory and legal restraints that comes with selling or bartering data. Firms must also develop a stance on data privacy: your policy will assuredly appeal to some customers while discouraging others. Central to success with monetizing data is finding potential clients, and not just those within your immediate industry. In fact, the most successful firms are those that secure data consumers far outside their field.
Most importantly, companies must determine early on the overall costs and benefits of monetizing their data, lest they fail to meet business expectations or leave money on the table with undiscovered or unrealized opportunities. To that end, validity of data, as well as speed of data collection and time-to-insight, is vital to success.
Better, Faster Data with Trifacta = More Monetization
Regardless of how your company views data monetization, one thing is clear: you can only implement an effective strategy with robust, clean, insightful data that is analyzed as fast as possible. Trifacta Wrangler allows your business to assemble and analyze copious amounts of diverse data swiftly—and more economically—so that you can get valuable data in the hands of those who want it most, both internally and externally.