6.02.2017

Monetization of Analytics Data



According to Barbara H. Wixom and Jeanne W. Ross, principal research scientists at the MIT Center for Information Systems Research in Cambridge, Massachusetts, businesses can monetize their data in three ways. Businesses can use their data to improve internal processes, use it to sell core products and services, and sell the information to other businesses. Since companies have the ability to measure analytics internally and externally, they are able to apply the data to their policies, procedures, and products to turn a profit. According to Information Week, “Companies that leverage data to drive the performance of their organization’s decisions are winning at a faster rate than their competition.” Basically, it is crucial for companies to use and monetize their data to stay competitive in the market. Let’s explore the ways companies are doing this.

Improving Internal Processes
The effectiveness of an internal team can influence an entire company. Do policies and procedures have employees focusing too much on the process and not enough on the actual work? Recording internal data can help companies take a look at their internal processes and see what is what is working and what is inefficient. An example of companies using big data to improve processes is call recording for help centers. When you call a company with a question you often hear that the call is being recorded for quality purposes. According to Open Source Recording, a call center employee provides 95% of a company’s value. Being able to listen to calls and use them to train employees is a fantastic investment for companies will call centers, especially when the cost of storing data is becoming negligible. Maybe analyzing calls can help companies reduce the time the customer is on the phone. It is possible that analyzing call data can help companies discover why people call and can help improve the dial menu. As big data gets even bigger, companies will find even more ways to use their data to improve their processes. 

Improve/Sell Products & Services
Gathering Data on company products and services is another way companies can monetize their data. Discovering the top customer wants and needs can help a brand take their product to the next level. For example, if an ecommerce website sees an uptick in certain products being bought during certain timeframes, the company can make note and be sure to keep up with supply during that time of year. Another way companies can use data to improve products is to look at comments and site reviews on Amazon and social media. If a brand analyzes their reviews and social media comments, they may see patterns and trends, like consumers saying “this product is okay, but it would be really great if it had x.” Brands can use this data to add those features to their products in the future.

Selling Data
So many brands underestimate the value of their user data. Selling data is an efficient way to make a profit. Companies will buy all types of information, from user demographics to what type of device a user is accessing a website from. According to the Harvard Business Review, one of the best ways to get value from your big data is to sell it. The Harvard Business Review describes how “Data can be the ‘missing link’ for a company that has never had access to the side of your customers that only you can see.” While brands are busy using their websites for ecommerce, content management, etc. a useful byproduct of user information is being cultivated on the back end. Brands should use this data and take advantage of the value their data has.

As big data changes over time, more ways to monetize will definitely surface. Right now the three big ways companies can monetize their data is by using it to improve processes, using it to improve products and services, and selling it to other interested companies.



No comments:

Post a Comment