<img src="https://secure.leadforensics.com/133892.png" alt="" style="display:none;">

Data has increasingly become an asset in its own right, capable of identifying and generating extensive business value in today’s digital-focused world. Data monetisation alone is a growing industry with an expected growth rate of 24% by 2027. There’s no doubt that it’s set to become more valuable this decade to those who fully embrace it.

We already see how new digital technologies are enabling vast new sets of data to be collected and analysed across a business value chain to create new sources of income or allow for streamlining. In particular, I see three – cloud services, machine learning and automation that can today be deployed alongside existing IT assets to tap into ever-growing opportunities for data monetisation.

As more companies embrace the use cases being unlocked by the new data economy, further benefits will materialise. Enhanced decision-making and analytics highlight important inefficiencies and pinch points along the value chain, while automating repetitive and laborious tasks creates efficient streamlining of operations.

Even more, CX can also be boosted – and there are many more further opportunities available through third-party platforms.

1. Harnessing data insights will usher in greater CX and customer loyalty

Keeping up with customer expectations

Maturing digital solutions bring the ability to contextualise data and create new business value, particularly when it comes to customer relationships. With 80% of frequent shoppers now only shopping with brands that personalise the experience across the customer journey, companies that can collect customer data and produce relevant insights will be able to better understand preferences and be rewarded with loyalty.

Research reveals that an overwhelming 95% of companies saw 3x ROI from their personalisation efforts increased profitability in the first year – and this is where digital transformation plays a key role.

Take Carter Jonas, a leading property service company. It was able to improve its customer profiling processes with a customer relationship management (CRM) upgrade. Working with Columbus, the company wanted to deliver excellent customer experiences and by upgrading to a cloud-based Microsoft Dynamics solution, made this ambition a reality.

Carter Jonas can now capture a contact’s preferences and buying habits on any device and unify this data in a single location. This allows customer service and marketing teams to better tailor personalised messages to enhance up- or cross-selling efforts with existing and prospective customers.

2. Selling data through data insight models creates new revenue streams

Improving data insights

Beyond businesses using their own revenue-generating data insights to improve product and service offerings, the value of data as a business asset can be exploited through licensing to third parties. There is now more interest in actionable data insights as opposed to raw data, as leaders look for more business-specific insights.

For instance, pharmaceutical companies looking to improve sales could purchase anonymised, aggregated health data collected from IoT sensors that monitor vitals, such as blood pressure to find new customers and more effectively target their product marketing.

Industry-specific market research organisations such as Nielsen and Gartner already monetise data in this manner. Other companies across different vertical markets have also started to explore this new revenue stream.

For example, Uber knows the location of its users based upon their pick-up and drop-off locations on the app, and with their permission, the company can share this data with third parties. Uber has also launched a service that lets its customers connect their account to a Starwood Preferred Guest Account and earn points while riding.

3. Third-party platforms will transform data use via democratisation

Data integration platforms

Our experience at Columbus has also led us to a new revenue source in the form of third-party platforms. Even with recent tech advancements, some companies are still not set up to collect their own data and this is where third-party platforms can support the capture and sharing of data with partners of all sizes in order to offer new customer value.

As reported by Marketplacer, Shopify research states that third-party marketplaces now account for half of the global sales volume, which is currently priced at $907.68 billion.

Repackaging of data sets takes this one step further. Take a home improvement retail company that captures customer data in its raw form. A third-party platform could connect the retail company with a kitchen installation company, combining products with a service offering to deliver an optimised experience that customers are willing to pay more for.

Looking beyond specific examples, a recent report highlights how 68% of customer experience experts believe that customer expectations are rising. This means the creation of third-party platforms that bring together a wide range of product categories into an experience-driven event will be key to meeting customer demands and creating new business relationships.

 

Endless opportunities if you approach data monetisation correctly – it’s a regulated market

Now is the time for businesses to seriously consider investing in data-focused revenue models that will be both lucrative and operationally transformative if done correctly. There are, however, some challenges that businesses should be aware of – such as the stringency of GDPR and the Data Protection Act 2018, plus a pronounced shortage of tech talent in the UK – all of which are hurdles to the recent adoption of new technologies.

These challenges can be overcome, but it will require the support of a trusted partner such as Columbus to provide support to implement digital infrastructure and unlock new business value.

The correct partner should be able to evaluate the most suitable systems, workflows and departments for effective digital transformation, and help implement this with minimal operational disruption. By harnessing this support, businesses, regardless of size, will be in a strong position to harness the new potential of the emerging data economy.

Download our cheat sheet to discover how you can prepare your business for the digital transformation that’s inevitably required to achieve this outcome.

Grab your copy

Topics

Discuss this post

Recommended posts

Manufacturers have long been reducing waste and improving product yield and quality by rolling out lean and Six Sigma methodologies. However, due to the complexity and quantity of production activities for most manufacturers, it’s often challenging to identify where they can optimise their processes. This is where implementing new technology can help. Here, we explore five benefits of introducing manufacturing-specific solutions within your operations and how it’ll improve your financial efficiency.
The retail industry – like many others – has experienced rapid transformation over the last few years with solutions such as the Internet of Things (IoT) taking centre stage. IoT has many uses and benefits for retail, including the ability to offer more personalised shopping experiences, increase customer loyalty and satisfaction, boost sales and improve inventory management. It’s estimated that IoT in retail will grow to $94.44 billion through 2025. This increase emphasises how IoT adoption won’t only improve the customer experience directly, but the need for businesses to change the way they do business to meet the demands of today’s connected customer. Using IoT in retail doesn’t only improve the customer experience. It also drives the customer experience by giving businesses the opportunity to gain a better insight into their customer preferences and the opportunity to create a more personalised and interactive ‘shopping’ experience.
A successful data breach can ruin a brand’s reputation in the competitive online world. Though some companies can salvage their reputation and remain relevant in their industry, many never recover from a data breach. You should never assume that your disaster recovery plan will be able to save your company if this type of disaster occurs. In fact, you should be tightening your cybersecurity measures across all online touchpoints and invest in preventive measures. This blog explores the anatomy of a data breach, what it can look like, and what you can do to keep your brand and your customers safe. Here’s what you need to know.
Many companies don’t see anything wrong with their data quality, management and governance processes. But upon examination, this often isn’t the case. It’s easy to forget how big of a role humans play; your people are an important cog in the stream of data. They contribute to these streams and if they’re inconsistent in their approach, it can lead to issues further down the line. I talk about this topic in more depth on an episode of Migration Minded, a podcast series created by the D365 Migration Community. Hosted by Tom Wisniewski, Microsoft’s Global Product Marketing Manager for Dynamics 365, he asks me about cloud migrations, the importance of change management, data management and more. Listen to the episode below (or watch it here).
A 2021 McKinsey report found that the use of artificial intelligence for marketing efforts, business processes and product/service development has become widespread. In fact, 56% of respondents said their business uses AI for at least one function, which is a 6 percentage-point increase from last year. 
right-arrow share search phone phone-filled menu filter envelope envelope-filled close checkmark caret-down arrow-up arrow-right arrow-left arrow-down