What is Data monetization exactly? Well, it can be described
as a way in which you can earn revenue through the use of data. Furthermore,
data monetization can be direct money, meaning when you sell your data; it can
also be indirect, using data in an effort to increase business or improve
products or services that will in turn, improve your financial state.
Data is monetized in many different ways. Customer purchase
history is collected through loyalty programs like CVS ExtraCare, through
ecommerce websites that you have created an account with, such as Amazon, and
so much more. With Google Analytics, you can see which landing pages’ people
are clicking on, which products have received the most clicks, and the entire purchase
journey, from the first time landing on the website, to looking at multiple
products, to adding products your cart, and then the final completed checkout. Ever
go on a website looking for a dress, and later leave that website without purchasing,
and continue seeing that same dress on ads on the side of your Facebook page,
or google search? I bet you have! Well, this is because you have been
retargeted. It almost seems creepy, huh? It does, but it works. I have been
retargeted before, and eventually after seeing the ad so many times, I have
bought the product I searched for. However, after furthering my career and my
education in digital marketing, I would say that I would ignore these ads more
than the normal consumer, because I am aware of how these ads work.
Now, let’s discuss data monetization in banking. Banks have
a wealth of data on their customers, it’s unbelievable what they can use it
for. Banks have information on their customers’ contact information, including
name phone, email, and where they reside. Additionally, banks have their
customers’ financial statements. Now, this data is powerful. You can create
targeted emails campaigns and social media campaigns based on their location or
their financial status. For instance, someone who is in a 3-year car lease with
your bank, and their lease is soon coming to termination, you could create a
targeted ad towards that customer to start thinking about using your bank again
to finance their next leased vehicle.
It’s really amazing how much data is out there, and the
effect this data can have on your business, if you put it to use.
Unfortunately, there are many companies who will analyze data and report on it,
but will not make actionable decisions based on their data. Many companies only
use data to understand past performance, when they could also be looking at
data to forecast future results, and make changes to improve their business.
So, my suggestion is that you start by creating KPIs (key
performance indicators) for each department in your company. These KPIs will be
the main data that you want to analyze and understand how you are performing. Once
your team has aligned on KPIs, set up monthly meetings to discuss your KPIs so
that you are frequently discussing the data and putting forth actionable
insights. Use your data to create targeted campaigns, so that you are sending
the most effective messages to your consumers. Use your data to decide whether
you should stop selling a certain product, or if you need to make improvement
on the product. Whatever you do, just don’t let your data go to waste. Analyze
it. Report on it. And, create recommendation established from your results.
