Data Monetization

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.