3 Key Ways to Monetize Your Data

Monetize Your Data
3 Key Ways To

© 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
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Introduction
Introduction
Data is an integral strategic asset for your businesses – but do you know how to
monetize your data? Here are three ideas for making money from your data, so
you can drive business growth.
3 Key Ways to Monetize Your Data

I’ve written a book on data strategy, and one of my primary jobs is guiding
businesses through the process of using their data effectively.
One of the most common questions my clients ask me is “We have all this data.
How do we monetize it?”
In this post, I’m going to break down the three primary ways you can monetize
data to drive business performance.

The first way I recommend companies monetize data is by using it to
understand market trends and shifting customer demands. Data is a highly
useful tool for discovering what customers want now, and what they will want
in the future.
Looking at customer data on an ongoing basis enables you to create better,
more relevant, more personalized products and services, which in turn drives
revenue for your company.
Using this strategy for monetizing data is a great long-term move for your
company, because your responsiveness establishes customer loyalty, which in
turn increases the lifetime value of each customer.
Better Insights with Data

You can also use data to streamline your operations and reduce business
expenses.
Use data to optimize processes, automate jobs with AI, reduce transportation
and logistics expenses, eliminate marketing costs, and more. Examine your data
to identify where you might be able to use it to make your company more
effective and efficient, and increase your profits.
Using Data to Cut Costs

When clients ask me about how to monetize their data, selling or renting the data to
outside parties is typically what they’re thinking of.
A company's data is becoming increasingly important as an asset in its own right. When a
company is valued in preparation for a potential sale, for example, the value of that
company's data is included in the overall valuation.
Selling or renting your data is definitely a path to monetization, particularly if your data is
unique or difficult to find from other sources.
When I worked with the telecom company EE, they created a department to evaluate how
they can use their data, including location data, on their customers. We asked questions
like, "Who might be interested in this type of data? Who might pay for it?" Then we
formulated our strategy from those insights.
Selling or Renting Your Data

Even organizations that are not strictly data companies can make money from their
data. For example, farm equipment and tractor manufacturer John Deere created an
intelligent farming system that pulls in soil and weather information, then provides
recommendations to farmers about what to plant, when to plant it, how much
fertilizer to use, and so on. John Deere makes over a billion dollars a year selling
their data to farmers.
Visa makes over a billion dollars a year selling data back to retailers who need
information about customer purchase patterns. These retailers may not have their
own loyalty card programs, so they can only see what customers buy in their
individual shops and can't get an overall view of purchasing behavior. Visa can sell
these retailers valuable, aggregated data on their customers and make a lot of
money doing it.

These are the key ways organizations can monetize their data: By creating
better products that meet the needs of future consumers, by cutting costs, and
by selling or renting their data directly.
If you’d like to learn more, I encourage you to check out my book, Data
Strategy: How to Profit from a World of Big Data, Analytics and the Internet of
Things, or visit my website or YouTube channel to get more data monetization
ideas for your company.

Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website
© 2020 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website

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3 Key Ways to Monetize Your Data

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