Data is becoming more significant in today’s business environment. It is a primary source of decision-making, but beyond that, leaders who approach data strategically can use it for monetization. It also introduces new business models that can open revenue streams.

Various Types of Business Data

First, let’s explore the various types of data a business can collect. They include:

• Analytics Data: The data a company collects for analytics purposes, such as web traffic and SEO. These types of data can be used to improve marketing and online visibility.
• Inventory and Supply Chain: Companies collect this data to maintain accurate inventory counts, predict supply and demand needs, and identify potential disruptions in supply chains, allowing them to plan ahead.
• Product Data: Product data refers to the information companies collect about their products, including sales numbers and manufacturing costs. They help organizations understand the popularity of the items they sell.
• Marketing Data: This data provides valuable insights into the success of the company’s marketing efforts, helping them develop the most effective marketing practices.
• Employee Data: Employee data tracks an employee’s performance in the workplace, providing metrics on productivity and morale.

Turning Assets Into a Revenue Stream

Business data can be utilized in two ways to generate income for businesses. First, organizations can use data to optimize sales and expand their reach to new audiences. They may also consider a B2B approach that can help them grow within their industries or on a broader level.

Here are some examples of B2B business models companies may consider adding to their service suite.

• Selling to Third Parties: Data is crucial to company growth, but many organizations lack the skills to collect and analyze data, so they turn to professional data services (DaaS) for this information. However, if your company has the skills to collect this information, consider branching out into the DaaS field. Organizations considering this direction must be familiar with compliance laws and understand the types of data that are in demand. With the right approach, you may discover a lucrative revenue stream for your company.
• Creating Advertising Platforms: Advertising platforms are online marketplaces that businesses utilize to promote their products and services. They can target specific audiences, leading to higher click-through and conversion rates. Companies will typically identify existing advertising platforms that optimize their sales, but those with the capabilities may develop unique systems for advertisers across the business landscape.

Here are some examples of how organizations can use the data they collect to boost revenue within their business.

• Improving and Developing Products and Services: Organizations can utilize the data they collect to identify market needs, enabling them to develop products that address pain points and meet demand. This data can also help them improve existing products to increase customer satisfaction.
• Boost Productivity: Data can assess business processes, identifying bottlenecks and waste to streamline operations, leading to more efficient output and cost savings.
• Improves Customer Service: Enhanced products and increased productivity enhance customer satisfaction. Organizations can take it a step further by reaching out to customers through surveys to identify improvements they’d like to see, and then taking steps to increase conversions and loyalty.
• Helps with Decision-Making and Problem-Solving: Modern companies often utilize data in their decision-making processes, incorporating historical data and predictive analytics to forecast market trends. They gain insights that help their organizations find solutions that support efficient operations.

Tips for Utilizing Data

Companies can maximize the value of the available data by taking the following approach.

• Identify Opportunities: Identify opportunities that exist within your market through feedback, market research, competitor analysis, and brainstorming. Consider how the data can help you enhance your products and services and allow you to create new offerings and business models.
• Validate Data Solutions: Validate data solutions before investing too much time and money. Test your assumptions and hypotheses using surveys, interviews, and prototypes before taking them to market.
• Develop Products and Services: Develop products and services based on validation results and feedback.
• Focus on Continuous Improvement: Continuously monitor data to ensure that products, services, and operations meet market needs. Measure the results of your monetization efforts to determine what’s working and what’s not.

Want to learn how to use technology to support your organization’s financial growth? Sign up for our newsletter today.