Raising revenue is always a challenge for many companies. In e-commerce, for example, this is possible through three basic paths: increase in audience, increase in product variety and growth in conversion rate. In the current economic climate, it is easy to worry about the low profit margin and the hard-to-reach loyalty. And, in this concern, one can be beaten by the company's greatest treasure: the data. Realizing this movement and shifting the focus to take advantage of the data is to turn them into money. When well used, data can be the solution to generate revenue and save money. Moreover, the traditional campaigns are dead. Modern marketing is a data exchange.
What you may not know is that these same data can be used to empower the team and be used as opportunities that activate the customer portfolio, showing that the company understands the customers’ behaviors and what they want. This way, customized campaigns and promotions can be developed to target different type of buyers. Data is also full of valuable information that can help companies track spending by allocating their resources and time to get the most return possible. Companies are willing to invest in data and everything that involves them; they will certainly be interested in extracting the most of them to boost their financial return.
Here are some steps to boost a company’s profit by using data analytics on an efficient way
1st step: Delivering value
First, determine what kind of data will have the greatest impact on your bottom line, using those that have the greatest potential to increase revenue / profits or reduce costs. Often this process will require preliminary research and analysis to discover patterns in customer behaviors and buying patterns. In addition to delivering fast returns, this approach will also produce tangible results that will support and justify the expansion of the strategy to other sectors and projects.
Step 2: Finding the origin of the data
Now you need to identify the data itself and where it can be found for collection. Some types of data may be more difficult to obtain than the information accessed at a company's CRM, but aligning existing data from the SAC, branding application, and search history will substantially increase the monetization potential.
Step 3: Turning data into money
Inconsistencies and redundancies can compromise the quality of data, which will often come from multiple sources. A company can only get maximum financial return from the data once it ensures the integrity of its information assets. If the goal is to monetize data by crossing patterns of customer behavior with a more targeted offering, the company will need to look for information in CRM, point of sale, and online consumer interaction with the brand. This will happen with the support of technology and a strategic partner for the venture.
Step 4: Integrating roles at a company
Data monetization opportunities exist at various levels of the business, so it is imperative that everyone involved actively participate in collecting information, increasing revenue, and reducing costs intelligently. Executive management, for example, could analyze high-level data to track critical performance metrics related to profitability, while analysts look for data on individual operating processes to identify areas that need improvement while maximizing productivity. The operation could capture and use information to improve customer interaction, bringing the experience to new levels of satisfaction, loyalty, and retention. Allowing the operational team to have access to data tends to have a positive impact on overall performance, as collaboration between firms has even more potential for monetization, making the value of shared information with partners and customers grow exponentially. Companies that follow such hierarchy tend not to be as successful, but once working as a team, goals can be reached with a faster turnaround.
Interesting, no? Who would imagine that one day a bunch of numbers like that would make such a difference on a company’s performance. Please feel free to comment and share this post!
Information gotten from: IT Business Edge, How To Monetize Data in Five Steps
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