According to RealtimeCampaign.com, as a result of advanced technologies, companies are able to use data for the purpose of generating revenue in many different ways. As you can imagine, the issue of compliance is critical. The last thing any business wants is to end up with a scandal born out of the improper use of client information or a failure to comply with laws and regulations, especially in the financial arena. Have you heard of the paradox of data: can financial services avoid a Cambridge Analytica? They are a consulting firm that became the center of a scandal surrounding the way in which data was used for political purposes.
There are instances when a company desires to generate an additional stream of revenue using the data they’ve collected without actually breaking any laws. Given the sensitivity of some data and the requirement to disclose how that information is being used, exploiting data to generate additional revenue can feel like walking a tightrope. For starters, it’s important to remember that big data has transformed the way business is conducted across industries. While the initial purposes were squarely focused on marketing, the collection of data shifted towards improving the customer experience. In other words, the more data you collect, the more personalized the sales and marketing experience.
Paxata is one company that helps to prepare data for analytics. Companies like this help with data monetization because they simplify the process of data integration and management, which makes it easier to develop strategies for data monetization. They also focus on data quality, which can strengthen the outcome of data monetization programs. While the analysis of data is a necessity when it comes to enhancing the customer experience, it’s also changing the way in which companies use data to make money.
It’s important to keep in mind that data monetization isn’t just one thing, which is why a data monetization strategy can vary significantly from one industry to another. Technically speaking, data monetization is having the ability to generate money from available data. How that money is generated depends on the company’s capabilities. In some cases, selling that information is not unethical, as long as the purpose and methods comply with regulations.
There are many ways to turn corporate data into income. The economic benefit of data and it’s analysis also relate to using the information to boost customer satisfaction levels, which will increase revenue. There’s also the benefit of preventing fraud, which is of monetary value because it can mitigate significant losses. Data monetization can also take place when revenue leaks are diagnosed and corrected through analytics. These are all ethical and viable data monetization strategies that are currently used across industries.