How to monetize data and How it works.

Data monetization has been used to improve a company’s revenue. It works with a lot of data that is called big data. Big data is information that a company has gathered through its business practices. This information will tell a story at the end, so the more information your company gather, the clear and correct the story will become. Monetizing data helps companies see things in completely new perspectives by analyzing the smallest details and turning it into the broadest frame of understanding.     

Why Companies use data monetization.

Companies use data monetization to enhance their revenue in different ways.

First, improving the internal business environment: companies use consumers’ data to enhance consumers’ experience, service and product quality, increase product and services innovations, and increase sell opportunities. In addition to that, companies use sentiment data related to consumers’ behavior on social media channels to facilitate targeting them through more engageable content. With data based on consumer insights and precise business decisions, companies will deliver more valuable services and satisfied customers’ demands.

Second, using data to make money: companies sell their consumers’ data to generate new revenues for the company. Companies can invest their consumers’ data if this data is consistent with the full conditions of credibility and accuracy. If your company owns consumers’ data such as their buying habits, products feature they are looking for, and what they are interested in buying, you can sell this data to other partners and increase your revenue.

However, This article is not only about big data and why to use it, but also is about learning how to sort and monetize data instead of being crammed somewhere.

How to turn data into dollars?

1. Ask the right questions.

Start with asking questions related to your company performance and things you want to change or to improve, and try to find sufficient data to answer those questions. If data you collected did not answer those questions or did not help you to come up with the right decisions, then your data is completely inaccurate and insufficient.

2. Understand your consumers.

You should deeply understand your consumers’ needs and preferences because this will be a key factor in enhancing products and services, and therefore filling your consumers' unmet needs.   

3. Sophisticated information technology infrastructure.

Traditional tools of analyzing data are no longer work with big data because of its size. Therefore, make sure that your company is using information technology that is sophisticated,so you do not lose the value of your data and your consumers’ data privacy. Paule Blase mentioned this in her article “ How Businesses Are Transforming Revenue Models by Monetizing—and Protecting—Customer Data”

”It’s clear that businesses will be unable to generate new revenue from data sources without leading-edge data management and analytics capabilities—and data-privacy processes that underpin customer trust”.

 Finally, data monetization is all about using data and transforming it into currency by deeply understanding your consumers’ and your company’s performance. Identifying your target consumer's needs, requirements, and desires will help you effectively map your data and make changes to the way you do your business. 

Try to choose the right business model to monetize your data, and think about improving your current business and offering new products and services. You should never underestimate the power of data monetization in improving your revenue through increasing your business opportunities in online space.

sufficiently, this data coming from marketing analytics will show you social media channels which your target audience are active on. In addition, this data will facilitate targeting them, and providing content that will make them engage with your social media platforms and your brand. So, all data that you monetize will turn at the end into profits.

Sources: http://deloitte.wsj.com/cio/2015/06/30/the-dangers-of-monetizing-data/ 
http://sponsoredcontent.wsj.com/pwc/broader-perspectives/how-businesses-are-transforming-revenue-models-by-monetizing-and-protecting-customer-data/