Data monetization can be an effective tool for helping companies and sectors boost profits and keep consumers happy. Here are five of the industries that data monetization strategies could benefit the most.
Music
The music industry experienced a prolonged period of upheaval due in large part to streaming services’ popularity. The shift to streaming and away from physical music initially caught many industry executives unprepared, making them scramble to deal with the change.
They’re more accustomed to it now, especially since the COVID-19 pandemic helped more people get acquainted with streaming concerts. Grammy-winning artist Brandi Carlile held several ticketed live streamed concerts, with proceeds going to her crew members who were out of work due to the pandemic. Carlile also chose several charities to support with the generated income.
Perhaps an artist keeps track of the number of viewers for a live stream or the percentage of people who buy tickets several days or weeks before an event. Then, it’s easier to determine whether internet-based concerts could prove profitable.
Also, streaming service Spotify offers a significant amount of data to artists who use the platform. For example, musicians can see stream count updates of new releases for the first week of their availability. The number updates every two seconds to give artists accurate perspectives.
Spotify also shows how listeners come across tracks, whether by discovering them through playlist mixes or other means.
Automotive
Today’s automobiles are getting progressively more advanced, and that typically means they collect more data that companies can monetize.
Statistics also indicate that many consumers don’t mind if car manufacturers gather data from them. A 2020 McKinsey & Company study revealed that 37% of consumers would switch to car brands that offered enhanced connectivity.
One data monetization possibility is to track trends related to certain models, color choices, or other features in particular markets. Then, manufacturers could ensure dealerships have the cars that are most likely to sell.
A General Motors representative confirmed that the data it collects generally relates to a car’s location, driver behavior, and vehicle performance. However, they said that the company couldn’t link much of the data to particular individuals.
Brands aiming to roll out successful data monetization strategies should safeguard against privacy violations. If consumers feel companies know too much, they could show progressive unwillingness to use data-sharing features.
Retail
There’s growing interest in data monetization across industries. One study found that more than 91% of executives polled noticed increases in related investments. For example, if a company representative purchases a data analytics platform subscription, they could see insights that might otherwise get overlooked.
The retail sector is an industry with tremendous potential to benefit from data monetization. For example, a brand could track how many e-commerce shoppers redeem a discount code associated with a particular social media campaign. Such statistics help determine whether the effort got the desired results.
Alternatively, physical store data monetization could involve tracking the busiest shopping hours. Perhaps a manager realizes many people leave without buying after seeing crowded store areas or long lines. If so, the solution could be to staff more employees to cope with increased demand.
A typical data monetization challenge happens when brands collect too much information, and there is not enough time to analyze it thoroughly. Thus, retailers seeking to maximize their benefits should choose a few desired goals and determine what kind of data is most helpful in achieving them.
Healthcare
People in the healthcare industry are well-accustomed to using available data to make the most appropriate care decisions. A patient’s lab results or vital signs often dictate which treatments to provide and when. However, organizations can also use data to support profitability.
One example is to explore the issues behind missed appointments. When people don’t show up, that problem prevents a facility from opening the slot to someone ready and willing to take it. A closer look at the data might indicate that most no-show patients assert they did not know they had appointments scheduled.
A text message that automatically adds a person’s appointment to their digital calendar would reduce the issue. Additionally, a data monetization strategy may indicate that many patients could get the necessary care outside of real-time visits.
New Mexico’s Presbyterian Healthcare Services began using an asynchronous communication system several years ago. In 2020, staff members fielded 50,000 low-acuity care queries, each taking an average of two minutes to complete. Patients usually got responses to their text-based content within 15 minutes.
This approach highlights some possible metrics to track during a data monetization effort. For example, how long do patients wait for answers? What percentages of cases can providers tackle without in-person or video-based visits?
Marketing
Data monetization is already a common practice in the marketing sector. However, research indicates the trend will continue.
A January 2021 study indicated that 88% of marketers intend to prioritize gathering and storing first-party data. Although 58% of respondents considered it a high priority, 30% noted it was their utmost concern over the next 6-12 months.
However, the company that conducted the study indicated the growing importance of zero-party data. First-party data comes from customers’ interactions but often gets collected in the background. Zero-party data is information that those people intentionally give to businesses.
Monetizing data can improve marketing outcomes in numerous ways. Many companies look at data while planning campaigns or choosing which advertising channels to use for particular audiences.
Marketing professionals can also apply data analytics to determine which outreach methods will likely resonate most with specific audiences. While working out a strategy, company representatives should assess known challenges and how increased information could overcome them.
Data Monetization Makes Sense
These are some of the sectors most likely to profit from data monetization initiatives. However, other industries could see similarly positive outcomes, especially if representatives take care to ensure the data’s reliability.
