5 Inspiring Data Monetization Examples to Ignite Your Strategy
In this post, we share five examples of companies that have successfully monetized their data and can hopefully inspire your next big idea.
April 17, 2023
Discovering how data monetization is achieved in different companies, can be an eye-opening experience, especially in today’s data-driven economy, in the era of ChatGPT. Companies across various industries are recognizing the immense value hidden within their data and are eager to unlock new revenue streams and maintain a competitive edge.
Also, data monetization isn’t just for software companies anymore! Businesses of all types, from retail to manufacturing, are joining the party and embracing this innovative approach. In this post, we’re excited to share five fantastic examples of companies that have successfully monetized their data. We hope these examples provide you with valuable insights into the power and potential of data monetization for your business.
Eye-Opening Data Monetization Examples
1.Mastercard Advisors:Mastercard Advisors, a division of Mastercard, has harnessed the power of its extensive transaction data to offer data-driven insights and consulting services to financial institutions, merchants, and governments. This innovative approach to data monetization allows Mastercard to generate additional revenue while providing its clients with valuable intelligence to help them make better-informed decisions.
Here’s how data monetization works at Mastercard Advisors:
Data aggregation: Mastercard Advisors collects and anonymizes transaction data from millions of daily credit card transactions across the globe. This data includes information such as transaction amounts, merchant categories, and geographic locations.
Data analysis: The collected data is then processed and analyzed using advanced data analytics techniques and machine learning algorithms. This helps Mastercard Advisors identify patterns, trends, and insights that are relevant to their clients’ businesses.
Customized solutions: Based on the insights derived from the data analysis, Mastercard Advisors creates tailored solutions to address specific business challenges or opportunities faced by their clients. These solutions could include strategic recommendations, marketing initiatives, or even new product development ideas.
Consultancy services: In addition to providing data-driven insights, Mastercard Advisors offers consultancy services to help clients implement the recommended solutions and ensure they achieve the desired results. This might involve developing marketing strategies, optimizing pricing models, or improving customer segmentation.
By leveraging the power of data monetization, Mastercard Advisors helps businesses make informed decisions, optimize their operations, and uncover new opportunities for growth. The company’s unique access to transaction data, coupled with their expertise in data analytics and industry knowledge, enables them to deliver significant value to their clients and maintain a competitive edge in the market.
2. Progressive Insurance: Progressive Insurance, one of the leading auto insurance companies in the United States, has created a groundbreaking data monetization initiative with its Snapshot program. Using telematics devices, Snapshot collects driving data from participating customers, enabling Progressive to offer personalized discounts and incentives for safe driving behaviors. This data-driven pricing model not only allows Progressive to assess risk more accurately but also helps them generate revenue from the data they collect, making it a win-win situation for both the company and its customers.
3. Spotify: Music streaming giant Spotify is another excellent example of a company that has successfully monetized its data. By offering insights and analytics to artists, record labels, and advertisers through its Spotify for Artists and Spotify for Brands platforms, the company has managed to create new revenue streams and enhance its offerings.
Here’s how data monetization works at Spotify:
Data collection: Spotify collects vast amounts of data on user behavior, such as listening habits, preferences, playlists, and social interactions within the platform. This data helps Spotify understand its users on a deeper level and continuously improve the platform.
Data analysis: The collected data is analyzed using advanced algorithms and machine learning techniques to identify patterns, trends, and insights. These insights enable Spotify to make informed decisions about content recommendations, personalization, and marketing strategies.
Personalization and content curation: Based on the insights derived from data analysis, Spotify creates personalized playlists and recommendations for each user, ensuring a tailored listening experience. Furthermore, Spotify uses data to identify trending songs and emerging artists, allowing them to promote new talent and support the growth of the music industry.
Targeted advertising: Spotify leverages its user data to offer targeted advertising solutions to businesses. By understanding user preferences and demographics, Spotify can deliver highly relevant ads to specific audience segments, enabling advertisers to achieve better results and higher return on investment.
Artist analytics: Spotify also shares data insights with artists and record labels through its Spotify for Artists platform. This allows artists to understand their fan base, track their performance, and make informed decisions about marketing, touring, and content creation.
By effectively monetizing its data, Spotify has created a win-win scenario for all parties involved. Users enjoy a personalized listening experience, artists gain valuable insights into their fan base, and advertisers can target their campaigns more effectively. This data-driven approach has been instrumental in Spotify’s success and continues to drive innovation and growth within the platform.
4. Zalando: Zalando, Europe’s leading online fashion platform, has tapped into the potential of data monetization through its ZMS Insights service, in partnership with Gooddata. This offering provides brands and retailers with valuable consumer insights based on Zalando’s vast trove of shopping data.
Here’s how data monetization works at Zalando:
Data collection: Zalando gathers extensive data on user behavior, preferences, and purchasing patterns, enabling the company to identify trends and optimize product offerings.
Data analysis: Using advanced analytics tools, with the help of GoodData, Zalando’s developed ZMS Insights to provide its brand partners with detailed access to customer data. These insights empower brands to better target their customers and grow their businesses.
Collaboration with brand partners: Zalando shares data-driven insights with its partners, allowing them to optimize their strategy, product, market, and merchandising decision-making. This collaborative approach fosters strong relationships and drives mutual growth. Granular insights such as why a certain price point works for a particular region vs another have helped brands make decisions like developing new products and services for different demographics.
Tailored brand and sales analysis: Zalando combines purchase data with customer surveys to offer customized brand and sales analysis. This helps brands better understand their customers’ preferences and their overall brand perception.
Customized dashboards and insights: ZMS Insights provides brand partners with eight dashboards and over 30 metrics, enabling them to identify new opportunities, benchmark against competitors, evaluate performance, and monitor market share. Brands can also access comprehensive research, ad hoc consulting, and customized dashboards.
Zalando’s data monetization efforts have proven to be highly effective, with more than 70% of brands using the ZMS Insights tool checking it monthly, and 46% checking it weekly. By empowering its partners with actionable data insights, Zalando continues to innovate and redefine the e-commerce landscape.
5. General Electric (GE): GE, a global industrial conglomerate, has transformed its business by adopting a data-driven approach to its operations and offerings. With its Predix platform, GE has enabled industrial companies to collect, analyze, and monetize their data through the development of applications and analytics solutions. This has not only allowed GE to unlock new revenue streams but also helped its customers optimize their operations, reduce costs, and improve overall efficiency. GE’s success with data monetization serves as a prime example for other industrial companies looking to capitalize on their data.
In conclusion, data monetization is a game-changer in today’s competitive business landscape. Brands across various industries are harnessing the power of data to unlock new revenue streams and enhance customer experiences. By considering data monetization strategies, such as embedded analytics, businesses can gain a significant competitive edge.
Explore how Veezoo can help you drive growth and success through intelligent data monetization. Reach out to us today and let’s embark on a transformative journey toward a data-driven future, together!
See yourself how Veezoo can simplify the access to insights from your data.
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