Knowing your customer is the first step towards developing a great product. Observing their behaviors, exchanges, and transactions is the best approach to getting to know them.
Businesses are gathering a growing amount of information about user behavior on their websites, applications, social media accounts, and other customer-facing touchpoints. By providing better solutions, you may use this data to learn how your visitors interact with your website or product and increase income.
This article will tackle what you need to know about monetizing data successfully with business intelligence to motivate your company to use data more strategically.
How to Monetize Data Using Business Intelligence
Many corporate executives concentrate on volume and velocity when discussing the “Big Three” of big data: volume, velocity, and variety. Variety is crucial as you must comprehend what has already transpired and how users interact with your product to optimize for improved outcomes.
Because they lack the resources to monetize their data at scale or promptly, many businesses find it challenging to make money off of it.
For example, many businesses track their ad revenue from clicks, views, and transactions using key performance indicators (KPIs) pre-calculated with revenue figures. They then utilize this data to decide what to include in their marketing budget and product roadmap.
Many businesses discover that this ad hoc technique is no longer effective because either the computations take too long or the data flows in too quickly for pre-calculated reports to be helpful.
Businesses can monetize data by using business intelligence (BI) to create dashboards, visualizations, and reports about their customers’ purchasing patterns, the money they make from different advertising channels, which sources work best, what activities drive engagement, and more.
These insights enable marketers to test ideas quicker, which results in more intelligent choices that eventually increase sales. Also, choosing an appropriate backend framework for your business intelligence can enhance data processing, improve real-time analytics, and contribute to making more informed business decisions.
Importance of Business Intelligence in Increasing Revenue
Businesses can gain valuable insights from data analytics about what is happening in the market, with competitors, and internally. They can also develop customized services for their customer base using business intelligence. Increased sales and satisfied consumers follow from this.
By using business intelligence (BI) to monetize data, you can follow client behavior at scale in an automated and scalable manner.
Business intelligence tools are made to rapidly and efficiently evaluate the data produced by your app or website and offer insightful information about how customers engage with your brand. Businesses that employ BI have extensive user data. They can provide you with information on a user’s level of engagement, interests, and usage behaviors of your product. Even so, knowing how to get better without understanding the motivations behind those behaviors can be challenging.
Businesses can use business intelligence (BI) to track customer behavior in real-time and incorporate analytics into critical business decisions, such as marketing plans and product development. Businesses can then start to comprehend the “why” underlying these activities.
Since you’re working with data, investing in fraud verification and detection products will help you safeguard any information and allow you to secure the most qualified investors.
How to Increase Revenue Through Business Intelligence
You can use BI to monetize data in two ways: generating new revenue streams and enhancing current ones.
Generate New Revenue Streams
Businesses utilize data analytics in various ways to try to boost income. The most popular methods involve acquiring new clients or increasing sales from current ones. Additional instances consist of:
- Utilizing data observations and user feedback to develop a new feature or product.
- Requesting additional fees to use the premium features.
- Customers upsold on extra services or goods that they had not previously considered.
- Use data to produce deals, discounts, or other promotions that bring in more money than they do.
Boost Existing Revenue Sources
Enhancing your present revenue streams is another approach to monetizing data. Although there are other methods for doing this, the following are the most popular ones:
Increasing Ad Targeting Efficiency
Advertisers want their money to be spent wisely and directed toward the correct audience; this much is obvious. Combining Google Analytics with consumer data will help you determine where to advertise and which pages get the most attention.
Identifying Strategies to Increase Revenue-per-Customer
Having clients who spend more money yearly or make larger purchases is one of the finest methods to increase revenue (LTV). This practice is commonly known as “up-selling.” You can identify the kinds of users who are most likely to spend more money or make larger purchases through a customer-focused BI dashboard.
Let’s say, for instance, that you find that individuals who purchase premium subscriptions are also the ones who often use your product. If so, the best approach to increase money would be to target them with an advertisement suggesting they upgrade their account.
Improving Customer Service
BI systems can monitor metrics for every user demography and follow user activities from many data sources through data integration. You can start making targeted sales and marketing decisions that will improve your data monetization alternatives after you dig down into the data by each customer persona.
You need to consider every customer interaction with your product and their actions at every point of the customer journey when developing a business intelligence (BI) strategy.
Your ability to create a plan that appeals to each unique customer will increase with the level of insight you have into the user’s behavior. You will be in a better position to make strategic judgments about the upsell and renewal actions you should use with each customer if you have greater clarity and knowledge about them.