In these times of lean margins and increased competition, Retailers have a huge opportunity to monetise their websites, assets, channels and data, while helping brands to achieve their sales and marketing goals.
One way innovative retailers are beefing up the bottom line is through retail media and assets monetisation. This can be done by selling advertising space on their website that is tailored to their customer’s needs while creating highly effective joint marketing activations with their suppliers. This strategy not only helps retailers make more money from their advertising space, but it also helps improve the user experience on their site by showing them ads that are relevant to their interests.
Another way, even greater than media and assets monetisation, is data and insights monetisation. This trend is expected to extremely rise in the foreseeable future, putting pressure on Retailers who have not yet started monetising their data.
When done correctly, data monetisation can be a great way for Retailers to generate additional revenue for their business, while also providing value to their customers.
In this blog post, we will take a look at the importance of data monetisation for online retailers and how it can benefit all parties in the supply chain.
What is Data Monetisation?
In order to understand the importance of data monetisation, we first need to understand what it is. In a nutshell, data monetisation is the process of turning data into revenue. It can be achieved in a number of ways, but most commonly involves either selling access to data or using it to generate insights that can be used to inform business decisions. This data can come from a variety of sources, such as transactional, eCommerce and customer data.
Data monetisation is important for online retailers because it allows them not only to improve their own operations but also to offer valuable insights to their suppliers. By doing so, they are able to negotiate better terms in their Joint Business Plan (JBP) agreements and set targets that improve their chances of achieving success. In addition, data monetisation also allows retailers to package their data in a way that makes it easier for suppliers to understand and use. This helps streamline collaboration efforts and make sure that everyone is on the same page when it comes to eCommerce success.
How Can Online Retailers Monetise Their Data?
There are many different ways to do this, but one of the most common and secure methods is selling it through a data marketplace. Data marketplaces are online platforms that act as a middleman between retailers and suppliers, a one-stop-shop to find the right data sets and negotiate prices, making the process of selling data much easier.
This allows businesses to sell their data in a safe and secure environment, while also ensuring that they comply with all data privacy laws and regulations. Not only does this provide a steady stream of revenue for the retailers, but it also helps to improve their reputation as a responsible and transparent organisation.
There is a wide range of data available on data marketplaces, including purchase habits, marketing information, basket analytics, navigation trends, top-selling SKUs, keywords, seasonal demand fluctuations and more. These aggregated data sets can be extremely valuable for businesses that are looking to gain insights into their customers’ or competitors’ shopping behaviour.
What Are the Benefits of Data Monetisation?
There are many benefits associated with data monetisation, both for online retailers and for the suppliers they work with. Some of the most important benefits include:
1. Better decision-making
Data analytics can help identify trends and patterns that would otherwise be difficult to spot. This allows businesses to make better decisions about where to invest their resources and how to improve their operations.
2. Increased revenue
When businesses are able to extract value from their data, they can generate new revenue streams from selling these insights or using them to inform other aspects of their business (such as marketing or product development).
3. Reduced costs
By improving operational efficiency and making better decisions about where to invest resources, businesses can save money on unnecessary costs.
4. Better management of promotions
Retailers and Suppliers can work together to make sure promotions are relevant and personalised to their customers’ needs.
5. Improved relationships with suppliers
When online retailers share actionable insights with their suppliers, they are able to build trust and improve relationships. This leads to more efficient collaboration and a better understanding of each other’s needs and goals.
6. Improved customer experience
When businesses have a better understanding of their customers’ needs and behaviour, they can design improved customer experiences that increase loyalty and retention.
7. Greater competitive advantage
Businesses that are able to effectively monetise their data will have a major competitive advantage over those that don’t.
As more businesses wake up to the numerous benefits data monetisation offers, we can only expect to see its use become more widespread in the years to come.
If you are an online retailer who has not yet started monetising data, now is the time to do so!
Seeing how global trends shape the future of eCommerce, we created a data monetisation platform that offers a unique and easy-to-use environment for both retailers and brands to collaborate and interact with cleansed, de-duplicated, and enhanced data, visually appealing and a breeze to control.
Want to learn more about data monetisation? Watch our on-demand webinar: