In today’s world of Big Data, SaaS, virtual products and services, data is king. Companies from the earliest stage tech start-up to the most established brick and mortar want to find ways to monetize their data. For many small and medium sized businesses monetizing data could be the key to significantly growing their business organically and without a large investment. However, few companies ever achieve this goal.
What makes it so hard for companies to monetize their data? It’s challenging to define what monetizing data really means for a given company and if you can’t define the goal then you certainly can’t create a plan to achieve it.
Figuring out how to monetize your data first requires an understanding of what you hope to accomplish. There are three main ways to monetize data. Listed below are examples of companies that have successfully monetized their data using those three methods.
When you hear the word “collections” it conjures up images of nasty warning letters, harassing phone calls, Repo Man and maybe a scene out of Goodfellas. Those types of collection methods, legal or not, might be part of the collections process at companies that sell products. However, there is an entirely different dynamic when it comes to collecting payments for businesses that sell services ( i.e. SaaS services, streaming movies, mobile services etc.).
There is a delicate balance that service providers live with ‒ collecting timely payment or upsetting the customer, which may lead to reduced business or even the loss of that customer. The challenge companies face in applying pressure to their customers for payment is further complicated because the customers can easily switch to comparable service. Mastering the collections tightrope in order to grow and still be financially solvent is often the difference between success and failure. Continue reading