Written By: Gargi Sarma
Retailers are sitting on a treasure of data in today's data-driven society. Retailers can improve customer experiences, open up new revenue streams, and gain a competitive edge by utilizing this data. Here, we examine several data monetization tactics that merchants might use, backed by actual cases.
For retailers, data is the new gold. They gather a ton of data on demographics, spending patterns, and client behavior. Strategic exploitation of this data can be a goldmine for creating new revenue sources.
Figure 1: Key Data Sources and Monetization Strategies
Market Insights:
Global Data Monetization Market:
The global data monetization market size was valued at USD 2.99 billion in 2023.
It is projected to be worth USD 3.47 billion in 2024 and is expected to reach USD 11.83 billion by 2032.
The market is exhibiting a CAGR of 16.6% during the forecast period.
Retail Component:
The e-commerce and retail segment constitutes approximately 11% of the total data monetization market.
This segment is forecasted to show a compound annual growth rate (CAGR) of 36% from 2016 to 2023.
Figure 2: Regional View of Data Monetization (Source: Technavio)
Emerging Trends:
Private Data Demand: Emerging industries are increasingly demanding private data and analytics, driving the need for data monetization.
Edge Computing: Trends such as Big Data, Artificial Intelligence (AI), and the Internet of Things (IoT) are boosting the demand for edge computing software architecture.
Real-Time Analytics: Chief officials recognize the immense value of real-time data analytics, further fueling the market for private data.
Reasons for Retailers to Profit from Data:
Open up new revenue streams: Data can be sold to suppliers as insights, utilized to create loyalty programs, or targeted advertising.
Improved decision-making: Product placement, inventory control, and targeted marketing efforts can all benefit from data.
Data Monetization Strategies:
Selling Insights to Brands: Retailers have access to valuable information about who purchases what goods, where, and when. When seeking to comprehend market dynamics, brands—especially new ones—need to know this information. When a new product, like laundry baskets, is introduced to the market, a brand may not be aware of who is buying what kinds of laundry baskets, how sensitive they are to price, or how the market is competing. Retailers can profit from these data by helping firms make well-informed choices on new product launches, price policies, and advertising campaigns.
Creating Loyalty Programs: Retailers can create customized loyalty programs by utilizing their data. They are able to provide their consumers with individualized discounts and rewards by examining their purchasing habits and preferences. This improves consumer satisfaction and retention while offering an additional avenue for data collecting, hence expanding the retailer's database.
Target Advertising: Retailers can use their data to provide companies with extremely focused advertising options. Retailers may better assist companies in reaching their target audience by helping them understand customer demographics and purchase behaviors. To boost conversion rates, a new skincare company might, for example, aim advertisements just at consumers who have already bought skin care goods.
Optimizing Product Placement and Inventory Control: Retailers can improve inventory control and product positioning with the aid of data analytics. Retailers may cut waste and boost sales by stocking the correct products in the right locations by knowing which products are popular in certain areas. Additionally, this data-driven strategy aids in more effective inventory management and demand prediction.
Conclusion:
Retailers today have access to a wealth of data that might significantly boost consumer happiness and revenue development. Retailers may enhance their competitiveness in the market, generate new revenue streams, and streamline operations by strategically exploiting this data. Retailers can take advantage of digital marketplaces, branch out into e-commerce, or even form strategic alliances by utilizing their comprehensive consumer data in addition to conventional brick-and-mortar techniques. In addition to being in line with current economic trends, this proactive strategy sets up merchants for success in the digital age.
Retailers may efficiently use their data to make choices, automate pricing tactics, and improve overall business performance by utilizing advanced analytics and pricing solutions such as those provided by RapidPricer. Find out how RapidPricer can turn your data into a valuable asset that promotes client loyalty and long-term growth.
About RapidPricer
RapidPricer helps automate pricing and promotions for retailers. The company has capabilities in retail pricing, artificial intelligence, and deep learning to compute merchandising actions for real-time execution in a retail environment.
Contact info:
Website: https://www.rapidpricer.com/
Email: info@rapidpricer.nl
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