Convert Group is a Business Reporter client.
Recent changes in the retail market have presented both challenges and opportunities for European retailers. The change in the shopping patterns after the end of the pandemic, combined with the current inflation and supply chain issues, has pushed retailers to review their strategies, adapt and innovate in response to changing market conditions.
To overcome profitability issues, European retailers are looking for new revenue streams beyond their traditional business. Media and data assets present a unique opportunity to generate a new high-margin revenue stream, while at the same time improving collaboration with their suppliers. Data monetisation, which is growing by leaps and bounds, is adopted mostly by grocery retailers, but other industries are also following. The time is now for retailers to gain a competitive advantage and significant extra revenue by innovating in the space of data insights.
Opportunity: Retailers who do not monetise their data are leaving cash on the table— (Courtesy of Convert Group )
There is a huge opportunity out there, and retailers who do not monetise their data are simply leaving money on the table. Amazon, Walmart, Tesco, Carrefour, CVS and JD.com are some of the billion-dollar retailers that have adopted data monetisation programs, monetising data and media. There are countless benefits from implementing such programs, creating a win-win-win scenario for retailers, their suppliers and consumers.
New revenue stream: By monetising their data, retailers can create a new high-margin source of revenue.
Improved decision-making: By analysing data and extracting insights, retailers can gain a deeper understanding of their customers, operations and market trends. This, in turn, can help them make more informed decisions and develop more effective strategies.
Better customer experiences: Data can be used to personalise customer experiences, providing tailored recommendations, offers and promotions that are more relevant to individual customers. This can improve customer satisfaction and loyalty, leading to higher retention rates and increased revenue.
Retail media acceleration: Data monetisation is a powerful tool for retailers looking to improve their advertising efforts. By leveraging their data, retailers can offer highly targeted advertising to brands, resulting in higher engagement rates.
How is data monetisation linked to retail media?
The retail media market is currently estimated at $100bn, and is expected to grow by 60 per cent until 2027. The reason why it is growing so rapidly is because it offers targeted advertising, high return on investment, multiple advertising formats and detailed data analytics.
Data monetisation is fuelling retail media investment as it provides valuable insights to advertisers on the right audience, the right placement, the right message and the right time while also offering visibility on the return on advertisingspend. Overall, data monetisation and retail media are both important strategies for retailers looking to generate new revenue streams and improve their overall profitability. By leveraging data to create more effective advertising opportunities, retailers can improve their relationships with customers and drive long-term success.
Most retailers know that data monetisation can help them stay competitive in an increasingly crowded market and help them create new revenue sources, but they often wonder whether partnering with a data monetisation expert is the best strategy, rather than just doing it on their own?
Building a data monetisation program can be time-consuming and require significant investment in resources and expertise. Organisations will need to have a deep understanding of their data assets, as well as expertise in data analytics, privacy and security. Large retailers such as Walmart are doing it on their own, investing significant time, money and people to build, maintain and upgrade their data sharing platforms, essentially behaving like software vendors.
Partnering with a data monetisation expert, though, can be a smarter and more cost-effective option for retailers without the finances or technology capabilities of organisations such as Tesco or Amazon. Third-party vendors can provide turnkey solutions that are ready to use out of the box, enabling organisations to quickly start generating revenue from their data, while allowing retailers to focus on the core activities of their business.
Having the right data monetization partner can offer three main benefits:
● Speed – given the knowhow and the existing infrastructure.
● Flexibility on the business model – being able to define the responsibilities of each party depending on the strategy of each retailer.
● Scalability – given that there is a dedicated sales and customer success team for their suppliers, building strong relationships with them.
As an example, at Convert Group, we launched data monetisation programs in less than two months, and have since witnessed incremental revenues of 0.5 per cent of the retailer’s turnover within just six months.
If you want to start your data monetisation journey, we are at your disposal, so book a call here.
About Convert Group
Convert Group leads the data and analytics Market Intelligence space in the global e-commerce and omnichannel segments. With operations in 21 countries across Europe, Latin America and Africa, Convert Group leverages its AI-powered eRetail Suite platform along with data and analytics to unlock the digital potential of retailers and brands. The company boasts a rich portfolio of hundreds of dominant online retailers and 15 out of 20 biggest global FMCG and consumer healthcare firms. Convert Group has been named as one of Europe’s 1,000 fastest-growing companies for two consecutive years by the Financial Times and Statista.
