New value is created by collecting customer data and preparing it in beneficial ways for internal usage or interested third-parties. Revenues are generated by either selling this data directly to others or leveraging it for own purposes, i.e., to increase the effectiveness of advertising.
How they do it: Amazon is collecting the individual interests and purchases of its customers to create cross-selling opportunities with individual marketing and targeting (e.g. ”based on your recent search, we want to show you the following products...” or ”customers who bought product x also looked at product y”).
Learn more about Amazon Store →
How they do it: Twitter personalizes advertisements shown on its website and mobile application based on customer data (e.g. browsing history and interests). This increases the effectiveness of advertising. Additionally, it partnered with third-parties who are granted access to its customer data, which then analyze this data.
Learn more about Twitter →
How they do it: LinkedIn uses customer data for several purposes. One purpose is to better target its advertisements for services. In addition it gives advanced access to search or filter the data on the platform for users with a premium subscription. This supports e.g. finding the right candidates for a job opening. Another purpose is to give users with a premium subscription more insights on how their own profile compares to similar profiles and who visits their profile.
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How they do it: Paypal’s customer data provides the company a broad overview of individual financial reliability. This allows the company to provide its customers a seller guarantee which allows customers to claim back their payment made via the Paypal service.
Learn more about PayPal →
How they do it: Google’s search engine is free to use for all customers. However Google monetizes its user’s data and search queries through providing companies the possibility for targeted advertising which allows them to target exactly the customers that are looking for a certain product or service and also enables the customers to better find what they are looking for.
Learn more about Google →
Below, the top industries for the pattern "Leverage Customer Data" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Leverage Customer Data" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
