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: AWS collects data to support their customers in optimizing their IT architecture. In addition it may suggest additional AWS services and features which could be beneficial to the customer’s business.
Learn more about Amazon Web Services →
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 →
How they do it: Craigslist utilizes user data to target results to searches and help both seekers and finders to find better results to their searches.
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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 →
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.
