Leverage Customer Data 25#
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.
Examples: Iconic Cases
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: Best Buy collects customer data to make recommendations based on the customers spending behaviour. This could include add-ons to certain products or discount or update alerts for products the customer has looked for previously on the Best Buy website.
Learn more about Best Buy →
How they do it: Hotmail’s customer’s data was used by Hotmail to make a demografic profile of its users. This could be monetized by letting advertisers target their ads to specific demografic user groups and hence reach a higher conversion rate for their ads.
Learn more about Hotmail →
How they do it: Data collected by Salesforce’s CRM can be linked to other data sources (e.g. on Salesforce’s Marketing Cloud platform). This enables companies to leverage their customer data in new ways and create novel customer experiences.
Learn more about Salesforce →
How they do it: Verizon is among a number of american telecommunication companies who are leveraging customer data by selling them in an anonymized and aggregated format to third parties. Buyers of this data may generate insights from these usage statistics (e.g. identify possible locations for opening up a retail location based on mobile data patterns).
Learn more about Verizon Communications →
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.
Top Industries
35% of firms using pattern
34% of firms using pattern
24% of firms using pattern
All Industries
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.
Top Co-Occurrences
15 pattern co-occurrences
11 pattern co-occurrences
10 pattern co-occurrences