How Data Can Help Recession-Proof Your Company
by Brenna Dilger, on September 21, 2022
Seventy-two percent of economists expect the next US recession will begin by the middle of next year, if it hasn't already started. The looming threat of a recession is making organizations understandably nervous. Businesses can suffer during a recession due to demand (and thus revenue) decreasing and uncertainty about the future increasing. But in the midst of all of this economic uncertainty, the data boom is still growing.
Last year, nearly 79 zettabytes (79 plus a whopping 21 zeros) of data were generated by businesses and consumers worldwide. Data is being generated in overwhelming numbers every single day, and that data is consistently in high demand. The appetite for instant, accurate outcomes by consumers and businesses alike is feeding the data boom more than ever before. “Instant” and “personalized” are driving the economy, and data is powering that vehicle.
As the US economy enters a precarious future, the world of data is thriving. So how can you use this ever-growing data boom to recession-proof your company? There are a few important steps that you can take.
Enrich your data to stay relevant and competitive
The first-party data that you collect is undoubtedly important. However, first-party data can only do so much when it comes to understanding and targeting your audience. Enriching your data is the process of incorporating raw data from external sources into your first-party data in order to fill in any gaps and add new information. You might think that you have a good handle on who your customers are, but looking into a competitor’s audience might give you the insight you’ve been needing to stay relevant and take your company to the next level.
If you aren’t enriching your data with external data sources, you will likely fall behind as competitors continue to fine-tune their products, experiences, and messaging to be ultra-personalized and reach new audiences with their expanding insights. If the economy continues to trend toward a recession, customers will be even more discerning with each dollar spent, and they will want to invest in the brands that are meeting their exact preferences and needs. You’ll need to get to know your customers even better in order to avoid losing them.
Create an internal data ecosystem
Data sharing, or the process of seamlessly sharing data between all departments of your company, is becoming more crucial as data continues to pour in through multiple channels. As demand and trends fluctuate with the economy, it’s more important than ever to make sure that every sector of a company is on the same page when it comes to strategies and objectives.
According to Gartner, data sharing is becoming a “business necessity” and organizations that engage in data sharing will outperform their competitors on most business value metrics. That’s because keeping an open data ecosystem reduces confusion, promotes communication and better problem-solving, and unites an organization under the same challenges, goals, and initiatives. A united front can better handle whatever curve-balls an incoming recession might throw your way.
Generate new revenue streams
Data is a constant in the ever-changing digital economy. All companies need it and all companies are constantly seeking more of it in order to improve. Because organizations have so many valuable data assets and can trust that data is going to continue to be a major player in enterprise for decades, many businesses are realizing that starting a data business is a pretty lucrative strategy.
Demand for data will never go away because it will always be valuable and necessary. In fact, the data monetization market is expected to grow at a CAGR of 19.6% from now until 2030, eventually projected to be generating over $12 billion in revenue. The data monetization market isn’t anticipating any downward trends, despite the economic worries that are emerging. Data is sought out by most organizations and simultaneously being generated constantly by them, creating an ever-flowing economy that isn’t likely to slow down. It’s a no-brainer to monetize the data assets that your organization is constantly collecting because it’s likely many other organizations are looking for the exact data that you have to offer, and it’s not making any money sitting in storage.
The major roadblock for organizations when they entertain the idea of launching a data business is that it has historically been expensive and cumbersome to do so. In order to make a data sale, companies have often had to spend an exorbitant amount of money and time finding an interested buyer, negotiating with that buyer, and then formatting and transferring data to that buyer. Just one transaction can take months to years. The other option most companies have is to sell data to a data broker, but this does not usually yield an abundance of revenue and companies have no control over what happens to their data once it has been sold.
However, there is good news. Part of the reason that the data monetization market continues to thrive is that the barriers to entry are being lowered and innovation is rapidly progressing to streamline data collaboration. Data collaboration platforms are now the way to go when it comes to creating a data business. These platforms provide automated tools that simplify the entire process of selling data, making it cheaper and easier than ever before. You can upload your data, package it into data products, and then distribute it to multiple buyers through a straightforward and streamlined process.
Narrative’s data collaboration platform provides everything you need to buy, share, and sell data
A data collaboration platform is software that simplifies, automates, and centralizes the sharing of data assets. Narrative is the world’s #1 data collaboration platform, making buying and selling data faster and easier than it has ever been.
We provide the cutting-edge tools that you need for everything related to data collaboration, as well as a marketplace to exchange data assets and ongoing assistance from our experts. With the self-service tools provided and custom controls, anyone (even an intern) can use our point-and-click interface to find and buy the exact data they need, create a data sharing ecosystem between internal departments, or build data products and an e-commerce data business to sell their data assets.
Get started as soon as today. Request a demo with our experts.