Create Value from Data

Data in general can create value for two subjects: value for the customer and value for the firm/company.

Since the beginning of data collection, when the data were not big, data analysys (insight) has been used for decision making. Business models, business strategies, marketing and services decisions are based on the availability on data.

There are many methods where data can encrease values from any decision.

First of all the data, as an example, analytics can show how firms can improve customer satisfaction through modifing, for example, the specific features of the service experience. Having data insight (results on the usage of a services) budegts can be allocated more effectively.

Second, the booming of data usage today is to develop more effective marketing campaigns, and more specifically, effective targeting of campaigns by selecting the right customers (CLV and customer equity, e.g., Venkatesan &Kumar, 2004; Rust, Lemon, & Zeithaml, 2004).

Another development is that, especially in an online environment, real-time behavioral targeting is being used to adapt online environments and advertising to specific considered needs of the customer.

A third value-creation benefit is the development of big-data-based solutions forcustomers. These solutions directly have an impact on customers and should create morevalue for them. Frequently, this involves an improvement of the service experience inseveral stages of the purchase process. For example, specific tools can be developed to helpcustomers make better purchase decisions using smart algorithms (e.g. Thaler & Tucker,2013).