Data Companies are Sharing Your Personal  Data

Data Companies are Sharing Your Personal Data

Customers will often choose to use a company that can provide a single excellent service and keeps their data safe. The alternative is a company that can offer multiple services with lackluster quality. One product done right will always beat a mediocre selection. Before, businesses would simply reduce prices or offer more services. It can provide a short term incentive to consumers, but a discount will only do so much. Companies are starting to realize that quality over quantity is the way to go. And customers are willing to pay a premium for a better service. But how was this conclusion ever reached? 

Information Is Key

Consumer data is more accessible now than it ever was. Businesses can use this data to tailor their services. How often do consumers use a certain service? What is the average price they are willing to pay? Do they purchase similar products from other companies, and if so, why? Businesses can learn all this and more through the sharing of data.

One company that everyone will know that is utilizing data is Facebook. Facebook gathers user information, and no amount of copy and paste paragraphs will stop that. They then sell that information on to marketers. Facebook is in a unique position in that respect. They can gather information on location, trends, and almost anything else, and users share it willingly. The only way for a consumer to stop sharing data with Facebook is to stop using the platform. Due to the convenience it provides, that is not likely to happen. Companies can then access this data to better target their intended audience. Consumers then feel like they are getting a personally tailored service, which only encourages brand loyalty. Facebook has provided a great tool for consumer-facing businesses. That’s not to say there isn’t a solution for business to business focused companies. 

Why Aren’t Data Businesses Working Together?

Tech companies share consumer data between themselves. The fact that many of these companies are the biggest in the world is a testament to how effective it is. Data collection and selling of that information is a massive industry. Every Google search or Facebook post can provide a variety of consumer information. These giant companies then share their collected information. The picture they create of consumers can then be utilized to benefit the industry as a whole. You have most likely seen data collection in action. Every time you see an advert that matches your interests, it has come about due to data collection. Consumers are more likely to buy something if it interests them. That product or service gets in front of them through data collection. With that being the case, why aren’t more companies utilizing this resource? One particular sector that is yet to grab hold of the advantage is companies with a B2B focus. If these companies can use data to better understand consumers, the service they deliver will benefit. Consumers like service value, no matter domestic or business clients. 

Data Sharing In Practice

Coupa is one example of data sharing done right. They provide a platform that utilizes artificial intelligence to scan through Big Data. The data usually relates to expenditure, hence the platform’s label as a BSM or Business Spend Management.  The platform then puts that data into an anonymous state before forwarding it to the end-user. Users of Coupa software can then use this data for a variety of reasons. One example is comparing themselves against others in the industry. How do their savings compare to a rival? How many companies have gone digital? These are just some stats to be gained. There is one catch with Coupa, though the benefits far outweigh the risk. To use the platform, companies must provide their own data so it can be added to the collection of Big Data. However, they must be doing something right. The company has reported revenue growth for 26 consecutive quarters.

It Goes Against What Is Ingrained in All of Us

Many businesses are already utilizing this resource. In fact, Coupa has over 700 users. Each of those use the insights from Coupa’s data to help improve their service value. A business can compare what they are spending on providing a service and what they are charging against others. If all companies did this, the end-user would be sure to benefit. However, businesses want to keep their secrets. Some could argue that by sharing their data, they are giving an advantage to a competitor. This is true to a point. However, big tech companies once again serve as an example of data sharing done right. These companies work together to gain insights into a wider range of users. Each company gains an increased customer base and a deeper knowledge of the industry. That far outweighs the chance of one company stealing another’s secrets. Coupa is working to make B2B data sharing the norm and not the exception. 

Small Business Aren’t Convinced

Small businesses will happily use consumer data to improve their services. If they gain access to it the correct way, then why not. However, despite what has been outlined above, they still aren’t sold on sharing their own data. Even if it is in return for that of another company’s. They need to realize that they will gain more than they lose, despite it not always being instantly apparent. The gained insights can change the way a business operates for the better. However, one area of concern is that other companies may not reciprocate in the sharing process. Coupa’s model is a great way around this. They essentially act as a middle man, and all the data has any company indicators removed. The reasons small businesses have to be wary are valid. However, it is only a matter of time before B2B data sharing becomes standard practice.

There is One Problem

The problem with Coupa’s platform is that businesses that use the service restrict themselves to a single source of data. Users might be more inclined to follow large companies, leaving smaller companies at a disadvantage. Similar platforms have made this mistake, thus missing out on a chance to expand their user base. Coupa is actively trying to make sure this doesn’t happen. They plan to give smaller businesses priority when it comes to data sharing. Such a process will use a built-in algorithmic filter to make it possible.  Bigger companies won’t be able to push out other users. The filter will also allow companies to focus on the areas important to them. Smaller companies often aim for a niche, and through the platform, they can connect with businesses that have the same target.

B2B Vs. Consumer Data

Business sharing data between themselves is a somewhat new trend. Data sharing as a whole, however, has been around for a while. Access to consumer spending habits allows companies to predict what will happen next. Consumers’ personal data also allows companies to tailor their services to offer better service. B2B data can help do the same, though it will take further analysis to reap the benefits. B2B data might be better for gaining an overall picture of the market. Consumer data can then help a business focus on a particular area. It’s best to use both types to ensure maximum efficiency. No matter the data, there is also a need to handle it with care. For this reason, Coupa makes the source of their information anonymous. In fact, this need for regulation allows Coupa to do what they do. It takes expertise in multiple data regulations to safely handle, manage, and sell data. Data collection requires consent gathered a certain way. It’s a difficult market to get into, and a mistake is costly. It doesn’t matter if it’s consumer or business data.  

One Platform, One Community

Coupa is building a community that will benefit innovative companies. Before data sharing, small companies would have to make the business work without much help. They would consider the value of their service against the actual cost. However, that’s not so easy to do without a benchmark to compare against. With B2B data sharing, business owners can make informed decisions. Whether that means following a trend or taking the initiative is up to them. This community intelligence would benefit everyone.

There is a difference between a B2B community and following the crowd. Before, businesses would choose to do what everyone else is doing because it’s safe. However, that isn’t always the best thing. A shared collection of consumer data makes taking risks more viable. It allows for a degree of risk assessment not seen before. There are plenty of examples of this decision-making process working. Many companies reap the rewards of targeted marketing. It wouldn’t have been possible without access to shared data. Data sharing opened many peoples’ eyes. Before, some companies didn’t even know there were untouched markets. Companies that work with domestic consumers don’t seem to hesitate with the sharing of data. B2B companies aren’t so quick to follow, but it won’t take long with some convincing. It just needs one to take the plunge. Once the advantages are apparent, the rest will follow.

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