HomeBlogMaximize the Impact of Your Partnerships with Data-Driven Collaborations

Maximize the Impact of Your Partnerships with Data-Driven Collaborations

November 05, 2020 by David Hayat

In today’s highly competitive and mobilized digital economy, data is the centerpiece of a successful growth strategy for enterprises.

 

When analyzed in isolation, proprietary business data can inform decision-making and help identify key performance metrics. However, a siloed, one-dimensional approach to data usage can also create growth-hindering blind spots. Your company doesn’t exist in a vacuum, and the sharpest decisions can only be made when internal data is enriched with reliable insights from outside sources. Without continuous external data layering, your data assets have a limited shelf life.

 

Increase the Value of Your Business Relationships

Regulatory-compliant data collaborations with trusted partners can help unlock new, actionable insights from 2nd party data, which can be used to fill internal knowledge gaps, improve customer profiling efforts and strengthen partnership synergies. In certain industries, data-driven collaborations can help your business mitigate risk, identify under-the-radar trends and create new cost-saving opportunities. For example, insurance companies that are free to collaborate on claims and policy data can easily detect many types of fraud, and financial institutions that can readily share intelligence are able to enhance KYC and due diligence processes. Data collaborations can also help enterprises thrive in the e-commerce sector, where companies with the most enriched customer data will hold a distinct advantage over competitors.

 

To illustrate the underlying value of data collaborations between partners, let’s consider how B2C companies in the same ecosystem can mutually leverage customer data to drive joint ROI, boost revenue and increase market share.

  • Qualify the potential of a data collaboration: By leveraging the right technology, companies can safely and securely discover overlapping customers without exposing PII or breaking data privacy laws. These insights alone can help you quickly assess the untapped potential of a collaboration, before deciding whether or not to invest resources in product integration. This early phase of exploration can also help you establish the viability of more substantial collaborations for future reference.

 

  • Increase transaction volume of jointly active customers: Once shared customers have been revealed, companies can exchange insights to segment their jointly active users. With new data points pertaining to consumer behavior, you can gain a better understanding of your audience and run customized promotions with finely-tuned incentives.  

 

  • Activate dormant accounts: With a greater data-driven market understanding, along with the ability to distinguish between high-value and waning customers, you can tailor outreach accordingly and significantly reduce churn. Personalized engagement and bundled offers can make a tangible difference in terms of improving retention rates. 

 

  • Acquire new customers: In parallel to running joint campaigns for overlapping customers, you and your partner can simultaneously run referral campaigns targeting non-overlapping clients. By providing mutual referrals, you can generate new revenue streams and make client onboarding easier and more cost-effective.

 

  • Optimize your advertising: Companies involved in cross-brand online distribution can derive additional value from running sponsored ads for customers who purchase a specific brand on their platform, rather than directly from the brand itself. These campaigns, paid for by the brands, can result in more cost-effective advertising and mutual revenue-generating opportunities.  

 

Elevate Partnership Collaborations with Privacy-Enabled Innovation

While data collaborations have the potential to help partner companies pursue unprecedented growth opportunities, such initiatives have traditionally been constrained by regulatory frameworks, business sensitivities and other privacy risks. Entering into this new paradigm requires a highly-secure, scalable platform that facilitates full compliance with data privacy laws and protects business-sensitive information. It must also enable companies to mitigate the risk of data leaks and accommodate consumer privacy trends.

 

By harnessing the latest innovations in Privacy-Enhancing Technology (PET), it is now possible and profitable to engage in regulatory-compliant data collaboration. For a comprehensive look at some key considerations when assessing a collaboration platform, check out our recent blog post, Collaborate with Confidence: Top Tips for Evaluating a Data Collaboration Platform.

 

QEDIT is a secure data collaboration platform, powered by Privacy-Enhancing Technology, that enables the safe exchange of actionable business insights without requiring companies to expose Personally Identifiable Information or other confidential datasets. Trusted by industry and government, QEDIT is being leveraged by a growing array of cross-sectoral enterprises for next-level data collaborations.

 

Check out our website for a more comprehensive overview of our capabilities, or contact us directly to learn more about how QEDIT can help you improve the strength and depth of your partnership network.