Why monetisation is now more important than ever

Monetisation can simplistically be described as the action of taking an asset and turning it into money, which during these tough times when retailers need to look at all aspects of their businesses, clearly represents an opportunity to derive additional revenue streams.

At this time, we are seeing cost of living pressures sweep the nation as the value of the pound plummets and the average amount of disposable income a consumer has lessens over time. With that in mind, retailers must find ways to counteract the situation as there will naturally be a decrease of transactions during this period. An opportunity to generate revenue amidst the crisis cannot be overlooked, and the best method for businesses now is looking into monetisation, particularly in secondary revenue.

Secondary revenue is generated from goods or services that differ from, or enhance, the main services or product lines of a company. Adding a secondary revenue stream to a business can be extremely valuable. It is defined as the money generated from a company’s non-core products and services and is especially important because it can help companies diversify their sources of total revenue.

Unlike retailers, the airlines and travel companies have been great at focusing on this part of their businesses. They have long since recognised that once people have booked a flight, then there is a decent likelihood that they will also need additional services such as car hire, hotel accommodation, and the booking of sight-seeing tours. They derive commissions from selling these services from third-party providers and they call this secondary revenue.

It is now time for retailers to look for complementary partners and offers that attract the attention of their customer base. For an operator such as fashion retailer ASOS, a customer buying party clothes could be offered a voucher for using Uber that could be potentially used for travel to or from their special event. For retailers with loyalty programmes there is an opportunity to be more targeted with the offers because they can utilise their knowledge of the customers’ previous behaviour and shopping history.

This whitepaper, Monetisation Matters: How Online Retailers Are Generating Alternative Revenue Streams examines the opportunity retailers have to make the most of monetisation by exploring the world of secondary revenue. Find out how offering lower margins and executing with excellence is key to a successful monetisation strategy.

Download the whitepaper today.