Asset Monetization: Generating revenue from your customer base
Businesses with asset footprints are sitting on a goldmine of revenue, but they need a robust management system to tap into it.
Asset monetization isn’t a new process or concept. But there is a new way of systematizing them and specific modules for asset repositories that enable smart selling. This is creating significant new value for businesses, including the ability to sell more proactively based on what your customer already owns.
First let’s clarify the two related terms.
An asset repository is simply a database of assets currently installed. They enable storing, managing, and organizing records of various assets such as asset definition, asset hierarchy, asset specifications, CAD designs, marketing collateral, and intellectual property. These repositories ensure that all teams across an organization have access to the same accurate and up-to-date information. This includes what customers own, when each item was purchased, and each items’ status, as well as operational data that informs upselling and maintenance actions.
Asset monetization is the process of generating revenue from the asset info stored in the asset repository. So, the repository is a pre-requisite for monetization. Asset monetization involves strategies and methods aimed at leveraging these assets to create income streams, whether through direct sales, licensing, advertising, or other commercial activities.
While related in terms of managing and utilizing assets, asset repositories and asset monetization serve distinct purposes within the broader context of digital asset management and business strategy.
Asset repositories and asset monetization create significant revenue opportunities for B2B businesses—from manufacturing to high tech.
To start, companies should know what products their customers already own. Asset
Monetization allows sales to be more efficient and effective, marketing to be more relevant, service teams to be more proactive, and allows customers’ self-service to be faster and easier. Here’s how:
More Effective Sales and Marketing
Access to a centralized repository of up-to-date and consistent assets enables sales and marketing teams to deliver more compelling and targeted messages to customers. Sales teams can leverage detailed product information and case studies to address customer needs effectively, while marketing can create targeted product/service recommendations based off what they already own. This alignment improves customer engagement, increases conversion rates, creates. This allows businesses to capitalize on their customer’s buyer profile and recommend complimentary product, services, or warranties that complement their existing solutions.
Monetization Opportunities
Asset monetization allows B2B businesses to capitalize on their intellectual property, proprietary data, and expertise. By licensing or selling these assets, businesses can create additional revenue streams beyond core product sales. This diversification of revenue sources enhances financial stability and provides opportunities for growth and investment in innovation.
Improved Customer Experience
Asset responsitories enable self-service experiences to be tailored to the customer using them – enabling fast service prepopulated with complimentary products/services that align with what they already own. A well-managed asset repository also ensures that customers receive consistent and accurate information across all touchpoints. This consistency builds trust and confidence in the brand, leading to improved customer satisfaction and loyalty. Additionally, personalized and timely content delivery based on customer preferences helps customers make more informed purchasing decisions, more easily.
Asset repositories and asset monetization complement CPQ and Q2C systems.
Asset repositories, asset monetization, and CPQ or Q2C (quote to cash) software and systems are interconnected components that collectively enhance the efficiency, effectiveness, and revenue-generating capabilities of B2B companies.
CPQ systems streamline the configuration, pricing, and quoting processes. They enable sales teams to quickly generate accurate quotes based on customer requirements, product configurations, pricing rules, and discount structures. They also tend to offer a form of asset repository.
The combination of CPQ and an asset repository allows you to know what your customer already owns, so you can increase your customers’ lifetime value by selling them complimentary products. This means B2B companies can now empower their sales teams with immediate access to everything their customers have purchased. This takes away the guesswork from upsells and renewals and reduces errors that would need rework in the back office.
Asset repositories inside CPQ solutions can be populated using multiple sources of existing data, such as Order Forms and Service Cases. CPQ systems leverage that data for things like change orders, amendments, renewals, and requests for replacement parts.
For example, if we know a customer bought a laser cutting machine last year, we can tailor our marketing to aim at selling replacements for the laser optics module. We can automatically notify sales reps and recommend they offer software upgrades to reduce scrap by making better use of the space in each sheet of cutting material. We can even create customer profiles to increase the likelihood of closing net-new deals with customers and prospects.
With asset repositories and CPQ systems, B2B companies can optimize their sales processes, enhance customer engagement with personalized offerings, and maximize revenue potential through effective asset monetization strategies. This synergy enables companies to maintain competitive advantage, drive business growth, and deliver enhanced value to customers in a dynamic marketplace.
Three key steps to implementing asset repositories and asset monetization in a B2B businesses.
Step 1. Identify and Categorize
Many companies already have an asset repository defined and this typically will live in the ERP system. Companies need to do a thorough analysis to identify if the asset repository accurately reflects what customers own or if they need to analyze other data to validate that information. If a company doesn’t have an asset repository defined, then an exercise to create one from order or invoice data would be required. Companies also need to define at which level they are going to store assets. There may be a need to store assets in multiple hierarchies or different levels of accounts, depending on requirements.
Step 2. Develop a Monetization Strategy
Evaluate which assets have the highest potential for revenue generation and determine the most suitable monetization methods. This could include direct sales, licensing agreements, or subscription models. Establish a well-researched pricing strategy based on competitive analysis and the value provided to customers. Effective marketing and sales efforts are essential to promote upsells against these assets to existing B2B customers. Utilizing targeted marketing campaigns and diverse sales channels can significantly enhance visibility and drive sales.
Step 3. Ensure Continuous Improvement and Adaptation
Maintain the accuracy of your asset repository through systematized processes like regular audits and overall monitoring. Track performance metrics and use analytics to gain insights into customer preferences and how your products are being used in the field. Innovate and improve asset-based selling motions based on feedback and evolving customer demand to stay competitive and responsive. This continuous process of enhancement and adaptation ensures that your business remains aligned with customer needs and changing dynamics, leading to sustained growth and profitability.
Two real-world examples of asset repositories making a major difference in B2B companies.
Pierce Washington (PW) recently implemented a CPQ solution with an integrated asset repository for a division of Fuji Film that sells medical-imaging machines to hospitals. The new system gives Fuji sales reps one source for all serial numbers owned by clients. That’s proven highly beneficial to Fuji in cutting costs and boosting revenue. For example, their asset repository eliminates the inefficient and costly need to make site visits in search of serial numbers. Also, Fuji can now proactively contact customers whose software or hardware is due for service or eligible for upgrade.
PW also helped Hexagon define an asset repository inside their CPQ solution. They sell software to municipalities including fire and police departments for things like routing 911 calls. Hexagon’s business is all about renewals. Their new asset repository increases renewals by providing invaluable insights. It lets Hexagon know what software every customer owns, when it expires, which versions are supported, what product combinations are available, and more.
Summary
Asset repositories and asset monetization are having a major impact on sales and revenue in B2B, especially in manufacturing, high-tech, and medical device companies. Asset repositories and asset monetization allow you to tap into pockets of opportunity within your business and wring out more revenue. They also enhance operational efficiency, improving sales and marketing effectiveness, creating new revenue streams, enhancing customer experience, and enabling data-driven decision-making for optimized business outcomes. These benefits collectively contribute to competitive advantage, profitability, and long-term success in the B2B marketplace.
Key Takeaways
- You can sell more by knowing exactly what you’ve already sold.
- Asset monetization can have rapid and significant impact on revenue.
- PW specializes in quote-to-cash solutions with integrated asset repositories and asset monetization.
Imagine what an asset repository and asset monetization can do for your B2B company.
PW can help you discover what’s possible for your business and bottom line.