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Unveiling a Revenue Goldmine: Why Investing in Data Collaboration Is Imperative

  • - Jessica Shapiro
  • 4 min read

Data is a powerful tool for business growth across every industry. Marketing leaders from companies of all sizes must leverage data to make informed decisions, optimize operations, and grow their business. Yet, most companies are not taking full advantage of data collaboration, missing out on its potential to drive their business forward.

A 2024 study commissioned by LiveRamp and conducted by Forrester Consulting reveals 93% of business leaders agree data collaboration is critical to enabling revenue-driving use cases both across their organizations and between their ecosystem partners. Nine in 10 respondents also agree expanding their data collaboration capabilities will grow their business by driving improvements in product innovation, customer loyalty, and data quality, among a breadth of other applications. 

All the survey respondents are using some form of data collaboration to access their partners’ first-party data to enrich their customer understanding, however, many claim they haven’t pursued new revenue-generating use cases because they don’t have the right technology, expertise, or partners to do so. The good news is that these seemingly “missing pieces” are well within reach, so companies no longer need to let this golden opportunity pass them by.

Data collaboration: What it is and why it matters

Data collaboration involves using technology to securely gather and connect data from various sources to unlock powerful insights and revenue opportunities. Internally, companies can leverage first-party data to close data silos within the enterprise, maximize operational efficiencies for cost savings, and glean learnings that drive innovation across all areas of the business. Externally, organizations can partner with other companies to securely access sets of first-party data from one another to monetize their data, improve marketing effectiveness, and drive sales and lifetime customer loyalty.

In the recent study by Forrester, business leaders across retail, consumer packaged goods, financial services, and the travel and hospitality industries cited multiple examples where data collaboration could help grow their business. One of the primary use cases is using data to deliver more personalized customer experiences that prioritize privacy. However, the findings reveal a gap between the desire and the ability to do so: 

  • 54% say, while delivering personalized experiences is a top use case, only 12% can do this with existing resources
  • 48% of respondents say that achieving privacy-forward, personalized experiences requires the most up-to-date customer information, only 18% can do this today

Without personalized customer experiences, companies can’t connect with consumers in the way they prefer. As a result, they miss critical opportunities to build brand loyalty, reducing the likelihood of customers returning for more.

Another powerful marketing use case cited in the study is how data collaboration improves visibility into performance data, giving advertisers better insight into how their campaigns and media are performing across channels, such as CTV, media networks, social platforms, and “walled gardens,” which have historically been difficult to measure. By having this information, companies are able to increase their return on ad spend (ROAS), which was also named a top-10 use case for enterprises seeking to increase revenue by improving how they connect data and insights.

A new wave of data collaboration tools, specifically interoperable “clean rooms,” can provide a holistic view across data sources, including walled gardens. However, according to the Forrester study, business leaders feel they aren’t able to take advantage of the opportunity on their own:

  • 49% find it important to have more transparency into performance data such as walled garden insights, but only 9% can do so today

Closing gaps with the right data collaboration partner

So, why aren’t more marketers leveraging the power of data collaboration to drive greater revenue growth for their companies? According to the study, data silos, privacy concerns, and a lack of technological infrastructure are the primary challenges holding them back. 

Using data collaboration to connect fragmented insights creates a unified data ecosystem both inside and outside of the organization. But many businesses are intimidated by evolving privacy regulations and partners’ privacy policies, which have created a complex and frequently changing ecosystem. To unlock insights that differentiate a business and fuel revenue-driving business functions, organizations need the ability to connect data in highly secure ways that meet the expectations of regulators and consumers today and tomorrow.

This is why 93% of companies said the right partner is critical to advancing their data collaboration capabilities. Specifically, respondents are looking for providers with advanced data technology, privacy expertise, and broad data connectivity solutions that close gaps in their own resources:

  • 77% are looking for dedicated experts in data ethics and consumer privacy, plus advanced privacy-enhancing technologies such as data clean rooms
  • 81% seek partners that can support the widest range of internal and external data collaboration use cases

Data collaboration thrives in an ecosystem-based approach where companies can leverage the strengths and expertise of diverse partners. The Forrester study shows that improved data collaboration will (in many ways/per many use cases) help companies make more money, and to enable this, they need to choose their partners wisely. 

Embracing data collaboration for revenue growth

Data collaboration can be a powerful technology to help marketing leaders across all industries drive new revenue growth for their companies. While the majority of leaders recognize the importance of data collaboration, the challenges can seem hard to overcome. 

However, the findings of the Forrester study reveal a clear path forward. By investing in the right tools, breaking down data barriers, prioritizing privacy, and forging strategic partnerships, companies can harness the full power of data collaboration to foster innovation and business growth across important functions such as customer service, marketing, IT, and operations. 

Download the commissioned research study, conducted by Forrester Consulting, to learn more today. And discover how LiveRamp can help you grow your business, wherever you are on your data journey.

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Uncover top data collaboration use cases from Forrester Consulting.

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