A few months ago we did a post on a couple of industry examples of the value of big customer data, which featured some estimates of the annual dollar value of customer data collected for Facebook and Kroger groceries. In this blog we bring a couple of other interesting data points mentioned in this Wall Street Journal article on the selling of customer data assets from two recent bankruptcies, Radio Shack and Caesar’s Entertainment. We provide these as examples of the value of customer data since the value of IoT data is still emerging and growing.
“Standard General LP, a hedge fund that in March bought 1,743 RadioShack stores and inventory, was the top bidder last week in an auction of intellectual property, including customer names, e-mail addresses and mailing addresses. The case highlights data’s rising role as a valued company asset.”
The $26 million sale was of approximately 8 million email addresses (3 million email addresses of customers who purchased something withing the past year, highlighting the time-sensitive value of this type of data), and the sale included 12 million physical addresses. We can therefore guess the approximate value of a single address in this case as ranging between $1 to $2 for less current customers and maybe $3 to $6 for newer customers.
RadioShack might have gotten more money had it included behavioral data, such as transaction histories, Ms. Wixom said. “The more nuanced the data, the more potential value there is.”
And in the case of Caesar’s bankruptcy, Creditors accused Caesar’s of making an improper insider deal for the transfer of customer data from its biggest unit, Caesar’s Entertainment Operating Co., claiming they were robbed of $1 billion when the Caesar’s parent company took ownership of databases behind the sophisticated “Total Rewards” customer loyalty program. The program includes 45 million members, spans 17 years and includes details such as who gambled how much and for how long, as well as eating, drinking and entertainment habits. The case is ongoing.
The data of question in Caesar’s case is therefore currently being estimated at $22 per customer.
Arrayent is helping our customers realize the current and future value of customer IoT data. Customers choose Arrayent as the premier platform to realize and keep the value of their end-customer’s data since the data belongs to the customer, not Arrayent or some other ecosystem owner. Arrayent’s cloud service offerings also include our big data analytics solution called “Insights” that provides capture, storage, dashboards, queries, and reports across all customer and device data.
Joe Cowan, IoT Educator and Evangelist at Arrayent