Behind eCommerce’s social and omni channel evolution lie APIs.
Big companies who have been in the mobile app & web business since the start have gained invaluable experience over the past 8 years. They have engaged millions of people with quality apps, games and services, they have monetized through all app and web-related business models and have learned how users think and feel, how often they use services, what kinds of app users are there and how to get the most out of everyone. This data can be used in numerous ways, but the way to create an extra revenue stream is actually making this data available through application programming interfaces(APIs) which enables third-party app developers to leverage a company’s aggregated data or selected services (facebook).
However, all big organizations don’t act the same. Some of them use APIs for their own purposes. But if you’re not one of those companies then you should know that your data can be used in more than 20 ways:
Pay per use: A company makes its transactional data available to third party apps that (for example) compare prices or analyze customer behavior.
Subscription: Fees accrue during a subscription period rather than per use
Resource-usage & Revenue-sharing: This model generates sales of a company’s own products from which the app developer too gets a cut.
See the remaining API business models deconstructed here:
The role of APIs as an additional revenue stream will expand, however it is essential for companies to make a clear distinction between their data and their responsibilities as stewards of the customer’s private data.