We finds out that with the prevalence of social media: “News of a great product can spread like wildfire. And news about a bad product — or a bad experience with a customer service rep — can spread just as quickly. Consumers are now holding organizations to account for their brand promises and sharing their experiences with friends, co-workers and the public at large.”
Social media analytics helps companies address these experiences and use them to:
- Spot trends related to offerings and brands
- Understand conversations — what is being said and how it is being received
- Derive customer sentiment towards products and services
- Gauge response to social media and other communications
- Identify high-value features for a product or service
- Uncover what competitors are saying and its effectiveness
- Map how third-party partners and channels may affect performance
These insights can be used to not only make tactical adjustments, like addressing an angry tweet, they can help drive strategic decisions. In fact, IBM finds social media analytics is now “being brought into the core discussions about how businesses develop their strategies.”
These strategies affect a range of business activity:
- Product development - Analyzing an aggregate of Facebook posts, tweets and Amazon product reviews can deliver a clearer picture of customer pain points, shifting needs and desired features. Trends can be identified and tracked to shape the management of existing product lines as well as guide new product development.
- Customer experience - An IBM study discovered “organizations are evolving from product-led to experience-led businesses.” Behavioral analysis can be applied across social channels to capitalize on micro-moments to delight customers and increase loyalty and lifetime value.
- Branding - Social media may be the world’s largest focus group. Natural language processing and sentiment analysis can continually monitor positive or negative expectations to maintain brand health, refine positioning and develop new brand attributes.
- Competitive Analysis - Understanding what competitors are doing and how customers are responding is always critical. For example, a competitor may indicate that they are foregoing a niche market, creating an opportunity. Or a spike in positive mentions for a new product can alert organizations to market disruptors.
- Operational efficiency – Deep analysis of social media can help organizations improve how they gauge demand. Retailers and others can use that information to manage inventory and suppliers, reduce costs and optimize resources.