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FYI Solutions Blog

Oct 09, 2013

Do we need Social Media Analytics?

Social media analytics is defined as the practice of gathering data from blogs, social media, websites and analyzing that data to make better business decisions. The most common use of social media analytics is to mine customer sentiment in order to support marketing and customer service activities.

The first step in a social media analytics initiative is to determine which business goals the data that is gathered and analyzed will benefit.  Typical objectives include:

•  Increasing revenues
•  Reducing customer service costs
•  Getting feedback on products and services
•  Improving public opinion of a particular product or business division.

If a business wants to stay completive they can no longer ignore the importance of social media as part of their enterprise applications. According to a Forrester survey of 200 U.S. companies, social listening and digital engagement can influence customer perception (58%) and building long-term relationships with customers (56%).

While social media can amplify the positives in your brand, be prepared to incur the wrath from customers if brands don’t meet customer expectations.  Gartner revealed that companies failing to respond to inquiries via social channels can generate dissatisfaction that can lead up to a 15% churn rate in existing customers.  This is data that you company needs to be made aware of to stay connected with your customer.

According to Deepak Advani, IBM’s VP of predictive analytics, there’s a lot of value in performing text analytics on data derived from Twitter, Facebook and other social forums to determine how companies or their products are faring among consumers.

Social media stats suggest are staggering and getting larger:

•  Over 30 billion pieces of content are being shared weekly on Facebook
•  500,000 users are added to Twitter daily
•  3,000 images are loaded on to Flickr every minute

A new product, called Cognos Consumer Insight, is built upon IBM’s Cognos business intelligence technology along with Hadoop to process the piles of unstructured social media data. Cognos lets customers view sentiment levels over time to determine how efforts are working.

The truth is social media is only growing and companies that do not catch up quickly, will be left behind when it comes to understanding their consumers better than their competitor.  FYI Solutions can help you with a number of Social Media Analytics solutions.


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