Many organisations are still following the old concepts of marketing and are unable to tap social media for analysing customers’ conversations and using information for increasing profits. Social media holds vast potential but according to SAS survey, many companies are still not able to capitalise on the opportunity to monitor, analyse, and participate in millions of conversations among consumers.
Lack of awareness
Business analytics specialist SAS sponsored a survey of 2100 companies, which revealed that the majority (75 per cent) of the respondents did not know where their most valuable customers were talking about them.
About 31 per cent do not measure effectiveness of social media and only seven per cent integrate social media into marketing activities. Companies are still not sure how to gauge and demonstrate social media's contribution to the bottom line.
Although more than half of the companies surveyed are using social media, almost none have attempted customer sentiment analysis.
"Companies are missing the chance to effectively market products and manage their reputations," said leading author and analytics expert Tom Davenport. "They don't know who's talking about their brands, products or services, let alone the positive and negative sentiments. They can't judge the influence of someone praising or criticising them, nor can they test brand messages, videos, etc. In short, they're missing marketing opportunities."
Exploring the benefits
According to SAS, half the companies that use social media have recognised the increasing awareness of the organisation and its products and services. But only a quarter thinks social media actually helps.
About 30 per cent of those surveyed want to explore this media to increase traffic to their website and about 29 per cent collected and tracked customer reviews online. Also, 23 per cent said social media helped them monitor what was being said, and 18 per cent was able to identify positive and negative comments.
About 36 per cent of the companies surveyed are set to conduct customer sentiment analysis in the next two to three years. Some 33 per cent of the respondents intend to deploy social monitoring solutions and 26 per cent said they want to measure the impact of online conversations. MIS Asia
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