What has Social Media Done for Your Business Lately? – Part 3
Making sense of the noise.
“Without monitoring conversations on the Web, you won’t know who’s talking about your brand, your products, or your services…” says analytics expert Tom Davenport.
With 152 million blogs, 25 billion Tweets sent in 2010, 600 million people on Facebook, the internet can be a loud noisy place. Some companies are only creating more noise by pushing the information out via social media. Instead we should listen first to learn about what’s being said, where it’s being said and then use that intelligence to create a strategy.
Of the companies polled in the Harvard Business Review Analytics Report, only 21% are using social media to develop targeted marketing activities. Only 19% said that they had improved insights about their target market. And an astonishing 8% said that they had received an early warning of potential product or service issues.
The biggest challenge with social media for business comes when trying to measure how effective the efforts are in relation to the bottom line. Many companies are still seeing increased click rates/traffic as a sign of success but unless the clicks bring in money why would a company continue to use social media?
Social media analytics will be crucial in the fate of social media in business. In the Harvard study companies were asked about which social media analytic activities they currently do. Only 36% said they measure the impact of online conversations. Only 27% use predictive analysis and only 35% said they conduct customer sentiment analysis on feedback collected via social media. Even the term social media analytics was foreign to about 51% of the companies polled.
When asked “Are you using any type of social media analytic tools to continuously monitor and understand what people are saying about your brand, products and/or services online?”
46% of the effective users said yes and 11% of the ineffective users said yes. Those numbers go to show that to use social media effectively there should be some kind of tool being used to monitor and gather online mentions.
It’s an exciting time to be in business with this new force behind us. Businesses still have a lot to learn and as one learns, what to do and what not to do…we’ll all be watching and learning together.