Firms making huge investments in social media analytics
Social media can be a treasure trove of data related to customers, products, services and market trends. So it makes sense that companies would want to apply analytics to this information to gain insights and make decisions. And according to new research, they are doing just that.
Social media analytics involves gathering data from social media sites and analyzing it using analytics tools. A common application of social media analytics is to mine customer sentiment in order to support functions such as marketing and customer service.
The social media analytics market is expected to grow from $2.71 billion in 2017 to $9.54 billion by 2022, at a compound annual growth rate (CAGR) of 29 percent, according to research firm Markets and Markets.
The key forces driving the market include the increased focus on competitive intelligence, the increasing user engagement in social media using smartphones, and the need for social media measurement to enhance the customer experience.
Among industry verticals, the retail and e-commerce sector is expected to continue to have the largest market share during the forecast period, according to the report. The industry is going through a massive transformation, it said, as mobile e-commerce gains popularity and replaces many brick-and-mortar stores.
Because of the emergence of many online commerce sites, competition among online retail in on the rise.
“Organizations need to identify the trends by analyzing the voice of the customer, generating insights using their choice preferences, and improvising on their customer service management to attract more customers,” the report said. “Social media platforms provide a large database of unsolicited consumer opinions, which can help brands measure their campaigns, identify their growth opportunities, improve their products, and keep a tab on their competition.”