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Social media analytics takes on critical role in engaging, keeping customers

As companies increasingly rely on social media sites to provide insights about customer sentiments and market trends, effective social media analytics tools are becoming all the more vital.

The global social media analytics market is expected to grow from $2.35 billion in 2016 to $11.89 billion by 2023, at a compound annual growth rate (CAGR) of 26 percent, according to a recent report by 360 Market Updates.

Factors such as increasing cloud adoption, the need to measure social media to enhance customer experience, and increasing user engagement of social media via mobile devices are all contributing to market growth, the report said.

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An attendee holds a yellow Nokia 8110 4G smartphone, manufactured by HMD Global Oy, during a launch event ahead of the Mobile World Congress (MWC) in Barcelona, Spain, on Sunday, Feb. 25, 2018. At the wireless industry’s biggest conference, more than 100,000 people are set to see the latest smartphones, artificial intelligence devices and autonomous drones exhibited by roughly 2,300 companies. Photographer: Angel Garcia/Bloomberg

The ongoing focus on engaging existing customers and attracting new ones will drive demand for social media analytics over the coming years.

Social media analytics provides companies with a way to collect data from social media Web sites and analyze the data using analytics tools in order to make more informed business decisions.

An increasing number of organizations rely on social media for interacting internally as well as with external constituents, the report said. Using advanced and predictive analytics, companies can mine growing pools of unstructured data, deliver more timely and actionable insights, and better inform business and operational strategies, it said.

Cloud technology offers a platform to deploy these products on a global scale and at a reduced cost, the report said.

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