Recently I am across research that was conducted by Northwestern University Kellogg School of Management on a trending analysis of social media. According to research conducted by Kellogg, there is a measurable connection between what is being said about a product in online posts and real-time customer behavior. Listening to what people are saying about your product can be a valuable method of improving corporate performance. Becoming aware of online comments and learning how to use the information can avert potential downturns in sales and can help companies fine-tune their marketing.
Other key points within the Article:
- Traditional research has shown that a relatively small group of people can have a substantial influence on the majority. Researchers have also found that the same is true in online communities.
- By monitoring online postings, a firm can find out much sooner if there is negative sentiment among customers about the brand.
- The highly influential posters tend to have an especially intense interest in the brand, either positive or negative. Because of this intense interest, they are more likely to advocate a strong opinion, which in turn has a much bigger influence on potential purchasers than does the opinion of the average user.
- Social buzz whether positive or negative, is a leading indicator of sales.
- The authors of the article suggest that firms should monitor online word of mouth in order to “stay ahead of the race.
Source: Northwestern University Kellogg School of Management - People are Talking
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