Many travel companies, including ones in the online travel sector, have yet to capitalise on social media’s ability to not only listen to customers, but analyse conversations and turn the information into bottom-line benefit.

Published: 19 Nov 2010

Many travel companies, including ones in the online travel sector, have yet to capitalise on social media’s ability to not only listen to customers, but analyse conversations and turn the information into bottom-line benefit.

According to SAS, many organisations cling to old paradigms, using social media for one-way flow of marketing messages, instead of capitalising on the opportunity to monitor, analyse, and participate in millions of conversations among consumers.

A recent survey of 2100 companies, sponsored by SAS, revealed:

• 75 percent of companies surveyed did not know where their most valuable customers were talking about them.
• 31 percent do not measure effectiveness of social media.
• Only 23 percent use social media analytic tools.
• A mere seven percent are integrating social media into marketing activities

Overall, companies continue to search for ways to gauge and demonstrate social media's contribution to the bottom line.

More than half the companies that responded are using social media, stated SAS. But only one quarter know where their most valuable customers are "talking" about them. Even fewer are applying social media analytic tools. Almost none have attempted customer sentiment analysis. Just 7 percent are trying to integrate social media into overall marketing strategy, such as campaign management, retail analytics, CRM and business intelligence.

It is being highlighted that companies are missing the chance to effectively market products and manage their reputations. Companies 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, according to analytics expert Tom Davenport.

Real understanding

SAS also says many organisations seem more focused on “making noise” than understanding and participating in ongoing conversations about them. Half the companies using social media see increasing awareness of the organisation and its products and services as the major benefit. Yet only a quarter thinks it’s working – a perception possibly constrained by the low use of analytic tools. Another 30 percent look to increase traffic to their websites, but, only 29 percent report collecting and tracking customer reviews online. It is striking that more accountable benefits are far lower down the list. While 23 percent agreed social media helped them monitor what was being said, few described measuring the frequency of discussion about the organisation as a current benefit. Only 18 percent could identify positive and negative comments.