JAN MAR 2014.Indd

Sentiment Analysis of Consumer Base with the Utilization of Twitter Nicholas Oram, Graduate Student, Mercyhurst University INTRODUCTION social media analysis will allow viral marketing to reach an Social media platforms have transformed the increasingly growing consumer clientele and significantly customer from being a passive consumer of business increase customer engagement. Customer engagement is information to becoming an active participant in the fulfilled when constant interaction between customer and creation and sharing of business information. Recent company is created that will allow for relationships that data has demonstrated that nearly 30% of online users create mutual loyalty between both parties (Agnihotri et aged 18 or older participate in various forms of self- al., 2012). created content sharing, with an even higher percentage Microblogging is defined as, “a form of blogging that for those who post comments on a multitude of websites lets you write brief text updates (usually less than 200 (Trainor 2012). A recent report by the Mintel Group characters) about your life on the go and send them to found that 41% of online adults are engaged with their friends and interested observers via text messaging, instant favorite brands through social media applications (Trainor messaging (IM), email,, or the web (Java et al., 2007, p. 2012). Forrester Research conducted a survey that found 1).” The growth of microblogging, especially with the use that 37% of online U.S. adults post product reviews, of Twitter, will make it necessary for companies to analyze comment on blogs, or add information to online forums. both their customers’ conversations over microblogs, but Moreover, 21% of those surveyed posted their own most significantly utilize pull marketing tactics to drive original information onto social media websites and 69% consumer content. As compared to regular blogging, only read information on various social media platforms microblogging allows the consumer to increase the (Baker 2009). speed of their communications. The shorter time period Customer involvement through social media is a decreases the users’ requirement of time to post comments necessity for any business since engaged customers will about any company they follow and allows the user to post play an essential role in viral marketing campaigns. multiple updates a day in a matter of seconds (Java et al., (Agnihorti et al. 2012). Viral marketing is defined 2007). Most significantly, (Jansen et al., 2009) Jansen as: “electronic word of mouth whereby some form of reported that 20% of microblog postings contained brand marketing message related to a company, brand, or sentiment, with 50% of these postings demonstrating product is transmitted in an exponentially growing way positive sentiment with 33 percent of microblog posts (Kaplan & Haenlein, p. 253, 2011).” Therefore, proper being critical of a company. Volume 17 • Number 1 • January/March 2014 www.scip.org 39 sentiment analysis of consumer base with the utilization of Twitter Figure 1: Sentiment analysis of Domino’s Pizza Source: Park et al., 2012 One such example of the benefits of monitoring sectors will be created by improved communication microblogging activity occurred in 2009 when two and collaboration across consumer and business entities Domino’s Pizza employees filmed a prank in the (Bughin et al., 2012). A study conducted by Siemens restaurant’s kitchen while making customers’ food. The Enterprise Communications found that 70% of consumers employees posted the video onto YouTube and the video want to interact with businesses with the use of social quickly spread through the use of Twitter, with more than media (Howell, 2010). The problem that has arisen is half a million views within two days. With the videos that only 30% of companies are equipped to handle social unveiling, customers conveyed tremendous negative media analysis or understand the proper procedures to sentiment, making it necessary for President of Domino’s utilize social media analysis correctly (Howell, 2010). Pizza Patrick Doyle to issue an apology over YouTube Driven with the pressures to move towards social (Figure 1). Additionally, Domino’s Pizza had to create a media technologies for analysis and marketing endeavors, Twitter account for customers to address their grievances companies are increasing their expenditures to reach and with the video. Even though Domino’s Pizza was able analyze their consumer base. Forrester Research expects to address the negative sentiment with the use of social social media expenditures to expand in the U.S. at a rate media applications, it is clear that the situation could have at 34% from 2010-2014 and to reach a net spending of quickly worsened over a longer duration of time. Negative USD $3.1 billion. Social media marketing and analysis sentiment could have significantly damaged the brand spending is expected to more than double the growth in reputation of the company (Park et al., 2012). spending of all other online marketing strategies by 2014 (Larson & Watson, 2011). Social media marketing does not seek to replace VALUE OF SOCIAL MEDIA traditional forms of marketing communications with Bughin et al., (2012) analyzed four industry sectors consumers, but it does seek to complement them in that represent 20% of the global industry (Financial order facilitate more efficient and easier communication Services, Consumer Packaged Goods, Professional methodologies. The new relationship between customer Services, & Advanced Manufacturing) that demonstrated and company has been termed social customer relationship an increase in revenue potential of $900 billion to $1.3 management (SCRM) (Andzulis et al. 2012). However, trillion with the utilization of social media platforms. it is important to clarify what the traditional form Two-thirds of the potential value in these four industry of customer relationship management (CRM) is and demonstrate how SCRM adds to CRM’s value creation 40 www.scip.org Competitive Intelligence sentiment analysis of consumer base with the utilization of Twitter processes. CRM has been defined as, “The management has the goal of reaching two potential audiences: those of the dual creation of value, the intelligence use of data individuals who have liked the brand and are considered and technology, the acquisition of customer knowledge, a fan, and those individuals who are friends with the fan and the diffusion of this knowledge to the appropriate who liked the company’s Facebook page. Overall, the stakeholders (Trainor, p. 318, 2012).” value of a fan is measured with the following metrics: SCRM is similar to the traditional form of CRM, increasing the depth and loyalty among fans, generating an but SCRM seeks to incorporate the newly created incremental purchasing behavior, and leveraging the ability technological and social changes that have originated to influence the friends of their current fans to spread from the introduction of social media platforms into the company’s social media marketing of their various the processes that create and maintain customer value. products and services (Lipsman et al., 2012). SCRM is not a replacement for the traditional form of The manner in which ROI was originallyPage 4 of 18 calculated CRM, but shouldOnlin bee Co viewedmmunitie sas an dan Di gextensionital Collabor athattions has for the value of a fan over Facebook was measured by the the capability to add social functions and processes that increase in the amount of likes on the company’s official will have the proficiency to incorporate the interaction Facebook page, how many people shared the company between customers,S cop peers,e of t hande P businessesr oblem : t(Trainorh e S oci 2012).al M ed ia Epost,cos yandste mthe amount of comments that were generated Figure 2 DisplaysThe otherizin intra-groupg about social communicationmedia effects is an withimpo rthetant , alonbeit an particularascent, conc epostrn fo utilizedr IS rese aforrch . marketingThis endeavors SCRM model.t e chnology-enabled phenomenon changes the nature of tr(Narayananaditional relat ieton sal.,hips 2012). in an o r gMoreover,anizational companies utilize context, a transformation that organizations must address inTwitter order to finull ya c osimilarmpete w fashionith rivals into a nmeasure era of their ROI of a fan widespread social media communication. Historically, enterprises have achieved certain goals regarding their customers through unilateral, one-to-many channelswith such measuringas print, rad theio, t eengagementlevision, and m ofor etheir consumer base, recently the Internet, broadcasting carefully-controlled messwhichages of pincludes:ersuasion w trackingith limited useroppo rretweetingtunities rate, audience TRANSITIONf oOFr re cSOCIALiprocity (Be rMEDIAthon et al . ANALYSIS2008). Howev er, the advent retweetingof social med irate,a tech andnolo gtheies h amountas altered ofthi sfollowers on the ENDEAVORSdynamic by enabling a high degree of two-way dialogue betcompany’sween the org aofficialnization Twitterand its c uaccountstomers, a(Narayanans et al., well as by providing a mechanism for customers to collaborate amongst themselves. Consumers can The popularity of social media analysis and 2012). advertising withinservi cthees, abusiness process th environmentat simultaneousl ybegan convey withs to th e company pBallaveotential r(2013)isks such affirms as negat ithatve wo companiesrd of have become the use of Facebook.mouth m Thearket inuseg ( Fofou Facebookrnier and A forvery

Load more