How has Social Media changed the outlook for some Digital Stocks?

Summary

• Social media has emerged as an influential medium to aid the efforts made by individuals and entities to expand their businesses.
• Quantifiable user data generated via social media platform are further tracked, segmented, and analysed at a granular level to derive actionable insights.
• The interpreted data is applied to furnish personalised services, keep a tab on market trends, product launch and many more.
• Social media’s ignorance in modern times explicitly implies handing over one’s customers to their competitors.

Thanks to coronavirus, societal norms with regards to human interaction have gone through a transformation. Social distancing, self-quarantine, sanitisation, etc seems to be a new normal for the current world.

In this new normal, individuals, businesses and governments are making sure that they distance themselves from each other physically and connect socially via virtual platforms.

Owing to pandemic induced stringent lockdown, billions of people adhered to the social distancing norms, resulting in surged activities and participation on social media platforms.

Not only social media witnessed a rise in their usage, the digital media and related platforms have also experienced a boom to meet the various kinds of requirements of people like online shopping, tutorials, and such.

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In the contemporary world, social media has become one of the most influential channels, and its power cannot be understated.

Social media’s true power is influence.

You must be wondering how?

Well, social media furnishes an avenue for businesses to not only keep themselves engrossed with customers, but also guide them with the right content to aid their decision making.

Of late, network effects of social media platforms have also evolved as a main force of an individual’s communication strategy.

Businesses are combating and thriving the competition by reaching their customers via a network of social media.

Earlier, businesses presumed that if their target market was not youth oriented, then they could knock back social media altogether. However, this case is no longer applicable as social media user base has grown with the addition of people of all age groups.

In a nutshell, businesses are embracing social media at warp speed.

Lately, exercising of the big data phenomenon on social media has intensified an emerging field of study known as ‘sentiment analysis’.

Its primary focus is to be enlightened of what a user says or shares in his/her everyday life; businesses then extract this information to get the hang of their customers and enhance their operations appropriately.

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Let us now shed some light on how social media is changing outlook for digital stocks:

Digital companies like Amazon.com, Inc. (NASDAQ:AMZN), eBay Inc. (NASDAQ:EBAY) and Netflix, Inc. (NASDAQ:NFLX) are bringing social media networking into play to offer personalised services, make decisions, products insights and many more.

Do you often see recommendations popping up on your social media platforms or your Amazon or e-bay account?

Whenever one posts any status update, interact via messages on Facebook or mention or tag on Twitter or retweet and comment on these businesses blogs, it generally incorporates useful information about demographics, likes, dislikes, etc.

Social media users are engaged with a particular platform, and other users on the platform as well; each of these interactions generates a quantifiable data point that can further be tracked, segmented, and analysed at a granular level to draw actionable insights.

Moreover, these businesses provide recommendations with a range of products that a person might be interested both on their applications/ websites and on their social media platforms, luring an individual to make a purchase.

The social media platform aid companies to actually save cost by reaching a prospective customer with right product and services online, build a customer base and loyalty.

Decision making

Social media data essentially creates a record of user behaviour that allows companies to build engagement strategies such as indulging in interaction with which users, also, who among them should get marketing emails, and such primarily to promote their businesses.

Businesses have taken a step further and are analysing the data grabbed from social media platforms to make decisions for future needs and expectations of consumers.

Personalised experience

Entities are gathering data about the reactions of the customers on their products and campaigns. The data is quantified or measured by interactions with messages on Facebook, mentions or tags on Twitter, retweets, and comments on a company’s business blog.

The social media derived data has empowered personalisation and has authorised businesses to approach their prospects or customers in a more personalised way, through tailored communication primarily to convert them into customers or hoist the trust and enrich retention of the existing customers.

Tailored communication is done in the form of demonstrating just those advertisements, which attract customers and turn advertisements into a non-obtrusive experience.

Product Insights

The moods, behaviours and preferences of consumers change at an incalculable rate. Something that might be working one day could become obsolete overnight. The analysis of a customer’s activity should be done on continuous basis.

The data provided by consumers on social media aids in analysing the choice of customers; their likes, dislikes, and complaints also help in judging the future buying patterns and trends among people.

Moreover, businesses are measuring and tracking the volume, sentiment, and relevance of these interactions over time to determine how customers are receiving their new products, services and offers.

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Hey, digital media companies would keep embracing social media.

Digital companies would keep focusing on the data gathered via social media platforms to enhance their products, build a customer base, and promote loyalty. Also, it would help the entities to save cost and expand businesses in general.