Report on Social Media Analytics

W3: DATA4500 Established Methods in Social Media Analytics (SMA)

Current directions in SMA capabilities development and applying a marketer’s perspective toward public perceptions and brand profitability.

DATA4500 Roadmap

Week 1 A Brief History

Week 2 User Behaviour &

Monetisation

Week 3 Methods of

Analysis

Week 4 Commercial

Opportunities

Week 5 Sentiment

Analysis – Part 1

Week 6 Assessment: Case Study 1

Week 7 Sentiment

Analysis – Part 2

Week 8 Insights Mining

Part 1

Week 9 Insights Mining

Part 2

Week 10 Ethical

Considerations Part 1

Week 11 Ethical

Considerations Part 2

Week 12 Assessment: Case Study 2

Lesson Learning Outcomes

1 Develop an appreciation of Social Media Analytics (SMA) and its business impact.

2 Examine the distinctions between SMA and traditional (statistical) analysis.

3 Evaluate the capabilities introduced by Sentiment Analysis and Insights Mining.

4 Analyse the process of developing and implementing institutional SMA capabilities.

5 Consider applications SMA in trend detection and its merits as an early warning system.

The End State…

Carly Fiorina Former CEO, HP

“The goal is to turn data into information and

information into insight.”

Lecture Roadmap This is what we will cover…

Know Your Audience

SMA & Business Opportunities

Motivations & Capabilities

Sentiment Analysis

Insights Mining

SMA Costs & Benefits

A Growing Audience Human activity in the digital domain has grown exponentially every since the advent of commercial internet…

…and this trend is not expected to change…

500+ million

4540 million

200 million

625 million

Active Blogs

Active Internet Users

FY2009 FY2019

7.7 billion6.8 billionWorldPopulation

The phenomenon Social media may be defined as a “group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user generated content”

FY2010 30 million^

FY2019 330 million^

^ Active Monthly Users

FY2010 431 million^

FY2019 2449 million^

FY2010 750 million^

FY2010 1860 million^

Business Impact The use of social media creates vast amounts of information on a daily basis:

• consumer opinions and experiences

• sentiments toward brands, products and services

This information is used by businesses in their decision feedback loop to:

• address business funnel constraints and pain points

• design new campaigns

Business Impact Benefits of organisations bolstering their analytical capabilities to analyse and interpret vast amounts of online information to gain costumer and business insight:

• Scale and Speed Social media campaigns can be set up rapidly. The distribution infrastructure already exists in the internet, optimised search engines and modern browsers.

• Cost efficiency and operational flexibility Reduce reliance on physical infrastructure saves material and human capital. Real time reporting and a tighter feedback loop allow pruning to occur at a much faster pace.

SMA leverages AI and ML Machine Learning is the right tool for SMA – this is a data rich environment with overwhelming quantities generated on a daily basis.

It’s all about making predictions.

Data Prediction

Sun + Wind + Time

Radiology

Genetic Data

Emails

Social Media Data

Future Energy Price

COVID-19 Precursor

IFV Trait Selection

Spam FIlter

Sentiment Analysis

Intelligence & Learning

AI – replicate intelligence in machines. ML – study of algorithms that learn through experience (data). DL – applying neural networks to ML.

Traditional Programs vs. ML Normal software is basically a set of rules, written by a human, intended to achieve a particular output. Machine learning software finds rules (patterns) on its own and tries to produce a certain output. It’s software that writes software.

Traditional Programming

Data

Machine Learning

Program Computation Output

Desired Output Training Output

Model / Algorithm

Existing Data

New Data

Traditional Programs vs. ML Here’s a quick and easy flowchart to help you figure out what type of algorithm is being executed…

Algorithm

Pattern recognition

using big data? NOYES

Not ML

Algo receiving explicit

instructions?

NO

YES

Reach objective through trial and error?

Supervised Learning

Machine Learning

YES

NO

Unsupervised Learning

Reinforced Learning

Algo uses artificial neural

networks?

YES

Deep Learning

Traditional Analytics Traditional business analytics systems use structured data.

Structured Data Source

Statistical Pattern

Recognition Reporting

Name of Area PopDensity SexRatio PropMAgric PropMMining PropFManuf PropFDomServ DRTuberculosis DRLung ClaimRisk Aberayron 0.205 0.807 0.483 0.003 0.067 0.112 3.901 1.204 HIGH Abergavenny/Bedwelty 0.804 1.119 0.104 0.301 0.068 0.088 2.161 4.279 MEDIUM Aberystwyth 0.199 0.884 0.34 0.22 0.075 0.135 2.578 1.837 MEDIUM Abingdon 0.376 0.935 0.49 0.006 0.204 0.131 2.489 3.427 HIGH Alcester 0.334 0.988 0.449 0.015 0.256 0.111 1.803 3.064 LOW Alderbury/Salisbury 0.464 0.926 0.313 0.01 0.112 0.187 2.464 3.097 HIGH Alnwick 0.206 0.94 0.413 0.07 0.074 0.145 2.644 2.36 MEDIUM Alresford 0.182 1.046 0.534 0.004 0.057 0.176 2.449 1.342 LOW Alston 0.172 0.98 0.108 0.582 0.071 0.141 2.251 4.75 LOW Alton 0.236 0.987 0.589 0.006 0.058 0.156 2.189 3.323 LOW Altrincham (Bucklow) 0.614 0.933 0.461 0.019 0.087 0.21 2.289 2.957 MEDIUM

Evolving Data Landscape Social media data is…

Heterogeneous There is high variability of data types and formats. They are possibly ambiguous and low quality due to missing values, high data redundancy, and untruthfulness.

Unstructured Lacks a pre-defined data model or is not organized in a pre-defined manner. Data is typically text-heavy and may be plagued by irregularities and ambiguities.

Creating SMA Capabilities

SMA Capabilities

Combining new analytics technologies with organisational processes, people and knowledge creates SMA capabilities.

INFRASTRUCTURE

Heterogeneous & unstructured data

Organisational processes, people &

knowledge

Business Impact Framework

Organisational Motivation

SMA Capabilities

Value Add

What are the drivers that are pushing the organisation to innovate? Is there a need and a want to improve customer insights?

What knowledge, competencies and technologies are available to the organisation to help it better understand its customers and environment?

Has there been any quantifiable change in the organisation’s enterprise value as a result of implementing SMA for better decision making?

Activity 1 Q1. What information is generated by social media and how is that information used by businesses in their decision feedback loop?

Q2. What are the benefits of Social Media Analytics to the organisation? Give a product example (good or service).

Q3. What is the difference between SMA and traditional analytics? What typically characterises social media data?

Q4. Describe how SMA capabilities are created. In your response, address the business impact framework for SMA.

Organisational Motivation Organisational motivations are defined as the goals that an organisation pursues, and guide the subsequent actions of that organisation.

• Product Leadership An organisation may have a goal to develop product leadership within its market niche by the introduction of innovations in the design of existing products.

• Market Position Strengthening the organisation’s market position by the introduction of online marketing innovations to increase customer intimacy.

Motivation – Customer Insights Businesses need insights into customer’s values and behaviour in order to create products and services that are sought after and fit for purpose.

“With the goal of targeting specific interest groups, the company needs a clear understanding of each group’s needs and habits.”

Excited to meet the @samsungmobileus at #sxsw so I can show them my Sprint Galaxy S still running Android 2.1. #fail

.@wesley83 I have a 3G iPhone. After 3 hrs tweeting at #RISE_Austin, it was dead! I need to

upgrade. Plugin stations at #SXSW.

At #sxsw. Oooh. RT @mention Google to Launch Major New Social Network Called Circles, Possibly Today {link}

Motivation – Strategies & Initiatives The impact of on-line marketing campaigns can be scientifically gauged. It is necessary to track whether the messages were delivered to intended customer segments which impacts the return on investment of social media initiatives.

Emotions that make online

content go viral.

(based on the 10,000 most

shared articles across the web)

Motivation – Spur New Ideas Organisations need to gather new ideas about brands, products and services, including online feedback, in order to continue driving growth.

• Why does your brand exist?

• Why does your brand matter?

• What are your customers unique set of needs?

• What sets you apart and why is that meaningful for your customers?

• What do you want your customers to say about you when you’re not in the room?

Motivation – Social Influencers With the increasing use of ad-blockers and public mistrust in institutional policies toward data privacy, the need to identify people or communities that have the power and ability to influence the intentions of others becomes all the more important.

Organisation

SM Influencer

Social Media Ecosphere

Ad Blockers

Privacy

Users

Motivation – Social Influencers

Motivations and Capabilties From motivations to capabilities…

Organisational Motivations

• Provide customer insights • Develop social media strategies and initiatives • Gather ideas about brands, products and services • Determine the impact of online campaigns • Identify social influencers

SMA Capabilities aimed to…

• Understand content, context and business impact of online posts and conversations – e.g. sentiment analysis.

• Discover valuable customer information – e.g. insight mining. • Monitor relationships between online users and communities – e.g.

influence analysis, network analysis.

Activity 2 Q1. What is the motivation behind understanding (consumer) sentiment? How does this lead to new ideas?

Q2. Discuss the motivation behind using social media influencers to market products and brands. What are the risks and rewards?

Q3. Form two groups. In your group discuss how organisational motivations can lead to the development of SMA capabilities. Use practical examples to supplement your views.

Capability Building Capabilities are the ability of organisations to utilise resources to perform a coordinated set of tasks.

Capabilities are a key concept within the Resource-based view (RBV) of the firm.

Resource Based View

Organisation

Intangible Tangible

Skills Knowledge

Routines Processes

Hardware Software

PeopleData

Capability Deployment SMA capabilities are a mutually reinforcing system of SMA technology assets and organisational SMA competencies.

Customer Insight Mining Example

It is the ability of an organisation to utilise SMA related resources to perform SMA tasks.

SMA Technology

SMA Competencies

Hardware

Software

Data

Skills

Knowledge

People

Routines Processes

Customer Insights

SMA Capabilities – The Customer A number of SMA capabilities may be identified from the literature and success stories.

These include the ability of organisations to discover into: • customer behaviours – what they do vs. what they say they do; • customer intentions – long term behavioural, end state; • customer preferences – wants and needs; and • customer demographics – population strata and structures.

“...[sentiment analysis was used] to assess whether a given text [customer comment on product] expresses a positive, negative or neutral comment.” (IBM 2012, p4)

Capability – Sentiment Analysis

Sentiment analysis is contextual mining of text which identifies and extracts subjective information in source material, and helping a business to understand the social sentiment of their brand, product or service while monitoring online conversations. Creative use of advanced artificial intelligence techniques can be an effective tool for doing in-depth research. Insights generated include: • Key aspects of a brand’s product that customers care about. • Users’ underlying intentions and reactions concerning those aspects.

“What was the response to our social media campaign broken down by demographic?”

Capability – Sentiment Analysis Sentiment analysis is being used to help:

• improve service at a hotel chain by analysing guest comments;

• customize incentives and services to address what customers really want;

• determine how consumers really feel based on opinions from social media.

Activity 3 Q1. Discuss how SMA capabilities building and capabilities deployment can generate and preserve enduring value for the organisation

Q2.

Consider how sentiment analysis may be used at AirBnB.

Identify a business area where sentiment analysis can be applied.

Outline the data that need to be collected, the features in that data and how these features can be used to explain the ebbs and flows of public opinion.

Discuss how these insights may be applied to create value.

* A use case is an example that highlights the use of an instrument or framework.

Capability – Insight Mining Discover insight into customer behaviours, intentions, and preferences.

More than just gathering customer insights, insight mining is a dynamic, continuous and iterative process that seeks to craft marketing messages that shape and influence those insights.

Consumer Understanding

New Ideas, Innovation

Consumer Insights

Impactful Messaging

Capability – Insight Mining A good insight is a deeply felt human perception that feels as relevant to the brand as it does to us.

Good insights are difficult to extract. Good insights are discovered by asking the right questions.

Questions fail if they are: • Not challenging enough; • Not thorough enough; • Directed at the wrong audience.

Consider the Australia Talks National Survey which asked 54,000 Australians about their lives and what matters to them.

Capability – Insight Mining

Capability – Insight Mining

Capability – Insight Mining

Capability – Insight Mining Role Play.

Imagine you’re Airbnb. Your goal is to increase bookings made through your platform.

Based on the survey responses:

1. What follow up questions should you ask to ascertain Australian’s optimism toward travel and tourism?

2. How can analytics help to create and adjust an impactful marketing message that will spur positive sentiment and behaviour that benefits Airbnb?

Capability – Trends, Issues, Stability Trends…

‘Top heavy’ demography and

longevity has socio-economic

implications.

Energy diversification create supply

opportunities and risks.

Technology on scalable efficiency and productivity

gains

Climate change on energy

consumption

Increasing Trends

Decreasing Trends

Driving Change Counter Trends

What are some of the trends that are driving change?

What are the counter trends

being provoked as the result of these

(initial) trends?

Capability – Trends, Issues, Stability Emerging issues – what are the new ideas, issues and technologies that are latent at present but could mature into powerful and transformational drivers of change?

Capability – Trends, Issues, Stability Stabilities – factors that slow down or prevent change.

Examples: • Rules, customs and traditions. • Physical and/or logistical constraints. • Patterns of behaviour. • Powerful stakeholders and incumbents.

The 5 facets of stability – STEEP: • Social • Technological • Economic • Environmental • Political

Identify & Measure Change SMA Capabilities (to monitor and measure change):

• Influence analysis – identify the key people or communities that have made significant contributions to a particular issue.

• Competitive analysis – track and monitor comments about brands and products of competitors.

• Marketing initiative measurement – track and monitor comments about particular brands and products related to marketing campaigns.

• Crisis analysis – track and monitor comments that contain negative sentiment about brands and products.

Activity 4 Q1. Discuss how SMA capabilities can help detect trends and counter trends.

Q2. How can SMA capabilities detect emerging issues well in advance of their maturation?

Q3. How can SMA capabilities be deployed to gauge stability factors and inform decision-makers as to how and when to take action?

SMA Benefits What is the extent to which SMA capabilities contribute to the success of individuals, groups and the organisation?

For digitally enabled businesses, benefits from SMA innovation include:

Financial

• Increased sales • Decreased costs • Improved fundraising

prospects • Improved capital

utlisation

Perceptual

• Customer satisfaction • Market efficiency • Improved brand

awareness. • Improved product –

customer value alignment

Behavioural

• Integrated application of BA insights

• Improved, data- enhanced, decision- making

• Better attract and develop balanced teams

SMA Benefits • Marketing strategy improvement – create and refine

marketing strategies, initiatives and channels in order to effectively deliver messages to targeted customers.

• Better customer engagement – provide two ways of communication with targeted customers, based on their values and preferred channels.

• Customer service improvement – provide timely and appropriate responses to customer feedback.

• Better brand awareness and reputation management – monitor and maintain brand and product reputation in the market.

SMA Benefits • Product development and improvement – innovate

products based on customer inputs.

• Social media metrics development – develop instruments for measuring the effectiveness and ROI of social media initiatives.

• Business process improvement – improve and optimise decision- making processes, business operations and optimise value chain.

• New business opportunities – ongoing monitoring of emerging opportunities to generate more revenue and income.

Activity 5 Q1. Briefly describe the three major categories of SMA benefits.

Q2. Pick two SMA benefits and briefly discuss the organisation motivation and types of SMA capabilities that would enable those benefits.

Q3. Form two groups. In your group discuss how SMA capabilities can lead to benefits. Use practical examples to supplement your views.

Lecture Roadmap (Revisited) This is what we have covered…

Know Your Audience

SMA & Business Opportunities

Motivations & Capabilities

Sentiment Analysis

Insights Mining

SMA Costs & Benefits

✅ DONE!

✅ DONE!

✅ DONE!

✅ DONE!

✅ DONE!

✅ DONE!

Next Week Social Media Analytics – Risks & Opportunities

• SMA applications in competitive digital marketing.

• Use of influence as a market share and revenue leading indicator

• Real time capabilities of social media monitoring.

• Applications of SMA in formulating crisis response measures.