Social Sentiment Indicator

DEFINITION of 'Social Sentiment Indicator'

A measurement based on aggregated social media data that helps businesses understand how they are performing in the eyes of their consumers - what they’re doing right and how they might improve - and gives investors an idea of how the company’s stock might perform. Social sentiment indicators help companies identify trends that they can use to target new customers, develop successful marketing campaigns, create profitable products and services and protect and improve their brand identity and image. Social sentiment indicators also help investors identify information in social media that could cause a stock’s price to increase or decrease in the near future.

BREAKING DOWN 'Social Sentiment Indicator'

Social sentiment indicators are based on information users post publicly to Facebook, Twitter, blog posts, discussion groups and forums. If the social sentiment indicator shows a negative change in reputation, the company can address the problem before it grows. Companies can also use this information to reduce the burden on customer service email and call centers by addressing questions and problems en masse via social media. Collecting information from social media about how consumers perceive a brand can help companies identify individuals or businesses who have a strong social media influence. By identifying those who are dissatisfied with the brand, the company can reach out, try to remedy the problem and hopefully improve its social sentiment indicator. They can also make contacts with these highly influential individuals with an eye to boosting their brand image in social media.

Social sentiment indicators can also help companies determine how successful a marketing campaign is by analyzing reactions on social media to determine whether they are spending marketing dollars wisely and whether they should pursue similar campaigns in the future. Social sentiment indicators can further identify how consumers feel about competitors and similar products, and companies can use this information to improve their own offerings. Also, by paying attention to what consumers are praising or criticizing about their products and services using social media and other online venues, companies can assess what to expand on and what to drop or change.

Sports and entertainment companies can also use social sentiment indicators that they share with customers to give them a more engaging viewing experience. For example, IBM developed a social sentiment indicator that U.S. Open viewers could use to see the volume and negative or positive trend of tweets about each player, giving viewers a real-time idea of how fellow viewers were perceiving a match.

RELATED TERMS
  1. Social Media Marketing (SMM)

    The use of social media websites and social networks to market ...
  2. Social Responsibility

    The idea that a company should embrace its social responsibilities ...
  3. Social Media Optimization (SMO)

    The use of social media networks to develop and manage an organization’s ...
  4. Social Identity

    A company's image as derived from its relationships. An organization's ...
  5. Social Finance

    Social finance typically refers to investments made in social ...
  6. Social Networking

    The use of internet-based social media programs to make connections ...
Related Articles
  1. Investing Basics

    Social Media: High Risk, High Potential Returns

    Carefully selecting social media ETFs can provide you with the opportunity to diversify your portfolio and enjoy financial rewards due to user growth.
  2. Entrepreneurship

    Implementing A Small Business Social Media Strategy: Hiring A Social Media Manager

    As your online presence develops, you may find that you no longer have adequate time (or energy) to devote to social media. If you are fortunate enough to have created vibrant and active social ...
  3. Entrepreneurship

    How Important Is Social Media For Your Company?

    Freelancers and marketing agencies are just some of the resources companies are now using to develop their social media.
  4. Professionals

    Social Security

    Social Security
  5. Financial Advisors

    How Advisors Are Using Social Media

    It doesn't pay to leave social media out of your marketing plan, a new study shows. Here's some insight into how advisors are using the digital networks.
  6. Financial Advisor Technology

    Advisors: How to Ask Friends for Social Media Help

    Social media can be a difficult endeavor for those who didn’t grow up around technology, but younger friends and family can help quickly fill the void.
  7. Financial Advisor Technology

    Advisors: How to Make Social Media Work for You

    Most financial advisors today are using social media to help build their client base. Here are some tested basic guidelines on how to get started.
  8. Entrepreneurship

    Implementing A Small Business Social Media Strategy: Introduction

    As social media continues to change the way people communicate, it has become an increasingly important tool for small businesses.
  9. Professionals

    Financial Advisors: Social Media Is a Gold Mine (FB, TWTR)

    Learn how social media is a gold mine for financial advisers. Maintaining a social media presence enables you to reach customers, and it provides social proof.
  10. Financial Advisors

    How Advisors Can Carve Out a Social Media Niche

    Social media is a great way for financial advisors to build a brand and potentially generate leads if it’s properly used. Here are some tips.
RELATED FAQS
  1. What is the Social Security administration responsible for?

    Learn about the Social Security Administration's main responsibilities along with its history, structure and social safety ... Read Answer >>
  2. Why is social responsibility important to a business?

    Take social responsibility seriously, and your business could benefit from happier, more productive staff members while helping ... Read Answer >>
  3. How can a social responsibility consulting firm benefit a business?

    Learn about some of the ways that a socially responsible business consultant can help corporations and other businesses over ... Read Answer >>
  4. Why is social responsibility important in marketing?

    Drive consumers toward products and services by prioritizing social responsibility in marketing to enhance the company's ... Read Answer >>
  5. What are the most common scams regarding Social Security benefits?

    Learn about some of the most common Social Security scams that occur by phone, email and direct mail, and how to recognize ... Read Answer >>
  6. How do you craft an effective social responsibility policy?

    Craft social responsibility policies to brand the business, provide direction for the company's mission and motivate employees ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center