# The Importance of Data Analytics For Success 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-29
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: How Social Media Reveals Corporate Success
Meta Description: Discover how social media analytics can provide deep insights into a company's management, market understanding, and future performance. Unlock valuable
URL: https://financedigest.com/the-importance-of-data-analytics-for-successhtml

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By Colin Jacobs, Managing Director, [Immediate Future](https://immediatefuture.co.uk)

Warren Buffet, the World’s most successful corporate investor, built £77 billion in personal wealth on a simple mantra. He only puts his money into companies that he considers have good management.

Buffet eschews [emerging markets](https://www.financedigest.com/medical-nonwoven-disposables-market-scope-emerging-trends-analysis-and-forecast-2028.html "Medical Nonwoven Disposables Market Scope Emerging Trends, Analysis and Forecast 2028"), quick returns, and stayed out of the dot com boom. He looks at [senior managers](https://www.financedigest.com/senior-managers-regime-what-does-it-mean-for-the-industry.html "SENIOR MANAGERS REGIME – WHAT DOES IT MEAN FOR THE INDUSTRY?"). If they don’t impress, he won’t invest. This policy has made him one of the wealthiest individuals of all time.

But how do you identify a [company as being managed](https://www.financedigest.com/poor-user-experience-plaguing-wealth-management-firms-warns-radical-company.html "Poor user experience plaguing wealth management firms, warns Radical Company") well.A quick to use new criteria may seem unlikely, but there is an irrefutable truth behind the use of social media as an accurate guide to standard of management, and [future corporate success](https://www.financedigest.com/banking-on-the-future-why-payments-transformation-is-the-key-to-success.html "Banking on the Future: Why Payments Transformation is the Key to Success"). This is not to do with clever marketing. It is about data.

Most often we find social media is used for short term calls to action, and CSR announcements. Sometimes great creativity may be involved, a high profile influencer enrolled, or it can be a simple [message aimed at a specialist market](https://www.financedigest.com/premium-a2p-and-p2a-messaging-market-surpass-revenues-worth-us-75-bn-in-2029.html "Premium A2P and P2A Messaging Market surpass revenues worth US$ 75 Bn in 2029"). But essentially, content is about asking people to buy in the short term, or is a demonstration of [socially responsibility](https://www.financedigest.com/stocks-with-greater-socially-responsible-investor-demand-saw-weaker-losses-during-the-covid-19-crash.html "Stocks with greater socially responsible investor demand saw weaker losses during the COVID-19 crash").

Then [consider the alternative](https://www.financedigest.com/eu-considers-ban-on-forever-chemicals-urges-search-for-alternatives.html "EU considers ban on ‘forever chemicals’, urges search for alternatives") use. The use of social media as the single most [effective and detailed market](https://www.financedigest.com/how-businesses-can-effectively-pivot-marketing-game-plans-for-christmas-2020.html "How businesses can effectively pivot marketing game plans for Christmas 2020") analysis tool there is. This statement may come as a surprise, but nevertheless, it is true.

All social media activity leaves tell-tale trails of information. Little snippets of code called pixels, that can be gathered to produce deep insights. It can tell you what buyers and prospective buyers think of a company, a brand, a product, [customer service](https://www.financedigest.com/video-collaboration-is-pushing-the-boundaries-of-the-customer-experience-in-financial-services.html "Video Collaboration is pushing the boundaries of the customer experience in Financial Services"), what customers really want, when how and they want it, what they want improved, and what they expect in the future. It can tell all of these things and more, including a great detail about the [attitudes consumers](https://www.financedigest.com/the-new-year-will-bring-new-consumer-attitudes-with-it.html "The new year will bring new consumer attitudes with it") have towards competitors.

Social media can measure more than 40 million attributes to [create detailed psychographic market](https://www.financedigest.com/the-electric-vehicle-sound-generator-market-to-create-turbulence-in-automotive-sector-at-a-cagr-of-14-between-2019-and-2029.html "The Electric Vehicle Sound Generator Market to create turbulence in automotive sector at a CAGR of 14% between 2019 and 2029") understanding, and it can monitor relevant conversations. It can track all of this on a running basis to [reveal what markets](https://www.financedigest.com/the-edible-oils-market-to-grow-on-an-innovation-revealing-spree.html "The Edible Oils Market To Grow On An Innovation Revealing Spree") want, to what degree a company is fulfilling those wants, what it needs to do to achieve more sales, and counter activity from rivals.

In [sales and marketing](https://www.financedigest.com/sales-of-electric-bicycle-motors-market-to-record-exponential-growth-during-2017-2025.html "Sales of Electric Bicycle Motors Market to Record Exponential Growth During 2017 – 2025") terms, knowing what buyers seek, and when and how they want it creates significant commercial advantage. However, the use of social media for analytical purposes goes far [beyond marketing](https://www.financedigest.com/the-drug-repurposing-market-to-virtually-grow-beyond-geographies.html "The Drug Repurposing Market to virtually grow beyond geographies"). It is a planning tool, and its use tells something fundamentally [important about how well a company is managed](https://www.financedigest.com/four-reasons-whycloud-based-inventory-management-is-important-for-your-ecommerce-business.html "Four reasons whycloud-based inventory management is important for your ecommerce business"), and its future performance.

If a company is using social media analytics, then it is probable other forms of reliable [data are being used for key](https://www.financedigest.com/2023-fintech-prediction-secure-and-private-data-usage-is-key.html "2023 FinTech Prediction: Secure and Private Data Usage is Key") decision making. If it is not being employed, it is an indicator that other [key data](https://www.financedigest.com/sterling-edges-lower-ahead-of-key-data.html "Sterling edges lower ahead of key data") formats are not being used. This is really important.

The Rule of Ten is a case in point. [Studies show it costs ten times](https://www.financedigest.com/us-homeowners-premium-set-to-surpass-90bn-for-the-first-time-according-to-annual-aon-study.html "US homeowners premium set to surpass bn for the first time, according to annual Aon study") as much to complete a unit of work when data is flawed. If data is perfect, a total cost might be 100 x £1 = £100. But if only 50 per cent of data is accurate then another £50 is added to the equation. These are purely monetary costs. In the case of something like logistics fulfilment, the true cost from lost customers, and damage to brand reputation would be significantly higher.

A recent [survey by Deloitte found that 49 per cent of managers say](https://www.financedigest.com/vietnamese-are-tired-of-boring-ads-yougov-survey-says.html "Vietnamese are tired of boring ads, YouGov survey says") analytics helps them make better decisions, with 16 per cent responding that it allows them to make better strategic choices, and ten per cent responding that it helps create better relationships with customers and partners.

The use data is not only significantly enlightening in its own right, it is a demonstration that [senior managers](https://www.financedigest.com/the-senior-management-regime-takes-shape.html "The Senior Management Regime takes shape") have a will to employ people that can collate and interpret critical intelligence, and that C level executives and the boardroom are able to make decisions based on the best possible information.

Ironically, it is often [marketing departments that show greatest resistance](https://www.financedigest.com/the-bug-resistant-medicines-market-to-be-presided-over-by-exponential-digitization.html "The Bug Resistant Medicines Market to be presided over by exponential digitization") to using social media strategically, whether it is for developing long term relationships as opposed to short term tactics, or in the use of analytics. This is usually due to sales and marketing professionals having been immersed in a ‘demand’ culture in which [individuals succeed](https://www.financedigest.com/how-to-trade-forex-and-succeed-as-an-individual.html "How to Trade Forex and Succeed as an Individual") or fail based on constant quick returns rather than building long term value.

The [demand culture is not one in which there is an interest in analysis that generates returns](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away") in six months, a year or five years. Results are measured in days, weeks or a few months at best. However, senior level executives often see the [benefit of big](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") picture knowledge. They [understand that corporate](https://www.financedigest.com/corporate-leadership-understanding-your-own-bias.html "Corporate Leadership: Understanding Your Own Bias") prosperity cannot be based on feeding tactical sales. Sustained [growth is built on knowing markets](https://www.financedigest.com/getting-out-of-the-static-curve-to-decide-the-growth-of-umbilical-cord-blood-banking-market.html "Getting Out Of The Static Curve To Decide The Growth Of Umbilical Cord Blood Banking Market"), appropriate R&D, and understanding and building long term relationships with buyers.

The difference in the [futures of companies that use information analysis](https://www.financedigest.com/dry-ice-market-2015-outlook-current-and-future-industry-landscape-analysis-2025.html "Dry Ice Market 2015 Outlook, Current and Future Industry Landscape Analysis 2025") for strategic decision making, and those that operate with data myopia are necessarily different. Social media is able to [play a crucial role](https://www.financedigest.com/why-the-bank-branch-still-has-a-role-to-play-for-consumers.html "Why the bank branch still has a role to play for consumers") not only in understanding the best direction for companies, but also optimising proposition and communication during the journey. And that is why use of the medium is a [key indicator of how well a company is managed](https://www.financedigest.com/6-keys-to-managing-a-remote-first-workforce.html "6 Keys to Managing a Remote-First Workforce"), and how it will perform in the future.


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