Sentiment vs Revenue

Does an increase in positive sentiment lead to an increase in revenue?

Customer engagement is incredibly important for any business. With market places becoming increasingly competitive it is the customer engagement which offers the added value that can make your business stand out.

Social media has driven customer engagement to new heights. Many companies now offer support via social networks that is far more reactive, proactive and effective than traditional routes. Sites like Twitter and Facebook have given organisations a fresh way to interact with current and potential customers.

Feedback is instant and people are sharing their experiences both good and bad. But all of this real time sharing does represent an issue, particularly for companies that are not Coca-Cola or MTV who have a constant stream of consumer opinion.

SME’s often spend a lot of resource on generating conversation on social channels with a key objective being to improve or enhance company reputation. I see lots of companies doing great work on Twitter, Google+, Facebook and so on but the life cycle of a positive comment is increasingly short lived.

No sooner has a customer praised you on Twitter has it disappeared into being one of the 400 million tweets sent each day.

Wouldn’t it be great to capture this increase in positive sentiment whilst gaining all the benefits of online word of mouth marketing.

This is a project I’m currently involved in here at Fasthosts and through the development of our Review Site and social media channels it is exciting to see the progress being made.

The Fasthosts Review Site launched in January this year and has developed into playing a key role in helping track our customers view of the company. The increasing number of reviews has also helped strengthen our message of being an open, honest and trusted technology provider.

One gripe of many business owners when discussing the value in social media, blogging, forums and review sites, is that it is really hard to track any financial value. As a business owner if I invest in trying to improve the reputation of my company what does that mean for the bottom line?

Does an increase in positive sentiment lead to an increase in revenue?

That is the key question the Social Media team at Fasthosts asked itself a few months ago and thanks to our Review Site we are getting close to an answer.

We are interested in seeing what the customer behaviour is after leaving a review in comparison to the 12 months prior. Does publicly posting a positive review not only psychologically increase loyalty to the brand but also increase sales, reduce churn, change control panel interaction, increase receptiveness of email messages and so on.

There is no debate over whether customer engagement is going to be important for businesses in the future. The key question is; Can I see the return of my customer engagement investment?

If you’re a Fasthosts Customer and would like to review us or are interested in our services and want to know what our existing users think then check out our Fasthosts Review Site

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