The importance of social media in industry analysis has become increasingly evident in today’s world as it empowers businesses with valuable insights and strategic advantages. So much so that the ability to understand the industry through social media is no longer just a benefit but a necessity.
And let’s not forget the staggering number of
social media users, which stood at 5.04 billion people as of January 2024. With its large volume of customer data and insights, social media helps in gaining a deeper understanding of the industry, competitors and consumers.
So, making the most of social media for industry analysis is the need of the hour if you want your brand to come out at the top in this crowded, competitive climate.
And to show you how simple it gets, we’ll be easing you through some of the top practical strategies and essential considerations that’ll help transform your business's approach to staying informed, competitive and one step ahead of the game.
Table of Contents
- What is social media industry analysis?Why should you conduct social media industry analysis?How to conduct industry analysis with social media?Consumer sentiment analysisKeyword researchTrend analysisDoing a meaningful industry analysis with social listeningTop 4 social media industry analysis models
What is social media industry analysis?
Social media industry analysis is a strategic process that involves the continuous monitoring and interpretation of data from social media platforms to gather insights about your competitors and your industry. This powerful practice not only helps you understand your competitors' strategies better but also offers a unique perspective for making informed decisions that can set your business apart.
As the digital realm continues to shape business operations, the ability to decipher complex social media data and trends has never been more critical. It helps in understanding emerging industry trends, shifts in consumer sentiment and opportunities that might otherwise remain concealed. This depth of insight can guide your business in tailoring its
social media marketingstrategies to engage its audience effectively and stay ahead of the competition for the foreseeable future.
Why should you conduct social media industry analysis?
As mentioned earlier, social media industry analysis is crucial for your business as it gives you the winning edge over the competition with many benefits that can help you be a frontrunner in your domain. Here are some of those advantages:
Better understanding of competitors: You can use social media competitor analysis to understand what your challengers are doing right or getting wrong. This way, you’ll have all the required data to gain the upper hand.
Strategic planning: You can use industry-analysis insights to make data-driven decisions and develop successful strategies. You’ll also know which initiatives to allocate your resources to for optimal results.
Consumer engagement: Industry analysis is essential for understanding your target audience's preferences and behaviors. This knowledge enables you to create highly engaging content that resonates with them, fostering strong connections and building brand loyalty.
How to conduct industry analysis with social media?
To conduct effective industry analysis, let's explore the practical steps and key parameters you should consider.
Social media audit
Conduct a thorough social media audit of your brand's social media profiles. Evaluate your performance by analyzing posting frequency, content quality, engagement rates and follower demographics. This analysis will establish a baseline for improvement and guide your strategy.
Here's an example of a social media audit template from Keith A. Quesenberry's book Social Media Strategy: Marketing and Advertising in the Consumer Revolution:
Social media competitor analysis
Social media competitor analysis involves identifying your primary competitors and analyzing their social media strategies. Pay attention to the type of content they produce, their engagement tactics, posting frequency and follower growth trends. This in-depth analysis enables you to uncover specific tactics and strategies that are driving their success, giving you a blueprint for your improvements.
A competitive insights and benchmarking tool, like that of Sprinklr’s, can help you map the details much better on this front, as shown below:
Consumer sentiment analysis
Perform social media sentiment analysis of your audience's data to identify recurring themes and adjust your content and engagement strategies. This will help you understand your customers' feelings towards your brand and products, allowing you to respond empathetically to enhance their experience. Using an AI-powered social listening tool will allow you to gain a deeper know-how of customers’ sentiments.
Keyword research
Leverage keyword research to understand what topics and phrases are trending in your industry. This knowledge can guide your content creation and ensure that you stay relevant. By incorporating trending keywords and phrases into your content, you position your brand as a relevant and informative source for your audience.
Trend analysis
Stay informed and proactive about industry trends by analyzing social media trends. This will help you understand the behavior of customers better and their preferences when it comes to brands.
Staying updated and strategically leveraging industry and consumer trends will also establish your brand as a leader and innovator. You can use a tool like Sprinklr’s Audience Insights to instantly discover your customers’ affinities and interests.
Additionally, you can better understand audiences who engage more with your competitors and on specific content themes, and the insights you gain from this, you can use to implement strategies that increase customer mindshare.
Share of voice
Determine your brand's social media share of voice (SoV) compared to competitors to gauge its industry presence and growth. Monitoring this metric helps increase industry influence, visibility and relevance to your target audience. When it comes to measuring this metric, a competent social listening tool will do the trick by giving you a detailed, easy-to-understand and visual representation of your brand’s SoV.
Also Read: 9 ways to boost your brand's share of voice on social media
Doing a meaningful industry analysis with social listening
As we’ve already stressed, the foundation of effective industry analysis is social listening. This method entails actively monitoring social media conversations, both within and beyond your brand's network.
Here's how to conduct meaningful industry analysis with social listening:
Recognize what your consumers and competitors are saying
Gain insights into the opinions, comments and feedback circulating on social media. Understand whether sentiments are positive or negative and identify recurring themes. This in-depth analysis helps you pinpoint potential issues, address concerns and capitalize on positive feedback.
Find and research pertinent industry conversations
Engage in discussions that are relevant to your industry. By participating in these conversations, you not only stay current but also connect with your target audience effectively. Engaging in industry conversations allows you to share your expertise, establish authority and build trust within your community.
Learn More:
Speak with your clients
Engage with your customers on social media. Address their concerns, acknowledge their feedback and build strong relationships. This not only strengthens brand loyalty but also provides valuable insights into customer preferences, allowing you to continually refine your products and services.
Also Read:
Your ultimate guide to building customer loyalty in 10 easy waysUnderstanding share of voice
Determine how much of the industry conversation your brand occupies. Understanding whether your share of voice is growing or declining can provide insights into your brand's reach and impact. A growing share of voice indicates an expanding influence in your industry, while a declining one signals areas for improvement and adjustment.
Understand business sentiments
Conduct sentiment analysis to gauge the overall sentiment surrounding your brand and industry. Are people generally satisfied with your industry's products or services or are there issues you should address? This analysis offers a comprehensive view of how your brand is perceived and can guide your social media reputation management efforts.
Maintain and track growth
Analyze
social media KPIs, such as followers, engagement, reach and impressions, to understand your brand’s growth. You can also use this data to measure the effectiveness of your strategies and identify areas for improvement. By monitoring growth, you can adapt and optimize your social media initiatives for continued success.
Interesting Read:
How to measure social media engagement effectively.
Top 4 social media industry analysis models
To conduct a thorough industry analysis using social media, prioritize the following key techniques:
SWOT analysis: SWOT analysis is a comprehensive approach that helps businesses evaluate their internal and external factors. In the context of social media industry analysis, this analysis method examines:
Strengths: Identifying what your brand excels at in social media marketing, like strong engagement or content quality.
Weaknesses: Recognizing areas where your social media strategy lags, such as low follower growth or insufficient content variety.
Opportunities: Discovering potential avenues for growth, like emerging platforms or untapped target demographics.
Threats: Recognizing external factors that might hinder your social media performance, such as competitive challenges or changing algorithms.
PESTLE analysis: PESTLE, in social media analysis, stands for:
Political: Considering government regulations and policies that could impact your social media activities.
Economic: Evaluating the economic climate and how it affects your social media budget and marketing strategies.
Social: Analyzing societal trends and cultural influences relevant to your target audience.
Technological: Examining how technological advancements may affect your social media strategies and tools.
Legal: Being aware of legal issues, like data privacy regulations or intellectual property concerns in your social media campaigns.
Environmental: Identifying eco-friendly practices and environmental factors relevant to your industry.
Competitive forces model: This model, often referred to as Porter's Five Forces, assesses competitive intensity within an industry. It considers:
Threat of new entrants: Analyzing the ease with which new competitors can enter the industry, which can impact your social media competitiveness.
Bargaining power of suppliers: Understanding how your social media strategy can be influenced by your content providers or platforms.
Bargaining power of buyers: Assessing the power of your social media followers and how they influence your brand.
Threat of substitutes: Identifying potential alternatives to your social media offerings and how they affect your competitiveness.
Rivalry among existing competitors: Analyzing the competition in your industry and how it affects your social media strategies.
Blue ocean strategy: To excel in social media, you need to create a unique and innovative strategy that sets you apart from your competitors. This involves finding new approaches that create uncontested market space and make your competition irrelevant. Key components of this strategy include:
Value innovation: Offering unique and valuable content that attracts and engages your audience.
Reconstructing market boundaries: Identifying unexplored niches or demographics in social media where your brand can thrive.
Tipping point leadership: Encouraging leadership that drives changes in your industry and sets you apart on social media.
Fair process: Ensuring transparency and fairness in your social media interactions, building trust and brand loyalty.
Final thoughts
Social media industry analysis has become a mandate for businesses to thrive and succeed in the ever-evolving digital age. It provides a wealth of data and insights that can be used to navigate your business in the right direction and get an edge over your competitors.
By understanding what your competitors are doing and how your audience perceives your industry, you can adapt your strategies and make data-driven decisions that lead to success.
With tools such as Sprinklr Social and Sprinklr Insights, you can delve into comprehensive industry analysis and craft strategies specifically tailored to your sector's distinct characteristics and requirements. To learn more about the comprehensive industry findings that Sprinklr can bring to you in an easily accessible way, book a demo today. Want to find out first-hand?
