By: Helena Schwenk, Principal Analyst, MWD Advisors
Published: 2nd November 2011
This work is licensed under a Creative Commons License
At its BI Symposium in London last week Microstrategy outlined its product and marketing strategy based along four key pillars: Social, Big Data, Mobile and Cloud. While Microstrategy isn’t the only BI and analytics company to push these themes (in fact I’m hard pushed to think of many vendors who don’t) its attention to Social Intelligence for the Enterprise and in particular its Gateway for Facebook and Wisdom offerings drew my attention, especially given my upcoming research around social analytics. Overall, these offerings provide a valuable way of tapping in and leveraging the huge streams of data found with Facebook to enhance and serve consumers or customers more effectively. That said, any successful effort also needs to take into account how and in what context this data is used as part of any social media strategy.
Microstrategy is betting on Facebook for its social strategy
One of the key takeaways from the Symposium is that Microstrategy is betting on Facebook when it comes to its social intelligence strategy. Given that the company has one of the biggest social media platforms—although certainly not the only one—it’s easy to see why Microstrategy is placing (at least for the time being) its eggs in the Facebook basket. The social networking platform generates unprecedented levels of data, not only about people, companies, their relationships and connections, but also their likes, interests and preferences. With close to 800 million active users—around a half of which log on to Facebook in any given day and an average user connecting to around 80 community pages, groups and events—Facebook can certainly be called one of the biggest and richest source of CRM data. As an untapped resource it provides huge potential for organisations who want to mine and leverage this data to enhance customer engagement, improve loyalty and ultimately generate revenues for their company.
Microstrategy’s approach differs from those of its competitors
Microstrategy isn’t the only BI and analytics company to talk up social, although its approach is unique in two respects. Firstly, as mentioned, it is focused on leveraging Facebook data rather than other social media data and, secondly, it is concerned with augmenting and leveraging this information to get a deeper and more granular understanding of a company’s fan base. Unlike other vendors, it does not focus on sentiment or text analysis. To illustrate its aim the company has two enterprise offerings focused on social intelligence.
Gateway for Facebook is a cloud-based offering that converts Facebook’s social graph—the term for the collective interrelationships between users of the site—into a relational format that can be leveraged alongside other enterprise data for further analysis and application development. Although there are plenty of other smaller vendors who can claim to collect Facebook data via their Graph API, Microstrategy is differentiating its offering by placing a deeper focus on synchronising Facebook data with enterprise IT applications and through its enhanced performance and availability. In the case of the latter it uses a governing mechanism to track query loads and a database to make social graph data available even when Facebook access is interrupted.
Wisdom is a cloud-based analytic application built on top of Gateway and lets companies explore demographic and psychographic information contained in their Facebook application user profiles. It provides a set of dashboards that allow marketing users to filter user data and group the population based on its psychographic profiles. For example Wisdom uses Facebook check-in and page-likes to determine a user’s likely behaviour, so if someone has updated their profile when staying at a five-star hotel and also has a penchant for Ferraris and Gucci, then Wisdom infers they are a brand-conscious consumer. Providing this level of enrichment enables organisations to (arguably) make better and more informed decisions about how to categorise, target and personalise communications to that consumer group.
Key considerations for organisations
By integrating with Facebook data both offerings can tap into and harness a rich source of data to get a deeper understanding of consumer groups and their interests. But while it’s easy to get carried away with the possibilities and the financial results this may bring, we believe organisations also need to take into account a few key considerations when starting their social intelligence journey.
Microstrategy Facebook for Gateway and Microstrategy Wisdom are currently in beta.
We automatically stop accepting comments 180 days after a post is published. If you would like to know more about this subject, please contact us and we'll try to help.
Published by: electronicdawn Ltd.