More information ought to be useful, but only if companies can interpret it. And workers are already overloaded: 62% of them say that the quality of what they do is hampered because they cannot make sense of the data they already have, according to Capgemini, a consultancy. This will only get worse: the data deluge is expected to grow more than 40 times by 2020.
Responding quickly to bitter tweets sounds like a nifty way to soothe angry customers. But there is a risk that companies will concentrate on a handful of activists (who tweet a lot), while neglecting average customers (who dont). They may also ignore non-customers (who are the biggest potential source of growth) and the elderly (who seldom tweet). Many firms think that they can improve customer service by using social media to respond to complaints quickly. Really? It is already virtually impossible to talk to a real person on the telephone. Will it be any easier online?
Undaunted, cyber-enthusiasts maintain that social technologies are shifting power from a few Goliaths to many Davids. Ordinary people can easily broadcast their opinions and extend their networks. Big firms have to adjust to this new reality or go under. (As the digerati put it: All businesses will end up looking like the internet.) But big firms can use social data to add to their already formidable influence over the consumer: Ford, PepsiCo and Southwest Airlines monitor postings on social-media sites to gauge the impact of their marketing campaigns and then adjust their pitch accordingly. And some of the most successful internet-savvy companies, such as Google and Microsoft, are as secretive about what they do as any old-line company.
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