Salesforce Insights Helps Companies Analyze Social Networking Activity

Salesforce.com (NYSE:CRM) has unveiled its latest social offering dubbed Insights. As an update to the already successful Radian6 social monitoring software, Insights is designed not only to register the reader’s sentiment but also intent as well as gather data on demographics and the influence that a user has online. The product is designed to analyze big social data from Facebook, Twitter, Google+ and other sources, and can be useful for companies seeking to make sense of the vast data available on social networks. Insights has already signed up multiple partners to improve its ability to make sense of social conversations. Radian6 has been successful in listening and monitoring of data so far, and we expect this upgrade to make it significantly better at analytics. ^[1]
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Salesforce.com has brought on multiple partners to make Radian6 a comprehensive social monitor. Clarabridges products are used for text sentiment analysis, Lymbix enables users to understand emotion and tone, PeekAnalytics measures the influence the users have online by measuring the profiles of social audiences, Solariat enables intention analysis and OpenAmplify helps in customer service. These companies join Klout, which is a social influence monitor, and OpenCalais, which improves data search-ability.

Sentiment analysis has been upgraded to include foreign languages and demographic information which can be pulled from biographies on sites like Twitter and Facebook. This is likely to expand Radian6’s market to other geographies and provide buyers with demographic information.

Social Data Analytics Opportunity

Understanding social media data has become a top priority for companies and their marketing teams. Social media is being used extensively for branding and listening to social media is unlocking business opportunities for companies. Technology expenditure is driven by the marketing teams of companies today as they are invested in social media efforts.

Twitter generates nearly 400 million tweets a day and tools like Radian6 help in monitoring, processing and making sense of this massive volume of data. Radian6 pulls data from an estimated 250 million sources, which is then analyzed to create personalized marketing campaigns online. Creating targeted ads and offers increase the chances of converting a customer, and this is what tools like Radian6 Insights are aiming for. ^[2]

We currently have a $130 Trefis Price Estimate for Salesforce.com, which is ~5% lower than the current market price.

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1. Salesforce.com goes for social big data with Radian6 updates, www.cbronline.com, July 17, 2012 [↩]
2. Salesforce Radian6 Launches Insights to Make Sense of Social Data Partners include Klout, PeekAnalytics, www.adweek.com, July 17, 2012 [↩]