Supermarket chains turn to social CRM

Published on 02 June 2011 by in Latest News

supermarket crm Supermarket chains turn to social CRM

Last month saw two major supermarkets take huge leaps forward in social media CRM. Both Tesco and Sainsbury’s announced plans to apply the online views and opinions to their customer feedback process. Tesco announced the purchase of BzzAgent (a customer loyalty platform), while Sainsbury’s revealed plans to introduce consumer reviews to its website.

To demonstrate some of the reasons why both supermarket chains have decided to enter the social sphere, we analysed the activity of each company’s advocates and detractors on the social media platform Twitter.

A search on Twitter monitoring tool Trendistic shows that both supermarkets are actively discussed on Twitter. The below graphs show the number of times both companies were mentioned on the social networking site during a 24-hour period.

References to Tesco:

References to Sainsbury’s:

Obviously, both companies, as leading UK chains, receive a number of references from users on this platform. Indeed, at its peak 0.3% of Twitter conversations relate to Tesco supermarket.

But, the volume of tweets mentioning each company only tells us half a story. When we analyse the sentiment for these references, we can see another reason why these companies would want to contribute to the conversations about their brand. Below, we can see the sentiment analysis for mentions of both Tesco and Sainsbury’s and also conversations directed at these individual accounts. This data was captured over a seven-day period: tesco sainsburys crm Supermarket chains turn to social CRM

As we can see, the mix of negative and positive sentiment is fairly even for Tesco. Sainsbury’s however, has an overwhelming proportion of positive references.

The lesson here is that consumers will discuss a bad or good customer service experience, regardless of whether your company has a Twitter profile or not. The news that Tesco and Sainsbury’s are joining the legions of other organisations applying CRM to their social channels should be more than enough evidence that being active on these social channels – following up customer complaints and promoting products – is better than not saying anything at all.

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