In 2013, brothers Andy and Landon Swan discovered a potential financial opportunity: consumers actively discuss brands and products on social media, even showing when making a purchase. What if someone (or some company) could aggregate ALL of these product mentions under a publicly traded company’s umbrella and monitor volume over time? Could this be the social media equivalent of customer data and focus group research combined? Absolutely. Meet: LikeFolio.
After testing multiple data sources, LikeFolio zoned in on Twitter. Why? Twitter APIs were easy to work with and the Tweet Content proved ideal for mass consumption and important insights. Initial data analysis was even better than anticipated. LikeFolio concluded: The analysis of Twitter data could help inform investors early of shifts in consumer behavior that could be a factor in guiding investment decisions.
A Georgetown University Study echoed these findings: “Third-party-generated product information on Twitter, once aggregated at the firm level (by LikeFolio), can be predictive of both upcoming sales and the unexpected component of sales growth at the firm level.”
The next question: How could LikeFolio empower investors to use predictive social insights to help identify consumer demand trends and potential trading and investment ideas?