A guide to social media for customer research

As the volume of accessible data grows, it may be time to rethink approaches to customer research. Gone are the days of relying solely on traditional data sources to paint a financial picture of customers.

Why it matters: Social media can enrich research efforts and add depth to your understanding of customers, helping you make more informed decisions.

Each social media platform has its own personality. From the casual banter of X (formerly Twitter) to the polished professionalism of LinkedIn, understanding the nuances of each platform is essential for effectively navigating the sea of information they offer.

Facebook, for example, is a platform known for its emphasis on personal connections and community engagement. If you’re looking for insights into customer preferences, opinions, and behaviors, Facebook’s rich tapestry of social interactions provides a valuable window into their lives. Facebook also can be used to search for business reviews.

On X, conversations unfold in real-time. X is the go-to platform for breaking news and trending topics.

LinkedIn is the professional networking powerhouse beloved by professionals and businesses alike. From job postings and company profiles to industry groups and thought leadership articles, LinkedIn serves as a hub for professional networking, knowledge sharing, and business development.

By understanding the unique personalities of each platform, you’ll be better equipped to leverage their strengths to gather valuable information.

By the numbers: A recent eNews poll revealed that 81% of credit professionals use social media to research customers.

What they’re saying: Chris Mortenson, credit and collections manager at Kirby Corporation (Houston, TX), uses LinkedIn to search companies, confirm legal names, addresses and look up employees to validate titles. He even validates the CFO of a company using the “people” tab on LinkedIn and sorts it by sales or finance.

“We research on LinkedIn daily since we are reviewing several applications each day,” Mortenson said. “I follow key accounts on LinkedIn so that I can keep up with their posts. I also like to follow certain companies on X for my own development and learning.”

Credit professionals may not all use social media daily, but it can empower their research on smaller, elusive companies, enabling them to identify potential red flags.

“If there’s limited information available, such as few trade references, and you’re questioning a business’s legitimacy, a complete lack of web and social media presence could indicate a potential issue,” said Jonah Bartholomew, CBA, credit analyst at Mansfield Service Partners South, LLC (Gainesville, GA).

Credit professionals can look at different social media posts that either the owners themselves posted or the business posted online. “I would say Facebook and LinkedIn are the two most popular ones that I would go to, especially for your smaller mom-and-pop shops that you could be selling to,” Bartholomew said.

Amy Williams, VP of customer financial services at Rocky Brands, Inc. (Nelsonville, OH), googles the customer name/owner name online for further customer research. “Sometimes, among various search results, we might click on a LinkedIn profile or other surfaced social media,” she said. “But we don’t log into platforms specifically to research customers. We particularly view and look for customer websites.”

• Google Search and Google Maps can help credit professionals find out more information about their customers and verify locations.
• While Google or Yelp reviews can tell you a lot about how a business is performing, the ratings can help you decipher that further.

Posting activity can provide credit professionals with an idea of how well a company is performing. For instance, a business account on Instagram can show you how they run their business, who their clientele is and their targeted audience (aka followers).

Yes, but: Social media can assist credit professionals, but shouldn’t be the only customer research tool due to possible inaccuracies and unconfirmed data.

For example, companies may appear prosperous but could be financially unstable, only becoming apparent when they declare bankruptcy or delay bill payments. “Reach out to the salespeople working with the applicant because they may have some helpful knowledge or perhaps, they can do a drive-by of their location to confirm this business is real,” Williams said. “And, of course, directly reach out to the owner or applicant regarding any concerns.”

Mortenson’s credit department does not have any formal policies on using social media but they’re aware that relying on social media for information should always be weighed and balanced. “It is more of a confirmation tool for us rather than a source of new information.”

For some credit professionals, social media is the last resort in credit investigations. “We use social media on the rare occasion that the customer is unresponsive to our attempts to resolve past due(s) as well as ignoring our front-line sales staff,” said Russell Campise, corporate credit manager at Lactalis American Group, Inc. (Buffalo, NY).

Campise would use LinkedIn to search for VPs or directors with the debtor company. “Out of the three or four times I’ve done this, it has been successful and has received immediate responses from those who pay the bills,” he said. “We also have a pretty good screening process and have been successful staying out of bad debt trouble.”

The bottom line: Social media has become a significant tool in B2B credit management for customer research, though their use should be balanced with other methods due to potential inaccuracies.