One of the great learnings from the movie “Moneyball” is that if you know how to use the data available, you will be able to predict things better than if you rely purely on gut feeling.
Social media data has brought a wealth of data that until recently was unavailable to business. However, using only social media as a pool of data for predictive modeling is limiting, based in two factors:
- The behaviour model of people is far more complex than what they express in social media;
- The influence factors outside social media are extremely powerful.
Using social media can definitely help in predictive modeling, by adding more data to the model. The lesson from “Moneyball” is that ignoring that data, is passing on a competitive advantage to win, with a lower budget.