The suitors have been dumping Twitter, faster than Republicans have been ditching Donald Trump. The US presidential hopeful may think the time to leave your girl is when she passes 35, but it seems the would-be suitors of Twitter felt the time to leave was when the reality, that is its balance sheet, sinks in.
A couple of weeks ago, the company was valued at $20 billion or so, not bad for a company that seemed to have stopped putting on new users, and was still making a loss. But then the rumour mill, that had previously churned out talk that Alphabet, Disney, Salesforce, AT&T and Verizon were all flirting with the idea of buying the company, went into reverse churning mode and said that they had all changed their minds.
Meanwhile, Jack Dorsey, Twitter’s boss (and not be to be confused by Jack Dawson, the character played by Leonardo DiCaprio in the movie Titanic), has pretty much said the same thing – namely that Twitter is not for sale.
Meanwhile, the Twitter share price has fallen from $25 on October 5th to $17,56 at the time of writing, dragging its valuation down to around $12 billion.
But one of the arguments put forward to explain Salesforce’s supposed interest was that Twitter is a great tool for handling customer service.
But, according to a report from Applied Marketing Science for Twitter, “businesses create a massive opportunity for themselves when they acknowledge customer service-related Tweets from consumers.”
The report found that: “When a customer Tweets at a business and receives a response, they are willing to spend 3–20 per cent more on an average priced item from that business in the future.”
The report also found that “customers are 44 per cent more likely to share their experiences—both online as well as offline—after receiving a response from a business on Twitter. Furthermore, they are 30 per cent more likely to recommend the business, and respond an entire point higher (2.66 vs 3.66) on customer satisfaction surveys.”
And one more point: it found that responding to negative Tweets can create major positive impacts. It said: “69 per cent of people who Tweeted negatively say they feel more favorable when a business replies to their concern. And among telco customers, conversations that started with a negative Tweet resulted in higher brand favorability as well as 3X higher willingness to pay for their monthly wireless plan, compared to those whose original Tweet was positive.”
So all that Twitter has to do now is turn the above findings into a way to make more money. If it can do that, maybe it won’t need to find a suitor to get the share price back up again – it is just that achieving that aim may be a tad difficult.