Why You Need to Understand Sentiment Analysis [Examples Included]
How do your customers feel about your products and services? The answer is likely to be ever-evolving, and sentiment analysis can give you a constant pulse on customers’ attitudes, opinions, and emotions relating to your business.
What Is Sentiment Analysis?
Sentiment analysis is a modern market research strategy that allows businesses to dive deep into the insights to be found in customer reviews, comments, and social media posts about their company. Since the internet is a vast sea of information, most companies use analytics software to help process the data.
How Does It Work?
Artificial intelligence, natural language processing, and text analysis are all helpful tools in deciphering how customers really feel about any certain business. These tools can be used to break down customer comments into subcategories, giving even sharper insight into customer sentiment.
Sentiment Analysis Examples
Sentiment analysis has endless possibilities for helping a company understand how their customers feel about their business. Here are a few examples of how to harness the power of this technique:
1. Feedback After a Product Launch
If your brand just released a new line or product, you can use sentiment analysis to monitor what customers are saying about it. Sentiment analysis will give a more accurate reading of very subjective comments.
For example, if a few customers give very loud negative feedback, the company may think the launch was a failure. But sentiment analysis will allow the brand to get the whole picture. If a few people hate the product, but overall positive sentiment increases, then the launch should still be deemed a success.
2. Customer Service Training
Customer service representatives have an important job, but sometimes they may be taken off-guard by customer complaints and requests. Sentiment analysis could help your customer service team be better trained and prepared for any complaint that comes their way. The technique allows companies to identify major trends and be prepared when a wave of negativity arises.
3. Monitoring the Competition
Every business wants to keep an eye on the competition, and rightfully so. Knowing what your competitors are doing will allow you the chance to keep up — or better yet, deliver superior products and services. With sentiment analysis, you can compare the customer sentiment of your business compared with a competitor. You can find out exactly which categories you may be falling behind in (i.e. product quality, design, branding, etc) and make quick changes to improve.
Benefits of Sentiment Analysis
By now you’re probably seeing just how many ways sentiment analysis can help your company. But in case you need more convincing, here are 5 benefits of sentiment analysis for any brand:
1. Measure ROI
There are dozens of ways to measure your company’s return on investment (ROI). But if you’re only relying on objective data such as social media likes, followers, and comments, you’re missing out on valuable insights. Sentiment analysis allows you to measure positive and negative discussions going on with your customers in regards to your business. If you combine these subjective measurements, you’ll have an even more accurate measure of ROI.
2. Manage Crisis
Every brand should have some type of public relations strategy. Sentiment analysis can help your company optimize PR efforts by always knowing the ins and outs of your online reputation. If your company does something that causes a stir among your customers, you’ll have a broad idea of how customers really feel, and how to handle it moving forward. You’ll be more likely to come up with an approach that satisfies customers and helps them feel valued and heard.
3. Boost Sales
Ultimately, the goal of every business is to increase sales revenue. In the long run, the countless benefits of sentiment analysis all help accomplish this goal. Sentiment analysis will help you have better customer service, improve your product, meet the needs of customers, and create greater brand loyalty. In turn, you’ll enjoy more dedicated, loyal customers who spend more money on your products and services.
Implementing Sentiment Analysis
Sentiment analysis is an important tool for any business. There are various ways to implement the strategy to suit the needs of your company. It’s well worth researching further, then taking time to plan out how you’ll start enjoying the benefits of sentiment analysis for your business.