A key ingredient for organizational success in the global entrepreneurial ecosystem is a company's ability to form lasting connections with consumers. This is why investments in customer relationship management (CRM) software are on the rise. By 2025, the CRM software market is expected to be worth $80 billion.
To build these relationships, organizations need real-time access to customer data on preferences, pain points, and what more they wish was available. Whereas it was daunting or nearly impossible to access such data in the past, the digital age has opened up a world of possibilities. Be it through social media channels, websites, and blogs, businesses have access to an unending flow of customer insight that can fuel their growth.
However, accessing data does not necessarily translate to better and more profitable relationships with your customers. It's the insight that you draw, that matters. Though it may be easy to assume that consumers make logical choices when shopping, many of their purchases are fueled by emotion. This is why sentiment analysis is a crucial aspect of customer relationship management.
In this article, you will learn all about sentiment analysis and why you need it.
Sentiment analysis, also known as opinion mining, refers to the process of using text analysis, natural language processing, and statistics to analyze customer sentiment. Such analysis allows a business to use online feedback to understand how consumers feel about their products and services, and brand. Sentiment can be generally classified into positive, neutral, or negative.
What people are saying about your brand reflects how they perceive it, affecting other consumers' perceptions. The best businesses understand the implications of positive or negative sentiment. Investing in sentiment analysis not only tells you how your company is perceived, but it allows you to mold such perceptions.
Have you ever witnessed two people arguing while saying the same thing in different words? Such instances of miscommunication or challenges of understanding each other during human interactions are common. In light of this, how reliable is machine-reliant sentiment analysis? Understanding communication is not just about interpreting words but also about capturing the tone and knowing the context.
To address this, opinion mining relies on Artificial Intelligence (AI), which brings together technologies such as machine learning, deep learning, and expert systems. Bringing together such technologies makes Natural Language Processing (NLP) faster and more accurate. On top of that, your company will be able to understand customer emotions such as hate and love, as well as more complex ones like skepticism.
Additionally, sentiment analysis contextualizes social conversations and categorizes them under clearly defined topics. When you get the report, the conversations are listed from the most important ones.
In the digital era, businesses have access to the much-needed data to propel growth. However, 80% of the data available today is unstructured. And, as more data is created, sorting, analyzing, and understanding this data manually is not only expensive and time-consuming, but also virtually impossible.
With sentiment analysis, such data can be automatically tagged, making it easier for your company to draw actionable insight from unstructured data.Some of the uses of sentiment analysis include:
There are many platforms where consumers can discuss or leave comments about your brand. With billions of people accessing social media platforms and using the internet, such information can spread quickly. This is why, more than ever, media monitoring is important. Monitoring mentions about your brand will allow you to address customer concerns swiftly or build on positive reviews.
Arguably, the biggest benefit of sentiment analysis is giving you a full 360 view of how your customers and stakeholders view your products and brand in general. It also allows you to monitor the reception of new products and measure the impact of marketing campaigns.
Customer service is integral for addressing any concerns your customers may have and maintaining healthy relationships. However, depending on your company's size or the nature of your business, there may be numerous inquiries from customers at any given moment. Though customers are equally valuable, it is crucial to address the most pressing concerns first.
By using sentiment analysis, customer service agents can automatically sort emails into categories such as urgent or not urgent. By identifying the most frustrated customers and dedicating immediate attention to them, you will retain them in the long run.
At the end of the day, it is the market that determines which products do well. Therefore, your products and services must be aligned with consumer needs and desires. Through sentiment analysis, you will get a clear picture of how your services fit into the market. With this, you will be able to make the necessary adjustments.
Also, your marketing team will gain insight into emerging trends within your industry. Considering how disruptions are a significant threat to businesses, this may allow you to adapt and innovate on time.
Ultimately, the goal of any company is to earn profit for its shareholders. As you monitor mentions about your brand, learn how your products fit into the market, and improve customer service, among others, the results will manifest in your sales.
With excellent products and customers feeling more in touch with your brand, they will become loyal, and you will also attract more customers. This will translate to increased revenues, allowing your company to grow.
There are many factors that play into the success or failure of a company. You may have the best products and services in the market but still lag behind your competitors in terms of sales. Much of the insight that is required to help your business thrive comes from the market and consumers. Sentiment analysis is the lens that allows you to see and address such factors.
Want to understand your customers better? Yogi is a company that helps businesses make sense of the unstructured data across multiple platforms. Reach out to us today to draw actionable insight from customer feedback.