Listening to one’s customers is an essential activity for business, and this is where sentiment analysis comes into action. It’s a method of collecting and analyzing brand-related data provided by customers via various online channels, and it is used to ensure a high-quality customer experience.
According to Gartner, around 85% of all businesses are expected to become compatible in sentiment analysis by 2020. Sentiment analysis is a powerful instrument, there’s no doubt about that. Yet, how exactly can it complement business efforts and what does technology have to do with all this? Some answers from CoreValue experts below.
Sentiment analysis in action
Below, you’ll find a couple of effective practical tips as to how a company can apply sentiment analysis techniques in practice and what positive dynamics this change might bring to an organization.
– Choose the right type of analysis
Generally, there are three sentiment analysis types: automated, human-powered, and hybrid. It essentially depends on what analysis you believe in, because companies apply all three types with equal enthusiasm. You need to evaluate your business first and choose the most suitable variant based on your findings. Naturally, there are some basic guidelines as to what fits what, namely, human-powered tools are most effective while working with small project-based data sets whereas machine-powered processing is great for big enterprises that need to process large volumes of data on a daily basis.
Human potential is still irreplaceable when it comes to research tasks since there are many issues that AI cannot handle yet. Companies like Canvs or Mechanical Turk state that their algorithms comprehend the slightest nuances of human language, but in reality, their interpreting capabilities are limited. Just like any other machine learning tool available at the moment, they are unable to decode a full spectre of double meaning, slang, sarcasm, or a variety of emotions.
However, this limitation does not undermine the effectiveness of machine learning tools. Although insufficient at times, automated sentiment analysis statistically proves more precise compared to human-powered ones. We examined 10+ algorithms for collecting and analysing customer data to find the most accurate approach. You can read more about the experiment here.
– Pay attention to vocabulary
To analyze people’s emotions better, you need to make sure that you base your search on the same words they use. Some of the most helpful resources that you can apply are domain-specific sentiment dictionaries that provide accurate lexicon for the most productive sentiment analysis. Clearly, not all domains are equally accurate, so before selecting the source you’ll consult, develop a list of the most relevant domain-specific words or find the best-suited dictionary. A thorough preparation will simplify the sentiment analysis.
– Work with Influencers
Industry-specific opinion leaders are everywhere these days: YouTubers, bloggers, columnists, and social personalities, who are followed by a massive amount of people on a variety of platforms. They constantly communicate with their audience and they have the power to affect the way people perceive certain things. Consequently, their linguistic behavior can influence public emotions and shape their opinions about any brand, including yours. However, you can leverage that in your favor by cooperating with influencers to either mitigate an ongoing crisis or reinforce your positive public image.
– Embrace Negativity
Always analyze negative customer reviews first, as they are a powerful source of information, that unlike positive reviews, give a more comprehensive picture. Look for unfavourable opinions and address them. This is the best way to find weak points in the work of your company and boost the efficiency of your business.
Sentiment analysis: scope of use
For 70% of profitable businesses, customer feedback is fundamental. Indeed, listening to what your clients have to say about your company can show you the areas in need of improvement. Sentiment analysis is one of the most effective tools used to foster a better customer experience. In fact, sentiment analysis application is very broad and it’s not limited to marketing:
- Improved customer service. By collecting positive and negative opinions, the company gets to know what it is exactly, that their customers like and what they don’t like.
- Brand reputation management. Sentiment analysis allows the company to measure the rating of their brand and its influence. Similarly, it enables the evaluation of media reviews, customer trends, and other metrics that provide valuable business insights.
- Human resource market. The HR sphere uses sentiment analysis to research and analyze employee attitudes. Employee feedback is a valuable source of information for HR, as it provides insights into the overall level of employee satisfaction and fosters improvements in the corporate environment.
- Public opinion. Major finance and media holdings monitor public thought using social media sentiment analysis.
- Product development. End user feedback is essential for the company that is working on the development of a new product. It keeps business on the right track and assists in maintaining high quality. The contribution of the very first potential customers into the development process is especially critical in agile product development.
- Product intelligence tracking. Businesses can benefit from data gathered from customer reviews and feedback on social media as this information reveals their needs.
- Sentiment analysis is an integral element of political strategies, and it is especially applicable for creating surveys, doing expert mapping, conducting predictive analysis during the election, exploiting voting districts, etc.
It’s essential that companies keep their finger on the pulse of the customer’s opinion and take into consideration their feedback. Luckily, technology is on your side, so just pick the right instrument for sentiment analysis and examine the findings to further improve two-way communication and upgrade your business with CoreValue.