5 Reasons Why Sentiment Analysis is Important

Updated: Apr 1, 2021

Sentiment analysis techniques, their understanding, and advantages are quite a debated topic on Twitter. The term, also known as opinion mining is the area which deals with judgments, responses as well as feelings generated from texts. It is extensively used in fields like data mining, web mining, and social media analytics. Sentiment Analysis reviews can be your single source of truth to understand what people at large are trying to communicate to you and therefore its analysis becomes important.

Gaining in-depth knowledge of people’s emotions is crucial to the business as it allows to gain an overview of the wider public opinion behind certain topics. Automatic analysis of customer opinion in the form of surveys, questionnaires, social media forums allow the brands to hear their customers about the product and services. This helps them to understand their customers better through sentiment analysis and opinion mining.

For example, sentiment analysis can help to automatically read tons of product reviews and extract useful and meaningful information to discover if the customers are really satisfied with your product or not.

A person’s feedback is more subjective rather than factual. Feedbacks can be negative, positive, or neutral. Sentiment analysis applies Natural Language Processing (NLP) and Text Analysis techniques to highlight the subjective information from the text. Here are five reasons why sentiment analysis can boost your business:

1. Sentiment Analysis to improve your customer service

sentiment analysis

As today’s customer service goes far beyond the traditional telephone support agent, it is difficult to maintain excellent customer relationships. And in the current crisis of Covid-19, it is important to act fast and keep customer churn at bay. 80% of customers would switch to a competitor after two or more bad experiences. The faster you react, the better chance you have of resolving the problem. Happy customers will market positive opinions about your brand.

Sentiment analysis is an example of how you can review customer feedback and responses, and thus identify the negative comments and reasons why the customers have issues with your product or service. Sentiment analysis enables you to respond to issues promptly before the customer leaves you altogether!

2. Sentiment Analysis to boost your product and services

sentiment analysis

Data based strategies always win!

The customer reviews include various issues or bugs addressed, they have suggestions for improving the product and clearly mention the needs of customers. Therefore, performing the sentiment analysis on the customer reviews can help identify what is lacking and therefore guide you to improvement.

With effective sentiment analysis models that match your core product and industry, you can identify, for example, users complaining how difficult it is to find certain product categories, and therefore prioritize to work on filters before it's too late.

3. Do better in marketing campaigns

sentiment analysis

Marketing strategy is not all about the numbers. The sentiment is equally important.

For example, the number of likes, shares, comments, or social media reach can help in marketing analysis. But in order to perform an assessment on your marketing campaigns, sentiment analysis will provide the context to the numbers and provide you with elaborative results so that you can take action in the future based on the result. Sentiment analysis on Twitter data, a source that is one of the least analyzed complaint points can fuel your growth!

Companies can get powerful insights to boost their marketing strategy. For instance, marketers can keep an eye on industry trends by analyzing sentiment towards new features or products on social media.

4. Monitor your brand perception

sentiment analysis

Building your brand and then maintaining its reputation is a difficult task in competitive business industry. Sentiment analysis techniques make it easier to monitor the industry through customers’ eyes. You can easily identify what your customers are complaining about and why they are not happy with your product or service. The thread of negative comment lists on top gives you ample time to react and listen to your customers.

5. Track the sentiments in real-time

It is said that it’s cheaper to keep existing customers than to find new ones. It’s even been estimated that acquiring customers costs 6 – 7 times more than retaining your current ones. But the way customers feel about your brand can be changed in the future. Through sentiment analysis, you can keep a track of the significant change and addition of new customers in your bucket.

Subsequently, when there are several platforms where your customers can reach, sentiment analysis models evaluate all data from different forums and provide valuable insights about your innovations into your product and thus offer room for improvement without hiring people who do the same!

We hope this article will help you to implement a customer-centric approach irrespective of your type of business.

Interested? — Pyoneer.io – Helping companies to hear their customers

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