We are living in uncertain times. The world is changing, and the digital landscape is no exception. We’re at a time when we can’t be sure what will happen next – whether it’s an economic crash or a pandemic that kills millions. But one thing is certain: sentiment analysis tools are essential for businesses now more than ever before to prepare for change.
What is sentiment analysis and how does it work?
Sentiment analysis is a process that analyzes the sentiments of social media posts, news articles, and other pieces of language. The sentiment can be categorized as positive, negative, or neutral for any given post.
The process starts with an algorithm that highlights the words in a certain text document to identify patterns associated with specific moods, such as anger, sadness, disgust, fearfulness, and joy. It uses sophisticated technology such as NLP and machine learning to analyze the statements.
To start, it needs an appropriate amount of data to work with. By gathering mentions of your business online, the sentiment analysis software can analyze the language of those posts and figure out if they are positive, negative, or neutral. For example, an article about your new office space will likely include a lot of words with a positive mood rating; whereas an article about your latest product release might have more mixed ratings.
Looking at how your business is perceived in the internet world is useful in identifying the potential PR disasters before they happen. A data-driven marketing trend is everything right now and it’s unlikely it’s going to change any time soon. Information is essential, and since it’s readily available, why not take advantage of it?
How sentiment analysis can be used to improve customer experience?
Sentiment analysis can be used to identify any potential issues with your business processes, customer service, and more.
Knowing how a customer is feeling, what their sentiment rating for your brand is on social media, and why they feel the way that they do can give you an edge over competitors who lack this data mining capability – especially in industries where customers are more likely to post online reviews (restaurants, fashion retailers).
The internet is full of emotions. Understanding them and responding appropriately is key to success. Especially now, amid the pandemic, and with the internet traffic increased, it is more important than ever to cultivate an understanding of sentiment analysis, and how it can be used in your business.
The benefits of sentiment analysis for businesses
You might be thinking, “why should we bother with sentiment analysis?” Well, there are a lot of reasons. First off, because the internet never sleeps and people can post about your business any time they want; you need to know what’s being said in order to work with them. By gathering mentions of particular keywords, you will be able to tune in and respond properly.
- Sentiment analysis can help you better understand your customers. Like any good business leader, it is important to know who your customer base is and what they’re interested in. You’ll be able to generate more revenue by knowing how customers feel about a particular product or service with the use of sentiment analysis – which will also keep them coming back.
- Data-driven marketing is the future. There are so many data points out there that you can use to generate new leads, increase your revenue, and keep in touch with current customers.
- Since sentiment analysis is largely quantitative, it can help you with measuring the success of your marketing campaign or a new product.
- Another thing is that it can foster investigating your brand’s perception online. This can help you identify any potential issues as well as trends that might be important for your business.
- Finding industry leaders and influencers will also be easier with sentiment analysis.
Why sentiment analysis should be a priority?
Social media, and the internet as a whole, are powerful channels with millions of opinions being shared every day. We are at the point where companies need to shift their focus from defending themselves against negative sentiment, and instead invest in generating positive sentiments.
By using media monitoring and sentiment analysis, you will be able to respond to the conversations happening about your company or brand far quicker.
Companies that have a proactive sentiment strategy can generate more than three times as many positive mentions as those without one and are likely to see an increase in profits by up to six percent.
A reactive approach is also important because it’s how you’ll identify when something goes wrong.
Sentiment analysis is a great supplement to any marketing strategy because it can be used to garner feedback, measure the effectiveness of an advertisement or put a stop to negative publicity. The more you know, the better your efforts are.
How to use sentiment analysis in your company?
The most popular way of getting into sentiment analysis is media monitoring tools such as Brand24. Here are some ways you could use them to your advantage:
- Identifying current trends is important for any business. For example, say there’s a new restaurant that’s coming to town. If they were doing a pre-opening, you might want to know how people are feeling about it before investing in advertising for when the restaurant opens; sentiment analysis can show if there is high excitement or low anticipation.
- Additionally, sentiment analysis allows businesses to spot and address negative feedback while also noting positive ones before it gets too far; it’s also a way to identify the topics that people feel strongly about.
- It can be used for marketing too by finding out what are the things that your customers like and don’t like, so you know how to better serve them in the future.
- Sentiment analysis can be great for spotting upselling opportunities. Happy customers are more likely to be upsold.
- Customer service is also easier since it can be used to read customers’ minds and anticipate their needs before they need them. Analyzing tons of replies can help businesses understand what customers want how they feel about the current state of your customer support.
- Sentiment analysis for chatbots, for example, can identify spam messages and help the chatbot respond in a more human-like way.
- Competitor analysis is also a possibility. Find out which brands your customers love and how they feel about the service you provide so that you can take action to help them with their needs.
- Finally, sentiment analysis can facilitate identifying PR disasters and nipping them in the bud before they become too big.
Steps to take after implementing sentiment analytics into your company’s strategy
The first step is to identify what customers want and how they feel about your current state of customer service. With tons of replies, you can understand what people are talking about and then make changes accordingly with a company’s overall strategy in mind.
The second step is competitor analysis so that you know what to do to better your company and achieve more success.
The third step is identifying the best content for customers which can be done with machine learning algorithms that study customers’ preferences, demographics, etc.
Lastly, you need to create a strategy of how sentiment analysis will work internally in order to make it easier for employees. Internal survey analytics is a good start to identify the most impactful changes.
The future of sentiment analysis is clear – it’s not only essential for businesses but rather imperative in preparing for an uncertain and potentially post-pandemic world. Being on top of social media sentiment means being in the know of what your customers are saying about you, which can be vital to your company’s success.