Customer Sentiment Analysis
Customer Sentiment Analysis refers to the range of feelings; both good and bad, that your clients experience as they interact with your product, service or brand.
Have you ever experienced poor customer service or a company’s handling of your complaints that left you feeling unsatisfied? I bet your answer is yes. I’ll start by saying that I’ve complained to my internet service provider quite a bit. I’m always left feeling irate and frustrated. This is also the case with other customers on their Twitter timeline.
I’ve always wondered, does the ISP care about its brand reputation? Do they care about the lousy services that they offer to their clients? Are they just after monetary gain and not customer satisfaction?
Why is customer sentiment analysis important?
- Brand Reputation
Higher sales and profitability are the result of a strong brand reputation. With a solid reputation, you can charge more for your goods and services without scaring away potential clients who value and want your brand.
According to the World Economic Forum, a quarter of a company’s market value can be directly related to its reputation, and 87% of executives think that reputational challenges are more important than other strategic risks. That’s not something you can ignore.
Monitoring sentiment analysis can help your company mitigate negative PR from spiraling.
“Repetition makes reputation, and reputation makes customers” _Elizabeth Arden_
2. Identify Emotional Triggers
Majority of clients' behaviours are influenced by their feelings and the experiences they have. Pleasant customer service can evoke positive feelings, which then motivate positive behavior. On the other hand, unsatisfactory service might cause unfavorable feelings and behaviors.
You may determine which discussions and texts your consumers find emotionally upsetting by using sentiment analysis.
Customers may find the phrase “We regret the inconvenience, will get back to you” irritating. In addition, clients are more likely to respond positively when you use emoji’s in chat, messages, or emails.
Customer emotions and behavior are decoded through sentiment analysis. You can use this information to inform your decisions about how to raise the standard of your customer service.
3. Improved Products and Services
Sentiment analysis might reveal a lot about the quality of your goods and services. Customer feedback and ratings removes the guesswork from product updates, new product launches, and other things, which are a crucial part of sentiment research.
Customer sentiment analysis can be used to determine what’s working, what needs to be changed, and how to improve the next product release overall after each release.
4. Gain and Retain Customers
You may decrease customer churn and boost customer loyalty by raising your customer sentiment score.
In a PWC study in the US, approximately 60% of customers will stop doing business with a brand after repeated bad experiences. Customers will, however, pay a 16% price premium for brands that offer satisfying experiences.
In this study, a customer’s favorable or unfavorable opinion determined how loyal they will be to a particular brand. Increasing client satisfaction is a sure way to attract repeat business.
I performed sentiment analysis on Zuku’s Twitter timeline using Python libraries and the technical write-up is in the next article. The Python Notebook is hosted on my GitHub page.