How can Sentiment Analysis be used to Improve Customer Experience?

To provide an excellent customer experience, companies must understand the needs, emotions and expectations of their customers.

Sentiment analysis has emerged as a powerful tool to help businesses to gain the insights needed to truly understand their customers’ requirements, which can then be used to design a more intuitive customer experience.

What is sentiment analysis?

Sentiment analysis is a type of natural language processing (NLP) that determines whether the opinions expressed within a piece of text are positive, negative or neutral.

This technology bridges the gap between computers and human language, enabling computers to read, understand and analyze the meaning of human language expressed through text.

The technology is helping businesses to understand the emotional drivers behind their customers’ feedback.

The goal is to interpret the emotion behind the text, which can be used for a number of business purposes such as gauging public perception, customer satisfaction or emerging trends.

Putting sentiment analysis data to work

Typical textual data that can be analyzed includes customer reviews, social media posts, survey responses as well as call center transcripts.

These datasets are analyzed to identify trends and patterns within the customer feedback, which can then be used to make data-driven decisions that enhance the customer experience.

Typical improvements to the customer experience could include refining product features, improving customer service or resolving complaints quicker.

Benefits of using sentiment analysis insights to guide the customer experience

The scalability of sentiment analysis can also help businesses to detect emerging trends and shifts in customer opinion.

Many custom sentiment analysis solutions can provide real-time insights based on continuous monitoring.

By doing so, companies can proactively adjust to changing customer opinions and requirements, a key driver to maintaining and fostering positive customer relationships. Early detection of negative sentiment can help businesses to address the root cause of customer dissatisfaction before it escalates into a larger crisis.

By understanding what customers like and dislike, businesses can make data-driven and informed decisions regarding their product, service or overall experience.

Happy customers are more likely to stay loyal, become brand advocates and become repeat buyers.

Sentiment analysis can be deployed to identify common complaints amongst reviews, helping companies to identify and rectify the issues within their sales process, resulting in better customer satisfaction and loyalty.

By identifying key areas for improvement, businesses can prioritize which issues to focus on in their development pipeline.

Sentiment analysis can be provided on sources across the web, making it a powerful tool for competitor analysis.

By understanding how customers perceive competitors’ products and services, businesses can identify key areas where they can differentiate themselves and gain a competitive advantage.

For example, if a competitor is consistently being praised for their customer service, then a company may well decide to invest in training and customer service resources themselves.

The more advanced sentiment analysis solutions can help to segment customers according to their emotions and opinions regarding certain products and services.

By doing so, personalized marketing and customer engagement methods can be deployed that ensure every customer receives the messages and offers that will resonate most with their buying habits.

If a certain subsection of the customer base are highly satisfied with a particular product line, they can be segmented and contacted with exclusive offers to become brand ambassadors.

Industries leveraging sentiment analysis to improve UX

Sentiment analysis has experienced widespread adoption across many forward-thinking industries, including retail, e-commerce, government institutions, financial enterprises and healthcare. Whilst custom solutions can be tailored to suit very specific use cases, the common uses of sentiment analysis within the UX development covers:

• Monitoring customer feedback

• Optimizing inventory

• Refining marketing strategies

• Identify pain points

• Enhancing guest satisfaction

• Understand customer feedback

• Improve quality of product / service delivery

• Understand the opinions of others within the industry

• Competitor analysis

• Identify weaknesses within products 

• Crisis management

• Gauge audience reactions

• Understand public opinion

By providing data-driven insights, sentiment analysis is helping businesses in many sectors to make informed, customer-focused decisions.

As the technology is continuing to evolve, the ability to provide deep insights and to drive meaningful improvements to the customer experience will grow further. 

You’ll often see sentiment analysis working in conjunction with other key NLP solutions such as text-to-speech, speech-to-text and custom chatbot development.

A synonymous function helps to deliver a better end-result for users. For instance, a personalized chatbot will use sentiment analysis techniques to derive the importance of a complaint from a customer to then provide the desired automated service.

The textual data could be interpreted from voice entry if the platform is compatible, and this interpretation would of course require speech-to-text NLP technology. Users, in turn, may request the chatbot's answer to their query to be read aloud which is made possible through speech-to-text.  

Explore our custom solutions

To fully benefit from the capabilities of sentiment analysis, custom solutions can be developed for your business. By creating tailor-made NLP solutions, NetGeist strives to provide solutions that fit the concept of your company. 

From virtual assistant chatbots, app review monitoring, and market sentiment monitoring, we can create custom sentiment analysis solutions to provide insightful insights into your business operations. 

Let us simplify your textual tasks with a unique solution tailored specifically to your business requirements.