Perception often becomes a reality in the business world. Perception has a habit of spreading like a forest fire through word of mouth. Therefore, it becomes essential to ensure that the perception of the customers and even non-customers towards your business is good. It has a direct impact on the credibility and reputation of the business. Even though perception is important, the real question is how can a business analyse customers’ perception of a business? The answer lies in customer sentiment analysis.
Just like we know, if someone has uploaded a Sad Status on their WhatsApp Status, the user is sad. Customer sentiment analysis allows the business to analyse how the customers feel about the business. With the analysis, a business can find whether the customer feels positively or negatively about the brand.
The Importance Of Customer Sentiment Analysis
Customers are king for a reason. Their happiness and satisfaction matter for the growth of a business and there is no doubt about it. Research has indicated that a customer who has experienced a positive feeling while purchasing will tell an average of nine people about the experience. On the other hand, a customer who had a negative experience with a brand will tell 16 people about it.
In addition, customers with a positive experience will stay loyal to the business for more than five years compared to those with a negative experience. Further, the cost to serve a customer reduces by 33% when the customer experiences a positive feeling. It is why it is important to keep customer sentiment in check.
Customer sentiment analysis also throws light on customer loyalty and the customer lifetime value, which is essential to growing the business.
How To Do Customer Sentiment Analysis?
If you are running a huge business, it is manually not possible to engage in customer sentiment analysis. Thankfully, there are software and tools that can automatically detect the customers’ sentiments through Natural Language Processing.
With the help of Natural Language Processing, it is possible to detect whether the customer’s sentiment is positive, negative or neutral.
The Benefits Of Customer Sentiment Analysis
The ultimate aim of any process involved in a business is to increase the profit for business. The same truth goes for customer sentiment analysis too. Here are a few benefits of customer sentiment analysis.
1. Better customer service
After experiencing bad service, most of the customers complained about it. There is a high probability that they will stop associating with the brand after the negative experience. However, it can be taken care of through customer sentiment analysis. After identifying the customers who have had negative experiences, the businesses can go ahead and provide them with better customer service by solving their business. Through this method, you can eliminate the negative experience of the customer.
2. Brand reputation management
Brand monitoring is essential, especially on social media platforms where everyone can view the comments. Through customer sentiment analysis, it is possible to monitor the mentions that a brand receives and is associated with negative emotions. Quick action towards it can help the brand to maintain its reputation.
3. Provides room for improvement
Customer sentiment analysis on the features of the product or services that require improvement. A sudden rise of negative mentions indicates a sudden need to fix an issue. Further, it helps the business better understand the customer’s requirements.
4. Hyper-personalized experience for the customer
Customer sentiment analysis can also be used to segment customers of your business based on their emotions towards the brand. It allows businesses to create hyper-personalized experiences and allows them to bring more sales.
5. Improved marketing and sales plan
With a new launch in the market, through customer sentiment analysis, it is possible to check whether the customers are experiencing any issues or not. Further, the reaction of the target audience can be measured. It gives the necessary data to the business for making any adjustment in the marketing or sales plan for the good.
Customer sentiment analysis is invaluable for any company. Every customer interaction provides room for growth for the business. The valuable information it provides makes it possible to improve the business and maximise profit. It is always wise to analyse customer sentiments and keep the brand’s image positive.