7 Benefits of Sentiment Analysis You Can’t Overlook

June 1, 2017 / by Shiho Hashimoto Shiho Hashimoto

InsightsAtlas - 7 Benefits of Sentiment Analysis You Can’t Overlook

Unless you attentively listen to what your customers want and how they feel, they might kick you out from their social space with just one simple click.

Sentiment analysis is like your personal lifeguard to make sure that you are truly listening to what your customers think, want, and need.

92% of marketing professionals think that social media has profound impact on their business, which means that you are playing a highly competitive game in social media to grab the attention of your potential customers. However, winning is not impossible. Doing an accurate sentiment analysis can help you win.

If you are not conducting the most accurate sentiment analysis right now, here are 7 benefits of sentiment analysis you just can’t overlook.

 

1. Adjust marketing strategy

Most companies, if not all, are active in social media, and use the public forum to promote their brands and services. But how can you know if you are doing the right things in social media? Are you randomly posting promotions or do you have strategic plan that you follow? When and how do you know if you should change what you do in social media?

From the managerial perspective, social media is not just a platform where you can post and promote your services. It is a place where your customers chit chat about your brand and is full of information about how brand is being perceived by your target customers. The information you get from sentiment analysis provides you with means to optimize your marketing strategy. By listening to what your customers feel and think about your brand, you can adjust your high-level messaging to meet their needs.

From the tactical point of view, you can build a short-term marketing campaign to provide customers with what they want. By continuously having sentiment analysis in place, you can adjust your campaign to fit even more to your target audience. Hours of work typically goes into preparing marketing campaigns. Why ignore your audience's’ sentiment when it will help you improve your campaign?

 

2. Measure ROI of your marketing campaign

Success of your marketing campaign is not measured only by the increase in the number of followers, likes, or comments. The success also lies in how much positive discussions you are able to help facilitate amongst your customers. By doing sentiment analysis, you can to see how much positive or negative discussions have occurred amongst your audience. By combining the quantitative and the qualitative measurements, you can measure the true ROI of your marketing campaign.

 

3. Develop product quality

Sentiment analysis helps you complete your market research by getting to know what your customers' opinions are about your products/services and how you can align your products/services’ quality and features with their tastes.

Your products and services are judged not only by how well it performs functionally but also by how nicely it is presented in the forms of, for example, beautiful package design, irresistible promotions, reasonable pricing, and even impressive store decoration. Ideas to develop your product quality and how it is presented can only be derived from your target customers’ opinions. One way to do that is by conducting a structured and planned survey. Another method is to get that information from the casual discussions that are going on related to your brand in public social platforms.  

For example, Suunto is a famous Finnish sports watch manufacturer, which provides stunning features such as measuring heart rate, GPS tracking and navigation, running speed and distance, different sports support, etc. It would be beneficial for Suunto to pick up the sentiment in their customers’ posts to understand what they like, want, need, and dislike.  

 

 

For a global brand, it is also essential to be able to interpret different languages quickly and accurately. The sentiment of people in different cultures with different languages can be difficult to interpret for computer technology, unless human intelligence is involved in the overall process for sentiment analysis. Here is an example of a Japanese person complaining about Suunto’s wristband in Japanese language.

 

 

Since people freely express their true opinions about their experience with various products and brands in social media, what better way is there than to gather the data from social media and analyze that? How are your customers praising your product? What kind of complaints do customers have?

 

4. Improve customer service

Once your customer purchases your product, you want to keep them loyal to your brand as long as possible, and be an evangelist for your brand. Your customers can essentially become micro-influencers for you. That is why it is of utmost importance to have the best customer service in place and keep your current customers happy.

There are many factors that contribute to great customer service, such as on-time delivery, being responsive in social media, and adequate compensation for product's errors. Sentiment analysis can pick up negative discussions, and give you real-time alerts so that you can respond quickly. If customers complain about something related to your brand, the faster you react, the more likely customers will forget being annoyed in the first place, and be satisfied with the great customer service. Sentiment analysis as part of social listening to manage complaints helps you avoid leaving your customers feeling ignored and angry.

For example, Finnair is trying to actively to reply to customers’ complaints to quickly solve their issues. Finnair’s Twitter page shows quick response to customer’s tweets.  

 

 

 

 

The above post reminds me of the importance to correctly analyze emojis. People use emojis in difference devices nowadays to communicate their sentiment. Emoji are displayed differently across different devices and operating systems, and this can lead to very different meanings. Read more about this in our blog “Misinterpretation of Emoji in Social Analytics”.

 

5. Crisis management

Constant monitoring of what is currently happening in social media conversations also helps you to prevent or at least mitigate the damage of online communication crisis. Crisis might stem from your product's bad quality, unacceptable customer service, or other serious social issues such as environmental harm, animal cruelty or child labour usage in emerging markets. If you don’t manage customer complaints fast enough, the conversation can go viral and lead to a huge crisis that you might not be able to cope back from. Uber is a great example of recent crisis that went viral in social media. 

In January 2017, a #DeleteUber campaign went viral when Uber turned off airport surge pricing as New York City taxi drivers protested President Trump's travel ban, prompting accusations of strikebreaking.

 

 

After the horrific attack at the end of May in Manchester City, UK has become a hot topic in social media. During this sensitive time, an Uber driver was blamed in Twitter for a doubtful deed of carrying a gun just after the attack. Whether this was proven or not yet, the rumour about Uber as a terroristic danger is scaring people in the UK and Uber’s image is continuously being damaged.

 

 

 

81 people retweeted Ajit Chambers’ post and can you imagine how many more will retweet from there onwards? Would it go viral then?

If you have sentiment analysis in place, you can detect potential manifestations based on what topic your customers are discussing, how they feel about it, and manage the crisis before it is too late.

 

6. Lead generation

Your sales colleagues will definitely love this benefit; by having accurate sentiment analysis in place and as a result of adjusting your marketing campaigns, having great customer service, and improving your product quality to meet the needs of the market, you will be able to increase leads. Loyal and happy customers, who will act as your brand ambassadors, will bring you new customers.

Also, since sentiment analysis will tell you what your audience wants, needs, and feels about something, you can grasp better ideas to create content that can attract new customers to you.

 

7. Sales Revenue

The biggest benefit of doing sentiment analysis (and even doing business in the first place) is to boost sales revenue. I listed this benefit as the last point in this blog because the increase in sales revenue is the final outcome of successful marketing campaigns, improved products/service quality, and customer service, which can be achieved with sentiment analysis.

I know many of you still might be struggling to see the correlation of social media activities and customer sentiment with sales revenue. But there is a clear link. When there are more positive discussions going on, your sales revenue will increase, and when there are more negative discussions going on, your sales revenue will decrease. We are able to prove this to you with Public Response Analysis. This is why it is essential to have sentiment analysis in place, to make sure that you have more positive discussions going on in social media than not.

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Sentiment analysis is totally fu**ed up!?

So I preach that sentiment analysis is important and you shouldn’t over look these 7 benefits I listed. But I want to point out that sentiment analysis run by traditional social media analytics tool just won’t cut it.

I wrote a separate blog on the topic “Sentiment analysis is totally fu**ed up!”, which I highly recommend reading. Sentiment analysis can be tricky because of the complicated data such as sarcasm, irony, multiple languages, images, and video posts. Computer technology has not yet caught up to interpret these complicated data within the right context. If you don’t have a truly accurate sentiment analysis service in place, you may be formulating and adjusting your marketing campaigns based on incorrect data.

If you already have sentiment analysis in place, try our service and see for yourself if there are any big differences in the results. It never hurts to try and see, does it?

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Tags: Brands, Marketing, Social Analytics, Social Media, Social Media Consultation, Demographic Analysis, Brand Ambassadors, Brand Insight, Brand Management, Communication, Crisis Management, Big Data, Influencer Marketing, Sentiment Analysis, Social Listening, Brand Visibility Metrics, Trend Tracking, ROI Measurement, Audience Response, Social Media Alerts, Landscape Tracking, Social Media Monitoring, Brand Health Index

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