Customer Review Analysis: A Requirement For Business Success
Sentiment Analysis tools give a high-level understanding of customers’ perception of a product, business, or industry. This article explains why understanding customer sentiment is essential for business profitability.
In today's digital age, customer reviews are a critical component for ecommerce success. About 93% of online shoppers rely on feedback from other customers before making a purchase. So it is increasingly important for businesses to understand the sentiments expressed in these reviews. This is just one of the many instances where customer sentiment analysis comes into play.
Sentiment Analysis is the process of analyzing customer reviews, to understand how customers feel about a product, business, or even an entire market or industry. Natural Language Processing (NLP) and Machine Learning are the driving forces behind sentiment analysis tools. NLP is the technique that enables computers to understand human language and process it like humans do. Machine Learning algorithms are then applied to this processed language to identify patterns and relationships.
Coupled with Artificial Intelligence systems, these technologies give you a high-level understanding of customer reviews through sentimental analysis. This can help your ecommerce business stand out from the rest, as the most successful businesses are the ones that satisfy customers the best.
Let's take a quick look at some valuable use cases for customer review analysis:
Market Research
Understanding online reviews through sentiment analysis allow you to identify market trends, understand customer preferences and pain points, and benchmark performance and pricing against competitors. By leveraging these insights during market research, your business can make more informed decisions about product development and market entry, to ultimately drive profitability.
Manufacturing & Procurement
Understanding customer reviews through sentiment analysis can benefit manufacturers and procurement professionals by enabling them to know what products to improve, optimize procurement decisions, reduce risk of product recalls, and ultimately enhance customer satisfaction.
Competitor Analysis
Understanding customer reviews through sentiment analysis can help you stay ahead of your competition by identifying competitor's strengths and weaknesses, gaining insight into your competitor's customers, and identifying shifts in market trends and consumer preferences. By monitoring customer sentiment, you can identify gaps in the market, discover potential opportunities, and adjust your offerings to better meet customer needs.
Marketing
A high-level understanding of online reviews can help you develop more effective marketing strategies by identifying valuable product features in order to develop better USPs. It can also help inspire user-generated content, and identify influencer marketing opportunities through engagements on customer reviews. By utilizing these insights, you can better connect with your target audience, increase brand awareness, and drive sales.
Customer Experience
Understanding customer sentiment can enable proactive customer service that addresses issues before they escalate. It also helps customer service personnel to easily identify customer pain points, and improve response times. This will improve the overall customer experience and increase customer satisfaction and loyalty.
Product Research & Analytics
With sentiment analysis, you can track how customers feel about your products over time, and spot patterns in the feedback. You can easily identify which features or aspects of the product are most commonly praised or criticized, and use this information to improve the product, and enhance your marketing strategy.
Innovation & Exploration
Understanding customer sentiment can help you position your business for long-term success and growth. Analyzing the emotions and opinions expressed in online reviews can help spark new ideas and opportunities for your company to explore. These opportunities come in the form of new products that better meet customer needs.
In conclusion, understanding customer sentiment through analysis of reviews is key to driving business success in today's digital age. Whether it's identifying new opportunities for innovation or adjusting marketing strategies, sentiment analysis provides valuable insights that can help your ecommerce business stay ahead of the competition and boost your bottom line. By listening to your customers and making more informed business decisions, you can build better products and businesses that will stand the test of time.
About Lykdat
Lykdat is a software development company in Amsterdam, providing customer-focused AI-powered solutions, to help fashion ecommerce businesses succeed.
We recently launched Woven Insights, an AI-powered fashion analytics software empowering fashion retailers, merchandisers, research teams, and manufacturers with accessible actionable insights, by leveraging Artificial Intelligence.
Gone are the days when actionable fashion analytics was accessible only to larger, more financially robust fashion businesses. We are democratizing fashion intelligence with the most affordable pricing in the industry
Join the market leaders, and gain a high-level understanding of the fashion market, by leveraging insights from more than 40 million online shoppers and 2 million+ products from more than 120 of the top global fashion brands.