The e-commerce industry in India is experiencing unprecedented growth. In the ever-evolving world of e-commerce, businesses are constantly seeking innovative ways to understand and cater to their customers’ needs. However, with the sheer volume of customer reviews on different platforms, it is challenging for businesses to do manual monitoring and derive customer sentiment insights from them.
Fig 1: Customer reviews for Samsung Galaxy S23 on Amazon
For example, smartphone, Samsung Galaxy S23 smartphone has over 670 reviews on Amazon (Fig 1), 320+ reviews on Flipkart (Fig 2), 600+ reviews on Snapdeal, and many more. If we have to manually extract online reviews from multiple marketplaces to identify customer sentiment and pain points, it becomes challenging. This is where ecommerce sentiment analysis comes into play.
Fig 2: Customer reviews for Samsung Galaxy S23 on Flipkart
E-commerce Customer Sentiment Analysis
Ecommerce sentiment analysis involves employing advanced natural language processing approaches and machine learning algorithms to analyze and categorize customer feedback. In today’s competitive e-commerce market, customer sentiment analysis has emerged as a strong tool that empowers businesses to gain a profound understanding of the sentiments and opinions voiced by their valued consumers.
Examples of positive and negative sentiment are as follows:
Customer Review 1: “I loved the quality of the product delivered, and was impressed with the speed of delivery. I got my product before the estimated date of delivery.”
Customer sentiment – Positive
Here, the client can use the feedback to understand their strengths and leverage them to enhance the customer experience in the future.
Customer review 2: “I’m disappointed with the customer service team. It took too long to connect to the agent, and when I finally did, the response was unhelpful. Would never opt for the service again.”
Customer sentiment – Negative
Here, the client can use the feedback to work with the customer service department and address the pain points of customers.
E-commerce customer sentiment acts as a strategic advantage, serving the gap between customer expectations and the product/service delivered. Understanding customer emotions helps tailor product and service offerings for businesses.
Power of E-commerce Sentiment Analysis
Enhanced Customer Experience
A recent report from Adobe that surveyed 1,500 U.S. adults regarding preferences and expectations for digital experiences in the retail, travel & hospitality, media & entertainment, and financial services industries found that expectations for customer experience are much higher coming from the millennial age group than ever before. With millennials and modern customers demanding higher customer experience, it is imperative for brands to closely monitor customers’ pain points and devise strategies to outcome them. By understanding the positive and negative aspects of a product, businesses can act on it effectively.
For example, let us take the Samsung Galaxy S23 smartphone. What if businesses can easily analyze the positive and negative aspects of the product for different product features like a Camera, Battery, Display, Performance, Size, Design, charger, screen, fingerprint sensor, and more? Well, that would help with improvising the product and make it better right? The great news is, it is possible with 42Signals – an e-commerce analytics tool.
Fig 3: 42Signals application – Positive and negative aspects dashboard
Based on the insights generated from online reviews and ratings, 42Signals helps e-commerce businesses identify the sentiment type, share of discussion, and sentiment score for different aspects of the product.
The insights derived from customer reviews enable businesses to understand how their products and services are perceived by their customers. This can help businesses adopt strategies to stay ahead of the competition. With 42Signals’ easy-to-use dashboard, customers can see how they compare to competitors concerning different aspects of their product.
Fig 4: 42Signals application – competitive advantage dashboard
How Leading Businesses are Leveraging Customer Sentiment Analysis to Their Advantage
Uber – One of the popular ride-sharing businesses uses sentiment analysis to analyze customer reviews and ratings. Uber uses these insights to address the concerns of customers, improve customer service, access driver performance, their pricing in the market, and more. This enables them to optimize their strategies and improve customer experience.
Nike – Nike has been using customer sentiment analysis to fine-tune its marketing and ad strategies. By using customer sentiment analysis, Nike monitors customer reactions to its product launches and marketing efforts.
Marriott International – When people think about the Marriott International hotel chain, they instantly think about consistency in luxury. That’s what customers expect and that’s what they get. Marriott’s secret to success isn’t a secret at all: it’s good CX that involves listening to customers, in person, and via their digital footprint. Customer data tell the real story about everything that customers love and don’t love. They have been using sentiment analysis to gauge customer opinions and monitor feedback. This enables them to address the pain points and enhance CX.
Choosing the Right Customer Sentiment Analysis Tool
Now that you understand the importance of customer sentiment for your business, it is time to choose the best tool that can help you make the right decision. Look for tools that can accurately analyze and interpret customer sentiment and that have advanced NLP capabilities. Moreover, clear and comprehensive visualizations are important for easy data interpretation. So, choose a tool that has an easy-to-analyze dashboard and customization options.
Easily comprehend customer sentiment with our powerful AI tool, 42Signals. It helps businesses identify the most relevant topics discussed by consumers by sifting through millions of product reviews. Discern multiple facets of your brand to comprehend customer behavior as we bridge the gap between products and consumers.