The UAE e-commerce is expected to reach $17 billion by 2025. Further, by 2027, it is expected that global retail e-commerce sales will cross $8 trillion indicating a 39% growth, according to a Statista Report. In such a growing market, sentiment analysis and customer feedback are essential for business success. Unlike brick and mortar where customer feedback is easier to take, in an ecommerce platform customer satisfaction is more difficult to assess. Moreover, it helps brands sell more on e-commerce platforms if it has a good volume of reviews. Building a good volume of reviews and thereby analyzing them is therefore the need of the hour. According to the Global Statshot Report, 32.5% of customers make online purchase decisions based on customer reviews.
There is a need for every e-commerce player to have access to business intelligence in real-time and in actionable form to ensure the success benchmarks are achieved. Business intelligence needs to be granular to the last detail and scalable by geographies and platforms.
Concept of Sentiment Analysis
In online shopping, customers give reviews and ratings on different social media platforms. Customer sentiment analytic tool analyzes these to discern positive, negative, or neutral emotions. Does the customer express positive, negative, or neutral emotions?
This analysis gives insights that help in the growth of the businesses and find out what makes a product more successful and what creates dissatisfaction among the consumers, which helps to improve customer experience, and brand image, and address negative sentiments before it spread.
Sentiment Analysis Metrics that Brands Must Track:
- Monitor Rating & Reviews
- Customer Feedback Trend Analysis
- Product sentiment tracking across categories, sub-categories, product variants, brands, and sub-brands vis-à-vis competition
- Identify Q&A Sentiment themes, with real-time actionable Insights and analytics
- Keywords graphically highlighted with word cloud
- Identify sentiment themes that are working, gaps, or lags in terms of pricing, quality, packaging, flavor, delivery, etc.
- Heat map to reflect sentiment intensity
Why Sentiment Analysis Is Important in E-commerce
Enhanced Service Outcomes and Customer Experience
It brings direct insight into real-time perceptions of customers about the brand, its services, and interaction. It not only reveals the surface level of feedback but also gives an idea about the customer’s feelings and sentiments upon interaction. They can alter service strategies, product experiences, and more based on how customers react.
Comprehensive View of Customer Sentiments
It gives an overview of a company’s snapshot view of total customer sentiment. It does not just analyze whether the feedback is positive, negative, or neutral, but aggregates sentiments from multiple sources to give a whole view. Whatever the customer feedback source, the sentiment analysis tools will let you decode the sentiment behind each word or comment.
Understand the Customer’s Mood, Tone, and Attitude
With sentiment analysis, businesses manage to perceive customers’ moods, tone of voice, and attitude. That insight is rather important for personalized and empathetic support. It will help an organization with the right kind of emotions displayed by customers for their needs and expectations. This also helps a business organization perceive how customers will feel while interacting with your brand.
Enhance Customer Satisfaction with Data-driven Reactions
Sentiment analysis will allow the business to understand where to improve based on customers’ feelings and act based on data to offer customer satisfaction. It acts like a compass for direction, guiding businesses on how to plan, focus their efforts, and appropriate resources to areas where they are most needed.
Identify Customer Pain Points
Sentiment analysis gives companies insight into customer’s pain points and what usually irks them. It analyzes feedback and sentiment about aspects, features, touchpoints, or journey stages of a product or service. Companies can find out where improvements should be made. This way, they can take up all the concerns and make necessary improvements to enhance customer experiences.
Knowing the emotions underlying customer feedback lets you identify, very specifically, where things may be going awry-be it a glitch in the system, a baffling process, or even a feature that’s more frustrating than useful.
Plan Market Positioning with Informed Insights
Knowing exactly where to place your product in the market holds the key to success. Making an informed decision, however, isn’t easy, and a misjudgment may sink your business. Fortunately, constant monitoring of customers’ sentiments may provide you with just what you need. You will get a better understanding of the features that customers would like to see in your products.
Sentiment Analysis in Improving Customer Experience
There are also many instances when customer sentiment analysis helps enrich the overall customer experience of organizations through tools and techniques.
Proactive Resolution of Issues
Sentiment analysis is a potent tool for spotting negative sentiments in customer feedback. By sentiment analysis, a business would be well prepared to proactively address issues, resolve complaints, and avoid any potential escalations before this gets bigger and affects a large chunk of the customer base.
Once any negative sentiment is spotted, immediate and remedial action can be taken by a business to restore the situation and provide satisfaction to resolve it. This proactive approach helps in preventing further dissatisfaction among the customers and builds trust and loyalty.
Continuous Product & Service Improvement
They help in identifying areas to improve, insights to develop products, and enhancements based on the sentiments of the customers.
Sentiment analysis gives ways through which organizations make continuous improvements. Businesses can review their customers’ feedback and find common themes and trends emerging from their sentiment analysis. Themes may be related to product features, customer surveys and interactions regarding the service, or overall customer satisfaction.
Efficient Resource Allocation
Effective allocation of resources can be planned by prioritizing actions based on sentiments. Critical issues that require the most resources must be focused on.
Resource allocation is also an important business management process. Sentiment analysis plays a major role in this matter. It prioritizes feedback, according to urgency and importance, for businesses to optimize resource allocation. This way, they can go ahead and perform an action based on priority through customer sentiments.
Customer Journey Optimization
Organizations identify the pain points and positive experiences that enable the optimization of the customer journey. This results in a far smoother and more satisfying customer experience.
At each of these touchpoints, sentiment analysis can be done to study customer feedback and interactions; this gives an organization complete insight into the sentiment of a customer throughout their journey.
Predict Customer Trend
Identification of the evolving trend of customer preference enables the business to predict the trend and align the strategy according to the changing dynamics of the market.
E-commerce Analytics Tool, therefore, enables a business to perceive the evolution in customers’ preferences. The algorithms from sentiment analysis allow the extraction of patterns and trends in the language, tone, and context in which customers express their views and hence provide a clear picture of shifting market dynamics.
Benchmark offerings within the competitive landscape
This helps the firms to understand how their offerings will stack against their competitors. It helps them rework their strategies to make themselves competitive and realize a rise in their positioning.
To monitor your customer sentiments brands with an efficient E-commerce analytics tool that provides real-time insights and alerts.
Conclusion
Sentiment analysis also seems to help the e-commerce players in the UAE or outside deal with customers’ reviews efficiently. With the increasing size of the online marketplace, how clients feel, what they desire, and where they hurt, becomes more important to stay relevant and enhance client satisfaction. Also, because of sentiment analysis, organizations can address problems, enhance activities and commodities, streamline the customer’s path, and take intelligent actions due to the data at hand.
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