Why text analytics is critical for your business

“The customer experience is the next competitive battleground.”

Jerry Gregoire, the former CIO of Dell, got it right when he said this. In today’s world, where consumers have more choices and information at their fingertips than ever before, providing a stellar customer experience is critical to success.

A top-notch customer experience goes beyond simply providing great customer service. It means focusing your entire organization on meeting your customers’ needs by collecting their feedback, analyzing it, and – most importantly – acting upon it.

Of course, this is easier said than done. Collecting customer data is easy enough; in fact, most companies have more customer data than they know what to do with. The biggest challenges are identifying what types of customer feedback will yield the most fruitful, actionable insights, and extracting those insights from the data.

This is where text analytics comes in. Text analytics enables companies to analyze their customers’ text feedback, such as open-ended survey responses and product reviews, and identify patterns and trends within that data. More and more companies are realizing that implementing a text analytics solution provides strong benefits: 

 

Text analytics unlocks the richest and most detailed source of customer feedback available.

Quantitative measures such as NPS scores and 5-point scales are easy to analyze, but they can only take you so far. They won’t help you uncover root causes of satisfaction or dissatisfaction, because they don’t give customers the opportunity to tell you why they rated your company the way they did. Customers offer far more nuanced and specific feedback on your company via product reviews, open-ended survey responses, and social media posts – in other words, in the form of unstructured text data. Text analytics makes this rich source of data accessible.

 

It uncovers critical customer insights more quickly than traditional analysis methods such as hand coding.

Until recently, the high investment in time and resources needed to hand code or manually read through customer feedback data hampered companies’ attempts to analyze this data. As a result, many companies only processed small subsets of their text data, and some companies stopped asking open-ended survey questions entirely. New text analytics methodologies have significantly sped up the analysis process, enabling you to understand and take action right away.

 

Ultimately, analyzing text and acting upon the insights you uncover improves both customer retention and revenue.

The Aberdeen Group[1] recently found a clear, quantifiable link between acting upon customer feedback and business performance.   Companies who integrate customer feedback across all channels and operationalize those insights retain 55% more of their customer base and enjoy an increase in annual company revenue that is almost ten times greater than those who simply collect – but neither analyze nor act upon – customer feedback.

The benefits of text analytics are clear. Your customers’ voices will reach you clearly and quickly, you’ll be able to take action right away to meet their needs, and customers will reward you with increased business and loyalty. Sounds like a win-win situation to us!

 

 

[1] Aberdeen Group. (April 2015). The Business Value of Building a Best-in-Class VoC Program. Omer Minkara.

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