What is sentiment analysis?
Sentiment analysis is considered an online analysis of user emotions, typically by identifying the positive or negative opinions expressed in a given text stream. The term itself was coined as early as 1894, and in 1958, Tony Chapelle developed the first computerized sentiment analyzer.
Types of data companies
There are many different types of data companies. One type monitors social media while another gathers information from customer reviews online. Other types use surveys to collect data on people’s opinions about brands or products to find what customers want the most. These are just some examples that provide a broad spectrum of the different types of data they collect. Others may have different methods, but these are by no means an exhaustive list:
Affectiva– Deal with facial expressions, analyze emotion and detect the probability of an emotion’s occurring.
Facebook Trend data-Analyze data fed to their algorithms such as posts, check-ins, likes, etc.
DataSift-Collect data from social media websites such as Youtube, Twitter, and Linkedin.
Datalogix– Collect transactional data from connected devices through credit card purchases, loyalty card programs (gas stations, for example), the frequency at supermarkets (use estimates of how much a customer spends per visit), and more.
Amazon Reviews– Purchase history- Wish lists- Product reviews
Better Business Bureau-Collects data from consumers and businesses (fraud, complaints, and disputes) about companies.
Google Trends Data-Collects data from a search term and compares the number of times that term has been searched over time.
Methods involved in data collection
There are so many ways to obtain data. Some samples will be bigger than others, but regardless of the sample size, they all have the same goal: generating a benchmark that can be used to predict future behavior. The most crucial factor to look at is the quality of the sample. It should be done with enough transparency and some way of avoiding bias.
That’s why more prominent websites like Amazon, Yelp, and Trip Advisor ask customers to leave reviews also offer incentives. It’s a great way of ensuring a more positive review since it will improve the experience of future customers. However, surveys, customer reviews, and social media comments are considered great interest in sentiment analysis.
The most common method surveys are usually concise, around five to ten questions, and have a ratio of 1:5 with the interviewer. It’s important to ask questions that surprise people or allow them to express themselves freely about their opinions. Surveys can also be customized and provided in different languages to get data from every nation and culture.
Customers are another way of getting feedback on products, services, and brands. They are usually very honest with their opinions. Depending on how much they paid for the product or service, they can also be somewhat biased. If a customer is complaining about a bad experience, chances are they will not spend money with that company again. However, if they are already a customer and have had a good experience, they may choose to ignore the negative reviews and focus on the positive aspects of the brand.
3.Social Media Comments
Lastly, social media comments can be constructive. Still, there is some controversy since most of it is done publicly (with no incentive), and there is no way to guarantee that everyone in the selected sample purchased or used the brand.
Importance of sentiment analysis and how it works
Many companies use sentiment analysis to raise awareness or analyze and predict customer behavior. For example, a company can understand an audience better through their tweets or comments before buying something. It allows them to react quickly to their customers’ needs. It allows them to backtrack if certain products do not sell as well as expected by identifying what didn’t work and adapting their strategies accordingly.