3 Reasons You Need Customer Sentiment Analysis

woman on phone sitting on steps

A common saying states that perception is reality. Regardless of its validity, perception is widely accepted, and it can have significant consequences on either an individual or an organization’s reputation and credibility.

Organizations face this every day: how to deliver the best possible product while also winning trust through superb service. Even a superior product can fall victim to upset customers — according to an Accenture Strategy Research Report, 47% of consumers admit they won’t even engage with a brand after being disappointed. Today’s complex, omnichannel environment makes these stakes even higher.

Analyzing sentiment and empowering agents with data allows them to go above and beyond, providing customers with an experience that promotes not only satisfaction, but also encourages loyalty.

What is Customer Sentiment Analysis?

KM World defines customer sentiment analysis as the processing of information to determine the opinion of a consumer. The time consumers take to ask questions, resolve issues, and share both positive and negative experiences can be used to help an organization evolve.

It’s important to understand that the way this information is gathered has changed drastically in the last two decades. What was once handled by either a letter or phone call to a company has now evolved into a multi-layered approach that can feel dizzying for an organization seeking to keep pace.

To deliver the most empathetic customer service experience, an organization must understand customer sentiment across all channels. Let’s take a closer look at sentiment scoring, what’s considered a positive sentiment and three solid reasons customer sentiment analysis is a must for your organization.

What is a Sentiment Score?

According to CallMiner, a sentiment score is the number used to gauge customers’ opinions of a company’s service and products. A positive sentiment score indicates exactly what it describes — customers are satisfied with their experience with the company’s offerings and will likely continue to go about business as usual — and as such, a negative score explains the opposite. Both types of sentiment scoring are important, as they can help a company understand where they need to improve and where they can continue following business protocol.

3 Reasons You Need Customer Sentiment Analysis

Sentiment analysis gives you an increasingly accurate temperature check on how your customers feel about your brand, your products and the service you provide. For agents to turn this data into insights, however, they must be able to easily access this type of customer information.

Here are three reasons why customer sentiment analysis is ideal for driving customer loyalty:

1. Customer Service Agents Become Advocates

Every time a customer reaches an agent, that agent should, at a minimum, be empowered with all the information needed to provide a seamless experience. From purchase information, shipping information, and return requests, to an accumulation of all internal communications that have occurred, agents should have all the customer details available to them in order to provide the best possible service. But this isn’t always possible without the right technology.

When armed with sentiment analysis, the agent is properly prepared to connect and empathize with the customer on the aspects of either the service or the product that felt frustrating. This type of communication serves to both personalize the experience while also helping to neutralize potentially difficult conversations.

To provide the modern experience customers expect, organizations can’t afford for their agents to have any information gaps. According to Calabrio, 60% of customer service agents feel that they don’t have the tools or technology needed to handle customer issues, and 34% cite a lack of pertinent customer data as their biggest problem. With the right resources in place, companies can properly identify negative and positive sentiment scores and translate the insights into providing an improved customer experience across the board.

2. It Has a Major Influence on the Future of Your Business

When it comes to both acquiring and retaining customers, brands must pursue the new rules of engagement. According to Social Media Today, 70% of consumers have admitted that they turned to the social media accounts of brands for customer service reasons on one occasion or more. Utilizing social media channels is one of the most advantageous moves a brand can make today.

Customer interactions, whether indicating negative or positive sentiment, can be used to benefit the company. This data can be used to get ahead of issues, inform internal product teams of concerns or problems and influence both new customers and loyal ones. Data can reveal how an individual consumer is feeling, and it can also reveal areas in your product or policies that need improvement.

3. Customer Experience Gaps Vanish (With Holistic Measurement)

Unfortunately, many organizations look at sentiment based on the channel: e-mail, phone, chatbot/live chat, social and others, and that means all the data collected is siloed. The result of siloed data needing to be measured and analyzed together is an analyst somewhere banging their heads against a wall trying to fit a square peg through a round hole.

In other words, siloed data can be analyzed together, but it will usually be inconsistent and incomplete, with gaps that don’t cover the holistic customer experience. When attempting to make sense of the entire customer journey from initial awareness through to repeat purchases, organizations must consider a holistic way of collecting the data to be analyzed more accurately. A customer service CRM platform, that unifies all data into a single view, can help businesses garner insights from cross-channel data.

How Kustomer can help

Understanding how your customers feel can be a useful tool for your business. The organization that achieves a comprehensive, holistic and actionable view of their customer, and leverages sentiment analysis to understand how customers are feeling, can create empathetic experiences that boost loyalty, retention and repeat sales.

Kustomer’s Sentiment Engine specifically achieves this. It’s driven by AWS Amazon Comprehend, and through natural language processing APIs, the Kustomer platform can analyze all incoming text from the customer, no matter the channel. You’ll always know how they feel, and be prepared to deliver exceptional service in customers’ greatest times of need.

If you’re ready to transform your organization’s customer service into one that drives loyalty in the modern age, click here for three ways to get started.

 

3 Ways Customer Service Teams Must Adjust During COVID-19

3 Ways Customer Service Teams Must Adjust During COVID-19 TW

Life has become a series of trade-offs and workarounds in light of the pandemic. Curbside pick-ups are my new norm. My inbox is a litany of order confirmations and estimated delivery times. Last weekend, I drove to a local hardware store and found the following handwritten message on a sign at their front door: “Know what you want. Get in and get out.” At times, my interactions with people feel purely transactional.

The world has changed, and customer service is changing right along with it. Businesses are being challenged with a paradoxical conundrum: how do we retain our humanness? How do we maintain trust in a time of uncertainty? Below are three ways customer service teams must adjust in light of the global pandemic.

Empathy Is #1.

Companies who approach customer service with a deeper level of empathy are more likely to maintain loyalty and win new business. This concept is not a newfound revelation. In fact, The Empathy Business has studied the efficacy of empathy in business for years. And what have they found? Organizations that focus on the “emotional impact” they have on employees, customers, and society are valued higher and earn more than their counterparts.

In the world of COVID-19, empathy is even more desperately needed. Quarantine measures and social isolation mean a rise in loneliness and other mental health issues. Think about it this way: what if your organization delivers the only social interaction an individual will experience for a full day? Armed with that information, how should you change your customer journey?

Start small. Use your data. Study the way your customers use your tools and services. Where are they running into roadblocks? Where are you making your customers’ lives easier? Take note and adjust. Document your FAQs in an accessible location, like a Knowledge Base. Have the patience to clearly explain the nuances of your business and policies. Above all else, practice kindness in all of your communication.

“One-Size-Fits-All” Won’t Succeed.

As the pandemic spreads, we’ve seen a spike in conversations for many of our clients. And according to a recent survey by Kustomer, there has been a 17% increase in inquiries across industries. With this influx in communication, it no longer makes sense to force every customer to call the same number to contact your company. Instead, it’s time to get smart about the channels you employ to manage customer interactions, and it’s time to invest in a fully-fledged omnichannel experience.

But beware: you should avoid blindly adding new service channels without a strategy in place. Dig deep into your customer personas and understand their respective beliefs and behaviors. McKinsey notes that “not all customers are the same, and it’s how they differ in their behavior and preferences—particularly on digital—that should have an outsize influence on how service journeys are designed.” Keep this in mind, too: a small percentage of customers — classified as the “offline society” -— may suddenly be forced into adopting digital communication in light of shelter-in-place orders. Take these different customers into account when adapting your customer service strategies.

Automation Is a Necessity, Not a Luxury.

As we’ve seen an increase in the number of inquiries, we’ve also seen an increase in the need for artificial intelligence and machine learning technologies. Agents can become easily overwhelmed by an onslaught of new messages. AI can automate some of the more tedious tasks that those agents might encounter, thereby freeing their time for more important work.

Consider how you can deflect commonly asked questions and save your agents valuable time. Let’s say you’re an airline in today’s world. With the rise of the pandemic, you’re being flooded with requests for information about your refund policy. Instead of directing your team to answer each inquiry individually, you could use automation to serve up pre-written articles that align with the inquiry’s keywords. Not only do you protect your team’s time, but you also deliver a better customer experience as customers receive near-instant answers to their questions. Beyond that, unsuccessful deflections can provide a treasure trove of data to guide your future content.

Those who adapt and adjust their strategies now can influence their fate in the post-pandemic world. The opportunity is there. We have to be good stewards of our time and resources to capitalize on it.

4 Easy Ways to Strengthen Your Brand Through Customer Service in 2020

Have you ever ended a call with a customer service agent thinking that you’d never want to go through such a horrible experience again? You probably shared your experiences with friends and family, or went so far as posting your negative thoughts across social media.

One angry consumer not only means a lost customer, but could also mean a hit to your brand or a PR nightmare. Your customer service agents need tools that promote a positive experience for each and every customer. The following are four easy ways to strengthen your brand through customer service in 2020.

Speak with Customer in the Ways They Want to Communicate

Enabling your agents to service customers on their preferred channels, whether that be e-mail, chat, SMS, voice, WhatsApp, Facebook Messenger or Twitter, strengthens the bond between companies and their customers. Consumers expect brands to be available on each and every channel they regularly use, but oftentimes tracking conversations and interactions across channels can be a challenge for agents. With Kustomer, conversations across channels converge into a single thread on a single screen, resulting in a seamless and effortless conversation. By breaking down the communication silos of traditional multichannel solutions that fragment service experiences, cause agent collision, and frustrate customers, Kustomer ensures a true omnichannel experience for customers and agents alike.

Reach out to Your Customers Proactively

Customers understand that problems happen all the time. Proactive communication allows companies to keep their customers updated on issues like delays in shipping, out of stock items or product updates. Customers empathize that problems arise and feel valued when kept in the loop, while inbound inquiries are reduced due to proactive outreach. Some organizations turn their CX organization into a revenue center by sending offers based on purchase history, deep insights or to encourage repeat purchases. With all of your data in the Kustomer platform, your customer service team can proactively communicate to deflect issues and delight customers.

Measure Your Customer Sentiment

Agents need to understand the mood of the customer before the conversation begins. Sentiment determines the direction of the conversation, which agent should handle the customer and how to handle the interaction. Customers are happy because agents can immediately empathize with their emotions. Agents are happy because they are aware of the customer’s current disposition and are trained to handle difficult interactions appropriately. Tracking customers’ sentiment helps agents decide how to best prioritize and engage in conversations, and provides management with a critical metric for overall customer service effectiveness.

Know Everything About Your Customers

Companies that develop deep insights about their customers, and leverage them appropriately to provide personalization, will improve their brand image. Tracking important customer information like birthdays, anniversaries or most recently purchased items on a customer timeline softens conversations and makes for a memorable experience. Agents can see deep insights quickly and easily and can, for instance, wish their customers a happy birthday. A personalized call can switch sentiment from potentially hostile to neutral or even positive. Kustomer connects your agents to all of your customers’ data from internal and third-party systems, providing a holistic timeline view for more productive and efficient conversations.

Strengthening your brand begins with asking tough questions. Is customer sentiment appropriate for your business? Is speaking with your customers through an omnichannel approach important? What types of customer information would you track that could impact your brand? Once these questions are answered, a platform like Kustomer could help you kickstart a successful 2020.

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5 Reasons You Need to Measure Lifetime Value

In this post by Kustomer VP of Marketing Nelly Rinot, Nelly shares the key reasons why Lifetime Value should be your bottom-line metric for customer experience.

There is a huge number of good metrics to measure your customer service. However, Lifetime Value should always be your top consideration. Here are the top five reasons we’ve determined from our :

  1. Other metrics are geared around your agents, not your customers: Average Handle Time and First Contact Resolution are two prime examples of valuable metrics that don’t give you the insight you need beyond an operational approach. They make sense for figuring out how cost-effective your service is—how many customers your agents can handle before they’re at capacity. But while productive agents can help more customers faster, they should do more than work as fast as possible to resolve an issue. To deliver a good experience, your first consideration shouldn’t be efficiency—it should be whether your customers are happy.
  2. CSAT and NPS don’t give you the whole picture: These metrics are a great way to know whether your service is effective on a macro-level. If customers aren’t satisfied, you need to know. However, knowing that they’re unhappy and WHY they’re unhappy are two very different things. CSAT and NPS measure if you are satisfying your customers in the moment, but doesn’t tell you about their behavior after you’ve engaged. Plus, these surveys only capture a tiny, unrepresentative minority of customers. And in most cases, they’re only speaking to the interaction they just had, not their entire experience with your brand.
  3. Sentiment doesn’t tell you what your customers aren’t saying: Sentiment based on natural language processing is less biased than CSAT and NPS, because it accounts for all the interactions on every channel. That’s a huge step up, but it still won’t answer fundamental questions about your business—you still don’t know what’s going unsaid. Only 1 out of every 26 customers complain if something is wrong with their experience, so even high volume NLP only measures a fraction of what’s going on beneath the surface.
  4. Other metrics don’t take actions into account: For a total customer view, you need to understand all of your customers’ actions and behaviors on top of all the previous metrics. Other metrics don’t record how often they’ve contacted you for service or support, if their buying behaviors have changed, if they’ve abandoned items in their cart, changed their subscription tier, returned or exchanged a product, or engaged with you on social media. All of these actions will help you understand why your customers will or will not come back to buy again.
  5. Lifetime Value is the best predictor of your brand’s success: A 5% increase in customer retention can increase a company’s profitability by 75%, according to Bain & Company. Getting customers to keep buying from you is fundamental to growing your business. No matter what else you know about your customers, if you don’t know their Lifetime Value, you don’t know if you’re going to be successful.

Using a variety of customer experience metrics is crucial for getting a better understanding of your business. They all give you an important piece of the bigger picture. However, if they don’t ladder up towards Lifetime Value, then you don’t know how your service, support, and experience are contributing to overall business health. If you aren’t measuring LTV yet, good news—it’s never too late to start.

Voice of the Customer: Are You Really Hearing What They’re Saying?

This is a guest post by Jeremy Watkin, Director of Customer Experience at FCR.

Are you in the habit of closing the loop with customers that offer negative feedback on post-interaction surveys like Customer Satisfaction or Net Promoter Score? I certainly hope so, because it’s a great practice that many companies aren’t in the habit of doing. When I led a customer service team, I was very proud of the fact that we made every attempt at closing the loop with the upset customers we knew about, and by some combination of resolving their issue and offering compensation, we managed to save a good many of them from churning.

But what about those customers that don’t complete a survey voicing their displeasure? What about those where something goes wrong and it’s “too much trouble to complain?” Or perhaps they do complain and the disinterested reply from support is enough for the customer to cut their losses and move on to a company that actually wants their business. And then there’s that statistic where upset customers tell dozens of people about negative experiences while happy customers tell a small handful of their friends. I’m convinced that someone invented that statistic to strike fear into the hearts of customer service leaders with the sole purpose of selling books, software, consulting, etc.

Regardless, it’s the upset customers I don’t hear from that keep me up at night—the unhappy ones we’ll never have the opportunity to save. There’s got to be more we can do, right? What if I told you that more customers are offering feedback about how we can improve and keep their business? It’s time that we start listening to the “voice of the customer” far beyond surveys, and the great news is that what once seemed far off in the distant future is totally possible right now. Let’s discuss further.

A Survey is Not Enough

I love surveys. The act of asking for feedback and then taking the time to act on that feedback is what fuels a great continuous improvement process, but it alone as a voice of customer program is incomplete at best. In my work at FCR, I see a wide range of response rates to surveys anywhere from 10 to 30%—and rarely beyond that.

Can a company really consider a voice of customer program robust if it doesn’t hear from 70% of its customers? If our goal is to truly understand what’s driving dissatisfaction and drive our customer churn rate down, we need to do more. Customers are giving feedback on traditional support channels and social media, and we must listen to that valuable non-survey feedback as well.

Sentiment Tells Us Much More

Consider for a moment relationships and what we know about nonverbal communication. In my own relationship with my wife, most of the feedback I receive about how to be a better husband is nonverbal. Whether it be “the look” or perhaps a tone of voice, I had better be adept at recognizing her signals long before she has to explicitly tell me she’s upset.

Natural language process (NLP) works in much the same way, by understanding not just what customers are saying but the way they’re saying it. Considering the fact that only 1 of every 26 customers actually complains when something goes wrong, the ability to capture customer sentiment from all customer interactions including social posts, voice, email, chat, and SMS significantly broadens our understanding of what customers are saying. And it allows us to recognize an upset customer—sometimes long before they give explicit feedback via a survey. Now we’re on our way to listening to 100% of customer communication with our company. But there’s still more.

But Actions Give Us the Full Picture

Traditional contact center platforms do a great job of helping us pull in customer communication from a variety of sources and respond in a timely manner. For teams of all sizes this is important, and the ability to track a myriad of KPIs helps us measure success, but these systems are almost exclusively predicated on the customer reaching out to us first. Are we to assume that if the customer doesn’t reach out, they’re happy?

If that’s your assumption, you may want to read up on customer journey mapping. This is the exercise of looking at the customer journey from A to Z, identifying all of the places customers touch your company (AKA touchpoints), and evaluating that experience. As I’ve learned about journey mapping, I’ve come to realize what a small (but important) role customer service plays in the overall customer experience.

Clearly a modern contact center platform must take into account the entire customer journey and understand what customers are telling us at each touchpoint with their actions. A few ideas where this might come in handy include:

  • Understanding whether the customer is a first-time buyer or long-time customer.
  • A regular subscription stopped or downgraded after a long history of purchasing regularly.
  • Order fulfillment or shipment is delayed.

There might be a variety of issues. The ability to see this full picture of the customer’s history allows us to take a more proactive approach and reach out to customers, sometimes before they become aggravated.

Focus on Customer Lifetime Value

Now this is starting to sound like the comprehensive voice of customer program we’re going for. We’ve moved beyond reacting to customers with known issues and are proactively acting based on patterns in the customer journey. There’s a final, invaluable ingredient, or metric, in this process that’s so often missing from the process of supporting customers: lifetime value.

Understanding how much a customer has purchased historically and potential future spending is an invaluable tool for a couple reasons. First, it allows your support team to understand what it might take to make things right when something has gone wrong. For example, if a customer spends $25 per month, a $10 coupon might be appreciated, but if they spend thousands annually, that same $10 credit might be insulting.

Second, with lifetime value, we can offer a premium level of service to those high value customers. When it comes to proactively reaching out to customers at various points in the journey we’re now working smarter, not harder by prioritizing our reach out first to those that spend the most and/or have been with us the longest.

A true voice of customer program should absolutely strive toward a 360-degree view of the customer’s experience—and this is totally possible when we can easily see support history, feedback, sentiment, actions and lifetime value. With that information, we shift our approach from a reactive to a proactive one. Once that’s occurred, I see a future where customer service leaders everywhere sleep a whole lot better at night.

Jeremy Watkin is the Director of Customer Experience at FCR. He has more than 17 years of experience as a customer service, customer experience, and contact center professional. He’s also the co-founder and regular contributor on Customer Service Life. Jeremy has been recognized many times for his thought leadership. 

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