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Customer sentiment is a fundamental metric in business success for a variety of reasons.

The success of any business lies in its ability to ensure that customers get what they expect from products and services, especially if they paid a price for it. In simple terms, being focused on ensuring customer satisfaction.

With customer demands rising on daily basis, most businesses are obsessed with meeting those demands because when they fail to, the effects on the bottom line can be terrible. As companies wrangle with delivering compelling customer experiences, they face a difficult yet essential task: figuring out exactly what customers feel when they interact with their products.

Hence, making customer sentiment, a key metric to be measured.

Understanding customer sentiment has thus become crucial for organizations to thrive. The ability to measure and analyze customer sentiment provides valuable insights into customer experiences, preferences, and expectations.

Artificial Intelligence plays an essential role in sentiment analysis, revolutionizing the way businesses understand and respond to customer feedback. In this blog post, we will explore the significance of measuring customer sentiment, the role of AI in sentiment analysis, and how Insight7, an AI-powered customer research tool, can help teams identify and measure customer sentiments.

Importance of Measuring Customer Sentiment

Customer sentiment is a KPI indicating how customers feel toward your brand. It tells you if a customer’s overall emotions — based on engaging with your brand at a specific moment in the customer journey — were positive, negative, or neutral.

Bad experiences can’t be explained with a star rating alone — however, if you gather customer feedback comments, you’re closer than ever to understanding the ‘why’ behind issues.That is why talking to customers must be a constant activity for companies. To earn the data that customer sentiment is extracted from, you just need to ask the right questions in your surveys.

Measuring customer sentiment is essential for several reasons. Firstly, it allows product teams and businesses to gauge customer satisfaction and identify areas for improvement. No company can run on assumptions, therefore every decision needs to be backed by data. You can’t assume what the customer thinks or wants without talking to them. By understanding customer sentiment, companies can enhance their products, services, and overall customer experience, leading to increased customer loyalty and retention.

Secondly, customer sentiment serves as a valuable indicator of brand reputation and can help businesses proactively address negative sentiment to prevent potential damage. Take this as a scale to judge your perception in the market, as well as within your target audience. Moreover, sentiment analysis enables organizations to uncover trends and patterns, gain a competitive advantage, and make data-driven decisions that align with customer expectations.

Role of artificial intelligence in sentiment analysis

Customer feedback has become more important than ever before with companies now constantly looking for ways to improve their products and services. Customer feedback provides valuable insights into what is working and what isn’t. But manually sorting through and analyzing feedback can be an incredibly time-consuming task, which is where AI comes in.

Customer feedback comments provide an opportunity for your customers to tell you what their experience was like and how they feel about your product. It’s a much more dynamic type of survey response than a star rating, and customer sentiment isn’t any more difficult to measure as long as you’re analyzing your customer feedback comments with the right solution.

However, manually reviewing and analyzing large volumes of customer feedback is time-consuming and inefficient. This is where AI-powered sentiment analysis comes in, allowing companies to automatically analyze customer feedback and gain valuable insights in a fraction of the time. AI plays a pivotal role in sentiment analysis, revolutionizing the way we understand human emotions and opinions in textual data.

Undoubtedly, the benefits of using AI for sentiment analysis are clear. With the ability to analyze large volumes of customer feedback quickly and accurately, companies can gain valuable insights into customer sentiment and make data-driven decisions that lead to improved products and services.

With AI-powered sentiment analysis, companies can leverage the power of technology to gain a deeper understanding of their customers and make data-driven decisions that lead to happier customers and a more successful business.

Understanding Customer Sentiment

Understanding customer sentiment is crucial for any business as it provides essential insights into consumers’ perceptions and how brands can foster positive interactions with their customers. Positive customer sentiment forms the foundation of a successful brand and serves as a compass, guiding companies towards strategies that resonate with both existing and potential customers.

By analyzing customer sentiment, businesses can swiftly identify emerging trends, shifts in customer attitudes, and potential improvements to enhance customer loyalty. Moreover, gathering data on customer sentiments allows brands to proactively address issues and prevent customers from switching to competitors. Statistics show that half of all consumers will switch to a rival brand following a single negative customer experience.

Without a comprehensive grasp of customer sentiment, companies risk losing valuable customers, revenue, and market credibility. Hence, customer sentiment analysis plays a pivotal role in shaping brand success and sustainability.

Defining customer sentiment and its significance in business

Customer sentiment refers to the emotions, opinions, and attitudes expressed by customers towards a brand, product, or service. It provides valuable insights into how customers perceive and interact with a business. Understanding customer sentiment is crucial as it helps organizations identify areas of improvement, capitalize on positive sentiment, and address negative sentiment promptly.

Explaining customer sentiment scores and their relevance

The customer sentiment metric is a brilliant way of understanding customer expectations and delivering incredible customer experiences. But how do you measure it for the best results?

Customer sentiment scores quantify the sentiment expressed by customers and help businesses evaluate overall satisfaction levels. These scores can be derived through sentiment analysis techniques that assign sentiment values to customer feedback, such as positive, negative, or neutral.

For example, labeling customer comments as positive, negative or neutral in sentiment can be useful, but adding a further aspect – the intensity of feeling – can be even more indicative of how customers feel.

A very positive comment, for example, could be labeled “+2”, a neutral comment “0” and a very negative comment “-2”. A mildly positive comment could be “+1”. With the right sentiment analytics in place, the technology should be able to handle this for you and provide you with even deeper insights.

By analyzing sentiment scores, businesses can assess the effectiveness of their customer experience strategies and track changes in sentiment over time.

Utilizing rating scales to categorize sentiment types

Rating scales are commonly used in sentiment analysis to categorize sentiment types. These scales enable businesses to measure sentiment on a quantitative scale, such as a numerical rating or a Likert scale.

Sentiment analysis focuses on the polarity of a text (positive, negative, neutral) but it also goes beyond polarity to detect specific feelings and emotions (angry, happy, sad, etc), urgency (urgent, not urgent) and even intentions (interested v. not interested).

Depending on how you want to interpret customer feedback and queries, you can define and tailor your categories to meet your sentiment analysis needs. In the meantime, here are some of the most popular types of sentiment analysis:

Graded Sentiment Analysis

If polarity precision is important to your business, you might consider expanding your polarity categories to include different levels of positive and negative:

  • Very positive
  • Positive
  • Neutral
  • Negative
  • Very negative

This is usually referred to as graded or fine-grained sentiment analysis, and could be used to interpret 5-star ratings in a review, for example:

Very Positive = 5 stars

Very Negative = 1 star

Emotion detection

Emotion detection sentiment analysis allows you to go beyond polarity to detect emotions, like happiness, frustration, anger, and sadness.

Many emotion detection systems use lexicons (i.e. lists of words and the emotions they convey) or complex machine learning algorithms.

One of the downsides of using lexicons is that people express emotions in different ways. Some words that typically express anger, like bad or kill (e.g. your product is so bad or your customer support is killing me) might also express happiness (e.g. this is bad ass or you are killing it).

Aspect-based Sentiment Analysis

Usually, when analyzing sentiments of texts you’ll want to know which particular aspects or features people are mentioning in a positive, neutral, or negative way.

That’s where aspect-based sentiment analysis can help, for example in this product review: “The battery life of this camera is too short”, an aspect-based classifier would be able to determine that the sentence expresses a negative opinion about the battery life of the product in question.

Multilingual sentiment analysis

Multilingual sentiment analysis can be difficult. It involves a lot of preprocessing and resources. Most of these resources are available online (e.g. sentiment lexicons), while others need to be created (e.g. translated corpora or noise detection algorithms), but you’ll need to know how to code to use them.

Alternatively, you could detect language in texts automatically with a language classifier, then train a custom sentiment analysis model to classify texts in the language of your choice.

By assigning sentiment labels, such as positive, negative, or neutral, to customer feedback, businesses can gain a better understanding of sentiment distribution and trends.

Strategies to improve customer sentiment

Improving customer sentiment requires a proactive approach. Businesses can implement strategies such as actively listening to customer feedback, promptly addressing concerns, personalizing experiences, and delivering exceptional customer service. By acting on customer feedback and continuously striving to exceed customer expectations, organizations can cultivate positive sentiment and build long-term customer relationships.

Traditional Methods vs. AI for Sentiment Analysis

Traditional methods of sentiment analysis often involve manual processes, such as reading and categorizing customer feedback manually or employing human analysts. These methods are time-consuming, resource-intensive, and subject to human biases and errors. AI-powered sentiment analysis offers a more efficient and scalable alternative.

Limitations of manual sentiment analysis

Manual sentiment analysis has several limitations. It is labor-intensive, making it impractical for analyzing large volumes of customer feedback. Additionally, human analysts may have subjective interpretations, leading to inconsistencies in sentiment categorization. Manual methods also lack the speed and real-time capabilities needed to respond to customer sentiment in a timely manner.

AI techniques commonly used in sentiment analysis

Sentiment analysis relies on the fundamental principles of AI and machine learning to effectively understand and analyze customer feedback. AI encompasses a broad field focused on teaching machines to learn from data and make decisions autonomously, without explicit programming. Within AI, machine learning is a specific subset that involves algorithms automatically identifying patterns in data and making predictions based on new information.

In the context of sentiment analysis, machine learning algorithms are employed to automatically process extensive text data, such as customer reviews or feedback, and determine the expressed sentiment or overall emotion. These algorithms are trained using large datasets where the sentiment of each text is already known. By analyzing these labeled datasets, the machine learning algorithm learns to recognize patterns indicative of positive or negative sentiment.

Once trained, the algorithm can analyze new data and predict the sentiment for each text. Moreover, continuous feedback and updated data can be used to further optimize and refine the algorithm, progressively enhancing its accuracy.

Various approaches, including supervised learning, unsupervised learning, and deep learning, are utilized in sentiment analysis, each catering to specific data types and use cases, thereby expanding the technology’s versatility.

In summary, the core principles of AI and machine learning are at the heart of sentiment analysis, enabling companies to efficiently analyze vast amounts of customer feedback and identify patterns that inform product and service improvements, heralding a transformative impact on businesses’ decision-making processes.

Advantages of AI-powered sentiment analysis

The adoption of AI for sentiment analysis offers several compelling advantages, making it an increasingly favored tool for evaluating customer feedback. Here are some key benefits:

  1. Swift and Efficient Analysis: AI-driven sentiment analysis excels in speed and efficiency. With machine learning algorithms, businesses can process large volumes of customer feedback within minutes, a task that could take humans hours or days. This rapid analysis enables companies to promptly identify patterns and trends in customer sentiment and respond to concerns in real-time.
  2. Enhanced Accuracy: AI boosts the accuracy of sentiment analysis. Machine learning algorithms can be trained on vast datasets of labeled data, making them adept at identifying patterns in text indicative of positive or negative sentiment. Furthermore, with exposure to more data and feedback, these algorithms can continually improve their accuracy.
  3. Consistency: AI-powered sentiment analysis ensures consistent results in evaluating customer feedback. Unlike human analysts, who may introduce biases or inconsistencies, AI algorithms provide a standardized and error-free approach to sentiment analysis.
  4. Scalability: AI-based sentiment analysis is highly scalable, effortlessly handling large volumes of customer feedback without requiring additional resources. This scalability makes it ideal for businesses receiving high volumes of feedback or operating on a global scale.
  5. Valuable Insights and Trends: Leveraging AI for sentiment analysis yields valuable insights and trends. Through analyzing customer feedback at scale, companies can pinpoint areas for improvement, address customer issues promptly, and make data-driven decisions that boost overall customer satisfaction.

Overall, the advantages of AI-powered sentiment analysis outweighs manual analysis. It can process large amounts of customer feedback quickly and accurately, providing near-real-time insights. AI algorithms can handle diverse data sources, including social media posts, customer surveys, online reviews, and support tickets, allowing businesses to gather insights from multiple channels.

Furthermore, AI-powered sentiment analysis reduces human bias and improves consistency in sentiment classification.

How Insight7 Can Help with Customer Sentiment Analysis

Insight7 is an AI-powered customer research tool that automates customer research by analyzing customer feedback and extracting valuable insights. With Insight7, businesses can unlock actionable insights quickly and effectively.

By harnessing the power of AI and NLP, Insight7 automates sentiment analysis and enables businesses to uncover valuable customer insights from customer feedback at scale.

Get a glimpse of Insight7 in action: Watch one of our 1-minute demo below.

Get Started for free today or Book a demo

Automating customer research with Insight7 to analyze feedback and extract insights

Insight7 automates the collection and analysis of customer feedback from Hubspot, Zendesk, Gong, Intercom, Google Drive and Discord when connected to any of these apps or tools. The feedback -interview transcripts, NPS, survey responses,etc are then analyzed and insights are generated with AI. By aggregating and analyzing this data, Insight7 provides a comprehensive view of customer sentiment, pain points, behaviors, desires, and priorities visualized on a dashboard.

By instantly processing and categorizing sentiment, Insight7 empowers businesses to make informed decisions, prioritize improvement efforts, and optimize customer experiences.

Actionable insights derived from sentiment analysis are invaluable for driving business growth. By understanding customer sentiment, businesses can tailor their products, services, and marketing strategies to meet customer needs and expectations. Insight7’s actionable insights enable organizations to make data-driven decisions, enhance customer satisfaction, improve brand reputation, and stay ahead of the competition.


Measuring customer sentiment is essential for businesses seeking to understand customer preferences, enhance customer experiences, and drive growth. AI-powered sentiment analysis, such as that provided by Insight7, offers a more efficient and accurate approach compared to traditional manual methods.

Insight7 automates the collection, analysis, and extraction of actionable insights from customer feedback, helping businesses unlock valuable insights in seconds. By leveraging AI techniques and tools like Insight7, organizations can gain a competitive edge, build strong customer relationships, and thrive in today’s customer-centric marketplace.

Get Started for free today or Book a demo