Advanced AI & NLP Archives – Pearl-Plaza

Natural Language Processing: Transforming Large Data into Strategic Business Insights

Natural Language Processing (NLP) enables computers to understand and respond to human language. By analyzing unstructured data like emails, social media posts, and customer reviews, NLP helps businesses gain valuable insights and make informed decisions that drive growth and efficiency.
Two hands typing on a laptop

Natural Language Processing (NLP) is a complex, yet fascinating and rapidly evolving field. It combines the specialties of computer science, artificial intelligence, and linguistics. Merging all three disciplines, it focuses on the interaction between computers and humans through natural language. This enables machines to understand, interpret, and respond to human language in a way that is both meaningful and useful. 

This technology supports a wide array of applications, from voice-activated assistants and chatbots to sophisticated text analysis tools and language translation services. By leveraging complex algorithms, machine learning techniques, and vast amounts of linguistic data, NLP aims to bridge the gap between human communication and computer understanding, transforming how we interact with technology in our daily lives. As the capabilities of NLP continue to expand, it further revolutionizes various industries, enhances user experiences, and opens new avenues for research and innovation.

What is Natural Language Processing?

Natural Language Processing, or NLP, is a part of computer science that helps computers understand, interpret, and use human language. Basically, it’s like teaching a computer how to talk and write like a human.

Imagine you’re talking to your friend, you can understand each other easily, right? But if you try to talk to a computer in the same way, it might get confused because it doesn’t understand things like jokes, sarcasm, or even some common phrases. Natural language processing tries to solve this problem. It’s like building a bridge between human language and computer language.

Natural Language Processing in AI

Natural language processing is a critical area of artificial intelligence. It allows computers to understand, interpret, and generate human languages. Therefore, enhancing the interactions between computers and humans to be useful and meaningful is crucial. 

One of the most beneficial aspects of this interaction is how NLP can rapidly process and analyze vast amounts of data, far quicker than a person could. This accelerates data analysis, allowing us to concentrate on more important tasks. It filters out unnecessary and irrelevant information, enabling businesses to focus on what truly matters. For instance, product teams can extract data specific to their products, while service teams can focus on improving customer service.

Why is Natural Language Processing Important?

Natural language processing has recently become an integral part of our everyday lives. However, for businesses—especially those in finance, healthcare, and legal sectors—NLP has long been essential for processing large amounts of unstructured data. Without NLP, businesses could not efficiently and effectively analyze data that would play a critical role in informed decision-making. 

Natural Language Processing Examples & Use Cases

A good example of NLP is voice assistants like Siri or Alexa. You can ask them questions in normal human language and they can understand and respond to you. That’s because they use NLP to understand what you’re saying. However, natural language processing goes far beyond Siri or Alexa and has many advantages for businesses including:

  • Customer Service Automation: Many companies use NLP to automate customer service through chatbots. These AI bots can understand and answer customer questions. This reduces the need for human help and speeds up response time. 
  • Sentiment Analysis: Businesses use NLP to analyze customer feedback, reviews, and social media conversations to determine customer sentiment toward their products, services, or brands.
  • Market Intelligence: NLP can analyze many news articles, blog posts, and social media posts. This helps provide insights about market trends, competitor activities, and possible business opportunities.
  • Email Filtering: NLP helps filter out spam and sort emails into different folders. This makes managing emails easier.
  • Resume Screening: HR departments and recruitment agencies use NLP to help screen resumes. This technology matches the candidate’s skills and experience with job requirements.
  • Personalized Advertising: NLP can analyze a user’s online behavior and preferences. It does this by identifying specific words, both positive and negative. This enables businesses to optimize personalized ads and product recommendations.
  • Content Creation: Generative AI is part of NLP. It can help automate content creation. This allows news outlets and companies to create simple reports or articles automatically.
  • Search Engine Optimization: NLP can help businesses optimize their content to rank higher in search engine results. It does this by identifying relevant keywords and phrases in your content and comparing it to high-ranking competitors.
  • Contract Analysis: NLP can analyze contracts and legal documents. This helps businesses find important information and possible risks. It can ensure that the language within a contract is present and can look for problematic wording.

Natural Language Processing Applications in Business

Natural Language Processing is transforming how businesses interact with data and customers by enabling machines to understand, analyze, and respond to human language. From automating customer support to extracting insights from large datasets, NLP applications help streamline operations and enhance decision-making. Here are some real-life examples of businesses applying natural language processing to their operations.

Biotechnology

When someone calls the Medical Information Department (MID) at Biogen, they’re routed to operators who search through FAQs, brochures, and product resources to answer questions. If the answer cannot be provided within a minute, the call escalates to an expensive medical director. Biogen wanted to reduce the involvement of these directors. So, they turned to Pearl-Plaza for a solution to empower, not replace, their human operators using NLP in healthcare

First, we configured our core NLP to identify relevant information within Biogen’s resources. Then, we combined this solution with an open-source search engine and custom user interface. The resulting system understands complex relationships within Biogen’s data. Now, MID operators can type in keywords or questions to get answers in seconds. Early testing by Biogen already shows faster responses and fewer calls sent to medical directors.

“We’ve worked with Pearl-Plaza for years on programs surrounding Voice of the Patient, Voice of the Key Opinion Leader (KoL), and social media monitoring… They’ve always been a key partner.” — Keith Ho Director of Customer Focus and Medical Digital, Biogen

Sports & Entertainment

Brandtix delivers actionable brand performance insight for the world’s top athletes and teams by gathering data from social media and news platforms. They turned to Pearl-Plaza for a powerful NLP platform that could analyze and decode the jargon-filled language of professional sports. 

Together, Pearl-Plaza’s cloud API and Brandtix’s proprietary algorithms now process fan vernacular across 19 languages. As part of this, Pearl-Plaza analyzes and structures the sentiment of fan conversations as positive or negative, based on context. These capabilities play a crucial role in brand reputation management, enabling franchise owners, player agents, and PR teams to separate meaningful mentions from general chatter and address PR problems before they get out of hand.

“Choosing Pearl-Plaza over its competitors was easy — thanks to the mix of service, price, ease of use, and language packs. Further, Pearl-Plaza counts extraction and sentiment analysis as one action. The other solutions we looked at bill extraction and sentiment separately, charging double the volume and double the price.” — Shahar Fogel Vice President of Product

Social Media Monitoring

evolve24 is a data analytics firm that combines myriad data sources to help companies develop strategic direction. To process information and provide market intelligence in real-time, evolve24 can only employ best-in-class toolsets with the lowest possible latency and downtime. 

Social media monitoring that pulls reviews from TripAdvisor, Google, Threads, and Facebook.

Pearl-Plaza’s core AI-based NLP engine, provides low-latency text mining and analytics that process five or more tweets every second, expediting evolve24’s time-to-value for their customers. Salience’s power and customizability give evolve24 the ability to keep up with increasing volumes while helping them maintain high standards of consistency and measurement across a range of text data sources.

“The text analytics engine is a key tool for us in conjunction with our proprietary emotion metric; this next evolution of functionality promises an even more comprehensive look into the conversations our customers’ customers are having.” — Noah Krusell VP of Product Development, evolve24

Customer Experience Management

VOZIQ offers a suite of Predictive Customer Retention and Customer Experience Management solutions for call centers. Traditional customer churn prediction models rely on transaction histories and demographics data but fail to incorporate consumer-generated input with real customer sentiment. VOZIQ turned to Pearl-Plaza to fill this gap.

Customer experience management through executive advice

With Pearl-Plaza, VOZIQ categorizes the text comments and identifies customer sentiment from survey scores and keywords in each call log. Since partnering with Pearl-Plaza, VOZIQ has retained thousands of customers for their clients, resulting in millions of dollars in additional revenue each year.

Industrial & Aviation Design

Gensler’s Los Angeles Aviation and Transportation Studio partnered with Pearl-Plaza, leveraging sentiment analysis on customer feedback to make better-informed decisions about the planning and design of airports. The result is a data-driven voice of customer program that can help win contracts and build airports that better serve stakeholders and travelers alike.

“As a global industry leader in airport architecture, we utilize the power of Semantria’s rapid and precise data analysis to create better-informed designs for the airports of tomorrow.” — Andy Huang, AIA LEED Associate Designer, Gensler Aviation and Transportation Studio

Hospitality & Hotel Management

Revinate helps over 30,000 hospitality providers measure online presence, analyze consumer feedback, and reinvent the guest experience. With over 2,700 categories, 100 restaurant topics, 200 hotel topics, and nine languages, Revinate gives their clients the ability to measure consumer sentiment in critical categories, such as rooms, staff, service, and food. Pearl-Plaza’s customizability lets Revinate’s users create lists of custom topics, follow trending topics as they evolve, and compare sentiment scores across multiple organization-specific metrics.

“The support from the team at Pearl-Plaza was outstanding; they made a very complex project seem simple. With their partnership, we met our goals on time, delivered the best possible product, and were set up to ensure continued success.” — Matt Zarem, Senior Director of Product, Revinate

Technology & Electronics

A large tech company’s Customer Market Research (CMR) team helps managers across the company make better decisions regarding product and market strategy. Before, the CMR team used to listen to the Voice of the Customer by designing, distributing, and analyzing a wide range of surveys. As the group began working to integrate social media data, they turned to Pearl-Plaza.

Their team needed to effectively filter social content in order to extract relevant data, reduce survey spend, easily configure flexible one-off analyses, and validate long-term trends. Traditional social listening tools didn’t offer the customizability and scalability that the CMR team needed, so they contacted Pearl-Plaza to discuss a “semi-custom” solution.

First, the CMR team extracts a subset of social comments from an Pearl-Plaza-built data warehouse, based on the products and brands they want to know more about. Then they use Pearl-Plaza’s Spotlight tool to analyze this data and understand what people are saying, how they feel, and why they feel that way. Next, they validate the results and relate the net sentiment score to quantitative Likert scale survey data. This approach allows them to compare and contrast what people say in structured surveys, versus what they say in the unstructured environment of social media.

“Pearl-Plaza is the only vendor we’ve seen that can offer the flexibility that is required to support our complex product line.” — Csaba Dancshazy Senior Market Research Manager 

Fitness Lifestyle & Events

Tough Mudder Inc. has grown to become a leading active lifestyle brand and endurance event company with more than 2.5 million global participants. The Net Promoter Score (NPS) is an essential measurement for the company. However, the volume and the qualitative format of their post-event surveys make it challenging to garner insight.

Using Pearl-Plaza’s API for Excel, the Tough Mudder team reduced manual survey coding time by 90%. Working with Pearl-Plaza staff, they designed custom queries to solve an industry-specific sentiment analysis problem. In total, Tough Mudder uses Pearl-Plaza to process 2,000 surveys for each of the company’s 78 events per season, some 156,000 surveys total.

“By teaming with Pearl-Plaza, Tough Mudder is able to report Net Promoter Scores and review participant feedback within a week of every event. The company’s ability to make strategic adjustments based on customer insights is invaluable to providing the ultimate event experience.” — Sydney Friedkin Consumer Insights Analyst, Tough Mudder Inc.

Regulatory Compliance & Financial Services

The Australian government mandates that financial Statements of Advice (SoAs) include disclosures covering conflicts of interest, own product recommendations, and more. Financial services providers doing business in Australia use SoA templates and frequent spot-checks. This helps make sure that financial advisors aren’t modifying or deleting critical disclosures.

An average-sized firm produces hundreds of pages of SoAs each week. Manual review is costly, unreliable, and exposes the firm to high non-compliance risk. One such firm, unable to find an existing contract analysis tool that could solve this exact problem, turned to Pearl-Plaza for help. 

First, we trained our semi-structured data parser with machine learning to understand the underlying structure of the Statement of Advice document. Then, we built a custom natural language processing configuration to extract and analyze entities and other text elements. Then, we structured and exported the resulting data into a simple spreadsheet.

Now, in mere minutes the firm’s auditors can see whether proper disclosures were made across hundreds of documents. They can even identify where an advisor’s recommendations may go against their client’s stated goals and risk attitude. This substantially lowers the firm’s non-compliance risk even while reducing their disclosure compliance costs.

Natural Language Processing Techniques & Models

Human language is complex and flexible. Many NLP models have been created to process it well for different needs and tasks. Here are a few common types of natural language processing models:

1. Rule-Based Models: This type of NLP model uses specific rules and grammar to understand and interpret natural language. 

2. Statistical Models: These models use statistical methods and algorithms to understand the probability of certain words appearing together to make meaningful sentences. 

3. Machine Learning Models: Machine learning models use algorithms that can learn from data and improve over time. They use features like words, phrases, sentences, etc., to classify, predict, or translate text.

4. Deep Learning Models: These are a type of machine learning models that use neural networks with multiple layers (deep networks) to understand and interpret natural language. 

5. Sequence-to-Sequence Models: This type of model is used for tasks where the input and the output are sequences, like in machine translation or voice recognition.

6. Transformers Models: Introduced by Google, Transformers models are based on an attention mechanism that allows the model to focus on different words in the input sequence while generating the output sequence. Examples include BERT, GPT-3, and T5.

7. Hybrid Models: These models combine several techniques like rule-based, statistical, machine learning, etc., to improve the accuracy and efficiency of natural language processing tasks.

8. Reinforcement Learning Models: These models learn by interacting with their environment, and receiving rewards or penalties based on their actions.

9. Cognitive Language Models: These models use cognitive psychology to better understand human language processing and build models that can mimic human-like language understanding. 

10. Convolutional Neural Network (CNN) Models: These are primarily used for text classification, sentiment analysis, and other NLP tasks.

11. Recurrent Neural Network (RNN) Models: These are especially useful for sequence prediction problems, as they can use their reasoning from previous inputs to inform the current one.

What are the Benefits of Natural Language Processing?

Natural language processing can be highly beneficial for businesses as it enables technology to understand, interpret, and respond to people in a valuable way. NLP enhances communication between people and computers, making interactions more efficient and effective including:

Improved Customer Service

NLP helps create chatbots and virtual assistants. These tools can understand and answer customer questions quickly. This reduces wait times and boosts customer satisfaction.

The review process being improved by NLP software.

Enhanced Decision Making

By analyzing vast amounts of textual data, NLP can help businesses make data-driven decisions. It can identify patterns, sentiments, and trends, providing valuable insights to businesses.

Increased Efficiency

Tasks like data entry, customer service, and report generation can be automated using NLP, freeing up staff to focus on more complex tasks. 

Better Accuracy 

NLP can significantly reduce human error in tasks like transcription services, data extraction, and language translation.

Personalized Marketing

By analyzing customer behavior and preferences, natural language understanding can help businesses create personalized marketing campaigns and product recommendations.

Advanced-Data Analysis 

NLP can process and analyze unstructured data. This includes emails, social media posts, and customer reviews. Traditional data analysis tools cannot handle this type of data.

Improved Accessibility

NLP can be used to develop applications for people with disabilities. For example, speech recognition systems can help people with mobility issues, and text-to-speech systems can assist people with visual impairments.

Enhanced Language Translation

NLP improves the capabilities of language translation software, making it possible for businesses to communicate with customers in different languages more effectively.

Early Risk Detection

It can be used to monitor digital conversations on social media, emails, and forums to identify potential threats or negative sentiments toward a brand or product.

How has Natural Language Processing Evolved?

While natural language processing might seem like a modern concept to the general public, NLP has been around since the 1950s and has evolved rapidly over the years. 

1950s – 1970s

When NLP was first developed, it started as a rule-based system where the rules were manually created by linguists for language processing. Since the system was heavily dependent on manually handcrafted rules, NLP was limited and lacked generalization. 

1980s – 1990s

The introduction of statistical methods would be the next shift of natural language processing which allowed NLP to become popular for simple tasks such as part-of-speech tagging and machine translation. This led to a more robust and scalable solution, compared to the initial rule-based systems. 

1990s – 2000s

Natural language processing (NLP) continues to evolve quickly, especially from the 1990s to the 2000s. During this time, the integration of machine learning algorithms allowed NLP to handle more complex tasks. Significant advancements were made in areas like identifying named entities (like names and places), analyzing sentiments (understanding emotions in text), and parsing syntax (understanding sentence structure). These improvements enhanced both the performance and efficiency of NLP applications.

2010 – Present

This period marks the revolution of natural language processing with the advent of deep learning, especially neural networks. These progressions have greatly improved NLP’s ability to understand and interpret the meanings of words and sentences. The introduction of pre-trained language models, such as GPT and BERT, has further transformed NLP by enabling the handling of vast amounts of text data and performing specific tasks with high accuracy.

Future Trends in Natural Language Processing

With NLP rapidly evolving over the past 70 years, it doesn’t seem to be slowing down anytime soon. As demand continues to rise, this will help set future trends for NLP including:

Advance Language Models

We’re already seeing continued development and refinements of large-scale pre-trained models such as GPT and BERT. These models will only become more accurate, efficient, and capable of understanding context, nuances, and generating human-like text. 

Multimodal NLP

Taking language to the next level by integrating text with other types of data like images, audio, and video. This opens up new possibilities for content generation and improving applications such as virtual assistants and translation services. 

Improving Trust and Transparency

For critical applications, especially within the healthcare, finance, and legal industries there will be a need for enhanced transparency in the NLP models. This will help provide clear explanations and understanding for predictions and decisions.   

Ethical and Fair Processing

As natural language processing becomes more engrained in our lives, ensuring these models are used ethically and do not create harm. 

Integrations

With how popular NLP has become, we can only expect continual integrations with other technologies allowing for a more intuitive voice-controlled interaction from smart devices, vehicles, and other connected technologies. 

With how rapidly NLP is evolving, future trends for natural language processing can change quickly as well. Therefore, it’s crucial to stay ahead of these trends so that your business can leverage the full potential of NLP to make intelligent business decisions.

What to Look for in a Natural Language Processing System

When it comes to analyzing unstructured data, NLP involves these core functionalities including keyword extraction, sentiment analysis, and classification. Other features to consider in natural language processing software include: 

  • Predictable Pricing: Pricing for NLP software can be complicated and cumbersome. CX leaders and teams should know exactly how much they will be charged for a product or service, with no hidden fees or unexpected costs. Predictable pricing should make it easy for you to budget and plan expenses more effectively.
  • Stable and Scalable Architecture: Stable and scalable architecture in NLP software refers to a system design that ensures reliable and efficient operation, is capable of handling increasing workloads. Stability means the system performs consistently without crashing, handles various input types, and is easy to maintain and update. Scalability involves the ability to expand the system’s capacity by adding more machines or enhancing existing ones, effectively distributing workloads to prevent any single server from being overwhelmed. This architecture allows the system to automatically adjust resources based on demand, ensuring optimal performance and reliability even as usage grows.
  • Customization Through Tuning and Configuration Tools: Customization through tuning and configuration tools in NLP is vital for adapting models to specific use cases, improving accuracy, and handling unique language variations like industry-specific jargon. It allows optimization of performance, balancing speed and accuracy, while also reducing biases that may arise from pre-trained data. This ensures that NLP models deliver more precise and context-aware results, aligned with the needs of the task.

In addition to these important functionalities, you should also consider these features:

  • High Support Availability: ​​Dependable support availability in an NLP tool is essential because it ensures timely resolution of issues, minimizing downtime and ensuring smooth operation. Since NLP models can be complex and require frequent tuning or updates, accessible support helps users address challenges quickly, whether it’s troubleshooting, fine-tuning, or integrating the tool into existing systems. This support enhances user confidence, boosts productivity, and ensures the tool’s long-term success in meeting business needs.
  • Private Hosting Environment: A private hosting environment is crucial for NLP tools, especially when handling sensitive or proprietary data, as it ensures enhanced security and privacy. By hosting the tool privately, organizations have full control over data access and compliance with regulations, reducing the risk of data breaches. Additionally, private hosting allows for greater customization, performance optimization, and scalability tailored to specific business needs, all while maintaining a secure infrastructure.
  • Custom ML Models: In NLP tools, custom ML models are important because they allow organizations to tailor the tool to their specific needs, such as adapting to unique industry jargon, data formats, or specialized tasks. By creating or fine-tuning these models, businesses can achieve greater accuracy and relevance in the results, leading to more meaningful insights and better performance. Custom models also provide flexibility, ensuring the NLP tool evolves with the organization’s changing requirements and delivers optimal outcomes.

Stay Ahead and Informed with Pearl-Plaza

For businesses aiming to revolutionize their customer experience, analyzing large sets of unstructured data from emails, social media posts, customer feedback, and contact centers can be transformative. Pearl-Plaza’s NLP model powers our text mining and analytics platforms, enabling top brands to uncover powerful insights that drive significant changes. Learn more about Pearl-Plaza’s powerful natural language processing AI software, which has won numerous awards as a leader. 

Understand Active Listening and How It’s Revolutionizing Feedback Collection with 2.4x More Actionable Responses

Active Listening utilizes AI to improve the feedback collection experience. This allows you to gain a better understanding of the customer experience and what can be done to improve it.
Customer Satisfaction Survey

Capturing genuine and actionable feedback from customers and employees can be a challenge, especially when traditional surveys feel long, tedious, and uninspiring. Many organizations struggle with vague, short responses that offer little insight, leaving them chasing scores rather than focusing on meaningful improvements. This is where Active Listening comes in—a revolutionary approach to feedback collection that enhances the quality and depth of responses.

What is Active Listening?

Active Listening is a conversational AI agent designed to improve the feedback collection experience by engaging respondents in real-time. It prompts users with context-aware follow-up questions, encouraging them to provide richer, more detailed answers. Whether through simple rule-based interactions or advanced AI, Active Listening transforms survey data from shallow comments into meaningful insights.

AI prompting a user to share more detail in a survey response

Active Listening Agents

  • AI-Powered Active Listening: This agent uses advanced AI to continuously learn and adapt based on user feedback, evolving its language to elicit more detailed responses. It identifies patterns in real-time, helping businesses quickly uncover emerging trends and improve decision-making.
  • Basic Active Listening: For organizations that prefer full control over their feedback collection process, this agent offers customizable rules. It allows you to tailor how Active Listening interacts with respondents, adjusting trigger phrases and follow-up prompts to gather more valuable data on specific topics.

Benefits of Active Listening for Feedback Collection

Why does it matter for your business? The benefits of Active Listening go beyond improving survey response rates; it drives more actionable insights and ultimately enhances your overall customer and employee experiences.

  • Actionable Insights: Captures deeper, more meaningful feedback, enabling businesses to uncover the root causes of issues and identify growth opportunities.
  • Improved Engagement: Respondents feel heard, leading to higher satisfaction rates as surveys become more conversational and personalized.
  • Increased Efficiency: By automating follow-ups with AI or customizable prompts, teams spend less time chasing responses and more time acting on valuable insights.
  • Enhanced Security: With locally hosted AI models, businesses can maintain strict control over their data, ensuring compliance with privacy regulations.
Active listening and rapid resolution demo inmoment

Who Would Benefit

Organizations that prioritize understanding and improving experiences will find great value in advanced feedback collection tools.

  • Experience Leaders: Those responsible for customer and employee experience will benefit from more detailed, actionable feedback that allows them to address pain points and drive loyalty.
  • Customers & Employees: Respondents appreciate the ease of giving feedback and knowing it will be used to make meaningful improvements, increasing their willingness to engage.
Business improvement suggestions from AI Active Listening

How is Active Listening Different from Competitors?

Pearl-Plaza’s Active Listening stands out in the feedback market by offering both AI-powered and customizable rules-based agents, giving businesses flexibility that competitors lack. 

  • Unlike others, Pearl-Plaza uses a privately hosted LLM to keep data secure, while real-time follow-up prompts improve feedback quality before submission. 
  • The platform’s Strength Meter gamifies the survey experience, increasing engagement, and its Topics to Avoid feature ensures on-brand prompts. 
  • Designed for both CX and EX, Active Listening keeps surveys concise and impactful, delivering deeper, actionable insights more efficiently than traditional platforms.
An overview of AI Active Listening software

Why Active Listening Matters

For businesses seeking to transform vague, unactionable feedback into insights that can drive real change, Active Listening is the solution for effective feedback collection. It’s a game-changer for brands looking to improve both customer and employee experiences. Companies using Active Listening have seen a 10x increase in survey responses and are resolving issues 62% faster. With the ability to customize every aspect of the feedback process—whether through AI or predefined rules—Active Listening ensures that businesses get the insights they need while maintaining full control over the process.

Elevate Your Feedback Collection with Active Listening

Ready to take your feedback collection to the next level? Active Listening is your key to deeper insights, better engagement, and stronger results.

Speech Analytics: Turning Conversations into Actionable Insights

Speech analytics encompasses the transformation and analysis of audio recordings into text. This analysis provides businesses with key consumer insights, such as emotional tags and trending complaints. It can be used by businesses to understand the customer experience and make business improvements.
Pearl-Plaza Contact Center intelligence solution for faster action and better insights

Speech analytics is quickly becoming a foundational aspect of successful experience improvement programs. Historically, it has been difficult to quantify metrics from customer calls. However, the rise of speech analytics has given businesses to understand their customers like never before. 

What is Speech Analytics?

Speech analytics is the process of analyzing recorded calls to gather customer information to improve communication and future interaction. It uses advanced technology to transcribe and analyze audio recordings. In doing so, speech analytics gives businesses the ability to uncover insights into customer behavior, sentiment, and preferences. This allows companies to enhance their customer service, marketing strategies, and overall operational efficiency. 

What is Contact Center Speech Analytics?

Contact center speech analytics specifically refers to the application of speech analytics technology in a call center environment. Usually working as part of contact center solutions, it involves analyzing the vast volumes of calls handled by contact centers to extract actionable insights from audio recordings. 

Contact center speech analytics is useful for businesses looking to improve their contact center performance and overall customer experience. The insights from recorded calls help identify common issues and train agents, which helps improve key customer experience metrics. 

By leveraging this technology, contact centers can turn every customer interaction into a valuable data point that drives continuous improvement.

How Does Speech Analytics Work?

Speech analytics combines several advanced technologies to analyze spoken language. The process involves multiple steps:

  • Capturing Audio: The first step is recording conversations between customers and agents. These recordings are stored for analysis.
  • Automatic Speech Recognition (ASR): ASR technology converts spoken words into text. This is a crucial step as it translates the audio data into a format that can be analyzed.
  • Natural Language Processing (NLP): Natural language processing algorithms process the transcribed text to understand the context, sentiment, and meaning behind the words. This involves parsing the text and identifying keywords, phrases, and patterns.
  • Machine Learning: Machine learning models analyze the processed text to extract insights. These models can identify trends, detect anomalies, and predict outcomes based on historical data.
  • Share Insights: The final step is generating reports and dashboards that present the insights in an easily digestible manner. These insights can be shared with managers, executives, or other stakeholders in order to make informed decisions. 

Why is Speech Analytics Important?

Speech analytics is important because it gives you a way of understanding your customers that may not have been previously accessible. A recent study showed that 86% of consumers preferred to talk to a real agent rather than a chatbot or AI-based system regarding customer service inquiries. If you did not have speech analytics software, the only way you would be able to identify common themes and trends is to manually listen to recordings. This is a costly and time-consuming process. 

With speech analytics and speech analytics software, you are still able to provide the consumer with the experience they are looking for, while also getting the analysis and data that is important to your business. 

What are the Benefits of Speech Analytics?

The benefits of speech analytics extend beyond just sentiment analysis. These tools can help you train employees, develop marketing campaigns, and invest in business improvement that will make an immediate impact. Here are some common benefits of utilizing speech analytics:

Improved Agent Performance

Speech analytics can be a tool to help benchmark agent performance. The insights from speech analytics can help identify the strengths and weaknesses of agents. Businesses can identify best practices to be taught in onboarding and training sessions by analyzing interactions with multiple agents.

A dashboard showing a call center agent's performance in the current month comapred to the previous month.

Enhanced Customer Understanding

By utilizing speech analytics software, businesses can gain a deeper understanding of their customers by analyzing the context and content of their conversations. They have the ability to view a conversation in its entirety and identify specific emotional tags that arose throughout the course of the case. Identifying these themes will help companies meet customer expectations, which will lead to increased customer satisfaction and loyalty. 

Real-time Problem Resolution

With real-time speech analytics, businesses can detect and address issues as they occur during customer interactions. This immediate insight allows supervisors to intervene when necessary, preventing escalation and improving the chances of resolving issues on the first call. Real-time analytics also helps in managing high-stress situations and ensuring that customer concerns are addressed promptly and effectively.

Speech Analytics Uses Cases & Examples

The applications of speech analytics are not limited to one industry or use case. This form of analytics has a wide range of capabilities that can be used from healthcare to e-commerce.  The following examples highlight different speech analytics use cases

Speech Analytics in Healthcare

Consider a large healthcare contact center that handles patient inquiries, appointment scheduling, prescription refills, and other services. The nature of this contact center means that they handle thousands of calls daily, and manually listening to the recordings would be an ineffective use of time. 

By implementing speech analytics software, all incoming and outgoing calls can be recorded and stored securely in compliance with HIPAA regulations. These calls are transcribed into text, analyzed, and categorized by common tags such as calls related to appointments, billing, or prescription refills. 

After the calls are categorized, the trends can be analyzed. Perhaps this call center notices that over the last 90 days, there has been an increase in calls related to long wait times. These insights are shared with hospital management, which may result in an increase in staffing during certain hours to decrease wait times. By utilizing speech analytics, this healthcare organization was able to increase patient satisfaction. 

Speech Analytics in E-Commerce

Imagine an e-commerce company that operates an omnichannel contact center. This contact center handles customer inquiries across multiple channels such as phone, email, online chat, and even review management. This contact center may already have a text analytics solution in place to tag and categorize customer feedback in the form of text data. However, being unable to effectively tag customer calls, these are left out of the data. This leads to an incomplete picture of the e-commerce customer experience. 

By implementing speech analytics, customer calls can be recorded in a way that allows them to be added to the rest of the contact center customer data. This provides the business with a complete view of its customer experience and helps identify areas of improvement. 

What is Next For Speech Analytics?

While speech analytics is not necessarily in its infancy, it has been no stranger to increased growth. The future of speech analytics is closely tied to advancements in AI and machine learning. These AI algorithms will enable better detection of emotions and sentiments. You can expect speech analytics to improve in two major ways in the coming future: 

AI Speech Analytics

AI speech analytics can be used as another way to describe the current capabilities of speech analytics because of the use of machine learning. However, AI speech analytics will continue to grow by going beyond just categorizing audio recordings. After identifying different emotional tags and trends, AI speech analytics will be able to quickly summarize the findings and offer immediate areas for improvement. This, as opposed to presenting the data and requiring human input, will make the end-to-end process of speech analytics quicker. 

Of course, as these capabilities grow, there will be errors, and all important data and decisions should be human-reviewed. That being said, the continued growth of speech analytics will most likely result in the further optimization and improvement of businesses. 

Holistic Analytics

Holistic analytics represents the combination of speech analytics, text analytics, and video analytics. Putting these solutions together will make it easier for organizations to understand their customers, regardless of the channel they choose to communicate with them from. Also, as a packaged deal, it will be more cost-effective and most likely provide a better return on investment. 

What to Look For in Speech Analytics Software

Not all speech analytics software comes with the same features. The features that are the most important will depend on the specific goals of your business. However, there are certain features that should be must-haves when looking for a speech analytics solution. 

Diverse Analysis Capabilities

While some businesses may settle for a speech analytics solution that is limited to only analyzing the customer during the call. Advanced speech analytics solutions will have a wide range of analysis capabilities that are able to analyze customer emotions as well as how the agent is responding to the customer and how the two parties interact. By analyzing the conversation in its entirety, you gain access to a more complete analysis. 

A conversation between a contact center agent and a customer, where AI speech analytics has highlighted customer sentiment.

Integration Capabilities 

It is important to choose a solution that supports a wide range of integrations, such as integrating into your contact center analytics software. Being able to implement speech analytics software that works alongside your current systems will increase the adoption rate within the organization and get the most out of the software as soon as possible. 

Support

It is important to choose speech analytics software that comes with a dedicated support team. This is important because having expert support ensures that any issues or challenges are promptly addressed. 

Best Practices for Implementing Speech Analytics Software

In order to complete a smooth implementation of speech analytics software, it is best to have a plan. Having an implementation plan will make sure the organization can succeed with the software, and get all appropriate staff involved in the right order. 

1. Define Objectives

By defining your objectives, you clearly outline what you are aiming to achieve. This will help you stay focused and avoid any distractions that come up in the early stages of adoption. For example, you may be tempted to set up a feature you did not fully understand in the demo. But, doing so wouldn’t allow your team to use the core functionalities they need. By having a goal, you can make sure your team has what they need as soon as possible. 

2. Integrate with Existing Systems

During the implementation process, it is vital to ensure that the software works well within your current technology stack. If there is an issue, contact your support team as soon as possible to try and get the issue resolved. 

3. Train Employees

As soon as the software is accessible to all employees, provide comprehensive training on how to use the software and interpret its insights. This step is crucial to the adoption across the company. Avoiding this will cause employees to make mistakes, which may take more time to resolve. 

4. Monitor

After the initial implementation push is over, monitoring the chosen software is important to its continued success. As it becomes a more integral part of your business processes, certain discrepancies may arise that need to be addressed. Conversely, all early successes with the software need to be highlighted so they can be recreated in the future. 

Choose Pearl-Plaza as Your Speech Analytics Solution

Pearl-Plaza’s conversation analytics software allows your business to have access to state-of-the-art speech analytics software, as well as other capabilities such as AI summarization, agent and coach scorecards, and more! See what Pearl-Plaza can do for you by scheduling a demo today. 

References 

CGS. CGS Survey Reveals Consumers Prefer a Hybrid AI/Human Approach to Customer Service. Is there Chatbot Fatigue? (https://www.cgsinc.com/en/resources/2019-cgs-customer-service-chatbots-channels-survey). Accessed 6/27/2024.

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Pearl-Plaza Named a Leader in The Forrester Wave™: Text Mining And Analytics Platforms, Q2 2024

Learn how Pearl-Plaza is pioneering innovative solutions for businesses to extract insights and drive meaningful change from their unstructured text data.

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Predictive Analytics: Unveiling the Future with Data

Predictive analytics analyzes data to predict the likelihood of certain events happening in the future. Through predictive analytics software, businesses across all industries can understand their customers better and make more informed business decisions.
What Is Predictive Analytics

Organizations should take a closer look at predictive analytics to discover the myriad of ways that data and artificial intelligence (AI) can power more personalized customer experiences and enhance brand loyalty and customer retention. From a cost and ROI perspective, the impact and benefits of predictive analytics in customer experience management cannot be ignored. 

It’s an opportunity that your company can capitalize on today. According to Forrester, fewer than 10% of enterprises are advanced in their insights-driven capabilities. By equipping your organization with predictive analytics tools, you can gain rich insights into customer behavior, make data-driven decisions, and optimize business operations.

What is Predictive Analytics?

Predictive analytics is a category of data analytics and the process of using data, statistical algorithms, AI, and machine learning techniques to identify the likelihood of future outcomes based on historical data. Put simply: it involves analyzing current and historical data to make predictions about future events or trends.

Advancements in computing power, storage, and algorithms, along with the rise of AI, have made predictive analytics more feasible and accessible to businesses of all sizes. Machine learning algorithms can analyze large datasets quickly and efficiently, enabling businesses to derive insights in real time.

For example, predictive analytics can examine text reviews from customers and predict what steps they are likely to take. Predictive models trained on large datasets of similar text inputs can learn to recognize such patterns and predict future behavior, such as making a purchase or churning.

A conversation between a customer and a representative from the company. Predictive analytics predicts the customer wants to buy

Predictive Analytics vs Prescriptive Analytics

It can be easy to confuse predictive analytics and prescriptive analytics. While they sound similar, they also go hand in hand with each other in practice. These two types of analytics are both designed to provide a comprehensive approach to data-driven decision-making. 

As mentioned earlier, predictive analytics is focused on forecasting future events, trends, or behaviors based on historical data. Conversely, prescriptive analytics goes a step further by not only predicting future outcomes but also recommending actions to achieve desired results. 

Prescriptive analytics combines predictive models with optimization algorithms and business rules, employing techniques such as simulation, optimization models, and decision analysis. These methods evaluate various possible actions and their outcomes to suggest the best course of action. 

Why is Predictive Analytics Important?

Predictive analytics is important because it empowers businesses to make informed decisions that enhance strategic planning and operational efficiency. By analyzing historical data to identify patterns and predict future outcomes, predictive analytics helps organizations anticipate trends, behaviors, and potential risks. This foresight enables businesses to proactively address issues before they become problems, optimize resource allocation, and improve overall performance.

For example, predictive analytics in healthcare enhances patient care by anticipating readmissions and improving diagnostic accuracy. This allows healthcare organizations to proactively manage patient outcomes, allocate resources more efficiently, and implement targeted interventions that reduce hospital stays and associated costs. By identifying at-risk patients early and providing personalized treatment plans, healthcare providers can improve overall patient health and satisfaction, ultimately leading to better clinical outcomes and a more sustainable healthcare system.

Benefits of Predictive Analytics in CX

Predictive analytics is also making an impact on the way companies manage the customer experience. By leveraging data-driven insights from predictive analytics, your company can foster meaningful connections with customers and achieve differentiation in today’s competitive marketplace. The wide-ranging benefits of predictive analytics applications in customer experience management include:

  • Enhanced customer loyalty and satisfaction. By predicting what customers want before they even ask for it, your company can provide a proactive and personalized experience that increases satisfaction and fosters loyalty. 
  • Improve customer lifetime value. Predictive analytics helps identify the most valuable customers and understand their behavior, allowing you to implement strategies that maximize the value these customers bring over their lifetime. 
  • Reduce customer churn. By identifying patterns that indicate a customer is at risk of leaving, you can take proactive measures to retain them, thereby reducing customer churn. 
  • Enhance cross-selling and up-selling opportunities. With predictive analytics, marketers can identify which customers are most likely to be interested in additional products or services, creating more opportunities for successful cross-selling and up-selling. 
  • Accelerate operational improvement. By enhancing the customer experience and making operations more efficient, predictive analytics contributes to accelerated business growth and increased profitability.

What is a Downside of Predictive Analytics?

While predictive analytics can be a powerful tool, organizations need to be aware of the potential downsides and take the proper steps to mitigate or eliminate them. Some of the possible  downsides of predictive analytics include:

  • Incorrect predictions: Predictive analytics relies heavily on the quality and completeness of the data. Inaccurate, outdated, or incomplete data can lead to wrong predictions, which may result in misguided decisions. 
  • Ethical and privacy concerns: Using personal data for predictive analytics raises significant ethical and privacy issues. Misuse or mishandling of sensitive information can lead to privacy violations and loss of customer trust. 
  • False positives and negatives: Predictive models are not perfect and can produce false positives (incorrectly predicting an event will happen) and false negatives (failing to predict an event that does happen). These inaccuracies can lead to inappropriate actions, such as unnecessary interventions or missed opportunities.

These downsides can often be handled and resolved through proper planning, implementation, and maintenance of predictive models. While organizations should be aware of these happenings, they should not deter them from utilizing predictive analytics in their operations. 

Examples of Predictive Analytics

Several predictive analytics examples show how the process is being applied by companies looking to better understand their customers, anticipate their needs, and deliver personalized and proactive experiences that drive satisfaction, loyalty, and ultimately, business success.

Predict Behavior and CLV

More and more retail brands are deploying predictive analytics software to forecast customer behavior and monitor market trends. 

Retailers can personalize the retail customer experience and increase sales by analyzing information such as past purchase history, browsing behavior, and demographic data. Brands can also leverage predictive analytics algorithms to analyze historical data and market trends, helping predict the optimal price points for products in order to maximize revenue while remaining competitive.

By recommending relevant products, delivering personalized content, and identifying cross-selling and up-selling opportunities based on individual customer profiles and purchase history, brands can create highly personalized retail experiences that drive customer lifetime value (CLV).

A review of a product where the words "renewal" and "impressed" are highlighted.

The key is to connect customer experience data from every touchpoint and channel for a complete view of the customer journey. Jim Katzman, Principal of CX Strategy & Enablement for Pearl-Plaza, suggests that companies should “expand the data sources that you use to understand what your customers are saying and how they perceive you. While surveys will continue to be important, they only give you part of the picture. Expanding your data repertoire to such sources as purchasing data, location-tracking data, web searches, social media, and online reviews is a must.”

The next step is to take a long view when looking at customer relationships. Adds Katzman, “You’ll be surprised at how many brands get caught up in the lure of ‘What can I sell you today?’ without considering what seeds to plant for even more success tomorrow.”

“Equally important is to understand how your competitors view this dynamic and what, if anything, they’re also doing to be proactive when it comes to building lifetime value.

Score Leads by Analyzing Customer Data

Another great application example of predictive is lead-scoring marketers leveraging historical data and machine learning algorithms to predict the likelihood of leads converting into customers. Today more than ever, marketers are empowered to make data-driven decisions when scoring and prioritizing leads, resulting in more effective lead management, higher conversion rates, and improved overall sales and marketing performance.

  • Identify Ideal Customer Profiles (ICPs). Predictive customer analytics tools can analyze historical data to identify patterns and characteristics common among high-value customers. By identifying these attributes, marketers can create an ideal customer profile (ICP) that serves as a benchmark for scoring leads based on their similarity to the ICP.
  • Assign predictive lead scores. Marketers are also utilizing statistical algorithms to analyze various data points such as demographics, firmographics, online behaviors, engagement with marketing content, and past purchase history to assign a predictive score to each lead. This score indicates the likelihood of a lead becoming a customer based on similarities to past successful conversions.
  • Prioritize sales efforts. Marketers can use predictive analytics to prioritize leads based on their likelihood to convert. Leads with higher predictive scores can be routed to sales teams for immediate follow-up, while leads with lower scores can be nurtured through targeted marketing campaigns until they demonstrate stronger buying signals.
  • Reduce sales cycle length. Predictive lead scoring enables marketers to identify leads that are further along in the buying process and more likely to make a purchase. By prioritizing these leads for immediate engagement, marketers can accelerate the sales cycle and shorten the time to conversion, leading to faster revenue generation and increased productivity for sales teams.

Harness NLP and Sentiment Analysis to Monitor Brand Reputation

Predictive analytics can also have a significant impact on brand reputation management efforts, helping companies anticipate, monitor, and respond to potential reputation threats more effectively. 

Algorithms, for example, can analyze large volumes of data from various sources such as social media and online reviews to gauge customer sentiment toward the brand. By identifying patterns and trends in sentiment data, teams can proactively address emerging issues or negative perceptions before they escalate into major reputation crises.

These analytical techniques help crystallize information contained in reviews into insights — helping companies achieve a more accurate, complete, and unified view of the customer.

With online reputation management software, companies can also analyze customer feedback and sentiment data to identify areas for improvement and proactively address customer concerns. By identifying recurring themes or issues in customer feedback, brands can take corrective actions to improve products, services, and overall customer experience, which in turn enhances brand reputation. 

Pearl-Plaza’s approach is based on machine learning, a method of data analysis that allows companies to find patterns and unlock insights as it is exposed to new review and feedback data. This approach is fast, consistent, and programmable, helping teams quickly understand — at a glance and at scale —  exactly what customers are saying. Proprietary relevancy scores for sentiment analysis also provide measurement of positive and negative language, with unparalleled accuracy.

Use AI to Improve Personalization

Predictive analytics empowers companies to better understand their customers, anticipate their needs, and deliver personalized experiences. It’s a particularly powerful tool for curating content based on historical customer data. 

One of the best predictive analytics examples comes from streaming giant Netflix, which has a powerful personalized content recommendation engine. The company analyzes user data, including viewing history, ratings, and browsing behavior, to make predictions about what users might want to watch next. This is all reflected as soon as viewers land on Netflix’s home page, which displays content tailored to individual users, improving user engagement and satisfaction.

With predictive analytics, teams can dynamically customize website content, email marketing campaigns, and other communication channels based on individual customer preferences and behaviors. By delivering content that is relevant and timely, businesses can improve personalization, create more engaging customer experiences, and drive higher conversion rates.

Extract Insights from Reviews and Social Media Data

Online reviews and social media data provide a wealth of insights for a business but can be labor-intensive to read through and digest. There are many ways to try to automate this task. Currently, the leading approaches use deep learning models that extract many different kinds of keywords, predict their sentiment, and classify them into relevant categories. This allows companies to improve operations, make better decisions, and elevate the customer experience with data.

Using AI and advanced machine learning techniques, predictive analytics tools can read through thousands of reviews, comments, and other forms of customer feedback in the time it would take a human to read through just a few. The right technology will provide valuable insights, summaries, trends, and statistics that can be applied to support data-driven decision-making and customer-centric innovations.

Rural King, a family-owned farm supply store with 128 stores across 13 states, is no stranger to leveraging predictive analytics in order to create memorable customer experiences. The company regularly analyzes massive amounts of unsolicited feedback to unlock the potential of all its stores’ review data.

“We are hearing directly from customers about the store experience as well as pricing and product challenges,” says Kirk Waidelich, VP of Marketing for Rural King. “This allows us to narrow in on the stores that are experiencing issues — and to target and understand these issues versus simply guessing.”

What to Look for in Predictive Analytics Software

Predictive analytics software allows users to complete predictive analysis. This software can be used by different professionals across many different industries.  Predictive analytics software will come with different features, and which specific features will work best for you depends on the goal of your business. However, there are a few foundational features that any successful software will have. 

Data Collection and Integration

Data collection and integration is a crucial aspect of predictive analytics software. The feature facilitates the collection of data from various sources, ensuring comprehensive coverage for analysis. It allows users to connect to databases, extract data from APIs, import data from spreadsheets, and integrate data from different systems within the organization.

Data Preprocessing and Cleaning

Another fundamental feature of predictive analytics software is the ability to preprocess and clean data. This allows users to address common data quality issues such as missing values, outliers, duplicate records, and inconsistencies. This feature can also provide automated mechanisms to detect and handle missing values, either by imputing them using statistical techniques or by removing them based on predefined rules. This ensures that the data used for predictive modeling is complete and accurate.

In addition, these features should support outlier detection and treatment. Outliers are data points that deviate significantly from expected patterns. Outlier detection features can identify these outliers and remove them, transform them, or treat them as separate categories based on previously implemented rules or requirements.  

Machine Learning Algorithms 

Effective predictive analytics software incorporates a wide range of machine learning algorithms, which provides users with powerful tools to build accurate and reliable predictive models. These algorithms form the backbone of a software’s capabilities and enable users to leverage the predictive power of their data. 

Model Training and Evaluation 

Predictive analytics software should also provide robust functionalities for model training and evaluation, enabling users to build accurate predictive models and assess their performance effectively.

To ensure optimal model performance, software should have options to fine-tune the model’s parameters and settings. Users can experiment with different configurations and optimize the model to achieve the best possible results. This customization capability allows users to adapt the model to their specific use case, maximizing its predictive accuracy and relevance.

Once the model is trained, the software facilitates a thorough evaluation of its performance. Users can assess how well the model generalizes to unseen data by employing various evaluation techniques, such as cross-validation. Cross-validation involves splitting the data into multiple subsets, training the model on a portion of the data, and evaluating its performance on the remaining subset. This process helps estimate the model’s predictive accuracy and identify any potential overfitting or underfitting issues.

Visualization and Reporting Capabilities

Lastly, predictive analytics software should offer robust visualization and reporting capabilities to help users understand and communicate insights effectively, which helps transform complex data into intuitive visual representations and actionable reports.

Users should be able to easily create visual representations of their data, allowing for quick and comprehensive analysis. Visualization options often include bar charts, line charts, scatter plots, heat maps, and geographic maps, among others. These visualizations enable users to identify patterns, trends, and relationships within the data, facilitating deeper insights and understanding.

Furthermore, predictive analytics software should support interactivity in visualizations, allowing users to explore data from different perspectives and drill down into specific subsets of information. Users can interact with the visualizations, apply filters, and dynamically adjust parameters to gain more detailed insights and make data-driven decisions.

Predictive Analytics Implementation and Best Practices

Implementing predictive analytics involves a structured approach to ensure that the data-driven insights generated are accurate, actionable, and aligned with business goals. Here are some key steps and best practices for successful predictive analytics implementation:

1. Define Clear Objectives

Before embarking on a predictive analytics project, it’s essential to clearly define the objectives. Determine what specific outcomes you want to achieve and how predictive analytics will help you reach these goals. Whether it’s improving customer retention, optimizing inventory management, or reducing operational costs, having a clear objective will guide the entire process.

2. Assemble the Right Team

Successful implementation requires a team with diverse skills, including data scientists, data engineers, domain experts, and IT professionals. Data scientists and engineers are crucial for building and maintaining the predictive models, while domain experts ensure that the insights generated are relevant and actionable. IT professionals play a key role in integrating predictive analytics tools with existing systems.

3. Foster a Data-Driven Culture

For predictive analytics to be truly effective, it must be embraced across the organization. Encourage a data-driven culture by promoting the use of data in decision-making processes. Provide training and resources to employees to help them understand and leverage predictive analytics insights.

Jumpstart Your Predictive Analytics Solution With Pearl-Plaza

The world’s top brands partner with Pearl-Plaza AI, the leading predictive customer analytics solution, to facilitate the discovery of real-time insights, drive individual customer recovery, and turn unstructured feedback into a predictable source of business growth. To see how what predictive analytics can do for your business, schedule a demo today!

References 

Forrester. “Data Governance Unlocks The Impact Of Analytics: Data Strategy & Insights 2023” (https://www.forrester.com/blogs/data-governance-unlocks-the-impact-of-analytics-data-strategy-insights-2023/). Access 03/16/2024.

A group of four business people having a discussion around a table

With the increased adoption of AI in business across all industries, there has also been a rise in text mining and analytics. This software, which exists as an extension of AI and natural language processing (NLP), is used to gather insights from unstructured text data in order to make informed business decisions. 

If your business has reached the need to purchase text analysis software, you are more than likely comparing third-party evaluations as part of your research process. Understanding these third-party evaluations is crucial to choosing the right software for your business. Among these evaluation tools are evaluative Analyst reports such as The Forrester Wave, Gartner Magic Quadrant, or IDC MarketScape

The Forrester Wave™ is a valuable resource that evaluates and ranks vendors in a particular market, but understanding how to read and interpret the Wave report can be daunting. By reading this guide, you will understand how to navigate reports like the Forrester Wave and make informed decisions from the reports’ implications. 

What is the Difference Between Gartner and Forrester?

The Forrester Wave™ and the Gartner Magic Quadrant™ are widely recognized and influential market research reports evaluating technology vendors. While both serve to help buyers make informed decisions, they differ in methodology, structure, and focus.

In the Forrester Wave, vendors are ranked based on criteria such as their strategy and current offering, which represent the x and y axes. They are also ranked on market presence, which is represented by the size of the dot on the graphic. For each of these three categories, there are subcategories that vendors are scored on. These scores are taken into account and then vendors are positioned in segments such as Leaders, Strong Performers, Contenders, and Challengers on the Wave graphic. 

Conversely, the Gartner Magic Quadrant™ offers a high-level overview, evaluating vendors based on their Completeness of Vision and Ability to Execute. Vendors are placed in one of four quadrants: Leaders, Challengers, Visionaries, and Niche Players. The Magic Quadrant is useful for quickly comparing vendors and understanding the overall market landscape and strategic positioning.

Ultimately, the Forrester Wave™ is best for buyers seeking a detailed, customizable evaluation, while the Gartner Magic Quadrant™ is suited for those needing a quick, strategic overview of vendor capabilities and market trends. Understanding these differences helps buyers select the right tool for their specific needs.

Understanding the Forrester Wave™ Methodology

The Forrester Wave™ is a comprehensive evaluation of technology providers in a specific market. For text analytics, it assesses vendors based on a detailed set of criteria to provide a comparative analysis. Here’s how it works:

  1. Vendor Selection: Forrester selects the most significant vendors from the preceding Landscape report which acts as a precursor to the evaluative Wave and outlines market dynamics, top business use cases, and provides a list of ‘players’
  2. Criteria and Weightings: Forrester defines a set of criteria that comprise the two categories of strategy and current product offering. Weightings of these criteria (how much each one is worth) are not shared with vendors until post-publication… Each criterion is assigned a weight based on its importance to the overall evaluation.
  3. Data Collection:There are three inputs into a Forrester Wave evaluation: a questionnaire, a strategy and product demo session, and customer references.
  4. Scoring: Each vendor is scored on a scale (0 to 5) for each criterion. These scores are then weighted and combined to produce an overall score for each category.
  5. Wave Graphic: The scores are plotted on a wave graphic, with vendors positioned in different segments: Leaders, Strong Performers, Contenders, and Challengers. The size of the dots are representative of the vendors’ market presence, which is determined by revenue. 

Decoding Forrester Wave™ Classifications

The Forrester Wave graphic visually represents the relative strengths and weaknesses of each vendor. Here’s what the graphic for each Wave looks like as well as what each classification means:

An example of the Forrester Wave graphic showing how vendors are represented.
  • Leaders: These vendors have the highest scores in the evaluation criteria. They exhibit strong current offerings, robust strategies, and a significant market presence. Leaders are generally the safest choice for most buyers.
  • Strong Performers: Vendors in this segment have solid offerings and strategies but may lack in some areas compared to leaders. They are still viable options, especially if they meet specific needs or have unique strengths.
  • Contenders: These vendors may have competitive offerings but are often limited by weaker strategies or lower market presence. They can be suitable for buyers with specific requirements that align with the vendor’s strengths.
  • Challengers: Vendors in this category typically have lower scores across multiple criteria. They may be newer to the market or lack certain features. They are riskier choices but might offer innovative solutions or cost advantages.

Key Components of the Forrester Wave for Text Analytics

The full Forrester Wave report will consist of three main sections: current offering, strategy, and market presence. Each category will cover different aspects of an organization’s presence in the marketplace. 

Current Offering: This category evaluates the product’s features and capabilities. Key criteria might include:

  • AI: ML-based, knowledge-based, or symbolic
  • Generative AI: Pre and post-processing 
  • Deployment options
  • Omnichannel data integration
  • Security and regulatory compliance 

Strategy: This category assesses the vendor’s vision and roadmap. Key criteria might include:

  • Innovation: The vendor’s commitment to innovation and staying ahead of market trends.
  • Product Roadmap: The planned future developments and improvements.
  • Pricing flexibility and transparency

What This Means for Buyers

As a buyer, the Forrester Wave for Text Analytics provides a comprehensive and unbiased assessment of the market. Here’s how you can use it:

  1. Identify Your Needs: Determine what’s most important for your organization. Are you looking for a platform with advanced NLP capabilities? Or is integration with existing systems more critical?
  2. Compare Vendors: Use the Wave graphic to compare vendors at a glance. Focus on the Leaders for well-rounded options, but don’t overlook Strong Performers if they align better with your specific needs.
  3. Dive Deeper: Read the detailed vendor profiles and scores for a deeper understanding of each vendor’s strengths and weaknesses. Pay attention to how vendors perform in areas that matter most to your organization.
  4. Evaluate Market Trends: Consider the market trends and how vendors plan to adapt to them. For example, vendors will no longer differentiate themselves on text mining functionality alone, it is the pre and post-processing processes that will set them apart. 
  5. Consider Future Needs: Look at the strategy scores and product roadmaps to ensure the platform you choose will continue to meet your needs as your organization grows and evolves.

Pearl-Plaza’s Placement in the Forrester Wave

Pearl-Plaza was recently recognized as a Leader in the Forrester Text Mining & Analytics Wave ‘24. This achievement highlights the capabilities of the XI Platform such as knowledge-based AI, document-level text mining, natural language understanding, and more!

To learn more about Pearl-Plaza’s platform, schedule a demo today! 

Text Mining: Everything You Need to Know

Text mining is the process of extracting useful information from large amounts of text using computational techniques. It involves analyzing and transforming unstructured text into structured data for insights.
Two hands typing on a laptop

In today’s data-driven world, businesses generate and accumulate vast amounts of text data from various sources, including customer feedback, social media, emails, and internal documents. However, extracting meaningful insights from this unstructured data can be challenging. 

This is where text mining comes into play. By transforming unstructured text data into valuable information, text mining enables businesses to uncover hidden trends, sentiments, and relationships within the data. This process is crucial for making informed decisions, enhancing the customer experience, and maintaining a competitive edge. 

What is Text Mining?

Text mining, also known as text data mining, is the process of analyzing unstructured text data to extract meaningful patterns and insights. This process involves using techniques from natural language processing (NLP), machine learning, and statistics to transform textual information into a structured format that can be easily analyzed. By doing so, organizations can uncover hidden trends, sentiments, and relationships within the data, which can inform strategic decisions and drive business growth.

Text Mining Examples and Use Cases

Consider a business interested in contact center optimization. They could implement text mining to enhance operations and improve customer satisfaction. The center can identify common customer issues and frequently asked questions by analyzing transcripts of customer service calls, emails, and chat interactions.

From those insights, the contact center can pinpoint areas where agents need additional training and identity processes that require streamlining. For instance, text mining might reveal that a significant number of calls were related to the same few technical issues. This discovery can lead to bug fixes as well as a more comprehensive knowledge base for agents, which can significantly reduce call resolution times. 

Why is Text Mining Important?

In an era where data is considered the new oil, the ability to analyze and derive insights from unstructured text data is invaluable. Text mining is important for several reasons:

1. Extracting Valuable Insights: Text mining enables businesses to sift through large volumes of unstructured text data and extract valuable insights. Whether it’s customer feedback, social media comments, or internal documents, these insights can reveal trends, sentiments, and patterns that are crucial for strategic decision-making.

2. Enhancing Customer Experience: By analyzing customer feedback and sentiment, companies can better understand their customers’ needs, preferences, and pain points. This understanding allows businesses to tailor their products, services, and interactions to meet customer expectations, thereby enhancing overall customer satisfaction and loyalty.

3. Improving Operational Efficiency: Text mining can help identify inefficiencies and areas for improvement within an organization. For example, analyzing support tickets and emails can reveal common issues that need addressing, enabling companies to streamline their operations and improve service quality.

4. Supporting Data-Driven Decision Making: Text mining transforms unstructured data into structured data that can be easily analyzed and visualized. This transformation supports data-driven decision-making processes by providing actionable insights that are grounded in actual data rather than intuition or guesswork.

5. Gaining Competitive Advantage: By leveraging text mining, businesses can stay ahead of the competition by quickly identifying market trends, customer preferences, and emerging issues. This proactive approach allows companies to adapt and innovate faster than their competitors.

6. Enabling Predictive Analytics: Text mining can also be used in conjunction with predictive customer analytics to forecast future trends and behaviors. For instance, sentiment analysis of customer reviews can predict future product success, while topic modeling can identify emerging trends in customer interests.

Difference Between Text Mining and Text Analytics

While text mining and text analytics are often used interchangeably, they have distinct focuses and processes. Understanding the difference between the two can help businesses leverage the right techniques for their specific needs.

Text Mining

Text mining is the process of discovering patterns and extracting useful information from unstructured text data. It involves transforming text into a structured format, which can then be analyzed. The primary goal of text mining is to uncover hidden insights and trends that are not immediately obvious.

Key Components of Text Mining:

  • Data Collection: Gathering text data from various sources such as websites, social media, emails, and internal documents.
  • Preprocessing: Cleaning and preparing the text data by removing noise, normalizing text, and tokenizing.
  • Transformation: Converting text into a structured format using techniques like vectorization.
  • Analysis: Applying NLP, machine learning, and statistical methods to identify patterns and extract insights.

Text Analytics

Text analytics is the application of text mining techniques to solve specific business problems. It involves analyzing the structured data produced by text mining to gain actionable insights and inform decision-making. Text analytics often integrates text mining results with other types of data analysis to provide a comprehensive understanding of the data.

Key Components of Text Analytics:

  • Integration: Combining text data with other data sources to provide a holistic view.
  • Visualization: Presenting the findings in a comprehensible format using graphs, charts, and dashboards.
  • Reporting: Generating reports that highlight key insights and recommendations.
  • Actionable Insights: Using the analyzed data to inform business strategies and decisions.

Consider a company analyzing customer reviews to improve its products. Text mining would involve processing the reviews to identify common themes and sentiments. Text analytics would then take these findings and integrate them with sales data to understand the impact of customer feedback on product performance and make strategic recommendations.

How Text Mining Works

Text mining involves several steps that transform unstructured text data into structured data, which can then be analyzed to extract meaningful insights. Here is a detailed look at the key steps involved in the text mining process:

1. Data Collection: The first step in text mining is gathering text data from various sources. This can include customer feedback, social media posts, emails, online reviews, internal documents, and more. The data collection process may involve web scraping, database extraction, or API integration to aggregate the text data into a single repository.

2. Preprocessing: Once the data is collected, it needs to be cleaned and prepared for analysis. Preprocessing involves several sub-steps:

  • Tokenization: Splitting the text into individual words or tokens.
  • Stop Words Removal: Eliminating common words (e.g., “and”, “the”, “is”) that do not contribute to the analysis.
  • Stemming and Lemmatization: Reducing words to their root form (e.g., “running” to “run”).
  • Normalization: Converting text to a standard format, such as lowercase all words and removing punctuation and special characters.

3. Transformation: After preprocessing, the text needs to be transformed into a structured format. This often involves:

  • Vectorization: Converting text into numerical vectors that represent the frequency or presence of words or phrases. Common techniques include Term Frequency-Inverse Document Frequency (TF-IDF) and word embeddings like Word2Vec.
  • Feature Extraction: Identifying and extracting relevant features from the text that can be used in subsequent analysis.

4. Analysis: With the structured data in hand, various analytical techniques are applied to extract insights:

  • Natural Language Processing (NLP): Techniques such as named entity recognition (NER), part-of-speech tagging, and dependency parsing to understand the structure and meaning of the text.
  • Machine Learning: Applying algorithms to classify, cluster, and predict outcomes based on the text data. Common methods include sentiment analysis, topic modeling, and text classification.
  • Statistical Analysis: Using statistical methods to identify patterns, correlations, and trends within the text data.

5. Visualization: The final step is to present the findings in an easily understandable format. Visualization tools and techniques are used to create graphs, charts, word clouds, and dashboards that highlight key insights and trends. Effective visualization helps stakeholders quickly grasp the results and make informed decisions.

A compilation of images showing a word cloud and analysis produced from text mining

Text Mining Best Practices

Implementing text mining effectively requires adherence to several best practices to ensure accurate, actionable insights and optimal outcomes. By following these best practices, organizations will be set up for success in utilizing text mining effectively.  

1. Define Clear Objectives

Set clear, specific goals for what you want to achieve with text mining. Whether it’s enhancing customer experience, identifying market trends, or detecting fraud, having well-defined objectives will guide your project and measure success.

2. Select the Right Tools

Choose tools and software that align with your project requirements and team expertise. It is important to find text mining software that has all the necessary features to complete the projects you are working on.  

3. Data Quality and Diversity

Ensure that the text data you collect is relevant, high-quality, and diverse, drawing from sources such as customer feedback, social media, emails, and internal documents. Gathering data from multiple sources can decrease the chances of voluntary response bias, or other biases that can damage the integrity of your data. Comprehensive preprocessing is equally important; this includes cleaning the data to remove noise, normalizing text formats, and applying techniques like tokenization, word removal, and stemming/lemmatization to prepare the data for analysis.

4. Effective Data Preprocessing

Preprocess your text data meticulously. Clean the data by removing noise, standardizing text formats, and applying tokenization, stop-word removal, and stemming/lemmatization to prepare the text for analysis.

5. Ethical Considerations

Adhere to ethical standards and data privacy regulations. Anonymize sensitive information, obtain necessary consent, and address biases in your text data and models to ensure fairness and compliance.

Common Use Cases of Text Mining

Text mining has a wide range of applications across various industries. Here are some common use cases where text mining can provide significant value:

1. Customer Feedback Analysis

Businesses receive feedback from customers through various channels such as surveys, reviews, and social media. Text mining helps analyze this feedback to identify common themes, sentiments, and areas for improvement. For example, a company can use text mining to detect recurring complaints about a product feature and take corrective action.

2. Sentiment Analysis

Sentiment analysis involves determining the sentiment behind a piece of text, whether it’s positive, negative, or neutral. This is particularly useful for brands to monitor their reputation online. By analyzing customer reviews, social media posts, and other textual data, businesses can gauge public perception and respond accordingly.

3. Topic Modeling

Topic modeling is a technique used to discover the underlying topics within a large corpus of text. It helps in organizing and summarizing large collections of textual information. For example, a news organization can use topic modeling to automatically categorize articles into topics like politics, sports, and entertainment.

4. Fraud Detection

In sectors like finance and insurance, text mining is used to detect fraudulent activities. Text mining can identify suspicious patterns and flag potential fraud by analyzing claims, transaction records, and customer communications. This proactive approach helps in preventing fraud before it causes significant damage.

5. Market Research

Companies use text mining to analyze consumer opinions and market trends. By examining social media posts, reviews, and forums, businesses can gain insights into consumer preferences and behaviors. This information is valuable for product development, marketing strategies, and competitive analysis.

Implement Text Mining with Pearl-Plaza

Pearl-Plaza’s XI Platform has been recognized as one of the premier text-mining software solutions. Having recently been named a Leader in the Forrester Wave™: Text Mining and Analytics, the XI platform was noted as having capabilities that outperform competitors such as Qualtrics, AWS, and Google. To see what our text mining capabilities can do for you, schedule a demo today!

Text Analysis Software

In a business landscape that has become digital-first, where consumers’ expectations can change overnight, it has never been more important to the success of your business to be able to understand and leverage data. One of this environment’s most challenging yet rewarding aspects is making sense of unstructured text data such as online reviews or customer emails. Most businesses achieve this by utilizing text analysis software. Text analysis software, also known as text analytics software, has become indispensable for businesses aiming to extract actionable insights from textual data to improve the customer experience

What is Text Analysis Software?

Text analysis software utilizes natural language understanding (NLU), a subset of natural language processing (NLP), to analyze text data. Given the unstructured nature of text, these tools process textual input to generate labels, tags, and insights. Text analysis has become a critical component of analytics and business intelligence, enabling companies to derive meaningful information from unstructured data sources such as emails, social media, online reviews, and more.

Whether it’s analyzing online reviews, customer feedback, or any other form of unstructured data, these tools can sift through large amounts of information and highlight important elements. By converting raw data into actionable insights, businesses can improve their strategies and make more informed decisions.

Why Your Business Needs Text Analysis Software

Most businesses are already collecting vast amounts of data, whether in the form of surveys, reviews, order history, contact center complaints, or other forms of data. However, collecting this data can be time-consuming and inefficient without the proper tools. By utilizing text analysis software, your business can be more efficient and realize benefits such as increased customer insights, improved operational efficiency, and others.

Types of Text Analysis Software

There are various types of text analytics software, each with its unique strengths. Some focus on sentiment analysis, which gauges emotions behind the text data. Others specialize in predictive analytics, using past data to forecast future trends. Text analytic software also prioritizes text mining, digging deep into the data to find hidden insights.

Regardless, when it comes to the kinds of text analysis software you’ll see in the market, they will all fall under two categories: self-service text analysis software and traditional text analysis software. The one that you end up choosing will depend on a variety of factors, as each type of software serves different purposes for different types of users. 

Self-Service Analysis Tools

Self-service text analysis software is designed for users with little to no technical knowledge of text analysis tools. These platforms often feature drag-and-drop interfaces, prebuilt templates, and interactive dashboards, making them accessible to just about anyone. 

Examples: 

  • Analyzing customer emails for sentiment trends
  • Creating dashboards to track marketing campaign performance

Traditional Text Analysis Tools

Traditional text analysis tools are geared toward technical professionals such as data analysts or data scientists. They offer extensive customization options, allowing users to create and fine-tune their algorithms and models. This flexibility is ideal for complex, large-scale projects that require specific, tailored solutions.

Due to their complexity, these tools may require a higher level of involvement or technical expertise, such as managed services or a dedicated representative. They may require ongoing support from IT departments or data science teams to maintain and update.

Examples:

  • Ingesting social media data to detect emerging trends.
  • Developing custom models to predict customer churn.

By carefully evaluating these factors, businesses can select the text analysis tool that best fits their specific requirements and enhances their ability to leverage text data for strategic advantage.

Things to Look for in Text Analysis Software

Selecting the right text analysis software is crucial for leveraging unstructured data to derive actionable insights. While features may vary from one software product to another, there are some key features you should consider when evaluating a software product for your business. 

Natural Language Processing Capabilities

  • Language Identification: The ability to detect and process multiple languages, ensuring the software can handle diverse data sources.
  • Tokenization: Breaking down text into smaller components, such as words or phrases, for detailed analysis.
  • Part of Speech Tagging: Identifying the grammatical components of text (e.g., nouns, verbs, adjectives) to understand the structure and context.

Sentiment Analysis

  • Sentiment Scoring: Determining the sentiment (positive, negative, neutral) of the text to gauge customer opinions or feedback.
  • Emotion Detection: Identifying specific emotions, such as happiness, anger, or sadness, for more nuanced insights.

Text Classification and Categorization

  • Automated Tagging: Automatically assigning tags or labels to text based on predefined categories or machine learning models.
  • Custom Taxonomies: Allowing users to create custom classification schemes to fit specific business needs.

Data Visualization

  • Interactive Dashboards: Providing visual representations of text analysis results through charts, graphs, and other visualization tools.
  • Real-time Analytics: Offering real-time updates and visualizations to monitor ongoing trends and changes.

Integration and Compatibility 

  • API Access: Offering APIs for seamless integration with other business systems and data sources.
  • Data Source Connectivity: Connecting with various data sources such as social media, CRM systems, emails, documents, and more.

Benefits of Text Analysis Software

Incorporating text analysis software into your business operations can offer a multitude of advantages. Here are some key benefits that can significantly enhance your organization’s efficiency, decision-making, and overall performance:

Enhanced Customer Insights

Text analysis software can process vast amounts of customer feedback from sources such as social media, emails, and online reviews. By determining the sentiment behind customer communications, businesses can gain valuable insights into customer satisfaction and loyalty, allowing them to address issues proactively and improve customer relationships and uphold their brand reputation.

Businesses can also identify recurring themes and patterns in customer interactions, which allows them to uncover emerging trends and shifts in customer preferences. This enables them to adapt their products, services, and marketing strategies to better align with customer needs.

Improved Decision-Making

With text analysis software, businesses can transform unstructured text data into structured insights that inform strategic decisions. Furthermore, text analysis can also be used to predict future trends based on historical data. 

For instance, analyzing past customer reviews and feedback can help businesses anticipate future customer behavior and preferences, allowing for more accurate forecasting and planning. This data-driven approach helps managers and executives make more informed and effective decisions, leading to better business outcomes.

Increased Operational Efficiency

Text analysis software automates the extraction and classification of key information from large volumes of text data, significantly reducing the time and effort required for manual data processing. 

By efficiently categorizing and prioritizing text data, text analysis software helps organizations allocate resources more effectively. For example, customer service teams can prioritize inquiries based on sentiment and urgency which ensures that critical issues are addressed promptly.

Improved Employee Engagement

Internally, text analysis software can be used to gauge employee sentiment through surveys, feedback forms, and other communications. Understanding how employees feel about various aspects of their work environment can help management make informed decisions to improve employee satisfaction and engagement.

Text analysis software can also be used to analyze text data from performance reviews and other employee interactions to provide insights into workforce performance and highlight areas for development and training.

The benefits of text analysis software extend across various facets of business operations, from customer service and marketing to compliance and employee engagement. By leveraging the power of text analysis, organizations can unlock valuable insights from their unstructured data, leading to improved decision-making, increased efficiency, and a competitive edge in the market.

Who Uses Text Analysis Software?

Text analysis software is a versatile tool that can be employed across various departments within a business, each leveraging its capabilities to enhance its specific functions. Here are some key areas of business where text analysis software is commonly used, along with how professionals in those areas utilize it:

Data Scientists

Data scientists are primarily responsible for analyzing and interpreting complex data to help businesses make informed decisions. They can use text analysis software for:

  • Algorithm Development: Data scientists use text analysis software to develop and refine natural language processing (NLP) algorithms that can classify, tag, and extract meaningful insights from text data.
  • Sentiment Analysis: They apply sentiment analysis to gauge customer sentiment from reviews, social media posts, and other text sources, helping the company understand public perception and improve customer experience.
  • Predictive Modeling: By analyzing historical text data, data scientists can create predictive models that forecast trends and customer behavior, aiding in strategic planning.

Marketing Teams

Marketing professionals are tasked with promoting products and services, understanding market trends, and engaging with customers effectively. They use text analysis software for:

  • Campaign Analysis: Marketers use text analysis software to assess the performance of marketing campaigns by analyzing customer feedback, social media interactions, and online reviews.
  • Audience Segmentation: Text analysis helps in segmenting audiences based on their interactions and sentiments, allowing marketers to tailor their messages for different customer groups.
  • Content Optimization: By analyzing which keywords and phrases resonate most with their audience, marketers can optimize their content for better engagement and conversion rates.

Customer Service Teams

Customer service representatives are responsible for managing customer inquiries, resolving issues, and ensuring customer satisfaction. They can use text analysis for:

  • Sentiment Detection: Text analysis software can detect the sentiment of customer emails, chat messages, and social media posts, helping representatives prioritize and address negative feedback promptly.
  • Trend Identification: By identifying common issues and complaints through text analysis, customer service teams can proactively address recurring problems and improve service quality.
  • Automation: Automated text analysis can classify and route customer queries to the appropriate departments or representatives, enhancing response times and efficiency.

Sales Teams

Sales professionals focus on generating leads, closing deals, and building customer relationships to drive revenue.

  • Lead Qualification: Text analysis can help sales teams analyze and prioritize leads based on the language and sentiment used in customer interactions, improving the likelihood of conversion.
  • Customer Insights: By analyzing past communications and feedback, sales teams can gain insights into customer preferences and pain points, enabling more personalized and effective sales pitches.
  • Pipeline Management: Text analysis software can track and analyze sales emails and call transcripts to identify trends and patterns, helping sales managers forecast pipeline health and performance.

Human Resources

Human resources (HR) professionals manage recruitment, employee relations, and organizational development. They use text analysis for:

  • Employee Sentiment Analysis: Text analysis tools can evaluate employee feedback from surveys, performance reviews, and internal communications to gauge overall sentiment and engagement levels.
  • Recruitment: Analyzing text from resumes and cover letters can help HR teams identify the best candidates for open positions based on specific keywords and experience levels.
  • Policy Effectiveness: HR can use text analysis to assess the effectiveness of company policies by analyzing employee feedback and identifying areas for improvement.

Finance Teams

Finance professionals manage the company’s financial planning, analysis, and reporting. They can use text analysis for:

  • Expense Analysis: Text analysis can help categorize and analyze free-text data in expense reports, uncovering spending patterns and identifying cost-saving opportunities.
  • Risk Management: Finance teams can use text analysis to monitor financial news and reports for early warning signs of market changes or potential risks.
  • Compliance: By analyzing communications and transaction records, finance teams can ensure adherence to regulatory requirements and detect potential compliance issues.

Text analysis software is a valuable asset for various departments within a business, from data science and marketing to customer service and HR. Each professional group utilizes the software to extract actionable insights from unstructured text data, enabling better decision-making, enhanced efficiency, and improved overall performance. By integrating text analysis into their workflows, businesses can harness the full potential of their data and drive success across all areas.

Challenges with Text Analysis Software

While text analysis software offers numerous advantages, its deployment, and effective use come with several challenges that organizations need to address to maximize its potential. These challenges include:

  • Data quality and preprocessing
  • Language and content understanding
  • Integration with existing systems
  • Scalability
  • Privacy and security concerns

These challenges can be avoided through strategic planning, advanced technology, and cross-functional collaboration. It is also important to ensure that the software is implemented with users being trained on it in the most efficient manner. 

How to Purchase Text Analysis Software

Selecting the right text analysis software for your business is a critical decision that can significantly impact your organization’s ability to harness insights from unstructured text data. Here’s a step-by-step guide to help you navigate the purchasing process effectively:

1. Define Your Requirements

Start by understanding the specific needs of your business. Are you looking to improve customer service, enhance marketing strategies, monitor brand reputation, or gain insights from internal communications?

Next, list must-have features such as sentiment analysis, entity recognition, keyword extraction, language support, integration capabilities, and user-friendliness. Ensure the software can scale with your business and adapt to evolving needs. Flexibility in terms of deployment (cloud-based or on-premises) is also important.

2. Conduct Market Research

Research the available text analysis software solutions in the market. Use review sites, industry reports, and technology forums to gather information on the top contenders.

Compare vendors based on features, pricing, customer reviews, and industry reputation. Look for case studies or success stories from businesses similar to yours.

Arrange for product demonstrations to see the software in action. Pay attention to accuracy, speed, and value of insights during these demos.

3. Evaluate Total Cost of Ownership

Consider the upfront costs, including licensing fees, setup costs, and any required hardware or infrastructure investments. Factor in maintenance fees, subscription costs, potential costs for updates or additional features, and support services. Be aware of any hidden costs, such as training, customization, and integration with existing systems.

4. Assess Integration and Compatibility

Integration with Existing Systems:

Ensure the software can integrate seamlessly with your current IT infrastructure, including CRM, ERP, and other data management systems.

Data Import and Export:

Check if the software supports easy data import/export to facilitate smooth data migration and interoperability with other tools.

5. Consider User Experience

Choose software that is user-friendly and requires minimal training. A good user interface can significantly enhance adoption rates among employees. Evaluate the vendor’s customer support services. Look for comprehensive training programs, documentation, and community forums.

Purchasing text analysis software is a strategic investment that requires careful consideration of your business needs, budget, and technical requirements. By following these steps—defining your requirements, conducting thorough research, evaluating costs, ensuring compatibility, considering user experience, ensuring security, pilot testing, and negotiating terms—you can select the right solution that will provide valuable insights and drive business success.

Implementation of Text Analysis Software

Implementation of text analysis software should be done in a systematic and planned manner. It’s important to train your team on how to use the software and understand the insights it provides. You should also regularly evaluate the software’s performance and make adjustments as needed to ensure it continues to meet your business needs.

Text Analysis Software Trends

In today’s digital age, text analytics solutions continue to evolve. One emerging trend is the increasing use of AI in text analytics, enhancing the software’s ability to understand and interpret human language. Another trend is the growth of real-time analysis, enabling businesses to respond quickly to emerging trends or issues. The future of text analysis software looks promising, with new advancements on the horizon that will further enhance its functionalities.

Text Analysis Software with Pearl-Plaza

If you are looking to improve your text analysis, consider Pearl-Plaza as your partner. Pearl-Plaza was recently named a leader in the Forrester Text Mining & Analytics Wave. Recognized for our knowledge-based AI and best-in-class text extraction, the Pearl-Plaza platform is the best choice for enterprises looking to take their text analytics to the next level. You can read the full report here!

REPORT

Pearl-Plaza Named a Leader in The Forrester Wave™: Text Mining And Analytics Platforms, Q2 2024

Learn how Pearl-Plaza is pioneering innovative solutions for businesses to extract insights and drive meaningful change from their unstructured text data.

Get the Report

Response Bias in CX: How to Get Better Feedback

Response Bias

Creating and executing the perfect survey that avoids obtaining misleading feedback can be tricky business. To be successful, you’ve got to watch out for inaccurate data such as sampling bias, framing bias, and most importantly, response bias. 

What is Response Bias?

Response bias is our human tendency to self-report inaccurate (or even false) answers to survey questions. For example, if someone asks you how much you exercise, you might be inclined to say four times a week, even if the answer is two. 

It doesn’t matter if it’s intentional or accidental—if humans are inaccurately reporting on their experiences, this false information can negatively affect the data gathered from your survey. Unfortunately, if you aren’t getting accurate data from your surveys because of response bias, you can’t rely on it to improve experiences for your customers and employees. 

How Common Is Response Bias?

Response bias can occur to varying degrees in almost any survey or study involving human participants. Its occurrence depends on several factors, including the nature of the questions asked, the survey methodology used, the characteristics of the sample population, and the efforts made to minimize bias.

In some cases, response bias may be minimal, especially if researchers take proactive steps to mitigate it, such as ensuring anonymity, using randomized sampling, and designing neutral survey questions. However, in other cases, response bias can be more pronounced, particularly if the survey topic is sensitive or if participants have strong opinions or motivations that influence their responses.

It’s essential to recognize that while response bias can never be eliminated, but researchers can take steps to minimize its impact. By employing best practices in survey design, sampling, and data analysis, researchers can reduce the likelihood of response bias and improve the accuracy and reliability of their findings.

Can A High Response Rate Decrease Response Bias?

A high response rate doesn’t necessarily guarantee a decrease in response bias, although it can help mitigate certain types of bias.

When a survey achieves a high response rate, it generally means that a larger proportion of the target population has participated. This can reduce voluntary bias, as a more representative sample of the population is likely to have been captured. However, even with a high response rate, other forms of response bias, such as social desirability bias or acquiescence bias, may still be present if respondents provide inaccurate or misleading answers.

To reduce response bias effectively, researchers should focus on employing strategies aimed specifically at minimizing bias. While a high response rate can be an indicator of a more representative sample, it’s not a standalone solution for addressing response bias.

What Causes Response Bias?

Response bias can stem from several sources. Respondents may alter their responses to present themselves in a more favorable light or conform to social norms. Similarly, some individuals tend to agree with statements regardless of their content. Both of these things can skew results from a questionnaire. 

Can the Wording of A Question Create Response Bias?

Yes, the wording of a question can create response bias. The way a question is phrased can influence how respondents interpret it and, consequently, how they choose to answer. 

For example, leading questions that suggest a particular answer or contain biased language can lead respondents to answer in a way that aligns with the wording of the question. An example of this would be the question “Don’t you agree that product X is better than product Y?” This question implies that one product is better than the other, which may lead the respondent to agree. 

What Are the Different Types of Response Biases? 

According to the experts, there are lots of response biases. Here is an overview of the seven major types of response biases and an example of each.

  • Social response bias: This happens when survey respondents overreport on good behaviors and under-report on bad behaviors. Think about it this way—few people will admit they eat 5-6 bars of chocolate per week, so respondents will tend to under-report their chocolate consumption, skewing the data in the process.
  • Non-response bias: This happens when a survey sample isn’t representative of the target population. Imagine you’re trying to survey customers who attended a grand opening via email. However, half of the surveys went to the attendees’ spam folder. So, the responses you receive only represent half of the attendees. 
  • Hostility bias: When you ask survey respondents about unpleasant memories or negative experiences, the responses might become hostile. An example of this is asking emergency room hospital patients how their experience was—they might only remember their pain and suffering.
  • Satisficing: Respondents who display this form of response bias are likely to leave questions unanswered or to answer dishonestly. These types of customers are trying to satisfy the task of completing the survey, and typically rushing through questions, instead of carefully reflecting on their experiences and providing valuable feedback. 
  • Recency bias: This is a psychological phenomenon of simply picking the answer the respondent reads—one of the reasons why it’s so important to randomize choices.
  • Wording bias: When it comes to surveys, wording matters. Even something as simple as greeting a customer by name can psychologically influence their responses—they might assume someone is personally reading the survey, and be less likely to provide honest feedback
  • Voluntary Bias:Voluntary response bias occurs when individuals choose whether or not to participate in a survey or study, and their decision to participate is influenced by factors related to the topic being studied or their own characteristics.

How to Check for  Response Bias

To identify response bias, you will need to cross-reference survey responses with other data. For example, comparing self-reported behaviors with objective measures or official records can reveal inconsistencies. 

Another way to identify response bias is by examining response patterns within the survey data that can uncover indications of bias. Trends such as consistently high or low ratings, excessive agreement or disagreement with statements, or patterns related to question order.

How Can CX Leaders Reduce Response Bias?

Now, let’s take a break down some ideas for reducing response bias. Here are some tips from our Pearl-Plaza experts:

  • Understand Your Demographic. This should be the first exercise your brand takes on when designing a survey. Ask yourself who are you surveying, what kind of information are you looking for, and what might be some of the obstacles in the way of an accurate data set. Of course, we recommend running this workshop with an expert in human behavior to make sure you have all your bases covered! 
  • Diversify Questions. No one likes to fill out a repetitive survey— change up the questions and the formats to keep your respondents engaged. You can swap between a mix of binary response questions (yes or no) with those that offer a range of responses with checkboxes, which will keep the participants’ brains focused on the task at hand instead of zoning out.
  • Allow Participants to Say “No.” This is a simple, yet powerful solution to ensure you’re getting accurate data. Allowing participants the power to say “no” or “I’m not sure,” will help you avoid those respondents who don’t have insightful commentary on this particular question.
  • Avoid Question-Wording Bias. The best way to avoid this type of bias is to balance the response options between an equal amount of positive and negative options. If you ask a survey respondent a question like, “It’s ok to eat ice cream once a week, right?” This will surely solicit a skewed and biased response.
  • Avoid Emotionally Charged Terms. Ideally, surveys are designed with neutral language wherever possible. Adding in active verbs like “smash” or “brutalized” are sure to elicit an emotional response from a participant. 

Why You Want to Avoid Response Bias

Avoiding response bias is crucial because it compromises the validity and reliability of survey data, which leads to inaccurate conclusions and potentially misleading insights. Response bias distorts the true representation of the population being studied, as it skews the distribution of responses away from what would be expected in the absence of bias. This undermines the integrity of the research findings and can have serious implications for decision-making based on the survey results.

Is Response Bias a Sampling Error?

Response bias is not classified as a sampling error per se. Sampling error refers to the variability that occurs when a sample is selected from a population rather than surveying the entire population. It is inherent in any sampling process and can be quantified using statistical methods. 

Response bias, on the other hand, occurs when the responses from the selected sample do not accurately reflect the true characteristics or opinions of the population due to systematic errors in the data collection process. While both sampling error and response bias can affect the accuracy of survey results, they arise from different sources and may require distinct strategies for mitigation.

How to Minimize Response Bias

Eliminating response bias can be almost impossible. However, some measures can be taken to minimize response bias and ensure that the data you are collecting is as accurate as it can be. Here are some steps you can take to minimize response bias: 

  • Use randomized sampling techniques: Employing sampling methods such as systematic sampling helps ensure that every member of the population has an equal chance of being selected for the survey. This reduces the likelihood of voluntary bias and ensures that the sample is representative of the population.
  • Guarantee anonymity and confidentiality: Assure respondents that their responses will remain confidential and anonymous. This can encourage honesty and reduce social desirability bias, as respondents feel more comfortable providing truthful answers without fear of judgment.
  • Use multiple response formats: Incorporate a variety of response formats, such as multiple-choice, open-ended, and Likert scales. Offering different response options allows respondents to choose the format that best reflects their opinions or experiences, reducing the likelihood of response bias.

By implementing these strategies, researchers can help mitigate response bias and improve the quality and reliability of survey data.

Let Pearl-Plaza Reduce Response for You

At Pearl-Plaza, we believe the best experience programs are a combination of best-in-class technology + human expertise. And at Pearl-Plaza, we’ve got both of these covered:

Solution #1: Take Advantage of Pearl-Plaza’s Best-In-Class Tech

Pearl-Plaza’s Experience Improvement (XI) Platform is made up of a series of applications to help you design the perfect survey and come up with results that help your business actually improve experiences for customers and employees.

Specifically, Pearl-Plaza’s patented, AI-powered Active Listening Studio is used to, well, actively listen to survey respondents when they are filling in their answers. The application is designed to encourage rich conversations by listening and responding to customers in real-time, eliciting not only more, but more valuable responses. One example of this is prompting the respondent to “share more.” For instance, if the question is, “Tell me about your experience in-store today,” you can set up parameters and triggers in the Active Listening Studio to ensure the customer provides feedback of 200+ characters.

Wondering what kind of results Pearl-Plaza clients have seen? Using the Active Listening Studio to revamp its listening, a leading global retailer increased survey response rates by 37% and response length by 38%. This meant more and better customer-sourced guidance for every department across the organization.

Solution #2: Leverage Pearl-Plaza’s Human Expertise

 At this stage in the customer experience landscape, we can’t solve problems using technology alone. True innovation often requires a human touch. 

Pearl-Plaza is made up of lots of people, and some of those are data science experts. Yes, we’re experts in CX, EX, and MX, but more importantly—we’re experts in human behavior. Our data scientist- and PhD-led Strategic Insights team are the best in the business when it comes to helping our clients design and execute surveys without response bias. Don’t take our word for it though! In a recent Forrester Wave report, Pearl-Plaza was classified as a leader!

Response Bias: A Recap

When it comes to surveys, customer experience practitioners should avoid response bias at all costs. And there are so many types to look out for! Whether it’s hostility bias, recency bias, or non-response bias, all types of bias can skew your data set and affect your overall experience improvement goals. The end result of a survey without response bias is cleaner data, more accurate insights, and a clearer picture of how to improve experiences for customers and employees. 

Pearl-Plaza is here to help you every step of the way with our award-winning customer experience platform that combines best-in-class technology and experts in data science and human behavior. 

unstructured data analytics

Any successful business knows that understanding their customers is key to success. The best way to do that is by being able to understand the vast amounts of unstructured data that come with customer interactions.

What is Unstructured Data?

Unstructured data refers to information that doesn’t have a predefined data model or isn’t organized in a structured manner like traditional databases. Unlike structured data, which fits neatly into rows and columns, unstructured data lacks a clear format, making it more challenging to analyze using traditional data processing techniques.

What Are the Characteristics of Unstructured Data?

Unstructured data is characterized by its lack of organization. It doesn’t adhere to a predefined schema or format, which makes it difficult to organize and categorize. Unstructured data often comprises a significant portion of the total data generated by organizations and individuals. Analyzing unstructured data requires more advanced techniques than standard data analysis. 

Where Does Unstructured Data Come From?

Unstructured data can come from various sources. Anytime data is qualitative, like how different customers felt they were treated by your business, it is most likely unstructured data. Other examples of unstructured data sources include social media posts, call transcriptions, and customer reviews. 

Why Is Unstructured Data Important?

To put it simply, it is estimated that close to 90% of all data is unstructured. Unstructured data is so important because it represents such a large portion of the total amount of data you will interact with. If you do not have ways of dealing with this data, you will fall behind your competitors. 

Furthermore, the most important customer data is unstructured. Normal data analysis won’t be able to tell you about a customer’s feelings related to your brand, and how those feelings will affect their interactions with your brand in the future. 

Structured Data vs Unstructured Data

Structured data and unstructured data differ primarily in their organization, format, and ease of analysis. Structured data is organized neatly into rows and columns within a database or spreadsheet, following a predefined schema. Unstructured data doesn’t adhere to a specific format or structure, which makes it more challenging to categorize and organize.

Similarly, structured data typically exists in a structured format such as databases (SQL, NoSQL), spreadsheets (Excel), or other tabular formats. Unstructured data doesn’t follow a standardized structure and can exist in forms from audio files to customer reviews. 

Overall, structured data typically represents a smaller portion of the overall data compared to unstructured data, and is relatively easier to analyze using traditional data analysis techniques. 

Examples of Unstructured Data

The best example of unstructured data is customer reviews. Online reviews don’t usually hold much quantitative value, but that doesn’t mean their impact is any less significant. Customer reviews can either elevate your brand by increasing consumer trust and brand reputation, or they can deter potential customers away from your business.

Another example of unstructured data is a call transcript. Customers who speak with contact center agents often provide key pain points that they need to be able to identify. Analyzing these transcripts with solutions such as conversation intelligence can reveal valuable insights into customer preferences, concerns, and issues, which can inform business strategies and improve customer service.

How is Unstructured Data Used?

Unstructured data, despite its inherent complexity, holds immense potential for various applications across industries. By leveraging advanced unstructured data analytics techniques, organizations can extract valuable insights and derive actionable intelligence from unstructured data. 

When customer data comes in the form of social media posts, reviews, or survey responses, it can be analyzed to gauge public sentiment toward products, services, brands, or events. Sentiment analysis algorithms classify text data as positive, negative, or neutral, which provides valuable feedback for businesses to understand customer perceptions and sentiment trends.

Consider a retail company that monitors social media platforms to analyze customer feedback about its new product release. By conducting sentiment analysis on tweets and comments, the company identifies areas of improvement, addresses customer concerns promptly, and adjusts its marketing strategies to enhance customer satisfaction down the road.

Advantages and Disadvantages of Unstructured Data

Unstructured data offers organizations rich insights and real-time feedback from diverse sources like social media and customer interactions, driving innovation and flexibility in decision-making. However, its inherent complexity, large volume, and potential quality and security challenges can pose significant hurdles in analysis, storage, and privacy protection. Here is an overview of the advantages and disadvantages of unstructured data:

Advantages of Unstructured Data:

  • Rich Insights: Unstructured data often contains rich, diverse information that can provide valuable insights into customer behavior, market trends, and business operations. By analyzing unstructured data, organizations can uncover hidden patterns, correlations, and opportunities that may not be apparent from structured data alone.
  • Real-Time Feedback: Unstructured data sources such as social media, customer reviews, and online forums provide real-time feedback and insights into customer sentiment, preferences, and opinions. This enables organizations to respond quickly to customer needs, address concerns promptly, and adapt their strategies in real-time to meet changing market demands.
  • Flexibility: Unstructured data is inherently flexible and adaptable, allowing organizations to capture and analyze a wide range of data types and formats, including text, images, videos, and audio recordings. This flexibility enables businesses to gain a comprehensive understanding of their customers and operations, driving innovation and competitive advantage.
  • Innovation: Unstructured data fuels innovation by providing new sources of inspiration, creativity, and discovery. By exploring unstructured data sets, organizations can uncover novel insights, ideas, and solutions that lead to breakthrough innovations, product enhancements, and business opportunities.

Disadvantages of Unstructured Data:

  • Complexity: Unstructured data is inherently complex and challenging to manage, analyze, and interpret. Unlike structured data, which follows a predefined schema and format, unstructured data lacks organization and consistency, making it difficult to extract meaningful insights without advanced analytics tools and techniques.
  • Volume: Unstructured data often constitutes a significant portion of the total data generated by organizations, resulting in data overload and scalability issues. Managing and storing large volumes of unstructured data can strain IT infrastructure, increase storage costs, and impact performance.
  • Quality: Unstructured data may vary widely in quality, accuracy, and reliability, leading to potential inaccuracies and biases in analysis and decision-making. Cleaning, preprocessing, and validating unstructured data can be time-consuming and resource-intensive, requiring careful attention to ensure data quality and integrity.
  • Privacy and Security Risks: Unstructured data may contain sensitive or confidential information, such as personal data, intellectual property, or trade secrets, which pose privacy and security risks if not adequately protected. Unauthorized access, data breaches, and regulatory compliance issues are significant concerns associated with unstructured data, requiring robust security measures and data governance frameworks to mitigate risks.

Overall, there are various pros and cons to the use of unstructured data. But, if businesses are diligent in setting up the proper unstructured data analysis processes, it can provide a wealth of useful information to your business. 

How Unstructured Data Relates to the Customer Experience

Harnessing the power of unstructured data will allow you to create the best customer experience for your business. By properly analyzing unstructured data, you will not only be able to identify what your customers are currently liking or disliking, you’ll be able to predict their expectations in the future utilizing predictive customer analytics. Here are some ways that unstructured data can help you improve the customer experience:

Understanding Customer Sentiment

Unstructured data, such as social media posts, customer reviews, and feedback emails, contains valuable insights into customer sentiment. By analyzing the language, tone, and context of customer interactions, you can gain a deeper understanding of customer attitudes towards your products, services, and brand. This knowledge enables organizations like yours to identify areas for improvement, address customer concerns proactively, and enhance overall satisfaction.

Personalizing Customer Interactions

Unstructured data allows businesses to personalize customer interactions and tailor their offerings to individual preferences. By analyzing customer data from various sources, such as call transcripts and purchase histories, organizations can identify patterns and trends that inform personalized marketing campaigns, product recommendations, and customer service interactions. This personalized approach can also be a part of larger AI customer experience initiatives that enhance the customer experience, foster loyalty, and drive customer engagement and retention.

Monitoring Brand Reputation

Unstructured data allows businesses to monitor and focus on their brand reputation management in real-time. By tracking mentions, reviews, and conversations about their brand on social media, news sites, and online forums, organizations can quickly identify and address potential reputation issues or crises. This proactive approach helps safeguard brand integrity, maintain customer trust, and mitigate the impact of negative publicity on the customer experience.

Harness Your Unstructured Data with Pearl-Plaza

Ready to unlock the full potential of your unstructured data with Pearl-Plaza? Schedule a demo today and discover how our platform can drive actionable insights and elevate your customer experience strategy!

References 

Research World. Possibilities and limitations, of unstructured data. (https://researchworld.com/articles/possibilities-and-limitations-of-unstructured-data) Accessed 2/29/24.

Pearl-Plaza Advanced AI: Supercharging CX

Close up of businessman using a laptop with graphs and charts on a laptop computer.

Data is gold. Data is truth… but data is useless if you can’t rely on it. 

Understanding customer and employee sentiment is more than just a competitive edge—it’s essential, with companies in every industry and sector focusing resources on comprehending it. 

We have a revolutionary tool that we’d like to share, one that has helped businesses large and small navigate this space. Pearl-Plaza Advanced AI turns diverse data streams into valuable insights companies can use for their strategy. It’s been the change clients in various fields have relied on. So for starters…

What is Pearl-Plaza Advanced AI??

Pearl-Plaza Advanced AI is a comprehensive data analytics tool that integrates and analyzes structured and unstructured data using advanced Natural Language Processing (NLP) and AI. It offers a deep understanding of customer and employee feedback, transforming complex data into clear and actionable insights. 

Central to Pearl-Plaza Advanced AI’s functionality are predictive analytics and customizable dashboards, which enable businesses to understand current data trends and anticipate future customer patterns and behaviors across these data sets. 

Pearl-Plaza Advanced AI’s power lies in its ability to analyze both historical customer experience data and real-time data sources like social media and reviews. This dual capability offers businesses an advantage over competitors who may excel in historical data analysis or current data interpretation, but struggle to integrate both into timely insights. Pearl-Plaza Advanced AI’s integrated approach provides a comprehensive view, turning past and present data into powerful, actionable insights for immediate strategic impact.

Pearl-Plaza Advanced AI enables businesses to process virtually any type of content, enrich and understand that content, and visualize it through a powerful set of dashboarding tools. The engine that enables this enrichment uses AI and NLP to understand the content and derive valuable metadata, including: intent prediction, effort signals, and emotion detection. 

Let’s go over what these are and their broader implications.

Intent Prediction

Intent prediction is a crucial component of data analysis, focusing on deciphering the underlying intentions behind customer interactions. This technology uses deep learning models to predict a customer’s future actions or needs. 

For example, in customer service interactions, intent prediction can determine whether a customer is likely to purchase, seek support, or churn. By understanding these intentions, businesses can proactively address customer needs, enhancing the overall customer experience and increasing sales and customer satisfaction.

Effort Signals

Effort signals involve analyzing customer interactions to gauge the degree of effort a customer exerts in their journey. This metric is key in understanding customer satisfaction and loyalty, as higher effort levels correlate with negative customer experiences. 

By analyzing data such as the length and complexity of customer service interactions, businesses can identify areas where customers face difficulties. Addressing these high-effort points can significantly improve the customer experience, increasing satisfaction and loyalty.

Emotion Detection

Emotion detection is identifying and analyzing emotional states in customer interactions. This aspect of sentiment analysis uses a BERT deep learning model to assign an emotion to the speaker or subject of a sentence or thought. 

This technology can distinguish between emotions like happiness, frustration, or disappointment. Emotion detection helps businesses tailor their responses and strategies to align with customer emotions, enhancing personalized customer experiences and building stronger emotional connections with the brand.

Types of Data

Structured: The Backbone of Predictability

Structured data is the cornerstone of conventional data analysis, representing the world of quantifiable and measurable information. Characterized by its specific, organized format, structured data neatly aligns in rows and columns, reminiscent of spreadsheets or relational databases. This meticulous arrangement makes it well-suited for quantitative analysis, offering clear, objective, and mathematical insights into various aspects of business and customer behavior.

It is the language of logic and mathematics, offering a clear, structured view of the world that is easily interpreted by computers. Its strength lies in its straightforward aggregation and manipulation, allowing businesses to accurately quantify and measure trends, performance metrics, and other key indicators.

This data type is the foundation of data-driven decision-making, enabling enterprises to translate complex phenomena into understandable metrics. While it might lack the nuanced storytelling of unstructured data (we’ll get there in a second), structured data offers the definitive “what” in the story of customer and business interactions—the concrete, quantifiable facts that are essential for informed strategy and planning.

Unstructured: The Streaming Thoughts of Your Everyday Life

Unstructured data, the most raw and unrefined form, is abundant and profoundly human by nature. Emerging from sources rich in personal expression like open-ended survey questions, reviews, social media, and SMS messages, this data type offers a window into the authentic human experience. 

According to IDC, The Digital Source, 85% of customer data is unstructured and it’s growing at 55% per year, highlighting the vast and rapidly expanding landscape of human communication that structured data cannot capture. Tools like Pearl-Plaza’s Advanced AI are essential in harnessing this wealth of information, translating natural language complexities into actionable insights, and unlocking the deepest understanding of customer experiences and needs.

What sets unstructured data apart is its embodiment of language. It directly reflects our unfiltered and unstructured thoughts in their most natural state. While structured data can be seen as the mathematics of human behavior, unstructured data is pure, unadulterated human communication.

This richness, however, presents a challenge: unstructured data is the hardest for computers to decipher, as it requires understanding nuances, context, and the subtleties of human language. Despite this complexity, our deepest and most meaningful insights lie in these unstructured narratives. Tools like Pearl-Plaza’s Advanced AI are essential in harnessing this wealth of information, translating natural language complexities into actionable insights, and unlocking the deepest understanding of customer experiences and needs.

Bringing Them Together: The Full Story

Integrating structured and unstructured data is a key aspect of Pearl-Plaza Advanced AI and, arguably, its strongest feature. Structured data provides precise, quantifiable insights, such as the exact factors contributing to customer churn

While structured data gives you the numbers, unstructured data provides the “why” behind these figures. It’s found in customer verbatims and feedback, revealing the customers’ personal stories, opinions, and suggestions. It’s the narrative that puts context and meaning behind the numbers. But on its own, unstructured data can be overwhelming and hard to navigate to find the most impactful insights.

Combining structured and unstructured data tells the full story. This integration allows businesses to quantify aspects of the customer experience and understand the underlying reasons behind these metrics. With Pearl-Plaza Advanced AI, companies can sift through the rich, detailed narratives in unstructured data, guided by clear, actionable insights from structured data. This holistic approach enables a deeper understanding of customer needs and preferences, leading to more informed and effective business decisions.

Pearl-Plaza Advanced AI bridges the gap. 

Spotlight Addresses Key Business Challenges

Understanding and Predicting Customer Behavior

We mentioned this earlier, but we’d like to go more in-depth—this one’s important. One of the paramount challenges businesses face today is their inability to predict future customer behaviors. Pearl-Plaza Advanced AI  excels in this area using AI-powered, advanced analytics and machine learning algorithms. 

According to Gartner, by 2025, customer service organizations that embed AI in their multichannel customer engagement platform will elevate operational efficiency by 25%, underscoring the efficiency gains possible with advanced AI solutions. This capability enables businesses to move beyond surface-level insights, delving into predictive analysis that anticipates future customer actions and preferences.

By understanding these predictive patterns, companies can tailor their strategies proactively, ensuring they are always one step ahead in meeting customer needs and expectations. This forward-looking approach is vital for maintaining competitive advantage and fostering customer loyalty.

Data Unification and Analyzation: A Single Source of Truth

Data silos are a significant barrier to effective decision-making in many organizations. 

Tyler Saxey, Director of CX at Foot Locker, states, “Pearl-Plaza now ticks all of the boxes. Pearl-Plaza AI solves for any previous text analytics issues. Analyzing call transcripts and getting to the root cause brings a big ROI.” Pearl-Plaza Advanced AI addresses this issue head-on by offering data unification capabilities, consolidating data from various sources and providing a comprehensive and unified view of customer information. This holistic approach is vital for creating consistent and effective customer experiences across all touchpoints.

By breaking down these silos, Pearl-Plaza Advanced AI ensures that all decisions involve a complete and accurate picture of customer data—no decisions are made in isolation. This unified view is invaluable for creating consistent and effective customer experiences across all touchpoints.

Regulatory Compliance: Ensuring Communication Standards

We live in a time with increased scrutiny of companies’ regulatory compliance. Pearl-Plaza Advanced AI is essential in ensuring that customer communications meet the necessary standards. This aspect is crucial for highly-regulated businesses in industries like finance, healthcare, and telecommunications. 

Pearl-Plaza Advanced AI can help monitor and analyze customer communications, ensuring they adhere to industry regulations and standards. This compliance monitoring not only helps avoid potential legal issues but instills trust among customers, who are increasingly concerned about how their data is handled and used. With nearly 65% of the world’s population expected to have its personal data covered under modern privacy regulations by 2023, up from 10% today, according to Gartner, the importance of incorporating advanced AI for regulatory compliance cannot be overstated.

Why Spotlight is Essential for All Businesses 

Enhancing Experiences: Tailoring Strategies for Satisfaction and Loyalty

Pearl-Plaza Advanced AI significantly enhances customer and employee experiences. 

Tony Darden, COO of Jack in the Box, shares, “The use of the Pearl-Plaza AI solution will allow us to easily analyze feedback in all its forms to receive more detailed and immediate insight from a wider variety of guest experiences. Our team is focused on using the additional insight to make business decisions without delay—having a faster time to guest improvement that will positively influence their experience with our brand leading to increased loyalty.” 

By leveraging advanced analytics to understand sentiment and feedback, businesses can tailor their strategies and offerings to better meet their customers’ and employees’ needs and expectations.

Reducing Churn: Anticipating and Addressing Customer Needs

Customer and employee churn is a major challenge for businesses, resulting in lost revenue and increased recruitment and training costs. Pearl-Plaza Advanced AI’s predictive analytics capabilities play a vital role in identifying the early signs of dissatisfaction or disengagement. By anticipating these factors, businesses can proactively address issues before they lead to churn. This proactive approach helps retain customers and ensures that employees feel valued and engaged, reducing the likelihood of them seeking opportunities elsewhere.

Strategic Decision-Making: Prioritizing Initiatives for Maximum Impact

Data-driven decision-making is at the heart of modern business strategies. Pearl-Plaza Advanced AI provides comprehensive insights that help businesses prioritize their initiatives, focusing on areas yielding the greatest cost savings or revenue increases. These insights guide businesses in allocating resources effectively, whether it’s refining marketing strategies, optimizing operational processes, or enhancing customer service. By basing decisions on solid data, businesses can maximize their ROI and align their strategies with their overall goals.

The Takeaway: A Holistic Approach for a Winning Strategy

Pearl-Plaza Advanced AI’s ability to integrate data across multiple channels is a game-changer, providing a unified view of information from various sources. This cross-platform integration is crucial for strategic planning and executive decision-making. It allows businesses to make informed decisions based on a comprehensive understanding of their operations, market trends, and customer behaviors. 

By breaking down data silos, Pearl-Plaza Advanced AI ensures that a complete and accurate picture of the business landscape backs every decision. A study by McKinsey & Company found that companies that utilize customer analytics comprehensively are 23 times more likely to outperform competitors in terms of new-customer acquisition and nine times more likely to surpass them in customer loyalty.

Pearl-Plaza Advanced AI’s ability to transform this unified data into actionable strategies makes it indispensable. Its benefits are wide-ranging and impactful, from enhancing experiences and reducing churn to aiding in strategic decision-making and facilitating cross-platform data integration. Adopting Pearl-Plaza Advanced AI is not just a step towards better data analysis, but a leap towards a more informed, customer-centric, and efficient business model.

For businesses considering Spotlight:

  • How are you currently gathering and interpreting customer and employee feedback?
  • What tools are in use for understanding customer and employee experience?
  • How is this data being used to drive experience initiatives?

A Final Word

Pearl-Plaza’s Pearl-Plaza Advanced AI stands out in the realm of customer experience management. Its ability to harness structured and unstructured data, combined with advanced analytics, positions it as an indispensable tool for businesses aiming to enhance customer engagement and make data-driven decisions. 

Adopting Pearl-Plaza Advanced AI translates into not just collecting feedback but transforming it into a strategic roadmap for business success. Stay ahead of the pack and contact us to learn more about how Pearl-Plaza Advanced AI can directly impact your business.

The potential for machine learning to elevate the customer experience has everyone buzzing. AI-powered text and sentiment analysis can be an incredible solution for specific problems that CX pros face. 

But how do you know when the time is right to move to the next level of CX? Are there new tools you can purchase to step your game up? How do you know they’ll be worth it? 

There are clear signs that your CX program is ready for, and your company could quickly benefit from, text and sentiment analysis. And we’ll delve into them here.

Before we get going, some definitions:

  • Text analysis takes qualitative customer comments and determines relevant themes. Software companies might see themes such as ‘feature request’, ‘bug’, or ‘pricing’. This allows you to quickly see what your customers are focusing on, and then dive in to see what they’re specifically saying about each topic.
  • Sentiment analysis offers micro and macro insights into how your customers are feeling about your company and products. It determines whether the text received for each text theme is positive, negative, or neutral. It also analyzes the comment as a whole, assigning sentiment to the entire verbatim text.

Let’s look at the 7 signs text and sentiment analytics will be worth the investment for your company. 

1. You have a mature or quickly-maturing CX program.

Those of you considering text and sentiment analytics probably already have a few key elements in place:

  •  A customer experience strategy and a Voice of Customer listening system
  • A C-suite sponsor who has been fostering a customer-centric culture across the whole company with NPS as the guiding star
  • A system asking for feedback through the entire customer journey 

Now that you have a relatively mature CX program, you’re wondering how to extract even more value out of it.

2. You receive 500+ comments per month (or you’re headed there.)

Ideally, you want to listen to all of your customers – not just a sample or the first to respond. In reality, at a certain point the sheer volume of incoming customer feedback is more than a CX program can handle without an upgrade. You know this is the case when:

  1. You feel excitement and dread regarding the amount of feedback you receive.
  2. You’re anticipating a whole lot more comments soon.
  3. You’ve even had to cap the number of comments you receive in a day to avoid being overwhelmed with the task of organizing and responding to everyone.

Overwhelming amounts of feedback is an amazing problem to have, but a problem nonetheless. Using text and sentiment analytics, you can turn unstructured qualitative feedback, like NPS comments, into organized insight in a matter of minutes.  

Text and sentiment analytics allow you to analyze customer feedback using Natural Language Processing, looking something like this:

Read Google’s case study on Wootric and Natural Language Processing here.

By combining text and sentiment analytics, you can search negative comments and quickly assess, for example, that 80% of your negative comments are about pricing. Or 45% of your customers in the Northeast region are talking about slow delivery times. That summary lets you know where to focus resources, and how quickly you need to make the change relative to other company priorities.

3. You’re sitting on a goldmine of feedback, but unable to get actionable insights.

Do you have a backlog of comments waiting to be read and sorted? Or maybe you’ve skimmed a few comments to answer the urgent ones, but you keep putting off the others.

One of our clients came to us with NPS survey comments from thousands of users. But rather than mining that information, they were running focus groups to prioritize feature requests because it was easier. They were duplicating efforts to get information they already had but couldn’t access and act on.

“The two biggest mistakes [in CX] are not doing qualitative research in the first place and then not putting it to use.” –Morgan Brown, Product Manager at Facebook and coauthor of ‘Hacking Growth’

If you’re feeling this pain, it’s time to automatically mine the insight from that pile of comments you’ve been sitting on. Turn anecdotes and hunches that you’ve got about your customer experience into evidence-backed insight by using. And do it quickly with text and sentiment analytics.

CXInsight™ Dashboard tagging segmentation screenshot

Source: CXInsight™ Dashboard

Sliced and diced organized feedback is easily available with many platforms that offer text and sentiment analytics. Doing this can help you understand the root cause of trends – like the needs of different customer personas or geographic regions – more comprehensively.

4. Manual feedback organization & categorization is insightful, but painfully slow.

While some customers duplicate efforts between data gathering and focus groups to get insight, other CX pros just bite the bullet and spend hours reading customer comments, labeling them, and funneling them into an unwieldy spreadsheet. They’re understandably frustrated by how difficult it is to get actionable insight.

By using text and sentiment analytics, humans can get huge quantities of customer feedback sorted and analyzed at the push of a button. Better yet, computers don’t have bad days or lose focus.

Once organized with tags, your time is freed up to look at the themes and trends that arise from the noise, then create actionable strategies based on those insights.  

Now you can jump straight into action and the interns can work on more interesting, valuable projects!

PRO TIP: To get high quality insights at the push of a button, algorithms need to be trained. Be sure your feedback management software vendor has a team that will work with your data to ensure you get valuable insight from the start. With more data and occasional human guidance, you’ll get better and faster insight over time.

5. Your CX program lacks a real-time issue detection system.

An important element to providing a good customer experience is making sure any issues are handled quickly and efficiently. If you can detect and address them before your customer has a real issue, your CX program has paid for itself.

One of the benefits of having text and sentiment analysis is that your data and insights are updated in real-time. This means you have a new issue detection system.

Source: CXInsight™ Dashboard

This works best for a more mature customer feedback program with an established baseline, or status quo. For example, you know that on any given day, in any given geographic region, about 10% of your comments are tagged with ‘out of stock’ as an issue. When you check in and see that in Texas, 25% of comments coming in are tagged ‘out of stock’, that raises a red flag. You can immediately dig into specifics, read through the verbatims, and send those comments to the right people for follow up before the issue blows out of proportion.

The CX dream of being proactive in solving issues can be achieved with the help of automated organization of qualitative feedback.

6. Your internal teams aren’t agreeing on CX priorities.

It’s a given that successful companies focus on customer needs and experiences. The question is: is everyone at your company seeing the same information in the same way? If not, you’re wasting time and costly resources with competing priorities, and it is definitely time to invest in tools to fix it.

By having your CX tech parse the text and sentiment of your 1K+ daily inputs of customer feedback, you can democratize the information and insights across every team at your company. And that will ensure team leaders can quickly align to address the right priorities. So product development and customer support will be on the same page, and features will get developed (or possibly de-bugged) to meet the most important needs of the customer.

How does that happen? Feedback from every customer touchpoint is analyzed, from in-product surveys to emails. In this example, support ticket subject lines are auto-categorized and everyone from support to service to product to the c-level can see what issues are hot items to address.

Support Ticket Text Analytics in Wootric CXInsight

Source: CXInsight™ Dashboard

Looking at the text analytics, it quickly becomes apparent that 15% of the support tickets are related to bugs that need to be addressed. On the proactive front, product could also delve into comments tagged “feature request” and focus on user concerns about UX/UI.

7. You need to demonstrate the ROI of your CX program.

Companies are eager to hop on the CX bandwagon, but it can still be a fight to get the proper resources to make a CX program thrive. You’ve probably already shown the C-suite the correlation between CX and revenue growth, but there’s pressure to squeeze a little more ROI out of what you’ve established. 

Investing in a tool that pulls ROI from data is an expense. But it’s a more strategic spend than, and offers more immediate follow-up and action, than  performing passive data review and organization. It’s also a moredirect value-add and much less expensive than hiring a third party human operation. 

The cascading effects throughout the organization will increase ROI in the long-term as well.

  • Product teams can prioritize and build with evidence-based confidence. 
  • Marketing teams will gain an understanding of different personas and see customers excited to spread the word about your business. 
  • Support and operations teams will have early warning of potential issues and have more context when dealing with problems.

In the end, qualitative data is crucial to extracting value out of CX initiatives. Having more data from engaged customers should not be an obstacle. 

Is this the point?

Are you seeing any of these 7 signs when you look at your company’s CX program? If so, do a cost benefit analysis. Typically, once your program has matured, the cost of tools that create actionable insights out of customer feedback are far cheaper than the cost of misaligned resources and long delivery times. Text and sentiment analytics make the resources you put into CX initiatives efficient, and turn the large quantity of unstructured data into an advantage by mining insight that would otherwise sit in limbo. Move this tipping point in your favor.

Auto-Analyzing Sentiment in Survey Feedback using NLP

Wootric (now Pearl-Plaza) uses CX metrics—Net Promoter Score, Customer Satisfaction and Customer Effort Score—to monitor customer experience for high-growth companies. We take a customer-centric approach to survey design. For example, our modern 2-question Net Promoter Score survey invites customers to elaborate freely on the reason for their score. We deliver millions of surveys that achieve response rates of 30-40%, generating thousands of pieces of unstructured customer survey feedback each week.

Why Is Survey Feedback Important?

Because when you communicate directly with your customers, they can identify exactly what works, what doesn’t work, and where the pain points are that may be detracting from their experience. Honest feedback gives you the insights you need to make improved business decisions and optimize the customer experience. As such, the right customer survey can play a significant role in increasing customer retention and helping your organization reach its goals.

Two Step in-app NPS Survey to collect survey feedback

Customer feedback comments are a treasure trove of information that can help a company shape their product and service for success. Until now it has been difficult for a Customer Insights Manager or customer experience management (CXM) teams to mine and aggregate qualitative data for insights that can guide business decisions.  

Auto-Tagging with Sentiment Analysis

We recently announced early access to a new product feature: auto-tagging. For auto-tagging, we use our homegrown machine learning system along with Google Cloud Natural Language API to automatically categorize open-ended customer-survey feedback that our customers get as part of their NPS, CSAT and CES programs. The goal is to help companies put some structure to all of this qualitative data. We have a long list of customers eagerly waiting to get their hands on this feature. It’s a good problem to have.

In addition, we are developing the ability to identify the sentiment of the feedback. The goal is to determine not only what the customer was talking about, but to say whether the feedback is positive, neutral or negative. It is particularly complex to decipher multiple “sentiments” within a single comment.  

Here is an example feedback comment that we received in response to a Net Promoter Score survey on our own production application (we practice what we preach):

“Setup guide for customizing social sharing on iOS SDK was confusing. Diego reached out with sample code which helped a lot.”

Wootric (now Pearl-Plaza) is a SaaS product, so our auto-tagger uses a SaaS data training model and applies three tags to this survey response (Documentation, SDK, People), and assigns a NEUTRAL sentiment for the feedback as a whole. This obviously is pretty good, but we want to do more.

Wouldn’t it be nice if we could dig deeper into survey feedback and apply sentiment for each tag as well? In the above example, the customer was not happy with the SDK Set-up Guide, but was pleased with Diego’s assistance.  This nuance is buried under the overall NEUTRAL sentiment. Ideally, the Documentation and SDK tags would be identified as having negative sentiment, while the People tag would be positive.  

We Can Identify Sentiment Associated with People, Team, Organization or Location

Buried survey feedback is not a trivial problem to solve. However, using Google Cloud Natural Language API’s latest feature called “entity sentiment analysis” we have made progress. We can already get sentiment for entities referenced in feedback where an entity is defined as People, Team, Organization and Location. In this case, Diego is an entity of type People and positive sentiment is correctly attached to it.

Example of Auto-tagging an Pearl-Plaza NPS Survey Response

CUSTOMER LANGUAGEAUTO-TAGSSENTIMENT
“Setup guide for customizing social sharing on iOS SDK was confusing. Diego reached out with sample code which helped a lot.” NEUTRAL
“Setup guide” Documentation    future
“iOS SDK”SDK    future
“Diego”PeoplePOSITIVE

A Business Use Case

Our customers often trigger a CSAT survey using our incoming webhooks and workflows when a support case is closed in their CRM system like Salesforce or Zendesk.



We notice that survey-feedback responses often reference a team or specific person that the customer has engaged with. Auto-tagging this feedback as “People” with applicable sentiment will provide these companies with an easy way to measure and track how customers are feeling about the people aspect of a company’s Customer Success or Support program.

Retain more customers. Start getting CX survey feedback today with Pearl-Plaza.

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