Retailers and Tech Can Use Sentiment Analysis to Tap Into Consumer Demand

Retail giants have had a severe year. While a economy continues to make gains, a batch marketplace reaching record highs and jobs reports putting smiles opposite economists’ faces, retailers such as Macy’s have unsuccessful to feat a improving mercantile landscape. In fact, according to WWD, Macy’s Inc., Sears Holdings Corp., The Limited, American Apparel, BCBG Max Azria Global Holdings, Wet Seal, J.C. Penney Co. Inc., and Abercrombie Fitch Co. are set to close down around 1,000 stores this year.

While there are positively mixed factors personification into these unsatisfactory results, one of a categorical reasons for a delayed sales was a outcome of bad product assortment. Basically, a retailers unsuccessful to put a right products on a shelves and consumers punished them by promulgation their dollars elsewhere.

Similarly, tech companies such as Fitbit have unsuccessful to accommodate a expectations when their products do not entirely perform a consumer demands. In a final months of 2016, Fitbit reported a detriment of over 50 cents per share. As a result, it was forced to cut behind and lay off 110 jobs as it attempted to reorganize.

Consumer view index does not cut it anymore

Understanding consumers is always high on retailers’ to-do list. However, too mostly these companies tumble into a trap of regulating superannuated selling methods such as a consumer view index to make product decisions. While a consumer view index delivers critical information of a macroeconomic conditions, it does not offer any assistance with assembly consumer demand.

Furthermore, a normal knowledge states that a best track is to offer a far-reaching accumulation of products on a shelves augmenting a chances that a consumer finds one that they like. Unfortunately, this process does not always work as many consumers spin confused and finish adult selecting a aspirant where they can some-more simply code a product they are indeed looking for.

Nobody wants to be bombarded with 25 opposite forms of toothpaste. Normally, what they wish is to find their favorite go-to toothpaste brand, and get out of a store as quick as probable after purchasing it.

Sentiment research can help

Sentiment research relies on healthy denunciation estimate (NLP), content mining, and information mining capabilities to find information on consumer demand. A margin of appurtenance training and synthetic intelligence, NLP allows machines to review and get definition from tellurian language. However, since it is finished by machines, it develops a approach to investigate millions texts and posts that are uploaded each day to amicable media sites like Facebook and Twitter.

Sentiment research reads by a texts to see either it is positive, disastrous or neutral. It can also take into comment a definition of a difference as good as in a specific context of what was said. The reason that view research is apropos renouned for sell and record businesses is since business increasingly demonstrate their desires, thoughts, preferences, and frustrations online.

With view research regulating NLP, now businesses have a event to find out what their business are observant and how they feel about a products they are charity during their stores. Using amicable media, it is now probable for retailers and tech companies to know a view of their business in real-time, anticipating out how they feel about a products on a shelves, store layouts, and commercials. Furthermore, view research can tell businesses how deeply a business feel a certain approach about their products, and that facilities are obliged for these feelings.

Going into a future, record businesses such as Fitbit, an innovative association in a wearable record sector, could spin their fortunes around by implementing view research with their product releases. With real-time information entrance in, a products group could make adjustments to make a open tumble in adore with their products again. More normal businesses like Macy’s can also use view research to make some-more appealing sell locations and batch their shelves to improved fit their customer’s mood.

By Taran Volckhausen
(Edited by Cherese Jackson)

About Vector

Vector is a healthy denunciation estimate focus that performs information descent on millions of news stories per day. It provides high value to any quantitative researcher, adding a collaborative authoring workflow in ideal synergy with a many absolute and singular faceted hunt in a business. For some-more information, greatfully revisit www.indexer.me.

Sources:

Vector: Discover a Magnitude Direction of your Data
Vector: Media Kit
Penske Media Corporation: Which Retailers Are Closing Stores in 2017

Photo Credits:

Top Image Courtesy of jpellgen – Flickr License
Inline Image Courtesy of Charis Tsevis – Flickr License
Featured Image Courtesy Vector Media Press Kit

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