Text mining is the process of analyzing data contained in natural language text, and works by rearranging phrases and words in unstructured data into number-based values. These numerical values can then be connected or linked with structured data in a database. The resulting information is then analyzed using traditional data mining techniques. Text mining helps businesses obtain valuable insights from social media posts and email, insights that can be used for strategic planning for marketing and product development.
Because of the benefits such information can provide businesses, text mining is on the rise. Text analytics software is used in text mining to obtain relevant information from text-based streams such as text chats, phone call transcriptions, RSS feeds, social media posts, blogs, and survey responses, among other channels. What information can text mining provide, and how does analyzing text-based data affect your business?
Uncovering trends and sentiments
Through text mining, businesses can uncover emerging trends and track the most frequent topics mentioned by their customers online. Customer satisfaction issues and concerns can also be gauged as text analytics software can quantify sentiments based on context and content. By knowing what’s trending and what customers are looking for, big businesses can drive product development and adjust their marketing plan to quickly meet the needs of customers and provide customer satisfaction.
Anticipating customer behavior
Many kinds of text analytics software have the ability to build models that predict customer behavior in certain contexts and situations. For instance, a model or pattern derived from the analysis of tweets and Facebook posts may indicate that married women with children are twice as likely to purchase a particular car as married women without children. If you have a car dealership, this information may prove to be valuable. Text mining lets businesses know and understand their market, giving them the ability to anticipate what their customers will look for next and target those customers directly with the right sort of offers and material.
Forming meaningful customer relationships
If you have a small shop in a small village, you probably won’t have a difficult time keeping track of all your customers. You’ll probably know what it is each customer is looking for every time he or she walks in. When it comes to big business however, keeping track of what customers want in real-time without the use of any tool would be next to impossible, even if you employ a whole team to do so. This is where text mining comes in. Aside from giving businesses the ability to know what customers are looking for even before they ask, text mining also allows businesses to take into consideration individual preferences, which is especially useful when formulating ‘personalized’ marketing campaigns and making sales calls. Essentially it helps to break down the barriers and give a business/customer relationship as close as the corner shop owner as possible.
Better decision making
Text mining can help big businesses leverage all the unstructured information they have about their products, service, customers, and even their competitors to increase customer satisfaction. Text mining can also be used as part of a company’s Customer Relationship Management strategy. By knowing and understanding what customers want, business leaders would be able to interact with customers better and make better, more informed decisions for business success.