When it comes to assessing the shopper journey, customer sentiment is a valuable KPI that measures consumers’ experiences with a brand throughout every touchpoint in their journey. While it may sound like just another feedback metric, the unique advantages of the KPI make it worth considering. As it gains popularity, here are some of the aspects you should know.
Traditional market research methods such as NPS are less effective in capturing nuances in the customer’s response. This metric uses a single survey question that only represents a positive and negative binary. Conversely, consumer sentiment models can express more detailed customer feedback, providing brands with actionable data.
For CPG (consumer packaged goods) brands, customer sentiment is particularly valuable. The high turnover rate of the products allows for quick adaptations and opinion changes. Customers often have more options and an easier time switching between brands. Since these products are often necessities rather than luxuries, it’s crucial to understand the consumer’s voice.
When analyzing customer sentiment, it’s important to have the right questions in mind. After all, the data isn’t beneficial unless it answers pertinent questions. For instance, brands should measure performance rates, understand the impact of customer sentiment on business processes, and assess influential market trends.
Since customer sentiment is a nuanced measurement, it’s easy for brands to misunderstand the data.
One example of this is failing to identify analytical criteria. Gautam Kanumuru talks about the practices of Yogi’s best clients, saying, “they always, always have a benchmark, whether it's certain competitors, or the market. But taking things in context is extremely important.” Without knowing what is expected of your field or what is actually relevant to your product’s success, brands can be too quick to make misguided decisions.
Another key mistake is drawing from only one source. Using small focus groups or specific demographics can fail to explain the bigger picture. Customers are varied and unpredictable, so the best customer sentiment data comes from an array of sources on a consistent basis. This way, your practices are up-to-date and more inclusive of your entire audience.
Any implementation of customer sentiment services will always come down to the executive team. This means that all analytics need to support the highest goals of the business. Haithem Elembaby says that “you can take a look at your to-do list or take a look at your KPIs for that quarter or that year and figure out if this new solution can connect to something that you’re already working on.” Implementing customer sentiment into your business processes streamlines the buy-in process.
Most brands recognize the value of customer sentiment services, but it can be much harder to promote the concept to cautious budget-holders. Aside from investments, it’s beneficial to make long-term connections with the vendors themselves. This leads to better utilization of the service and access to knowledgeable people who can answer difficult questions.
Lastly, Haithem encourages companies to push for what they believe in. Hundreds of brands have seen tangible improvements by acting on customer sentiment insights that were previously unattainable. Focusing on the small wins early on can be enough to demonstrate the value. He says, “They don't even have to...blow the socks off the organization and create millions of dollars of revenue, but you want to almost guarantee that they will actually happen, right? Because…data is great, but…it's nothing if you can't do anything with it.”
The actions informed by customer sentiment data are what ultimately separates successful companies from the rest.
The rise in omnichannel marketing strategies has generated a new shopping paradigm where consumers have unlimited access to products and drive brand profitability based on their purchasing decisions. With customers impacting brand value and success, it’s crucial to develop business models that connect directly to the customer and shape their purchasing decisions and experiences.
One way to accomplish this is through consumer sentiment and VoC (voice of the customer) — two interrelated concepts indicating customers’ shopping habits, preferences, expectations, and feedback and experiences with your brand.
So, how can you leverage these areas to drive sales, maximize ROI, and regain control over your brand?
Before implementing customer-centric practices into your business model, you must evaluate and measure consumer sentiment and VoC. This requires aggregating data points to maximize precision and generate measurable results. But, with many data collection methods and sources and multiple factors influencing these metrics, it’s often challenging to focus on a specific strategy.
According to Gautam Kanumuru, Co-founder and CEO of Yogi, and Haithem Elembaby, Yogi’s Head of Sales, data collection depends largely on factors such as a brand’s size, sector, and selling model. For instance, social media is a viable method for CPG brands to capitalize on consumer and industry trends. Similarly, focus groups and surveys allow brands to raise awareness and obtain feedback on new product launches, much like reviews and ratings provide DTC brands with valuable insights into shopper experiences and expectations.
As Haithem says, by having “the right technology that allows you to get a granular view [of the data], you can expose a lot of hidden issues, opportunities, and trends that can help with decision-making across the organization.” Experimenting with various data analytics and collection methods allows you to determine the best path forward for product positioning, messaging, and innovation.
Creating a business approach that is both shopper-centric and profitable entails assessing behavioral trends related to consumer sentiment and VoC. One prevalent trend brands should consider is price and value sentiment. With inflation and price increases, consumers want more value for their dollar, and products that meet their specific demands have a higher sales rate.
Another key consumer purchasing trend is the effect of negative feedback on brand performance. According to Gautam, “reviews and ratings are read by anywhere between 80 and 90% of shoppers before they make a purchase.” This means that even a few negative reviews can impact conversion rates and sales.
Staying on top of trends allows you to regulate your brand’s performance and determine its success.
Once you’ve established the exact data points influencing customers’ purchasing decisions, you can hone your products to meet their demands. Shoppers have access to a myriad of product information regarding pricing, availability, usage, and ratings, making them selective of the products they decide to purchase.
When considering the scope of customer knowledge, not every product or brand is the right fit for each person. So, it’s essential to utilize your data points to identify your ideal customers and customize your product messaging to solve personal use cases and create favorable purchase and post-purchase experiences that meet their expectations and preferences.
By leveraging these fundamental customer personalization strategies and assessing trends and data points, you can optimize conversion rates and generate sales and ROI.
