
Do you know that 86% of users are hesitant to buy from a brand that has many negative reviews. Addressing and responding to customers’ reviews is very important, and review analysis helps you with this. Product reviews are one of the most effective and reliable sources of useful insights.
These insights provide sufficient information for solving problems and developing better products and services. According to the Forrester Report, 74% of professionals said that they generate new product ideas from customer reviews.
In this blog, we’ll learn what review analysis is, why it’s important, and how to analyze reviews!
What is Review Analysis?
Review Analysis is the process of converting unstructured review data into structured data so that you can use it for making better, effective decisions. How you analyze your data depends on its source and volume. Review analysis also helps in enhancing your products by analyzing customer reviews to understand customer needs and sentiments about your product.
This analyzed data helps in better planning, how many resources should be diverted to each team, and what work should be done first. For example, if you own a coffee brand and, by analysing customer reviews, you discover that you should invest in better packaging. Hence, your resources and time will be invested in it.
It also helps in identifying emerging trends and urgent issues. Analyzing reviews also helps in determining how effective your customer service is. Strong customer service helps in tackling major issues at a given time before they get serious.
Analysis of online clothing reviews is used to understand market trends and to enhance future collections of their clothing. Analysis of app store reviews informs users about the areas where they need to work on or update their app. Reviews from specific team members can also help you in enhancing your products and brand awareness.
Why it is important for the business

Customer reviews help in understanding what the users think and say about your brand. Reviews are very important for your business
- Enhance Customer Experience: Reviews can reveal a lot about your customer’s journey, and using this, you can further enhance customer experience. Brands use AI tools to analyze data from several platforms and their product line. By doing so, you can understand what issues your customers are facing, and by resolving them, you can enhance their experience. It also helps in increasing the conversion rate.
- Enhanced Products: Customer reviews help in understanding what customers like and dislike about your product. You can even ask for recommendations from your customers.
- Maintaining Brand Reputation: Analyzing what your customers say and feel about your brand helps in understanding your brand reputation in the market. For example, an organisation can monitor reviews over some time to monitor how customer opinion about their brand is changing. If they witness a rise in negative emotions, they can analyze the data and identify what is the issue, and try to resolve that issue. Acting on such processes can help enhance brand reputation.
- Address Urgent Issues: AI tools can help you in setting up alerts to notify you if urgent issues are rising in your review data. For example, you have set up an alert for “bad experience”. Then, whenever there is an increase in the volume of reviews mentioning this topic, you’ll get notified. It will help you in taking correct measures and action on time.
- Competition: Review analysis is not limited to your reviews but for information you can analyze your customers’ reviews as well. You can analyze their strengths and weaknesses and use this opportunity to increase your customer base. For example, if you notice that your users are complaining about a particular feature, then you can work on that feature and enhance your brand’s reach.
- Marketing Campaigns: Reviews help you know more about your brand so that you can personalize your marketing campaigns. Reviews help in understanding the current trend. By studying this, you can create engaging content that resonates with your customers.
Important Customer Feedback Analysis Methods

Having a bulk of reviews will not help until and unless you know what the customer feedback analysis methods to study these reviews are.
- Sentiment Analysis: This technique uses AI and natural language processing (NLP) to understand the emotional tone of customer comments irrespective of them being positive, neutral, or negative.
- Analyzing Text: You have to extract meaningful insights from qualitative data and textual data. You can do so by analysing the keyword, topic modeling, etc. Advanced algorithms help in categorizing and grouping this feedback by topic so that you can identify recurring issues.
- Analysis of Speech: With the help of AI, you can analyze customer recordings and calls to understand customer sentiment and discover areas of improvement.
- Machine Learning: Machine learning algorithms can help in predicting trends from large databases. It provides important insights related to customer behavior and interests.
- Voice of Customers (VoC): These programs help in systematically collecting and analysing customer feedback from multiple sources to enhance customer experience.
- Net Promoter Score (NPS): NPS helps in measuring the loyalty of customers. You have to ask them how likely they are to recommend your product or service.
- Customer Effort Score (CES): It measures the difficulty a customer goes through while completing a task. By integrating it with text analytics, you can identify important areas that affect customer journey or cause interruption.
- Customer Satisfaction Analysis (CSAT): Here, you simply ask the customers how satisfied they are with your product or service. You can analyze the text to understand the reason behind their response. It helps in understanding customer satisfaction level.
- Thematic Analysis: You must identify the common patterns and themes in customer reviews. By dividing reviews into different themes, by doing so you can identify different areas of improvement.
Analysing customer reviews is an important task for every brand. It helps in improving their products and enhancing the overall customer experience. You can use above mentioned methods to analyze customer reviews and make meaningful decisions. You can also use additional sources like Lumia 360 offers a review management software, where you can manage and monitor your reviews in one platform. It automatically filters your reviews and improves your online visibility. To learn more about our review management software, email us at info@lumia360.com or call us at 514-668-5599.
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