“Know your competition” is a business mantra that has been around as long as competition itself. Competition is afterall one of the foundational cornerstones of free-market capitalism. The strategic importance for any business to conduct a competitive analysis is to gain advantage through business intelligence. The more you know about your competitors' strengths and weaknesses the better you can position your brand, products and services to compete against them to capture top-of-mind, sales and market share.
One of the most essential aspects of an effective strategic competitive analysis is understanding how and why consumers feel about your competitors. This will allow you to truly unlock their strengths and weaknesses across a variety of aspects of their business. This involves conducting market research to gather business intelligence. One of the best ways to do this is by using text analytics to conduct sentiment analysis across social media, Google reviews, and news articles.
Sentiment analysis is a process used by marketers to better understand their customers, through what is often referred to as voice of customer. Understanding customer feelings, opinions and motivations is important to advertising better to target audiences.
Sentiment analysis is the exercise of identifying, scoring and classifying peoples' feelings expressed through any form of text data as positive (+1), neutral (0), or negative (-1).
This helps marketers make smarter, better choices in the tactics, channels and creative they use to message consumers. Although sentiment analysis can help you understand your own customers, it can also assist you in discovering what your competitors' customers think about them across various aspects of their business like pricing, value, products, features, customer service, mobile app, etc.