The global conversational AI market is expected to grow from $4.2 billion in 2019 to $15.7 billion by 2024, according to a report by MarketsandMarkets.
Considering its impact, ceiling and potential in transforming business, you would expect that more people would be aware of conversational analytics – a concept, a definition and a buzzword that has surprisingly gone under the radar for the past couple of years.
Let’s find out more about it.
What is Conversational Analytics?
Conversational analytics is the discipline of gathering, analysing and rationalizing data from conversations between business and customers.
People no longer fall for advertising or even products. We live in the golden age of content and storytelling and people want a meaningful story to follow a brand.
As a result, the way people interact with brands is no longer transactional. Customers love to engage, converse, investigate and interact with businesses.
Let us give you some stats, and you will understand the magnitude and power of conversation in modern business.
- According to LoopUp’s Enterprise Conferencing User Behavior & Impact Report, in 2016, US and UK employees spent 163 billion minutes in conference calls, and on average 92% of all customer interactions happen over the phone.
- WhatsApp announced a milestone of 100 million voice calls per day
- 40% of millennials claim to engage with bots on a daily basis
- Chatbots can help businesses save up to 30% on their customer support costs
People and businesses have relationships in 2020. They have conversations and they create a history of exchanges, preferences and habits.
This is where conversational analytics becomes important.
What do social media, website and email analytics have in common? They give you insights to better understand what your customer really wants.
You engage in an analysis of their behaviour in order to make your marketing efforts more targeted, more meaningful, more efficient.
In the case of the aforementioned disciplines, we used to deal with binary metrics and numbers:
- Bounce rates
- Conversion rate
- Open rate
These metrics and analytics were used by businesses around the globe to understand their clientele and offer them a better product and a better customer experience.
Now let’s segway to conversational analytics.
Even though the purpose is exactly the same, the way of going about it is slightly different. Conversational analytics have a more qualitative nature.
You’re not dealing with numbers, or clicks, you’re dealing with language. To deeply understand the way someone speaks or writes and be able to draw inferences and lessons relevant to your business is its own school of thought and practice.
Let’s dive a little deeper.
Sentiment analysis is the process of contectally analyzing text in order to understand its nature, direction and meaning.
It is a method used by business analysts and large corporations to monitor online brand reputation, public opinion and conduct market research.
It is one of the main pillars of conversational analytics, as it is used to mine and extract information from long pieces of content.
Leveraging the power of machine learning, deep learning, and Natural Language Processing (NLP), businesses are starting to analyze conversations in search of the following:
Can you see the difference with traditional analytics models? Conversational analysis is focused on emotions, tendencies, preferences and behavioural patterns.
These are qualities that are almost impossible to quantify, let alone use as business decision drivers and this is exactly why conversational analytics is such a compelling discipline.
Conversational Analytics: Why Will It Transform Your Business?
Now that we have a solid grasp and understanding of what the term conversational analytics stands for, it’s time to evaluate its importance to your business.
Why should you care? How is this going to help you rise above competition?
The answer is simple: Understanding the emotional state of your consumer, might just be the single most powerful insight you need to improve your relationship with them.
Think of it as any other relationship. You know when your spouse is angry, so you let them be until they feel better. You know how to make them smile.
Imagine applying those principles to the relationship with your customers. The conversations you are currently having with them are actually the way to understand them.
All you ever needed to do is pay attention and spend time analyzing what’s behind the specific words they use, the specific sentence structure, the tone of voice, the manner in which they react to the things you tell them.
There’s a lot that goes into conversational analytics apart from artificial intelligence and Natural Language Processing (NLP).
The human element is imperative as well with disciplines like psychology coming into play in order to understand the language patterns of customers.
It is a relatively new school of thought and one that will prove to be golf for the businesses that manage to master it. It is the new frontier of marketing and an area that is still untapped.
Stay tuned with our blog as there’s a lot more to come on this subject and other areas alike.