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Customer Sentiment Analysis

Customer sentiment analysis is an AI-powered service that gauges the perceived emotion of the customer to determine their opinion towards a product, topic, or event.
Glossary >A - F

Driven by natural language processing (NLP) which is a branch of artificial intelligence, customer sentiment analysis gauges the emotion of the customer (from positive to negative). Customer sentiment analysis, also known as opinion mining, empowers organizations to gain valuable insights by examining people's opinions, attitudes, and emotions expressed in various forms of text data and text analysis—or conversations that have been transcribed—or tone from audio. 

This comprehensive guide delves into the techniques, tools, and use cases of customer sentiment analysis, highlighting its significance within contact center and customer support functions across different industries.

Examples of Customer Sentiment Analysis

As previously mentioned, traditional sentiment analysis uses natural language processing (NLP) to analyze words and phrases used, and scores the interaction accordingly.

  • 😀 Positive sentiment: "Thank you so much, you have been very helpful."
  • 😐 Neutral sentiment: "I understand what you are saying."
  • 🙁 Negative sentiment: "This service has been terrible."

What is Tonality-Based Sentiment Analysis?

However, language isn't that simple, and traditional sentiment analysis doesn't account for the complexities of it, including regional dialects, pitch, tone, and volume. As a result, tonality-based sentiment analysis emerged.

Tonality-based sentiment analysis, also called tonal-based sentiment analysis, is an AI-powered service that doesn't just analyze what was said, but also how it was said. It is a detailed examination of a voice or text conversation that determines how the speaker is feeling based on multiple granularities, beyond what words were used, and instead focused on how those words were conveyed.

By looking at tone and inflection, in addition to keywords and phrases, we can better identify a person's sentiment.

Customer Sentiment Analysis for Contact Centers

One pillar of a successful contact center is delivering great customer experiences. In fact, today, one out of every two customers will never return to a brand after a single negative experience.

As a result, contact centers rely heavily on unlocking customer sentiment insights and understanding emotions to improve that customer experience. This includes reinforcing more targeted coaching programs for agents around customer sentiment and identifying an operational inefficiencies that may be driving negative sentiment.

To learn more on this specific topic, read the 3 powerful ways sentiment analysis can assist contact centers segment in the linked blog.

An Overview of Customer Sentiment Analysis

Customer sentiment analysis provides crucial insights that drive better decision-making. By understanding customer sentiments, businesses can adapt their strategies, improve customer experiences, and enhance overall satisfaction levels. It also enables organizations to monitor brand reputation, identify emerging trends, and uncover valuable market insights.

According to our recent report, 99% of contact center leaders use customer conversation insights for making business decisions. Respondents also said they used those insights to influence business decisions across marketing, product, operations, logistics, and more.

Insights from customer conversations, including how customer sentiments are trending, can have a massive impact across the entire business.

Customer sentiment analysis is a valuable tool, but it also faces challenges such as the complexity of human language, sarcasm, irony, and cultural context. Additionally, sentiment analysis can be domain-specific, requiring customized approaches and lexicons. However, advancements in machine learning and NLP techniques continue to address these challenges.

In fact, Generative AI can be used to detect sentiment analysis in customer conversations, but it’s critical to use domain-specific large language models that can understand and process the context of contact center use cases.

Tools and Technologies for Customer Sentiment Analysis

Recent advancements in technology have allowed for more complex customer sentiment analysis use cases. 

Sentiment Analysis Tools and APIs 

Several sentiment analysis tools and APIs simplify sentiment analysis tasks. Purpose-built conversation intelligence platforms provide sentiment analysis for contact centers within an end-to-end QA workflow for streamlined coaching and reporting purposes.

Real-Time Sentiment Analysis 

Real-time sentiment analysis enables businesses to monitor and respond to customer sentiments in real-time. Real-Time Agent Assist solutions help provide live prompts and guidance in-the-moment so agents can better navigate complex conversations.

Visualization Techniques for Sentiment Analysis 

Visualization techniques, such as reporting dashboards and contact center analytics, enhance the interpretation and understanding of sentiment analysis results and metrics. Visual representations enable stakeholders to grasp sentiment trends, identify sentiment drivers, and communicate insights effectively. 

Customer Sentiment Analysis Use Cases and Applications

While we at Observe.AI focus on sentiment analysis for contact centers, the use cases for sentiment analysis are broad.

Customer Experience Management and Sentiment Analysis 

Sentiment analysis is instrumental in managing and enhancing customer experiences. By analyzing customer feedback, reviews, and support interactions, organizations can identify pain points, improve service quality, and personalize customer experiences. For contact centers, how positive sentiment or negative sentiment tracks to specific agent behaviors is critical for agent coaching.

Brand Reputation Management through Sentiment Analysis 

Monitoring sentiment around a brand helps manage its online reputation. Sentiment analysis enables organizations to proactively address negative sentiment, engage with customers, and take appropriate measures to maintain a positive brand image. Using conversation intelligence to correlate sentiment and your brand name mentions can provide useful brand insights without the need for data science or data scientists.

Sentiment Analysis in Customer Support 

Sentiment analysis helps streamline customer support processes by automatically routing and prioritizing customer queries based on sentiment. It enables organizations to identify customers in need of urgent assistance, resolve issues promptly, and deliver personalized support experiences. By understanding customer sentiment as it relates to common call drivers, you can also provide targeted coaching or create specific scripts to help agents navigate those specific situations.

Product Reviews and Opinion Mining 

Opinion mining through sentiment analysis aids in understanding product performance, identifying strengths and weaknesses, and shaping future product development. Analyzing product reviews, customer reviews, ratings, and discussions provides valuable insights into customer preferences and expectations. With conversation intelligence, you can analyze 100% of customer conversations to better understand sentiment related to specific products so you can get firsthand understanding of how customers are reacting to new products or where existing products can be improved.

Market Research and Sentiment Analysis 

Sentiment analysis is a valuable tool in market research. By analyzing sentiment in survey responses, news articles, forums, and online reviews, businesses can uncover market trends, assess customer satisfaction, and evaluate brand positioning.

Sentiment Analysis in Social Media 

Social media platforms are rich sources of customer opinions and feedback. Sentiment analysis helps businesses understand public sentiment towards their brand, products, or campaigns. It also allows organizations to track and respond to customer complaints, identify brand advocates, and measure social media sentiment trends.

Techniques for Customer Sentiment Analysis

For those interested in a more technical look at sentiment analysis, we cover three techniques:

Machine Learning-Based Approaches 

Machine learning plays a pivotal role in sentiment analysis. Supervised learning techniques utilize labeled datasets to train models that accurately classify sentiments. Unsupervised learning techniques, such as clustering and topic modeling, discover patterns and group similar sentiments. Semi-supervised learning combines elements of both supervised and unsupervised learning, enabling sentiment analysis with limited labeled training data.

Rule-Based Approaches 

Rule-based approaches utilize predefined rules and lexicons to determine sentiment. These rules consider the presence of certain words, phrases, or grammatical structures to assign sentiment labels. Rule-based methods are effective for specific domains or languages but may require constant updates to account for evolving language trends.

Hybrid Approaches 

Hybrid approaches combine the strengths of machine learning and rule-based methods. By leveraging both approaches, hybrid models can achieve higher accuracy and flexibility. For instance, a hybrid approach may use machine learning techniques for sentiment classification and rule-based methods for fine-grained sentiment analysis or aspect-based sentiment analysis.

Key Components of Customer Sentiment Analysis

Preprocessing Text Data 

Preprocessing text data is a critical step in sentiment analysis. It involves tasks such as tokenization, stemming, removing stopwords, and handling special characters or emojis. These preprocessing techniques help standardize the text data and reduce noise that can impact sentiment analysis results.

Lexicon-Based Analysis 

Lexicon-based analysis utilizes sentiment dictionaries or lexicons that associate words or phrases with sentiment labels. These dictionaries contain sentiment scores or polarity values for words, allowing sentiment analysis models to calculate an overall sentiment score based on the presence and intensity of sentiment-bearing terms.

Machine Learning Models for Sentiment Analysis 

Sentiment analysis employs various machine learning models, including Naive Bayes, Support Vector Machines (SVM), and Recurrent Neural Networks (RNNs). These models learn from labeled data to classify sentiment accurately. Additionally, word embeddings, such as Word2Vec or GloVe, capture semantic relationships between words, enhancing sentiment analysis performance.

Feature Extraction in Sentiment Analysis 

Feature extraction involves transforming textual data into numerical representations that machine learning models can process. Techniques like bag-of-words, word embeddings, and part-of-speech tagging enable sentiment analysis models to capture relevant information and patterns from the text.

Challenges and Future Directions in Customer Sentiment Analysis

Dealing with Multilingual Sentiment Analysis 

Multilingual sentiment analysis poses challenges due to language-specific nuances, cultural differences, and the scarcity of labeled data. Future advancements in cross-lingual sentiment analysis techniques and multilingual resources will address these challenges.

Ethical Considerations in Sentiment Analysis 

Ethical considerations surrounding privacy, bias, and the responsible use of sentiment analysis techniques are gaining importance. Organizations must ensure transparency, fairness, and compliance with data protection regulations when conducting sentiment analysis. Ensure any provider you're working with is fully compliant with enterprise-grade security standards.

Advancements and Emerging Trends in Sentiment Analysis 

Advancements in deep learning, neural networks, and transfer learning are shaping the future of sentiment analysis. Fine-grained sentiment analysis, emotion detection, and context-aware sentiment analysis are emerging trends that will lead to more accurate and comprehensive sentiment analysis solutions.


Sentiment analysis has transformed the way businesses understand and respond to customer sentiments. By leveraging techniques such as machine learning, rule-based approaches, and advanced tools, organizations can extract actionable insights from vast amounts of textual data. Sentiment analysis empowers businesses to make informed decisions, enhance customer experiences, and strengthen their brand reputation. As technology continues to evolve, sentiment analysis will play a crucial role in unlocking the true potential of customer sentiments.

To learn how our conversation intelligence platform identifies customer sentiment analysis and more, read here or sign up for a demo.