7 Ways to Use AI for Effective Customer Feedback Analysis (2024)

In a world chronically suffering from too much information and too little understanding, user feedback is paramount for any product’s success. But with the sheer volume of feedback that companies receive, sifting through it manually is neither efficient nor effective. AI has the potential to revolutionize how we handle, analyze, and act upon user feedback.

We’re diving into some cool AI applications and ideas that’ll change how you see feedback. For every AI application, I will try to evaluate usefulness vs. hype.

Summarizing feedback

Hype: 6/10
Value: 4/10

The trivial use of AI is to summarize long feedback into shorter, digestible points, allowing product managers to quickly grasp the essence without reading through lengthy paragraphs. Many articles and vendors praise summarization as a very useful tool, but I find it relatively useless. It works only for the very specific use cases when you really need to grasp the essence of the conversation to decide whether to dig into details or not.

Tools

Summarization is quite easy to implement, so it is likely that it might work already in your favorite tool. Fibery was among the first to introduce it. For example, here is how summaries of customer support chats work. You can quickly review recent chats, spot some interesting topics, and dig into details if you want.

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Automatic video/audio interview transcription

Hype: 4/10
Value: 7/10

Automatic transcripts are not new, but they are affordable now and embedded into many tools by default. With the advancement in AI, the accuracy and efficiency of these transcriptions are continuously improving, reducing the need for manual corrections. Moreover, with automatic text translation, you can quickly transform a German interview into a quite good English text version. Language unification for product feedback processing is important.

Text is better than audio/video in many ways:

  • You can search it, so you can find some specific keywords or passages fast.
  • You can feed text into your feedback processing tool and augment it with links to ideas, tag some phrases, etc.
  • You can quote it and insert it into feature specs, problem definitions, and other docs.

Tools

From what I saw, Dovetail provides the best embedded transcription tool for product feedback. You can upload the video, generate the transcript, and tag some parts. The transcript is synced with the video, so you can quickly jump from the text part to the video segments. Overall, it is a very pleasant experience.

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If you need something custom, you can use Open AI Whisper to build your own tools fast.

Sentiment analysis

Hype: 6/10
Value: 3/10

A sentiment score can provide a quick pulse check on whether users are generally happy, frustrated, or neutral about a particular feature or the product as a whole. In theory, you can use sentiment analysis to assign priority levels, allowing urgent matters to be addressed first. For example, when a customer is really angry you can give this request higher priority.

Example

Sentiment analysis demands some good prompts to work well. I’ve had good results with a prompt like this:

Sentiment scores are a metric for measuring customer sentiment. Scores can range from 0-100, where 100 is the most positive possible outcome and 0 is the least. Generate a sentiment score for the text below and return result as a number in a format [sentiment score] without brackets """{{Conversation text}}"""

Tools

In Fibery, we do sentiment analysis for incoming Intercom conversations. For example, this report shows sentiment scores by a person in the Fibery team. You see that average sentiment is good, which means that discussions are usually polite, constructive, and decent.

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Feedback clustering & categorization

Hype: 6/10
Value: 6/10

Now you can use AI to automatically categorize feedback into various buckets such as bugs, feature requests, usability issues, compliments, tag feedback, or find common themes. Manually sorting through and categorizing feedback can be time-consuming. AI can quickly process large volumes of feedback, allowing product managers to focus on analysis and decision-making.

Tools

In Dovetail, you can clusterize highlights automatically with the help of AI. It works neat on a Canvas View, so you can find common themes really fast and spot patterns more easily. However, all these highlights should be created manually, so in reality it saves time, but not so much.

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Automatic insights extraction from feedback

Hype: 3/10
Value: 8/10

When you have a lot of feedback, it is cool to extract some useful insights from it automatically. Imagine you feed all your intercom conversations, all survey results, all customer interviews, and all forum requests into some tool, push a button, and get dozens of problems, observations, and requests ranked by frequency and pain.

Example

Let’s say, here the real conversation starts with our user. Note that the user reply is totally irrelevant to the first message, it was just a trigger to ask for something new:

Michael: Hi, We've just released Replies in entity comments. Replies are nested inside a top comment, so you can organise discussions better. To add the first reply, find Reply to Comment icon in a comment and click it.User: How about summing numerical contents of a column? When are you releasing that?

The ideal tool can analyze this reply, create new insight “Summarize numerical values in Table View” and link this request to the insight. Right now we are doing it manually in Fibery, but product managers have better ways to spend their time…

Tools

Viable can process a lot of feedback and generate insights automatically. I watched a few videos but didn’t try it myself. Anyway, according to these videos, it works very well, so maybe it is worth a try.

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It seems Cardinal does something like that semi-automatically. You can setup Intercom sync and all conversations will be processed to find relevant feedback. Then Cardinal suggests potential features to link and you can do the linking manually then.

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Automatic feedback linking to problems and features

Hype: 2/10
Value: 7/10

Imagine you have a backlog of features and problems in some tool. Then you push a button and hundreds of Intercom chats are analyzed, and relevant parts of text are extracted and linked to these features and problems. What value can it bring to you as a product manager? Why connect feedback to product hierarchy? Here are the top two things in my opinion:

  • Data-driven decision making. This system would provide concrete data on which features or problems users most frequently discuss, allowing for more informed decisions on prioritization. And prioritization is hard. Very hard.
  • Richer context: Directly linking chat excerpts to features or problems provides context. This context can offer deeper insights into user sentiments or specific pain points they face. As a result, you will write better feature specs and miss fewer problems.

In a nutshell, prioritize problems better and invent better solutions, since you will have more context attached to a problem. Automation will save you time and an AI-powered system potentially can do that.

Example

Let’s say, you have a backlog that contains Product Areas and Features. You also have intercom feedback accumulated in some tools. Then some parts of conversations are linked to Product Areas and Features and you can see all linked feedback inside a Feature.

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Tools

There are no tools that can do it so far. Interestingly enough, there are not so many tools that do it even manually. What an opportunity! In Fibery you can use semantic search to link feedback faster, but still manually. You select some text and Fibery suggests to link it to existing Feature or Insight.

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Cycle also suggests some semi-manual linking. It finds relevant highlights and you can link the to features or insights via some suggestions.

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Feedback Chatbots

Hype: 5/10
Value: 5/10

Feedback chatbots are automated conversational agents designed to interact with users for the primary purpose of collecting feedback. Instead of having users fill out a static form, a chatbot can guide them through a dynamic conversation, making the process more engaging and potentially capturing richer insights.

Example

Imagine wanting to collect feedback for some new feature. You can use intercom announcements and start conversations, but if you have 10K+ users it can be challenging. With an AI chatbot you can have decent conversations around new features, and the bot can ask relevant questions to deepen the feedback and improve its quality.

Bot: Hey, we released the new comments feature a week ago and it seems you tried it already. What is the most annoying in it for you?User: Nothing, really, I like it. Bot: OK, maybe you miss something then?User: Oh yeah, it would be handy to have replies nested to comments.Bot: Noted! How do you want these replies to work? How many nested levels?User: Well, usual replies with one level are good enough. 

Note that without AI it is impossible to script such questions, you will stop after a second answer for sure, but with AI in theory you can get very annoying bots that will fetch useful feedback from a clever user.

Tools

While we have many chatbots to answer questions and help with support, I’m not aware of chatbots that can create dynamic surveys with the help of AI. If you know any, ping me on twitter and I will update the article.

Conclusion

I think some AI tools are overhyped, while others are less known but more useful. Here is my subjective Hype vs. Value scatterplot diagram to help you navigate feedback management AI tools.

As you see, my personal top 3 valuable tools are:

  • Automatic insights extraction from feedback

  • Automatic feedback linking to problems and features (but it does not exist yet…)

  • Automatic video/audio interview transcription

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As AI continues to evolve, we can anticipate more seamless integration with existing tools and new, even more powerful ideas. Existing vendors might catch up, but we will also see new feedback management tools built with AI core. Interesting times!

7 Ways to Use AI for Effective Customer Feedback Analysis (2024)

FAQs

How to use AI to analyze customer reviews? ›

Some of the main steps in AI feedback analysis include:
  1. Collecting customer feedback from surveys, reviews, support tickets, social media, and more.
  2. Normalizing and cleaning the data to prepare it for analysis. ...
  3. Applying machine learning models to detect topics, sentiments, keywords, and themes across the data.
5 days ago

How can AI be used to improve customer satisfaction? ›

For example, an AI agent can recommend items based on a customer's purchase history or current shopping cart contents. AI can also send proactive notifications with targeted messages based on user events and past interactions, boosting sales and conversion rates.

How to use AI for customer insights? ›

5 Ways AI Can Enhance Customer Insights Through Data Analysis
  1. Predictive Analytics for Personalized Experiences. ...
  2. Understanding Customer Feelings with Sentiment Analysis. ...
  3. Real-time Tracking of Customer Behavior. ...
  4. Simplifying Data Analysis with Machine Learning. ...
  5. Creating Dynamic User Personas.
5 days ago

How is AI used for analysis? ›

AI analytics refers to a subset of business intelligence that uses machine learning techniques to discover insights, find new patterns and discover relationships in the data. In practice, AI analytics is the process of automating much of the work that a data analyst would normally perform.

How is artificial intelligence used in performance reviews? ›

Benefits of Using AI for Performance Reviews
  • Automated reviews. ...
  • No human intervention required. ...
  • Real-time analysis and assessment. ...
  • Solving bias or exacerbating it. ...
  • Identifying incompetence and making improvements. ...
  • Training and developing improvements. ...
  • Higher employee engagement.

How to use AI to predict customer behavior? ›

Purchase Frequency: With the analysis of purchase history, AI is capable of forecasting when a customer will return to buy new products; Product Preferences: Browsing behavior and past purchases can be also evaluated by AI to further provide insights into products customers will likely to buy next time.

How Netflix is using AI to enhance customer experience? ›

AI is changing the world by using data science research to enhance the user experience. Netflix's AI recommendation engine analyzes massive amounts of data, including viewing habits, ratings, searches, and time spent on the platform, to curate personalized content recommendations for each viewer.

How AI can help customer success? ›

Generative AI is a useful technology for customer success teams. AI works by parsing large data sets through an algorithm and then making predictions and decisions based on patterns within the data set. AI has many applications, from content marketing to sales forecasting to fraud detection.

How does AI help customer support? ›

Chatbots: AI-powered chatbots can handle basic customer inquiries, provide instant responses, and assist with tasks such as order tracking, product recommendations, and troubleshooting. They're available 24/7, reducing response times and improving customer service accessibility.

How AI is used for customer retention? ›

Use AI to make personalized recommendations.

Utilize collaborative filtering to recommend products or content based on similar users' preferences, creating a personalized shopping or browsing experience. Incorporate feedback mechanisms to continuously refine and improve the accuracy of recommendations.

What is an example of AI in customer service? ›

There are many examples of AI that businesses can get started with now. Support teams can use AI to automate ticket tagging, automate ticket creation, improve self-service, use Machine Learning and Natural Language Processing, automate email replies, and leverage all company knowledge and data.

How do you effectively use customer feedback? ›

How to use customer feedback
  1. Use customer feedback to improve the online user experience. ...
  2. Use customer feedback to build social influence. ...
  3. Use customer feedback to evolve your product line. ...
  4. Use customer feedback to improve customer service. ...
  5. Use customer feedback to identify new markets.

How do you analyze customer reviews? ›

What is customer feedback analysis?
  1. Gather customer support conversations in one place.
  2. Read each one and identify why the customer is frustrated.
  3. Look for patterns and themes.
  4. Quantify the biggest issue—e.g. the most frequent reason customers complain.
  5. Prioritize this issue to be fixed next.

How to do sentiment analysis using AI? ›

AI goes beyond customer data analysis. Using NLP algorithms like RNNs and LSTMs, it analyzes vast textual data from social media and news to spot emerging topics and sentiment shifts. Businesses can extract these insights to adjust their strategies according to market trends and consumer preferences.

How to use AI in customer service? ›

11 examples of AI in customer service
  1. Customer service chatbots for common questions. ...
  2. Customer self-service chatbots. ...
  3. Support ticket organization. ...
  4. Opinion mining. ...
  5. Competitor review assessment. ...
  6. Multilingual queries. ...
  7. Machine learning for tailoring customer experience. ...
  8. Machine learning for inventory management.
Apr 22, 2024

Can AI write product reviews? ›

Narrato AI, for instance, has various AI tools to help create product reviews. These AI tools can quickly analyze the information on the product, its features, and other relevant details to create a well-written product review in seconds.

References

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