Read on to learn a common use case for NLP in business.
When it comes to business intelligence, data is king. Companies collect mountains of data on their customers, such as their spending habits, age range, location, and more. However, a considerable amount of this data is unstructured and virtually useless. Companies are essentially sitting on a gold mine without the right technology to process this information and make it worthwhile.
It is where Natural Language Processing (NLP) comes into play.
Developing and deploying sophisticated natural language applications is a significant factor in business. So, let’s understand the importance and need of NLP in the business domain along with various ways by which you can use them effectively.
NLP and its Importance in Business
Natural language processing is the ability of a computer to understand human speech. Computers have been able to understand commands and instructions for a long time, but what sets NLP apart from other types of computer language is its ability to recognize the meaning behind words.
Brands are more than just a product or service in today’s world. A brand is an experience consumers have with a company and its products or services.
NLP is important for businesses because it helps companies gain insight into their brand performance and customer satisfaction. With the help of NLP software, businesses can also filter out irrelevant information and identify valuable data that they can utilize to enhance their brand experience.
Benefits of NLP in Business
- Immediate customer service
The ability to respond quickly and helpfully to customer queries is vital for any business today. Hence, every company must be aware of the opportunities provided by natural language processing systems such as chatbots for customer support.
Artificial intelligence is being leveraged to power chatbots, which increasingly play the role of customer service to understand, examine, and respond the customer queries instantly 24/7.
Chatbots are particularly useful when you want to engage with a large audience, and your resources are limited; maybe you have a seasonal spike, or you want to engage with your customers proactively, so they don’t need to contact support.
- Boost your conversion rate
Conversion optimization is an essential component of marketing campaigns. When it comes to conversion rate optimization, tools and technologies are only part of the story. Tuning your conversion funnel is more than just implementing more tools and using them blindly. It’s about using data analytics and customer insights to improve the flow of your website, thus increasing conversions.
Using NLP solutions powered with tools like chatbots and modern search functionalities helps improve the overall customer experience for your services, ultimately helping you convert your site visitors into customers.
- Save money and time
Cost containment can be a significant factor in the success of any business. By finding ways to reduce expenses and increase your business’s overall efficiency, you may improve your profit margin.
Using NLP-enabled chatbots, you can easily automate your regular repetitive tasks, eventually reducing costs and time for your business. Statistics by Chatbot Magazine show how you can reduce your customer service costs up to 30% just by implementing automotive predefined tasks using NLP.
- Perform large scale analysis
Natural language processing technology can aid sentiment analysis guide at any scale, giving you insight into the content and structure of a document, internal systems, emails, social media data, online reviews, or other sources.
Use it to analyze vast amounts of data in just seconds or minutes—an undertaking that would take days or weeks for human analysts. Since NLP is scalable, you can immediately meet any analytical needs and see results.
- Understand your market
Natural language processing is a boon to the market industry, helping brands connect with their customers better and understand them. With natural language processing, you can analyze the language of your target customer, allowing you to identify market segmentation opportunities.
Tapping into the capabilities of NLP, you can identify when customers have complaints, what they want out of products, and where they are at in the funnel. With this information, you’ll be able to create successful campaigns to improve customer retention and acquisition.
Natural language processing solutions give professionals a leg up in the workplace and are likely to do so for years to come. When you consider the vast possibilities for natural language processing solutions, it’s easy to see how they could help you in your field.
Whether you’re a financial analyst looking for efficient ways to process information or a marketer searching for new and better ways to target specific demographics, natural language processing solutions will continue to grow as AI becomes more advanced.