Crowdfunded projects rely entirely on prospective customers to succeed. It starts out as an idea which is floated in public and depending on the popularity and demand, the money is raised from interested individuals and groups. As such, the success or failure of the project depends on identifying and analyzing the potential customers.
What is Sentiment Analysis?
Since crowdfunded projects rely on understanding EQ, their brand-building process is heavily dependent on market research, and sentiment analysis, i.e., quantifying crowd ‘sentiments,’ also known as ‘opinion mining.’ Analyzing the attitudes, emotions, and opinions helps to understand the preferences and buying attitudes of people and this sentiment analysis is closely tied with social networking to score investment opportunities and conduct due diligence.
But predicting the success or failure of a crowdfunded venture is not as simple as measuring ‘quantity metrics’ – the number of likes, comments, re-tweets and shares for ads, campaigns, posts, releases, and videos, it is necessary to analyze the complex ‘quality metrics to understand customer emotions. These ‘feelings’ and responses generate critical insights for making investment decisions and driving strategy.
Listening to audiences via active monitoring is the best way to identify the initiatives that will provide the best results and outcomes. Data mining is used to identify patterns in social data, contextualize and quantify that data and tag it (metadata) to match potential investment opportunities with buyer preferences.
Social Analytics tools for Sentiment Analysis
Small to mid-sized projects usually prefer common social analytics tools to gather sentiment data including:
- Google Analytics
- Facebook Insights
- People Browser
- Salesforce Radian 6
Big enterprises have a large inflow of data and usually stick to big data solutions to extract relevant insights from the massive volumes of structured and unstructured social data generated every day.
Apart from this, there are numerous social sentiment analysis-fueled search engines (e.g.: Kayak.com), which connect global investors with the right crowdfunded projects on a single decision-making platform.
The importance of Sentiment Analysis
While social sentiment analysis doesn’t yield 100 per cent accurate results, nevertheless, the generated data, if sifted, categorized, and organized by expert data analysts and scientists, can offer relevant insights. Unlike a computer program, it considers the complexities of human emotion and gauges the opinions of prospective customers. This helps the crowdfunded venture to make informed decisions when launching its project.