Who is the GOAT, Messi or Ronaldo? Are you a Derrick Rose or LeBron James fan? Do you prefer Collin Morikawa or Rory McIlroy? Depending on your answers, it is likely we could predict your favorite footwear brand. How? Because all of these athletes have one thing in common: They are either team Adidas or team Nike. Using Caplena for the customer review analysis of Adidas and Nike stores in Berlin, Paris, and New York, we decided to tackle the age-old question: Who is the best sportswear giant?

The new integration feature by Caplena allowed us to upload 16,133 Google Maps reviews from six Adidas and Nike stores by simply copying and pasting their respective addresses. Below you can see how easy this process is ⬇️. By going through Caplena’s easy-peasy 3 1/2 steps to analyze reviews, we came to the following findings 🕵️‍♂️.

Star Rating, NPS, and Popular Categories

In general, Adidas has a star rating of 4.34 compared to Nike’s 4.21 rating. Although their star ratings are similar, Nike has nearly twice the amount of negative customer reviews as Adidas (11.05% vs 6.69%). However, Nike’s star rating is driven by its promoters, which amounts to 59.42% of reviews, a close second to Adidas’ 60.63%. Similarly, Adidas and Nike have an NPS score of 53.94 and 48.37 respectively.

Analyzing the customer feedback categories, Adidas and Nike had unique insights. The majority of Adidas’ customer reviews focused on the ‘Store Experience’. In contrast, Nike customers focused on the ‘Customer Experience’. Similarly, both brands considered the ‘Product Experience’ as their second most popular category, with ‘Pricing’ and ‘Discounts’ being the least mentioned topic of interest.

Now, let’s dive deep into each category!

Customer Review Analysis: ‘Customer Experience’

“Worst retail service in the world! 🏆 45 minute wait for finally no size..”
Nike Review

The ‘Customer Experience’ category, consists of ‘Helpfulness’, ‘Friendliness’, and ‘Waiting Time’. ‘Helpfulness’ considers whether a customer query was resolved. ‘Friendliness’ considers the perceived attitude of the workers. ‘Waiting Time‘ considers the speed of the service. For Adidas, ‘Customer Experience’ is only the third largest segment in its customer review analysis, with an overall positive ‘Customer Experience’ (26.7%). Less than 10% (6.4%) of customer reviews complained about the ‘Helpfulness’ and ‘Friendliness’ of the staff as well as the in-store waiting time, with the availability of staff being the biggest issue. The lack of customer service was quite frustrating for some, with some customers “not feeling the vibe from the folks on the floor”.

In contrast to Adidas, Nike’s Customer Experience’ is the most mentioned category, accounting for 41.8% of customer reviews. When investigating further, we discovered why: Mixed customer reviews. Some have claimed Nike stores to be the “reason to do a day trip to Paris” whilst the same stores also have complaints of having “the worst retail service in the world”. Nike’s negative customer experience reviews account for 39% of overall customer experience reviews, with its biggest complaint deriving from the topic of ‘Helpfulness’. A contrasting 61.7% of customers compare Nike stores to the home for “athletes and Nike lovers” advocating Nike stores for their very ‘Friendly’ and ‘Knowledgeable’ staff. Regardless, it is clear that Nike store management has to address its bad reviews by training its staff more effectively.

Adidas Positive Customer Experience/Total Customer Experience: 80.9%

Nike Positive Customer Experience/Total Customer Experience: 61.7%

Nike evidently needs to address its ‘Customer Experience’ customer reviews

Customer Review Analysis: ‘Pricing and Discounts’

“It is a nice store, but I guess it is cheaper to buy these clothes in Germany. I know we are at the 5th Avenue. I know.”
Adidas Review

For both sportswear brands, ‘Pricing’ and ‘Discounts’ account for less than 10% of overall customer reviews. 55.5% and 71.4% of ‘Pricing’ reviews are negative for Adidas and Nike respectively. The majority of reviews complain about lack of discounts, and although stores are worth visiting for their ‘Appearance’ and ‘Atmosphere’ they are often rated as “vastly overpriced”. However, when was the last time you left a positive review specifically about the pricing of a store? It is likely that you mentioned other aspects of the store, such as the friendly staff or the selection of products available. Nevertheless, other reviews share how both Adidas stores are ‘surprisingly affordable’ and that Nike stores have ‘good deals’.

With our customer review analysis, we did uncover a helpful insight: How to get the best bang for your buck 💵. With Adidas, joining the Adidas Creators Club gives you early access to promotions and discount vouchers that you can avail of online and in-store. According to customer reviews, Adidas stores also price-match online prices. To get the best price with Nike, one recommends signing up for the Nike Run Club or Nike Membership to avail of the best discounts, limited edition items, and free shipping. Another tip from customers was to order online and collect in-store whilst shopping in-store to beat the queues and have a hassle-free shopping experience.

This category also reveals how both brands manage their omnichannel retail strategy (having a brick-and-mortar and online store) with pricing reviews claiming that the online experience is cheaper, easier, and hassle-free in comparison to shopping in-store. Both companies will have to re-assess their omnichannel efforts to ensure they keep their stores attractive.

Adidas Positive Pricing/Total Pricing: 46.9%

Nike Positive Pricing/Total Pricing: 33.8%

Customer Review Analysis: ‘Product Experience’

But why are we here? The products, of course! ‘Product Experience’ considers the selection of ‘Products In-Store’, ‘Design’ and ‘Quality’, ‘Size Availability’, and whether a product can be ‘Customized’. This category is striking as Adidas and Nike reviews are dominated by the ‘Selection’ topic, with very little said in regard to the remaining topics. Both sportswear giants have a strong majority of positive reviews regarding the wide array of products in-store. Similarly, the lack of selection was also both brands’ biggest source of negative reviews, with over 35% of Adidas’ ‘Overall Negative’ reviews deriving from the ‘Selection’ category. Interestingly, Adidas’ second biggest positive topic was its ‘Design’ and ‘Quality’, with nearly 7% of reviews advocating Adidas for “always [being] on their game”. The remainder of the product experience for Adidas accounts for less than 5% of overall customer reviews.

“Each corner is an experience of its own. You get to design your own shoes, and go through the evolution of design and check some of Nike’s art pieces installed in the store. The music is very vibrant, the staff is energetic and very helpful and they help you within a reasonable time taking how crowded the place is in consideration.”
Nike Review

Unlike Adidas, Nike’s second biggest strength was its ‘Customized’ options in-store, accounting for nearly 5% of the positive product experience reviews, with many complimenting the level of detail one could customize on-site. The most urgent issue Nike needs to face is its lack of selection in-store, accounting for 94.1% of negative product experience reviews. Evidently, both sportswear giants need to review their current product stock and reassess how often they rotate stock to improve their overall selection.

Adidas Positive Product Experience/Total Product Experience: 78.5%

Nike Positive Product Experience/Total Product Experience: 65.3%

Customer Review Analysis: ‘Store Experience’

The ‘Store Experience’ was Adidas’ most impacting key driver

The ‘Store Experience’ category includes ‘General Store Experience’, ‘Appearance’, ‘Atmosphere’, ‘Location’, ‘Accessibility’, ‘Sustainability’, and whether a ‘Competitor Comparison’ has been made. When one looks at and compares the sentiment charts of Adidas and Nike, it is interesting to note the lack of Nike ‘Store Experience’ reviews (19.8%) compared to Adidas’ abundance (43.5%). Unlike Nike’s largest category of mixed sentiment, Adidas has a mere 6.4% negative sentiment in this category. Adidas’ customer reviews champion the sportswear’s ‘Appearance’ and ‘Atmosphere’, with over half (50.8%) of positive customer reviews considering the ‘Appearance’ of the store alone. Further, the ‘General Store Experience’ of an Adidas store was in the minds of the customer, boasting as the second largest positive topic within its category (36.8%). The topics making up the remaining 12.4%, ‘Accessibility’, ‘Sustainability’, and location, are largely positive, reflecting Adidas stores as being both exceptional in ‘Appearance’ and in ‘Practicality’.

With Nike, the ‘Store Experience’ category is largely positive, with over 80% of customer reviews gushing about the ‘beautiful’ and ‘original’ stores that will “make your head spin”. The ‘General Store Experience’ of the store and its ‘Appearance’ was the main positive topics for Nike customers, with some even expressing their ‘love’ for Nike. Nike’s negative ‘Store Experience’ reviews were few, accounting for a mere 2.5% of overall customer reviews, displaying how the Nike store design team is doing well in its efforts to create a captivating ‘Store Experience’.

Adidas Positive Store Experience/Total Store Experience: 92%

Nike Positive Store Experience/Total Store Experience: 80.3%

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The Best Overall Experience

Now that we’ve explored each category in detail, we need to decide which sportswear giant has proved itself in providing the best overall experience to customers. To decide on the champion, we need to get the overall average score. We’ve decided to apply the mean test in which we add up each individual score and divide by the number of categories to get the overall experience score:

Adidas Overall Experience: 74.6%

Nike Overall Experience: 60.8%

AND IT’S ALL OVER. WHAT AN ACHIEVEMENT FOR ADIDAS. WHAT A DARK DAY IN NIKE’S HISTORY. ADIDAS HAS WON IN EVERY CATEGORY AND HAS BEEN CROWNED AS THE TRUE SPORTSWEAR GIANT OF 2022.

So, What Have We Learned?

With this competitor analysis, we’ve revealed that a similar star rating or NPS score says little without analyzing customer review feedback in-depth. We have discovered that negative customer reviews often recognize more issues than positive customer reviews. We learned that having the right employees in the workplace is crucial for success in the retail industry, as they have a direct impact on the customer experience. We’ve also uncovered hidden gems, such as customer behavior to find the best price and how important it is for sportswear stores to have a good selection of products and regular stock rotation to maintain repeat customer interest. Finally, we’ve recognized that to create a five-star experience, businesses must consider multiple touchpoints of the store, from the pricing of the products to the overall atmosphere of the store.

Interested in checking out the data yourself? You can analyze the data with the Adidas vs Nike Caplena dashboard here ⬅️

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Five Guys caters to burger lovers seeking high-quality food and friendly service – all while keeping things simple. To understand how Five Guys operates its successful marketing strategy, we analyzed 1,236 Google Map reviews using the text analysis tool, Caplena. The following customer review analysis reveals Five Guys’ three key drivers in-depth – ‘Burgers‘, ‘Price‘, and ‘Customer Service‘.

Three Key Drivers Bar Chart

Three main drivers include burgers, price and customer service.
Figure 1.0

This bar chart shows that the three most important customer feedback categories are: ‘Burgers‘, ‘Price‘, and ‘Customer Service‘. ‘Burgers‘ and ‘Customer Service‘ have mostly positive sentiments associated with them.Price‘ has an overwhelming negative sentiment (read our blog explaining sentiment analysis .)

Category #1: Burgers 🍔

Five Guys spends most of its resources on its product – the food – and only a small amount on marketing. For example, Five Guys’ potatoes are grown north to the 42nd parallel because they grow more slowly and are more solid. Their numerous awards, including first place in the burger category in The Harris Poll’s annual EquiTrend Study also confirm this. Rather than conform to conventional marketing strategies, the company simplified its menu and concentrated on better-tasting meat and fries. They use no frozen articles, preservatives, or chemicals. The driver analysis (learn more about the driver analysis here) below, clearly shows that burgers are the business driving force.

Key Driver Analysis

Price is in the top left of the driver chart (high negative impact). Burgers is in the top right (high positive impact). Customer service is in the low positive impact area.
Figure 1.1

This chart examines the relationships between potential drivers such as the likelihood of a positive recommendation (NPS) or overall satisfaction. Here we can see that customer satisfaction is greatly impacted by ‘Burgers‘.

Five Guys suits their target demographic because when Millennials spend money on food, they expect authenticity, quality, and social media-worthy content. Fast-casual eateries receive 37% of their traffic from this group who are most likely to own multiple devices – as well as shy away from “hard sell” marketing tactics – which Five Guys does not do. Five Guys’ invests so heavily into its core competencies and internal brand marketing, that the customers do the social media and word-of-mouth marketing. 100% organically.

Category #2: Price 💰

Reviews mention pricing as one piece of negative feedback consistently.
Figure 1.2

Much of the customer feedback analyzed found the brand ‘Pricey‘ compared to competitors. To further investigate this, we plotted the top two categories Price and Food against each other in the competitor analysis below. This clarifies the companies positioning within the food industry and explains the higher pricing strategy.

Perceptual Map: Price vs Quality of Food

Five Guys sits in the high price range and is neutral between high quality and low quality food.
Figure 1.3

Is Five Guys’ Pricing Strategy Justified?

Five Guys positions itself to offer a hybrid of ‘fast food’ and a ‘restaurant’ experience, which explains the higher than typical ‘fast food’ prices. Five Guys’ acute competitors include In-N-Out, as well as Shake Shack. Lower-priced competitors include Burger King and McDonald’s. This explains why many reviews categorized the joint as Pricey – because compared to their lower-priced competitors, they are.

Though there is a negative sentiment associated with higher pricing, Five Guys are consciously in this price range. This is an essential part of their positioning strategy – with superior product quality at the brand’s core. Moreover, Five Guys’ target audience is extremely value-driven and most willing to spend more on sustainably sourced food. In short: Five Guys are not lowering their higher prices, because by doing so, they would risk destroying their brand image.

Customer reviews compare Five Guys to  the McDonalds fast-food restaurant.
Figure 1.4

Category #3: Customer Service 👩‍💼

Jerry Murell, Founder of Five Guys

Five Guys invests a lot into keeping its customer service happy and aware of its core mission and values. In turn, this reflects well on their overall image. Internal audits supported by bonuses, open kitchens, and freedom on individual social accounts – are internal marketing efforts intended to communicate Five Guys’ values. In turn, these reflect excellent customer service. Everything Five Guys does in-store is marketing, so it is within their operations that they do the marketing effectively.

Conclusion

It’s all about the overall experience at Five Guys. From how customer service greets you, to how great the burgers taste – even how much they charge. Without this, Five Guys could undermine its reputation and move closer to its lower-quality competitors. For them to remain strong in their current market position, they must continue to invest heavily in their product, their customer service, and stick to their core values. Care to deep dive into the data that made us come to this conclusion? Check out the interactive Caplena dashboard by following the link below:

Here’s the dashboard we made for this blog post 📊

This blog post is reworded from an academic submission by Sheila Bugal.

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I invite you to take a deep breath, get in the right headspace, be calm…..

For a moment, think about balance – what does it mean to you? Have you considered Zen-ing up your life before 🧘? In today’s review, we compare Headspace and Calm through the lens of their respective customer reviews. Using Caplena’s text analytics tool, codes are assigned to the reviews based on their properties.

It doesn’t get more honest than that! 

All data for this article was obtained with Caplena’s latest feature – which allows you to import data directly from eight different review sites.

It’s easy as pie 🥧! Simply copy & paste the link and let Caplena do all the dirty work for you.

Curious? Try it out here and go to ‘Integrations‘. Learn more about integrations here.

Background Information: Headspace vs Calm

Headspace vs Calm logos. Headspace has an orange sun smiling from underneath the logo writing whilst Calm has a simple wording logo against a blue background.

Headspace and Calm appear to be blissfully tranquil behind their pleasant aesthetics. In reality, however, they are battling for supremacy over the $1.2 billion meditation market. While it may seem fierce on paper, Calm’s CEO swears that the competition is really not as intense as it seems.

Michael Acton Smith

Taking Buddha’s words to heart, it would appear these CEOs wear their egos like loose-fitting garments. Practicing inner peace regularly will surely reap a multitude of benefits. Meditation has been proven to enhance sleep, mood, and anxiety – as well as offer mental, emotional, social, and physical benefits. As a result of COVID, mental health issues have skyrocketed, resulting in an increased demand for mental health apps. Statista predicts that meditation apps will grow by 8.5% annually from 2019-2029.

Example 1 – Covid & Mental Health

Two  barchart reports on the effects of COVID-19 on people's mental health in the UK and US. Since COVID, 19% reported symptoms of depression in the UK and 42% in the US.

Headspace vs Calm Ratings

For the purpose of this comparison, we imported 10,000 reviews per platform to analyze within Caplena. In terms of customer satisfaction, we found that Headspace scored four out of five stars on the customer satisfaction scale (see Example 2 below), while Calm scored three out of five stars. But let’s get to the core of the matter: Analyzing the free-text responses. Here are the insights we gained 🚀

Example 2 – Customer Satisfaction Scores

🟠 Headspace

🔵 Calm

Headspace NPS Score of 4
Calm NPS Score of 3

Headspace vs Calm Analysis – General & Negative Insights

Based on an analysis of both app reviews, the main positive codes included: Wide Selection of Programs, Liked the Narrators, Better Overall Mental Health, Less Anxiety, and Better Sleep. Intriguingly, there are also several reviews that praise the app – but then also criticize it in the same response. At Caplena, we would describe this as a verbatim response with two contradictory sentiments (see Example 3). 

When conducting feedback analysis, responses like this are quite common. Many of us find aspects of one thing enjoyable while other parts of that same thing are unpleasant. Oftentimes, an AI will get easily confused by this and mislabel the response. Luckily, Caplena uses sentiment analysis to effectively categorize two contradictory statements from a single source 🙌

Example 3 – Two Sentiments in One Verbatim Response

Notice how customers point out something positive “I do like this app” followed by something negative “but it would be better if there were more free things.” Caplena gives these two specific codes and then accordingly categorizes them.

When taking a closer look at the apps separately, we found the combination of Negative Billing and the aforementioned positive codes to predominantly affect Headspace users. This is not to say, however, that Headspace has more negative reviews ✋! Calm has twice as many Billing Negative and Too Expensive codes (see Example 4 for comparison). This is an interesting insight considering both apps have the same annual cost of $69.99.

Without pointing fingers, Cost and Billing issues seem to be the major problem for both apps. However, reviewers were more likely to praise and point out something negative in the same statement for Headspace – than for Calm.

Example 4 – Bar Chart Comparison of Both Apps

Barchart comparing Calm and Headspace in various category frequencies, for example, negative billing, better overall mental health, narrator's voice, better sleep, etc.
Here you can compare the codes that showed up at a considerable level during the analysis.

Headspace vs Calm Analysis – Positive Insights

Because we are knit-picking on such a small scale, let’s also talk about the many positive features both apps have! Let’s begin by looking at overall customer satisfaction – what do people rave about the most?

Headspace

Most popular with Headspace is how the programs are structured, helping with Anxiety 😌 Better Sleep 💤 and Better Overall Mental Health 🧘. Improved Focus 💭 has a higher rating than Calm. (See Example 5).

Calm

Most popular in the Calm app: Liked the Narrators 🎤, Better Sleep 💤 and Overall Mental Health 🧘. Good Music & Ambient Sounds 🎵 have a higher rating than Headspace, too. (See Example 6).

Example 5 – 🟠 Headspace Rating Scores

Example 6 – 🔵 Calm Rating Scores

Barchart for Headspcae with rating scores.
Barchart for Calm with rating scores.

To distinguish the two further – we made Caplena look for links that occurred less frequently. We found that the Like the Narrators code was also highly present in Headspace reviews – though less often than for Calm. Positives remained unchanged for Calm. In a similar manner to Headspace, users found the app to be helpful while also criticizing it in the same statement (mainly) for its pricing.

Still unsure? Let’s dive deeper into the details.

Most often mentioned for Calm were its Sleep Stories as well as Liked the Narrators and Nature Sounds. While mindfulness teacher Tamara Levitt 🇺🇸 primarily narrates Calms sessions – Andy Puddicombe 🇬🇧 narrates the Headspace sessions. Although it may be a small detail, if you prefer a specific accent, you should keep this in mind when choosing – especially since meditation involves a lot of listening👂 

Andy Puddicombe, narrator of Headspace, giving a presentation in a blue shirt.
Credit: Stephen McCarthy / SPORTSFILE / Web Summit
Tamara Levitt, Calm narrator, smiling at the beach.
Credit: Photoshoot for Experience Life Magazine 2019

Headspace reviewers appreciated the Wide Selection of Programs the app offers, as well as how easily the app guided them through the process✨ This can be helpful for those who find themselves overwhelmed when confronted with too many choices. Calm, on the other hand, puts you in the driver’s seat 🏎️ and enables you to pick something very specific that speaks to your current state of mind. Depending on how much detail and choice you want, this is an important factor.

Another difference that comes down to personal preference is that Headspace offers three, five, or ten-minute segments for meditation – whereas Calm is more focused on longer meditation sessions (think 10 minutes and up). Last but not least, they differ in their art styles as well. Headspace uses graphics with strangely relaxing bright colors – while Calm offers soothing real-life pictures of serene environments.  

Conclusion

Both apps were very much praised by reviewers – although sometimes the price was an issue. It was genuinely hard to find more than a few reviews which did not like the apps for other reasons. Thousands of reviews suggest that these two meditation applications are capable of doing a great deal of good for your mental health.

Calm seems to be more focused on longer, very specific meditations with a lot of choices. Headspace is more focused on shorter spurts of meditation, general mental well-being, and guiding you through all the steps. The money factor is widely disputed, but at the end of the day, a majority of the reviews clearly show that it is worth it. The choice is yours – we’re just bringing the feedback analysis 😜

Interested in more insights? Here’s our interactive dashboard, where you can view, interact with, and read individual reviews. Here’s a glimpse of how it looks:

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Customer feedback is an invaluable resource to your business. By gathering and assessing the sentiment of your customers with an NPS survey, you’ll learn what they’re actually thinking…what your strengths are…and where you’re falling short. But collecting and evaluating feedback is only half the battle. Following up on customer feedback is essential to actually converting customers into brand advocates. In other words, it’s how you close the loop on your NPS process.

Your Customer Feedback is Actionable

Your customer feedback is not just potential material for glowing testimonials to place on your website. It’s actionable advice to make your business better…generating a higher NPS and a higher number of promoters. In order to effectively follow up on feedback, you may want to group your survey results according to these NPS categories: Promoters (9 or 10); Passives (7 or 8); and Detractors (6 or below).

Customer Feedback from Your Promoters (9 or 10)

It’s always encouraging to read feedback from promoters. Your promoters are living proof that your product or service has achieved its aim: To make someone’s life a little better, whether that’s with your natural health supplement, life-coaching business, or accounting application.

A smiling woman with brown hair, red lips and a red top.

Once you’ve finished enthusiastically sharing positive feedback with your coworkers, stakeholders, and friends/family members, start the process of assessment and evaluation.

This involves sifting through potentially thousands of surveys to identify common keywords, organizing feedback based on positive and negative responses, and then identifying themes that provide insight. For example, you may see that many of your promoters commented positively on your pricing. Gaining this insight lets you know that your pricing is a strong point, and you may want to think twice before changing it. A lower price point may generate a higher retention rate–and ultimately, produce more profits.

Customer Feedback from Your Passives (7 or 8)

Although your passives’ ratings did not ultimately factor into your NPS, you may still want to consider their feedback as actionable advice. Did any passives offer concrete opinions or strategies on how you might improve your product, service, or customer experience? How did they rate specific aspects of your business? Looking at where you fell short of (or barely met) their expectations can help you understand why some customers are content–but not thrilled–with your business.

Customer Feedback from Detractors (6 or below)

Now for the bad news: Feedback from your detractors. Take a look at what your less-than-satisfied customers have to say about your product or service, and filter out common themes. While there may always be the odd irrational customer, many of your detractors may share feedback with you that helps you highlight and hone in on your weaknesses and blind spots. For example, you might identify a common trend of dissatisfaction with your online customer support. Considering that this trend has potentially turned a portion of your customer base into detractors, you’ll want to take immediate action to improve your support.

Follow Up with Survey Takers

Following up on your survey feedback isn’t limited to acting on the advice you’ve been given. You’ll also want to follow up specifically with the survey takers themselves, including all three subsets: promoters, passives, and detractors.

Say “Thank you.”

When customers take the time to fill out a survey–and provide open-ended feedback–you’ll want to make the effort to thank them. Include a “Thank you” page or email to follow up immediately on the survey. You may even want to include a special promo code as a gesture of gratitude.

Follow up with promoters and passives.

Beyond a generic “thank you” page, you may want to go the extra mile and personally follow up with a subset of satisfied survey takers. Make a phone call, mail a handwritten note, or send a personal email to respond to their specific feedback. For example, if a survey taker was pleasantly surprised by the personal care shown to her during a support phone call, make a follow-up phone call to continue ensuring that she’s satisfied with your product or service. Following up with promoters will help you to make sure that they are thrilled with your brand (and willing to talk about it with others).

Follow up with detractors.

Ideally, you’ll want to follow up with detractors via phone call, to communicate your concern with their dissatisfaction and investment in making things right. Even large companies like Charles Schwab and Apple make an effort to contact every detractor–ideally within 24 hours of the NPS survey. Demonstrating this kind of willingness to make things right could even turn a detractor into a promoter.

Ask customers to share with friends and family.

Ask survey takers who showed particular enthusiasm for your brand to share the good news with friends and family. You can make this easy by providing social media links, or even offering a promo code or bonus for every referral they make. The whole point of NPS is to boost customer advocacy, right? Take this opportunity to encourage promoters to become your marketing mouthpieces. If your product or service has significantly improved their lives, they’ll be happy to make recommendations to others.

Personal follow-up could become a key for you to raise your NPS and convert more customers into promoters. Even though you may not be able to do this with a huge portion of your customers, the excellence and commitment that it demonstrates could convert into a better reputation (and generate positive online reviews and word-of-mouth marketing).

Reporting NPS + Customer Feedback to Stakeholders

Following up on your feedback involves your stakeholders as well as your customer base. Different departments within your business, as well as investors and partners with your company, will want to know concrete details about how your customers are responding to your product or service.

Track changes in your NPS over time.

Take a look at how your open-ended feedback and NPS have changed over time. Ideally, you’ll have seen increased customer satisfaction and more enthusiastic feedback. Create a report with this information to show invested stakeholders how your product or service has improved in customer satisfaction and loyalty–and how their investment is paying off.

Report specifics to different departments within your business.

If you’ve identified common themes in your open-ended feedback that concern specific departments (such as design, marketing, or tech support), you’ll want to find a way to deliver this information in an actionable way to responsible stakeholders. Ideally, NPS feedback should help your team members honestly assess performance within their respective departments, and make changes if necessary.

Tackling the Challenge of Evaluating Open-Ended Customer Feedback

In order to properly close the loop on your NPS process, you’ll need to be able to organize, filter, and assess open-ended feedback produced from your follow-up question (i.e. Please explain your answer, or What could we be doing better?). However, organizing and evaluating open-ended feedback can be a massive challenge, especially on a larger scale. Using an AI-powered tool like Caplena can eliminate hours of labor from this task. By applying natural language processing (NLP) to the survey results, such as text poll and SMS surveys, to efficiently sort and identify keywords, Caplena makes it easy to assess feedback from promoters, detractors, and passives…and make better decisions about the critical step of NPS follow-up.

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As a business owner, you simply can’t overestimate the importance of what your customers think, feel, and say about your product or service. Most likely, you already know the key to discovering this invaluable information: A customer survey.

Customer surveys allow you to reach out to your customer base, probe them for their thoughts and opinions (in a friendly way, of course 😊), and filter their feedback for common trends and themes. The resulting insight can help you improve your product, make better business decisions, and convert more of your customers into vocal, enthusiastic advocates for your brand. Sounds good to us!

The trouble is, how do you decide on what kind of survey to use? With a seemingly endless variety of formats and question types, it’s difficult to know where to begin for the best results.

In this article, we’re eliminating some of the guesswork for you by giving you foundational advice to creating an effective customer survey, as well as a good old-fashioned compare-and-contrast between two of the most common survey question: open-ended vs. multiple-choice.

Your Starting Point: Net Promoter Score (NPS)

Before deciding how you want to write your customer survey, you need to decide what sort of information you want to collect. If you’re focusing on customer satisfaction, there are several metrics that you can gather. These include CSAT (customer satisfaction score), CES (customer effort score), and finally, NPS (net promoter score).

While CSAT focuses on measuring general rates of customer satisfaction, CES seeks to gather information about how challenging it is for customers to interact with your product. Both of these metrics can be valuable in their own right, but what you’ll really want to focus on is NPS.

Why?

NPS effectively captures a spectrum of customer satisfaction-related insights by asking your customers how likely they are to recommend you to a friend, relative, or coworker. In doing so, they let you know how happy they are and how usable your product is. Maybe most importantly, you also gain insight into your success in encouraging word-of-mouth marketing.

NPS is generally collected by asking, “How likely are you to recommend Product X to a friend, relative, or coworker?”

Survey-takers then have the opportunity to respond on a scale of 0-10. Customers who give you a 9 or 10 are promoters; customers who give you a 7 or 8 are passives, or neutral, and customers who give you a 6 or below are detractors.

In a perfect world, all your customers would be promoters, eagerly sharing the good news of your product with others. But that’s not usually the case. In all likelihood, you’ll find more of a combination of customer types. Your goal is to discover why promoters love you, and why detractors are less than satisfied. And then, you’ll want to turn that feedback into actionable advice.

The Follow-Up Question: Multiple-Choice or Open-Ended?

Your follow-up question is the key to turning insight into action.

Two people working on a laptop. On the laptop there is feedback visualised on a business chart.

If someone gives you an enthusiastic “10,” you can take a guess about why they love your product…but in reality, you need to hear from your audience to get an authentic answer. On the flip side, if a survey-taker gives you a “4,” you’ll most likely be desperate to understand the logic behind their less-than-thrilled answer.

In any case, you need to give them an opportunity to explain.

You can do so in one of two ways: a multiple-choice question, giving survey-takers a pre-set range of options to choose; or an open-ended question, providing them the chance to use their own words to explain their rating choice.

Multiple-Choice: Pre-set Answers for Easy Analysis

A multiple-choice question for collecting NPS feedback for a meal delivery service might read as follows:

What can we improve on?

a) Customer service
b) Quality of ingredients
c) Package design
d) Recipe instructions

The core advantage of asking a multiple-choice question is that you generate a highly controllable outcome: You receive specific information with very little need for analysis. It’s fast and easy, and can give you some actionable insight.

The disadvantage, however, of asking a multiple-choice question is that you don’t really learn why your customers rated you the way that they did. For example, by asking your customer base the question above, you learn that a number of them don’t like your package design, and very few have complaints about customer service. But did you really learn about their true concerns? You don’t understand your customer’s true sentiment.

Let’s imagine that your detractors’ primary complaints are a slow delivery time or unclear messaging. You haven’t given them an opportunity to share that information. Instead, you’ve made assumptions about the logic behind their rating.

Not only that, but you haven’t created a space to allow your customer base to make suggestions or recommendations. Now you’re missing out on a relationship-building opportunity that shows you value their opinion.

Open-Ended: Detailed, Honest Feedback

On the other hand, an open-ended question for following up on an NPS rating question might simply read:

Please explain your answer.

Pretty simple, right?

A blank white piece of paper. Beside it is a pencil and a sharpener.

Giving your customers free reign to give you feedback produces some powerful insight. You may discover common threads and trends in your feedback analysis that surprises you, and help you to effectively turn more of your passives into promoters–and your promoters into more active advocates for your brand.

For example, you may learn that many of your customers are unhappy with a particular ingredient that’s present in many of your meal delivery boxes. This ingredient could be killing off your retention rate, and turning your satisfied customers sour.

But without an open-ended question, you would have remained blindly ignorant of your meal delivery faux pas and left to wonder about dropping subscription rates.

Not only that, but an open-ended question gives your customers space to voice their complaints, and shows that you want to listen.

This can help you to develop effective strategies for improving customer loyalty and advocacy.

The primary challenge of using an open-ended question is, of course, analysis.

Open-ended feedback leaves you with a vast amount of information to read, organize, filter, and most importantly, understand. The larger your customer base, the more amplified your challenge. Take into consideration the fact that many of your customers may misspell certain words and use different phrasing for similar sentiments, and you have hours of data sorting on your hands.

Don’t Sweat It: There’s a Solution

Open-ended feedback produces the not-insignificant challenge of analysis. But relying on a multiple-choice question to gain authentic insight into your customer base leaves a lot to be desired…and may ultimately result in wasted time, money, and resources.

The solution looks to augmented intelligence to help you effectively categorize, filter, and analyze open-ended feedback. Caplena helps you deliver NPS surveys and analyze the feedback, getting you detailed, accurate insight without the massive challenge of trying to perform the analysis yourself. Instead, artificial intelligence does the heavy lifting for you, by using NLP (natural language processing) to evaluate language. At the same time, we help create the codebooks ourselves, using human creativity and insight to establish an effective system of categorization.

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Most business owners are well aware that open-ended feedback provides invaluable insight into helping them improve their product or service, boost user satisfaction, and even expand their customer base. But analyzing this useful information requires a significant amount of organization, protocol, and follow-up – The first step of which is creating customer feedback categories for feedback analysis.

Automatically assigning open-ended feedback into predetermined categories makes the analysis of this information that much simpler. It gives business owners and analysts immediate insight into what needs to be tweaked, refined, added, or tossed out. When it comes to feedback analysis, categories are king.

But with all of the options for categorizing a potentially infinite variety of answers, how do you choose the right categories? How specifically do you need to be? Or, should you keep categories broad and general? You can do this manually or you can take advantage of customer feedback tools that use machine learning to effectively categorize your data.

If you decide to manually categorize the feedback, one general rule is to establish a positive/negative “version” of each category – This tactic gives you immediate insight into whether customers are happy or unhappy with a specific aspect of your product or service. This is known as sentiment analysis.

Here are 10 feedback categories that can help give business owners and analysts valuable insight:

Universal Customer Feedback Categories: Applicable to Any Product or Service

#1: Customer Service

Whether you want to admit it or not, your customer service has a significant impact on how happy (or unhappy) your customers are with your business. This being the case, a general “Customer Service” category with subcategories is essential to any brand’s customer feedback framework. These can include:

A person is paying for coffee and the worker is smiling reflecting a positive customer experience

Depending on what your product or service entails, your customer service categories will vary. For example, if you run a travel website, your customer service will most likely be dealing with customers who are experiencing glitches with your site. Or, if you sell a mail-order health supplement, you may be talking to those who are experiencing package delays. In any case, think through the specifics of what you might encounter in feedback when determining subcategories for customer service.

#2: Pricing

Pricing is fairly straightforward. Your customers – or potential customers – will either think your product is fairly priced or overly expensive. That being said, there may be exceptional cases where customers think that you could be charging more for your product or service – and they’re not afraid to say it. But in general, you can stick with two categories: “Fair pricing / cheap” or “Too expensive.”

#3: Overall Perception

The overall perception of your brand is related to your overall customer satisfaction. If a survey taker gives a fairly general answer to your open-ended question such as “I love _,” this answer will be allotted to a subcategory: “Positive Experience.” On the other hand, if a survey taker quickly dismisses your product or service – “Not worth the money,” or “Terrible” (Of course, we hope you never get feedback like this!) – this type of answer will be assigned to the subcategory, “Negative Experience.”

#4: Other

Finally, you’ll probably want to include a catch-all “Other” category that accounts for exceptional feedback – a random insight, opinion, or thought that may not fit into any other predetermined category.

Customer Feedback Categories for Subscription Services – Such as an App, Phone Service, or Insurance

#5: Billing

If you run a paid subscription service, survey takers will most likely offer commentary and insight into your billing process. Similarly to pricing, billing will most likely be fairly straightforward. Either your survey takers have a positive perception (“Billing fair/positive”) or a negative perception (“Billing unfair/negative”).

#6: Usability

Paid subscription services usually offer users a tool or technological application to make life easier and more efficient. “Usability” applies to services that are used on a frequent basis – Think a phone, website, or application. Subcategories under usability may include:

Customer Feedback Categories for a Product – Such as Clothing, Electronic, Food, or Health Item

#7: Quality

If you sell an item that your customers wear, eat, apply, take or use for their household, they may very likely comment on quality. Of course, depending on the type of product you sell, subcategories for quality will range dramatically:

#8: Design/Appearance

If you sell clothing, decorative items, or even electronics, your customers will be commenting on overall look and appearance – especially if you’re an online retailer. Try including subcategories that involve accuracy: “Accurately presented, true to image/positive” or “Inaccurately presented/negative.”

Customer Feedback Categories – Market Research Agencies

Market research agencies will use customer surveys in a different way than traditional businesses: By gathering open-ended feedback from a target audience, they are gaining valuable insight into a market for other brands or businesses.

#9: Preferences/Lifestyle

Market research typically involves identifying a specific market: a demographic of users, customers, or clients in a given industry. Although you may use multiple choice questions to identify the details such as the income or age of your survey takers, your open-ended feedback may also include information about preferences or lifestyle habits.

For example, if you are performing research for a food/beverage company, you may want to include subcategories, such as “Active lifestyle/fit” or “Trying to lose weight.”

Two people are discussing their research findings on a tablet.

#10: Problems/Challenges

Your open-ended question may ask a survey taker about what kinds of problems or challenges they face. Depending on what kind of market you’re researching, include subcategories that account for a range of responses. Here are a few examples:

Of course, there will be a wide variety of subcategories for market researchers. The important thing is that you’re able to gather valuable, actionable feedback for your clients, and only a strategic framework of customer feedback categories can help you achieve that.

Segmenting Your Feedback for Different Departments

For example, your HR department will be interested in open-ended feedback involving customer satisfaction. Your tech/IR department will want to know what users think about functionality and usability. In any case, customer feedback categories make it easy to deliver this information – and make insights from feedback immediately actionable.

Caplena: Making Customer Feedback Categorization Simple

Using a combination of human intelligence and artificial intelligence, Caplena provides an instantaneous annotation to help you quickly and easily categorize your feedback into categories of your choice. To facilitate the development of the categories, Caplena offers a variety of templates for individual industries.

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Nowadays, every company or business needs a customer survey. A customer survey – especially an easily accessible online survey – can give owners a greater understanding of what makes their customers happy, and what makes their customers unhappy. What sentiment do your customers reflect? It can provide valuable insights into improving a product or service, give feedback on a new feature, or let owners know how they’re performing in the area of customer service, price, quality, and more. Most business owners and entrepreneurs would agree with all of this.

The trouble is, where do you start with creating a customer survey? Designing a survey that customers will actually engage with and that will provide valuable insight is no small feat. What kinds of questions will you ask? Which metrics are you looking for? Will you include open-ended questions?

While the options can seem overwhelming, keeping your core motives in mind is key to success. You need to accomplish two things: Feedback that will provide you with the insight you need to improve your product or service and grow your business; and continued customer engagement with your survey.

Thankfully, there is a solution: A 2-question customer survey.

Just 2 Basic Questions for Optimal Customer Survey Results

Including just 2 questions on your customer survey might seem a little foolish, at first. It might feel like a waste of time, to go through all the effort to create a customer survey, engage with your customers, and then ask only 2 questions. You may have a list of 10-15 questions (or more) that you’re dying to ask your customers and feel that 2 questions simply won’t cut it.

Trust us on this one: When it comes to customer surveys, less is more.

All of your burning questions about a product update, frequency of use, a particular feature, price, and what customers love (and hate 😬) can be answered in 2 basic questions…

Question #1: Net Promoter Score (NPS)

The first question you’ll want to ask is for NPS.

Many people confuse NPS with CSAT – customer satisfaction. But the core distinction between these two metrics is that NPS measures how likely a customer is to actually recommend your product or service to a friend or family member, not simply how satisfied she or he is with your brand. NPS is a key metric because it helps you predict and understand how word-of-mouth marketing will benefit – or detract from – your brand.

Your question to gather NPS feedback might be something like this:

How likely are you to recommend __ to friends or family?

Then, give customers a scale of 1–10 to choose from – 10 being “extremely likely” and 1 being “never.”

Finally, you’ll calculate NPS by subtracting the number of “detractors” (those who rated you less than a 7) from “promoters” (those who rated you a 9 or 10). Anyone who rated you a 7 or 8 is considered “neutral” and will not factor into your final score.

% of promoters – % of detractors = NPS

By industry standards, an NPS above zero is considered okay. But ideally, you’ll want to aim for 50 or above (anywhere above 70 is fantastic). Detractors tend to have far more influence on your brand than promoters do, and you’ll want happy, enthusiastic customers to far outweigh the unhappy few who will badmouth your product or service online…and potentially influence hundreds or even thousands of potential customers from ever giving you a chance.

Your NPS is a powerful indicator of not only how satisfied customers are…but how they act as either positive or negative leverage for your brand.

Question #2: Open-ended Questions for Customer Surveys

Following up your NPS score with an open-ended question gives your customers an opportunity to explain their answer to the previous question, and to give you additional other feedback that may prove useful. Here are some ideas for open-ended questions you might want to ask:

By asking one of the friendly questions above – or something similar – you give your customers an opportunity to share their own creative feedback with you. You also build valuable relationships with your customers by showing them you care about and value their personal opinion.

In any case, keep your question simple! Simple questions produce straightforward answers, with authentic, high-quality information.

Most importantly, gathering customer feedback this way helps you to gain insight into driver analysis – in other words, the factors that have the biggest impact on customer loyalty and satisfaction, such as price, customer service, design, and usability.

For example, your customers might be thrilled with the design of your product, but disappointed with your customer service. This can cause a significant dip in overall customer satisfaction, an insight that you can gain from asking an open-ended question…but not simply asking for a score.

If analyzing open-ended feedback seems intimidating, hang with us for just a minute – we’re getting to that part soon. 😊

A 2-Question Customer Survey: Less Churn, Happier Customers

One of the greatest challenges of designing an effective survey is keeping survey-takers engaged. Unfortunately, even when your customers respond to your survey, they may get bored, frustrated, or simply lose interest and abandon your questions, which leaves you without the valuable feedback you need to improve your product or service.

Hand pointing two fingers in the air.

A 2-question survey effectively reduces churn rates by keeping your survey quick and easy. When customers only have two questions to answer, they’re less likely to abandon your survey, and probably more likely to engage with your survey in the first place.

Not only that but customers like answering open-ended questions!

In fact, a recent study was performed where customers were asked eight open-ended questions about vastly different topics, ranging from what customers liked/disliked about their spouse to what they liked/disliked in a mobile carrier. Despite its considerable length, 90% of the respondents reported enjoying the survey because of the open-ended questions – because they were able to use their own language to give their opinions and explain their preferences.

Analyzing Your Open-Ended Feedback

Analyzing your open-ended feedback can be a challenge. It could take an entire day’s worth of labor to sift through hundreds – or even thousands – of open-text responses. And while conventional NLP software or survey analysis can help, you’ll still have to take the time to define rules by hand in order to account for typos, misspellings, and other mistakes.

Caplena can help you save time, money, and the extra effort of coding and understanding open-ended responses. It effectively performs analysis with a combination of human intelligence and artificial intelligence, relying on both to produce accurate, valuable insights for you. First, Caplena can be used to understand the open-ended questions on an in-depth level. Then, it “splices and dices” the results in an easy-to-understand visual chart that shows what factors are more linked to happy or unhappy customers – identifying that critical correlation analysis that will help you to understand what’s really affecting your overall customer satisfaction and loyalty.

Discovered by Customer Surveys: “Hidden” Drivers of Success

If you’re currently using a longer customer survey (or no survey at all), consider integrating one of these simple 2-question surveys into your site. You may be surprised to find “hidden” drivers of success in your customer feedback…and learn how to significantly improve your product, site, or business practices to boost outcomes.

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Every effective entrepreneur, CEO, or business leader knows that asking for customer feedback is not an optional step to success.

As the saying goes, “The customer is king.” There’s only one way to know what your customers really want and think: Ask them.

Why Ask for Customer Feedback?

Customer feedback is about more than knowing whether your customers give your product three stars or five stars (although that is a valuable insight). It’s also about gathering the information that can help you make critical decisions and improvements….insights that only an objective, paying customer can provide.

Customer feedback can potentially:

Not only that, but customer feedback will help you gather and analyze insights to help you offer a product or service that is better than those of the competition. Knowing what your customers want, value, and don’t like will help you continue to hone your product or service, make adjustments where necessary, and refine your vision and future plans.

The bottom line is: You need customer feedback.

But in a world where potentially hundreds of “asks” are made of consumers and customers alike, how do you ask for feedback – and get an authentic, honest response?

Asking Your Customers for Feedback

You can gather customer feedback in a number of ways – such as with a mail-in survey or a phone survey. But the most efficient and popular strategy for collecting feedback is online.

A huge lit up question mark lying on its side.

Use a floater.

One option for collecting customer feedback is to create an online floater. A floater is a box that “floats” over your homepage instead of opening a new window. Using a floater has multiple benefits: It allows your customers to effectively remain on your homepage, and it doesn’t clutter up their desktop with “pop-up” windows. Floaters can be designed either as an overlay – appearing over the center of your homepage – or they can “slide in” at the bottom corner of your homepage (typically the right-hand side). While a floater in the bottom corner is less intrusive than an overlay, the latter positioning may generate a higher response rate.

Floaters typically include a simple header, such as “How are we doing?” and include the survey itself – such as a star rating that customers can quickly fill out. Or it might link to your customer survey on a different page.

Try a live chat.

Another strategy for asking customers for their feedback is to use a chatbot. Chatbots might use artificial intelligence to engage with and respond to your customers in an authentic way, generating human-like responses to their text. The option to speak to a chatbot will typically appear in the bottom corner of your homepage. If customers choose to respond to the initial request for feedback, they can then hold a “conversation” with the chatbot, providing their opinion and satisfaction rating.

The advantage of using a chatbot is that it feels more personal to the customer than filling out a form. And of course, you can pitch your “bot” as a real person, not as a robot. Using a face and name makes customers feel like they are authentically building a relationship with your brand or company.

Create a feedback box.

A feedback box is an effective but perhaps underutilized strategy for collecting and analyzing feedback. Feedback boxes may appear at the bottom of a specific page, providing a field and a simple question for customers to answer, such as “How can we improve your experience on this page?”

Reach out through email.

Finally, you may want to reach out directly to customers with an email campaign designed specifically to collect feedback. The advantage of using email to collect feedback is that it feels like a personal follow-up to a purchase or user experience, and lets customers know that you really value their thoughts and opinions.

Your email subject line should be warm and friendly, like “Tell us what you think of _!”

Ask for Customer Feedback: Getting a High Response

It’s not very complicated to build a feedback mechanism for your site.

The tricky part is to actually get customers to take the time to respond and be thoughtful in their answers. The more feedback you have, the deeper insight you will gain into customer behavior, customer preferences, and what’s working and what’s not. The more feedback you have, the more accurate your insights will be. For example, check out what we discovered about Adidas and Nike stores based solely on their customer feedback.

Just like making a sale, you’ll need to be strategic in how you ask for feedback – and even in what you offer in return.

Be strategic with the timing of your “ask.”

As mentioned above, one effective strategy for asking for feedback is to use a floater. But if your floater appears within the first few seconds of a customer’s experience on your homepage, chances are good that you’re only going to frustrate and annoy your customer base. If you choose to use an overlay, time the floater to appear just as a customer chooses to leave a page. Or, time the floater to appear after a customer makes a purchase, giving him or her a chance to respond to the buying experience.

An email campaign asking for feedback should not be sent immediately after a customer makes a purchase, but after an adequate amount of time to test out the product.

Use a friendly, concise copy.

Just as with your marketing materials, you’ll need to be strategic with the copy you use in collecting customer feedback. If your copy is too formal, lengthy, or complicated, customers will be turned off, and less likely to engage with your survey. On the other hand, if your copy is unclear or too brief, customers won’t know what you want them to do. Be friendly and straightforward. Your header might say, “Tell us how we’re doing” followed by a subhead, “Rate Your Purchase” and an option for a star rating. Or, “We’d love your feedback! Click below to tell us how we’re doing,” followed by an option for open-ended feedback.

Using warm, friendly copy will also set the tone for feedback – so that customers are likewise genuine in their responses.

Plus, it’s a less intimidating and quicker format for customers to use, increasing the likelihood that they will take the time to respond. The key is to ask one “rating” question, such as “Rate __ from 1–10” and one open-ended question.

An open-ended question gives your customers the opportunity to give their honest opinion, provide their creative insights, and voice complaints, concerns, or even compliments. Analyzing open-ended feedback can be challenging and time-consuming, but a text analysis tool like Caplena can help you organize your data and automate the process while giving you an in-depth understanding of the insights you’ve gathered.

Offer a lead magnet in exchange for feedback.

A final strategy to motivating customers to respond to a survey is to offer something in exchange for their time – a free report or discount code, for example. Offering an incentive also builds relationships with your customers, communicating that you are there to give back to your customers.

Don’t Skip Customer Feedback: Ask for Customer Feedback Today

The value of your customer feedback strategy cannot be underestimated. Making an effective ask of your customers and collecting plenty of data are both critical to your understanding of what your customers want. More honest customer feedback translates to deeper insights into how customers are responding to features of your product or service, what can be improved, and what can be discarded.

Ultimately, feedback will help you make better decisions – helping you to become a better, more profitable, and more competitive business.

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Caplena conducts sentiment analysis using AI to understand how your customers or employees genuinely feel so you can spend less time on the analysis and more time on the results! 🏆️
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