For investors or buyers, one of the most important aspects of a due diligence report is understanding the key challenges a company currently faces. Not only that, it’s crucial to know whether the issues are longstanding, whether they are fixable, and how a company’s performance fares against its competitors.
All of this information can now be quickly and easily extracted thanks to developments in Psychology AI and text analysis.
The methods mentioned in this article work particularly well for conducting eCommerce due diligence reports, since eCommerce necessarily generates more noise on social media and review sites. However, they can be applied to other business models with an active online presence.
Social media X Psychology AI
When conducting an eCommerce due diligence report it’s important to get an accurate and comprehensive overview of brand perception. Traditional methods for compiling the necessary data (such as conducting large-scale, cross-territory surveys) are highly time-consuming and resource-intensive.
Much of the necessary data is out there already in the form of social media posts, comments, and reviews. However, it is largely left untapped due to the lack of tools to reliably and accurately extract insights.
Symanto’s psychology AI and text analytics are changing what’s possible.
Time and cost-efficient
Data is readily available without having to dedicate time to conduct large-scale surveys across multiple territories. Cross-lingual automated text analytics can give broad and in-depth insights within several days.
True and honest perspectives
Conversations are organic. Customers are posting of their free will and are not asked or incentivised to participate in a survey, which would likely influence their response.
Large quantity of data
Symanto insights that support an eCommerce due diligence report
Track how sentiment has changed over time
Before acquiring or investing in a company, it’s useful to know the brand perception trend. For example, has net sentiment deteriorated rapidly over the past few months? Track how net sentiment has changed over previous months to get an overview of the direction of the brand.
Identify main issues & challenges
Symanto measures net sentiment with regards to different topics to identify pain points. Are conversations around customer service, for example, generally positive or negative? How about product quality? If you acquire this brand, what would you need to immediately address?
You can also track net sentiment by topic to see if these pain points have arisen suddenly, or if they’ve always been an issue.
Analyse pain points in depth
Once you’ve established pain points, you can explore them further. For example, if customer service is an issue, you can find the words most associated with that topic, both positive and negative, to discover what areas need improvement.
Symanto text analysis is more advanced than other social listening tools as it is able to analyse words and phrases in context and ascribe positive or negative sentiment with far more accuracy. For example, the phrase “didn’t bother” can be positive (“it didn’t bother them at all that I made several changes to my order”) or negative (“they didn’t bother to ask me when it was best to call me back, so they disturbed my meeting”) depending on context.
You can also deep dive to extract specific examples of conversations where the topic is mentioned to gain even further insight into the issue.
You might think that a company’s main competitor is the competitor in the industry with the greatest financial share of the market. However, that is not always the case. Symanto Insights Platform can give a far more nuanced view of where a brand stands within the market from the perspective of the customers themselves.
Firstly, we can take a look at which companies have the greatest share of voice in the market – which competitors are people talking about the most? This is the springboard from which we conduct a deeper analysis.
From there we compare the net sentiment of these competitors. Though more people are talking about brand X, it has a negative net sentiment and is, therefore, less of a competitor than the second most mentioned brand (Y) that has a positive net sentiment.
We can also compare the personality types of the customer base of competitors to identify which brands are targeting the same people.
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Over the past ten years, we’ve worked with a vast number of global clients on an international level and on an industry level across different territories and conducting sentiment analysis in different languages.