Revolutionizing Business Innovation with NVivo
When gathering qualitative data, it’s often hard to determine the emotional undertones of the messages. In the financial industry in particular, it’s critical to understand the true overall feelings of the market through articles, social media, and other consumer platforms when it comes to things like the financial state of the economy and stock trends. This is where applying sentiment analysis to your data can help.
In Deloitte's CFO Signals Survey 1Q 2024 on North America's CFOs' opinions on economic conditions, Deloitte found that, "The percentage of CFOs expressing optimism for their companies' financial prospects increased to 42% from 38% in the prior quarter, while those expressing pessimism dropped to 11% from 27%. As a result, CFOs' net optimism shot up to +31 from +11. At odds with this rise in optimism, the number of CFOs who believe now is a good time to take greater risks (40%) was outweighed by those who say now is not a good time to take greater risks (60%). This is largely in line with what was found in the previous quarter, signaling that CFOs appear cautious with their risk-taking endeavors despite optimism for economic conditions in the year ahead."
Analyzing survey responses like this are vital to gaining an understanding of how the marketplace and your customers feel about these trends. That's the potential of sentiment analysis, and one such tool that helps easily identify sentiment is qualitative data analysis software (QDA), NVivo.
NVivo’s powerful sentiment analysis allows analysts to uncover the tone of voice behind media releases,articles, social media posts, and other text-related data – adding an important element to reports and qualitative data summaries by translating data into actionable insights to take your business to the next level.
This blog explores the specific challenges analysts in the financial industry face when using sentiment analysis and how QDA software like NVivo can help turn those challenges into wins.
Why is Sentiment Analysis Important?
In the realm of digital interaction, the face value of numbers and text only paint half the picture. It's the sentiment behind the data that truly matters. That's where the power of sentiment analysis comes in. It allows businesses not only to quantify data but also to decipher emotions. Data, when distilled through the lens of sentiment analysis, gains depth and generates insights that can empower your brand to comprehend your customers' feelings and perceptions.
As an invaluable tool, sentiment analysis deciphers human emotions woven into textual mediums like comments, reviews, and social media posts. Traditional data-analysis methods fall short here, as they're built for numbers, not words — and certainly not for the complex layers of emotion that words carry. To navigate this challenge, you can implement the technique of combining QDA software with statistical software, like NVivo and XLSTAT, to dig into the core emotions in your numerical and text data.
Software that Fits Using a Sentiment Analysis Tool with NLP to Understand Consumer Emotions’ Needs
Perhaps the most valuable source of insights is unstructured text data. From social media posts to blog comments, consumers constantly express their emotions and opinions. Picking up these emotions, deciphering them, and layering them over traditional metrics provides a multidimensional view of customer behavior.
Sentiment analysis tools, such as QDA software NVivo, can process and analyze large volumes of unstructured data. Qualitative research software can employ advanced algorithms to sift through textual content, identifying patterns, themes, and sentiments expressed by customers across various digital platforms. By harnessing natural language processing (NLP) technology, NVivo can interpret the subtle nuances of human language, distinguishing between positive, negative, and neutral sentiment in text with remarkable accuracy. After using NVivo to perform sentiment analysis, it even organizes based on sentiment classification.
Here's how NVivo's prowess in sentiment analysis works. NVivo:
- Dives into textual data, comprehends, and decodes the emotions.
- Saves time by coding a vast amount of data rapidly.
- Enriches research and marketing strategies with its ability to ascertain sentiments across languages.
Beyond sentiment analysis, NVivo supports mixed methods research by allowing integration with quantitative data. By working with Lumivero's XLSTAT, you can dig deeper into the negative or positive sentiment to determine the level of significance of the findings. This combination provides a holistic view of consumer feedback, marrying the 'what' derived from numerical data with the 'why' extracted from textual analysis. For example, you could create a scatter plot in XLSTAT to compare interest rates with consumers' desire to purchase a home to determine if that relationship is significant.
Consequently, financial corporations can craft more nuanced strategies that not only address customer needs but also anticipate future trends.
Applying Sentiment Analysis Work to the Financial Industry
Understanding the relationship between financial trends and consumers’ feelings towards them can be a difficult yet invaluable advantage. For example, this could apply to consumers who might be borrowing money for a large purchase, investing in the stock market, or saving their money during periods of uncertainty. It’s clear that market noise and regulatory changes can have a profound impact on the data financial analysts collect, and being able to parse through those to get at the heart of customer sentiment can improve financial corporations’ ability to meet consumers’ needs.
NVivo sentiment analysis solution assists financial corporations with its main challenges in the following ways:
- Sifting through the noise: Financial data can be noisy due to market volatility, sudden news events, or even misinformation, so distinguishing between genuine sentiment signals and noise becomes challenging. NVivo’s AI-powered autocoding uses deep learning to efficiently group data for themes and sentiment by conducting text analysis — locating emotive words and assigning a sentiment score — clearly showing positive and negative sentiments in a chart of codes and number references to help you easily digest your data. By letting machine learning take the first round of coding and using the sentiment analysis model, you not only speed up the process but also open yourself up to seeing patterns and groupings that might have been missed.
- Using real-time analysis: In finance, decisions are made quickly and the application of sentiment analysis must provide real-time insights to be actionable. With NVivo, you can ask complex questions to discover meaning, emerging trends, and sentiment in your data and quickly visualize your data with word frequency charts, word clouds, comparison diagrams, and other visual formats.
- Maintaining regulatory compliance: Financial institutions operate under strict regulatory frameworks that govern data usage and reporting. Sentiment analysis models must comply with regulations, and NVivo is GDPR compliant.
- Integrating market sentiment with fundamental analysis: Sentiment analysis complements traditional fundamental analysis but can't replace it entirely. Analysts must integrate sentiment insights with other factors such as financial ratios, economic indicators, and company fundamentals. NVivo can help with this by allowing analysts to import text, audio, video, emails, images, and other unstructured content from any source into a simple, intuitive interface for easy analysis.
Ultimately, NVivo's sentiment analysis acts as a lens, providing a fresh perspective on data analysis. Delving into unstructured data can offer a wealth of information about how your customers' sentiments align or differ from what you’re able to provide.
Embracing this uniquely emotional approach to data analysis cultivates a strong understanding of your customers' true thoughts and opinions -- allowing you to strategically meet their needs and deliver the optimal financial products and services.
Harness the benefits of sentiment analysis with qualitative research software and let NVivo and XLSTAT fuel your data-driven innovation. Request a demo of NVivo and XLSTAT, or reach out to us today!
