Customer analytics refers to the information of the behavior of the customers that are collected to help the business make important decisions with the help of market segmentation and analytics. Customer analytics mainly helps the organization by providing them with a proper chart based on the behavior of the customers while interacting with the organization. This, in turn, helps the organization to respond and change its products accordingly.
Customer Analytics is considered the backbone or the main structure in all organizations and is very essential for all marketing activities. Customer satisfaction is very necessary when it comes to marketing products. Nowadays, customers are more connected as they know where to buy and how much to pay. Hence, understanding and gaining customer insight becomes a little critical. The deeper an organization understands its customers, the more are their chances to achieve customer satisfaction. Due to the increase in the demand for customer satisfaction in various organizations, the global customer analytics market is estimated to reach USD 7.3 billion at a CAGR of 15% in the forecasted period.
The outbreak of the COVID-19 pandemic has affected the growth of the market of customer analytics negatively. During the pandemic, the government imposed strict lockdown, and hence, the markets were shut down. Due to this, the customer analytics industry has been hampered for a short while. Online retail, being the fastest growing market sector has been largely affected but because the government has been supporting the online shopping platform during the lockdown, this market gradually started rising.
However, the lockdown imposed by the government has led to a huge drop in customer analytics business and various industrial operations which also include the retail business. Various patterns have been noticed in the customers during the lockdown period which might help the companies to improve their product portfolio and aim towards gaining profit.
The key driver that is responsible to enhance the customer analytics market share is the insight into the purchasing behavior of the customers. Recently, there has been a certain growth in the social media concern which is also considered a key driver of the market of customer analytics. Social media analytics is basically a combination of measurement, analytics tools, and monitoring, that are helped to uncover the sentiments of the users along with the businesses with customers through various social media platforms. Well-established retailers have quite successfully managed to pull over the benefits that are offered by the various social media platforms.
The competition of the markets is increasing day by day. Therefore, the customers are constantly changing their priorities on the basis of quality and price. An increase in the competition has created an opportunity for various businesses to collect the primary data of the customers efficiently and notice their buying characteristics. Another major opportunity of the customer analytics market is the proliferation of customer channels.
There has been an increase in the number of security and privacy breaches recently. Therefore, an increase in the concern for privacy and security took place among the customers. This has been a major restraint in the market of customer analytics. It may become very critical to secure the big data architecture in customer analytics. This has become a major threat as it may also lead to loss of information.
Along with several drivers of the market, there are also various challenges that are often faced by the customer analytics market. The COVID-19 posed a major challenge in the market of customer analytics. The organizations worldwide were shut down and many people became jobless. Hence, the buying power of the people was also reduced. Customers stopped buying online due to the excessive price range. This has affected the growth of the market and posed a major challenge. The second strain of the virus may also pose a challenge in the customer analytics market growth.
Cumulative Growth Analysis
There are multiple factors that are responsible to drive the growth of the customer analytics market such as customer insights, social media analytics, and many more. These driving factors are expected to help the market to grow at a valuation of USD 7.3 billion during the forecasted period at a CAGR of 15%. Though there has been a short-term decline in the growth rate of the market due to the outbreak of COVID-19, post the outbreak, the market is going to grow at a rapid pace.
Value Chain Analysis / Technology Analysis / Regulatory Implications
Customer satisfaction is the major factor responsible for the success of a business. Due to the increasing demand for enhanced customer satisfaction, the market of customer analytics is growing at a rapid pace. In the retail industry, customer analytics are in high demand for its development of various marketing programs and personalized communications. This in turn will help to improve the loyalty of the customer and also customer experience by knowing the personal choices of the buyers. Providing a good and easy shopping experience to the customers allows the customers to repeat their purchases, increase customer satisfaction, loyalty, engagement, and referrals.
The customer analytics market size is segmented based on five categories. They are by service, by solution, by organization size, by deployment, and by vertical. Here is a list of the various segments of the customer analytics market along with their sub-segments.
By Organization Size,
According to the customer analytics market analysis, the market for customer analytics is estimated to show huge growth in the coming years. Based on geography, the customer analytics market is segmented into five main regions which include North America, Asia-Pacific, Latin America, Europe, and the Middle East and Africa (MEA). Among these five regions, North America is currently leading the market as it holds the largest market share in the global market of customer analytics. The US and Canada are responsible for contributing a large amount of revenue in the market of customer analytics. Various customer analytics vendors such as Adobe, Microsoft, Google, Oracle, and SAP are present in the North American region which drives the market in that region. The organizations in the Asia-Pacific (APAC) region are also investing a huge amount in the customer analytics market and hence, are expected to grow at the highest CAGR during the forecast period.
SAS Institute, Oracle, Google are some of the major players that are responsible to enhance the market growth of the customer analytics industry. Among all the below listed key players, Salesforce is considered one of the global providers of CRM technology, which helps companies to enhance their relationship with their customers. The company is responsible for holding a community of more than 10 million disruptors, community shapers, and innovators.
List of Key Companies
In February 2019, IBM introduced a new commerce platform for loyalty rewards known as BUCKiTDREAM. It connects the brands with the consumers. The vision of BUCKiDREAM is to make use of the data analysis in order to redefine the industry of consumer loyalty rewards
This research report is mainly based on the customer analytics market growth and the various factors that are responsible for affecting the growth such as the drivers, restraints, opportunities, and challenges. The report also consists of a detailed analysis of the impact of COVID-19 on the market, the competition in the market, and also the five main regions into which the market has been segmented into. The recent developments that have taken place in the market and the constantly changing customer analytics market trends are also focused on in this report.
|Market Size||USD 7.3 Billion (2023)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Solution, By Service, By Deployment|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Actuate Software Corporation (U.S.), Angoss Software Corporation (U.S.), Fair Isaac Corporation (Fico) (U.S.), IBM Corporation (U.S.), Oracle Corporation (U.S.), Pitney Bowes (Germany), SAS Institute (U.S.), Teoco Corporation (U.S.), Verint System (U.S.), SAP AG (Germany)|
|Key Market Opportunities||Increasing competition creates opportunity for businesses to collect efficient data of customers buying characteristic is one of the prime factor boosting customer analytics market.|
|Key Market Drivers||Insight into consumer purchasing behavior is the major driver of the global customer analytics market.|
Frequently Asked Questions (FAQ) :
global customer analytics market valuation is expected to hit USD 7.3 billion by 2023.
global customer analytics market is predicted to expand at 15% from 2020 to 2027.
Insight into consumer purchasing behavior is the major driver of the global customer analytics market.
Social media tools is likely to gain precedence in the global customer analytics market.
The BFSI vertical is expected to dominate the global customer analytics market.
Fair Isaac Corporation (Fico), IBM Corporation, SAP AG, Oracle Corporation, Teoco Corporation, Angoss Software Corporation, SAS Institute, Actuate Software Corporation, Pitney Bowes, and Verint System are key players of the global customer analytics market.