Customer Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Customer Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The customer analytics market is expected to grow at a CAGR of 18.2% over the forecast period. More companies are predicted to turn to the cloud due to the abundance of cloud-based technologies already on the market. Additionally, companies could learn how to harness the power of cloud analytics, where the majority of the components, including customer data sources, data models, processing applications, computing power, analytic models, and data storage, are hosted. This could help integrate intelligence into existing workflows and enhance operational decision-making.

Key Highlights

• The need to understand customer purchasing behavior for a more individualized customer experience and the development of technologies like artificial intelligence (AI), machine learning (ML), and business process automation to streamline marketing operations are other factors propelling the growth of the customer analytics market.
• The market under study is expanding more quickly due to the growing desire for increased customer satisfaction. The retail sector uses customer analytics to create personalized communications and marketing initiatives. Knowing which customers purchase products and customizing marketing based on shopper data might improve customer experience and loyalty. According to ACSI Retail and Consumer Study 2021–22, Retailers could sigh relief as customer satisfaction is more or less steady in 2021, owing to a positive shopping experience through repeat purchases, customer loyalty, customer referrals, revenues, and customer involvement.
• Another factor driving the market is the increase in social media awareness. Social media analytics maximizes the benefits of social networking by raising brand awareness, enhancing brand value, and expanding customer reach through social media platforms by associating their product list with e-commerce sites, which aids in monitoring people and relationship building. Prominent retailers like Amazon and Walmart have used various social media platforms like Facebook, Instagram, YouTube, and Twitter to display their products. Social platforms are modern-era storefronts and serve as the liaison between customers and the products.
• Recent years have seen an increase in security and privacy breaches. As a result, customers started to worry more about their privacy and security. This has been a significant barrier to the growth of the customer analytics market. Big data architecture in customer analytics may become more critical to secure, which is expected to threaten the loss of information.
• The COVID-19 pandemic has severely impacted the expansion of the customer analytics market. Markets were closed due to the government's strict lockdown during the pandemic. The customer analytics sector has thus been hampered for a short period. The fastest-growing market sector, Online retail, has been severely impacted, but because of government assistance of online shopping sites during the shutdown, this market has slowly recovered.

Key Market TrendsGrowing Retail Sector to Drive the Market Growth

• Currently, consumers appreciate and expect a personalized omnichannel experience in the retail market. As a result, many merchants use technologies, such as customer analytics, to better understand what customers want and need.
• Customer analytics is heavily used in retail to provide individualized communications and marketing initiatives as retail sales growth accelerates. Knowing which customers purchase products and tailoring marketing based on shopper data improve customer experience and loyalty.
• Due to increased Internet penetration, online shopping has grown gradually. E-commerce has become a major platform in the retail and distribution sectors. The number of orders increased by 15% in 2021 compared to the previous year, which has driven the growth in cross-border trade. Online shoppers from other countries are more inclined to make larger purchases. About 40% of U.S. sales are made by Amazon alone, which also accounts for 80% of the rise in online sales.
• Predictive analytics is trending in the business intelligence solutions market, helping enterprises to draw accurate predictions of future consumer buying preferences. The many predictive analysis models are mainly created to provide better service to existing consumers, prevent attrition, and build stronger relationships.
• When retailers can monitor customer traffic, including flows, timing, and even the stops they make, they can draw valuable conclusions. Motionlogic, a T-Systems product, records and examines motions to assist brick-and-mortar retail in understanding individuals' paths and motivations. These traffic patterns can be associated with particular triggers to pinpoint locations and destinations that are especially desirable, which may assist shops in understanding customer real-time data.

North America Accounts for Major Share

• North America is anticipated to hold the highest market share as this region has a strong foothold. As the demand for big data initiatives to enhance the customer experience in this region develops, there is a change in how enterprises view the consumption, collection, and analysis of data.
• Additionally, companies in the United States will probably keep or raise their marketing expenses, which is anticipated to lead to a moderate growth rate for the region as a whole compared to other areas.
• To deliver a unified customer perspective, the US Bank installed an analytics system in the united states that integrates data from online and offline channels. The bank increased its lead conversion rate by more than 100% and provided more individualized experiences by giving the call center more relevant leads and suggestions.

Competitive Landscape

The customer analytics market is highly fragmented, with strong competition among well-established and emerging players. These players aim to gain an edge over the other players through innovative product development by investing in R&D and player acquisitions. Key players in the market studied are Adobe Systems Inc., IBM Corporation, Oracle Corporation, etc. Recent developments in the market studied are -

• July 2021 - Microsoft, an American multinational technology corporation that produces computer software, consumer electronics, personal computers, and many more, announced its acquisition of Suplari, a renowned provider of customer spending insights that enable companies to proactively manage customer spending by transforming data from multiple sources. The companies aimed to allow business leaders to take strategic action by assisting enterprises in becoming insight-driven through this acquisition.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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