Customer Analytics Global Market Report 2024

The customer analytics market size has grown rapidly in recent years. It will grow from $10.25 billion in 2023 to $12.14 billion in 2024 at a compound annual growth rate (CAGR) of 18.4%. The growth observed in the historical period can be linked to the substantial increase in data from various channels, a notable shift towards personalized experiences, heightened emphasis on customer retention strategies, the growing impact of social media influence, and a concentrated effort on mapping the customer journey.

The customer analytics market size is expected to see rapid growth in the next few years. It will grow to $23.89 billion in 2028 at a compound annual growth rate (CAGR) of 18.4%. Anticipated growth in the forecast period is expected to stem from the adoption of real-time analytics enabling immediate actions, a conscientious and ethical approach to utilizing customer data, seamless integration across multiple channels, the advancement of hyper-personalization and individualized experiences, and the application of Voice of the Customer (VoC) analytics.

The escalating emphasis on heightened customer satisfaction is a significant catalyst propelling the expansion of the customer analytics market. This surge stems from the imperative to retain customers, secure a competitive edge, foster customer loyalty, bolster brand standing, and facilitate overall business advancement. The escalating pursuit of enhanced customer satisfaction is poised to substantially elevate the demand for customer analytics. This technology aids in discerning actions that either gratify or dissatisfy customers through the analysis of their behavioral data. Companies leveraging customer analytics can pinpoint patterns that contribute to dissatisfaction and implement strategies to retain their existing customer base. For instance, the UK Customer Satisfaction Index (UKCSI) for January 2022 increased by 1.6 points, reaching a score of 78.4 out of 100 compared to the previous year. There has been a noteworthy surge in individuals willing to pay more for superior service - an 8.1% increase since the onset of the COVID-19 pandemic. This surge underscores the burgeoning necessity for heightened customer satisfaction, establishing it as a foremost priority for organizations. Consequently, the escalating quest for enhanced customer satisfaction is poised to steer the growth of the customer analytics market.

The burgeoning expansion of E-commerce stands as a pivotal driver behind the accelerated growth of the customer analytics market. E-commerce, the digital exchange of goods and services, has surged significantly, amplifying the demand for customer analytics tools. These analytics solutions empower E-commerce enterprises with invaluable data-driven insights, pivotal for refining marketing strategies, elevating customer experiences, and optimizing operational efficiencies. For instance, as per the International Trade Administration's November 2023 report, projections indicate a robust average annual growth rate of 12.6% in eCommerce sales in the UK by 2025. Notably, consumer eCommerce constituted 36.3% of the UK's overall retail industry as of January 2021, with estimated eCommerce revenue anticipated to soar to $285.60 billion by 2025. The sector witnessed a remarkable upsurge of 36% in revenue, marking the most substantial annual surge in UK online sales since 2007. Consequently, the surging trajectory of E-commerce is a primary catalyst propelling the growth of the customer analytics market.

Strategic partnerships are a dominant trend within the customer analytics sector, as major players join forces to elevate their customer analytics solutions through collaborative utilization of expertise, technology, and resources. These alliances play a crucial role in strengthening market positions. For instance, in May 2022, ADA, a Malaysia-based analytics, data, and AI company, partnered with Treasure Data, a US-based global customer data platform (CDP) company. This strategic collaboration aims to deliver comprehensive enterprise-level customer-centric solutions across ten key South and Southeast Asian markets, including South Korea. This partnership facilitates organizations in refining and customizing the customer journey, improving communication, and bridging data gaps. It leverages Treasure Data's sophisticated CDP capabilities in tandem with ADA's analytics, data, and AI solutions integrated with consumer models. The approach incorporates a CDP offering a unified customer perspective, supporting data integration and activation across various platforms from media to mobile to web, optimizing conversion rates, and ensuring robust technical support.

Prominent firms within the customer analytics landscape are embracing advanced technologies, particularly the integration of AI, as a strategic move to maintain their competitive edge. This fusion of AI within customer analytics equips businesses with sophisticated tools to comprehensively comprehend, engage with, and fulfill the evolving demands of their customer base. An illustrative case is Bharti Airtel, a multinational telecommunications services company based in India, which, in February 2023, partnered with NVIDIA, a US-based technology giant, to implement AI-driven speech analytics solutions for a transformative customer service initiative. By leveraging NVIDIA's Triton Inference Server and NeMo conversational AI framework, the deployed system can autonomously transcribe speech in 84% of incoming calls directed to Airtel's contact centers. This cutting-edge technology not only identifies areas for enhancement in agent-customer interactions but also facilitates Airtel, serving a vast customer base of over 360 million, in elevating their overall customer experience.

In February 2021, Salesforce, a leading American cloud-based software firm renowned for delivering comprehensive cloud solutions, made an undisclosed acquisition of Evergage. This strategic move by Salesforce aimed to bolster its marketing cloud offerings while addressing gaps in its capabilities. The acquisition notably augmented Salesforce's real-time focus on web and application-based interactions. Evergage, the acquired entity, is an American cloud-based software company specializing in enabling users to gather, analyze, and promptly respond to user behavior across websites.

Major companies operating in the customer analytics market report are Alphabet Inc., IBM Corporation, Oracle Corporation, Microsoft Corporation, SAP SE, Salesforce.Com Inc., Clarity Insight, Adobe Systems Inc., Bloomberg Inc., Pitney Bowes Inc., SAS Institute Inc., NICE Systems Ltd., NGData NV, Teradata Corp., Snowflake Inc., Infogain Corporation, Aledade Inc., Neustar Inc., Databricks Inc., Amplitude Inc., ContentSquare, Segment.io Inc., Mixpanel, Customer Analytics LLC, Amperity Inc., Perfios Pvt. Ltd., Featurespace Ltd., Manthan System, Charles River Analytics Inc., Calibremind.

North America was the largest region in the customer analytics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the customer analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the customer analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Customer analytics solutions encompass a range of tools and approaches, including social media analytical tools, dashboards, data management (ETL), web analytics, reporting, voice of customer (VOC), and various analytical tools. Social media analytical tools specifically track, evaluate, and enhance social media performance. They incorporate graphical dashboards and data visualization techniques, offering users comprehensive insights into their social media presence. These solutions cater to enterprises of varying sizes ranging from large corporations to small and medium-sized enterprises (SMEs) and are deployed both on-premises and via cloud platforms. Industries across BFSI, wholesale and retail, telecommunications and IT, utilities, healthcare, travel and hospitality, among others, leverage these solutions for brand management, campaign optimization, churn analysis, customer behavior assessment, product management, and other pertinent purposes.

The customer analytics market research report is one of a series of new reports that provides customer analytics market statistics, including Customer analytics industry global market size, regional shares, competitors with a customer analytics market share, detailed customer analytics market segments, market trends and opportunities, and any further data you may need to thrive in the customer analytics industry. This customer analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The customer analytics market includes revenues earned by entities providing predictive analytics services, data visualization, information management, and segmentation, used in customer analytics for direct marketing, site selection, and customer relationship management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.