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The customer analytics applications market size is estimated to grow by USD 13,937.69 million at a CAGR of 17.18% between 2022 and 2027. The growth of the market depends on several factors, including the increasing number of social media users, the growing need for improved customer satisfaction, and an increase in the adoption of customer analytics by SMEs. Customer analytics application refers to a software or system that analyzes customer data such as behavioral, demographic, and personal information to gain insights into their behavior, preferences, and needs. It uses various techniques such as data mining, predictive modeling, and statistical analysis to gather information and make informed decisions in marketing, sales, product development, and overall customer management. The goal of a customer analytics application is to enhance customer understanding and improve business strategies by allowing companies to make data-driven decisions and provide personalized experiences to their customers.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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An increase in the adoption of customer analytics by SMEs is notably driving market growth. Expanding the efficiency and performance of business operations is critical to achieving the desired set of goals of an organization. Businesses with a customer-centric approach deal with massive amounts of customer data, which is stored, managed, and processed in real-time. SMEs generate numerous forms of customer data related to customer demographics and sales, marketing campaigns, websites, and conversations. Consequently, these businesses must scrutinize all this customer-related data to achieve a competitive edge in the market. SMEs are majorly using customer analytics applications as they enable better forecasting, resource management, and streamlining of data under one platform, lower operational costs, improve decision-making, and expand sales.
In addition, the increase in customer data, along with the companies' need to automate customer data processing, is leading to the increased adoption of customer analytics applications by SMEs. Hence, customer analytics is being executed across SMEs for better management of their business operations via a centralized management system with enhanced collaboration, productivity, simplified compliance, and risk management. Such factors are the significant driving factors driving the growth of the global market during the forecast period.
Advancements in technology in customer analytics applications are an emerging trend shaping the market growth. AI and ML technologies have revolutionized the way businesses understand and analyze customer data, allowing them to make more informed decisions and deliver customized experiences. Also, AI and ML have played a critical role in fake detection and prevention in the customer analytics market. Algorithms can identify unusual activities that may indicate fraud by analyzing transactional data and behavioral patterns. This allows businesses to secure themselves and their customers from potential financial losses.
Additionally, AI and ML have enhanced customer segmentation capabilities. Businesses can group customers based on their similarities by using clustering algorithms, allowing them to create targeted marketing campaigns for specific segments. This enables enterprises to personalize their messages and offers, resulting in higher customer engagement and conversion rates. These factors are anticipated to fuel the growth of the market during the forecast period.
Data integration issues on customer analytics applications are a significant challenge hindering market growth. To analyze customer data generated from various types of systems, enterprises use customer analytics applications. The expansion in the use of smart devices and Internet penetration is creating huge amounts of data, which is leading to cluttered data types. Also, companies store data on on-premises infrastructure, on the cloud, or using a combination of both, relying on the sensitivity of the data. These IT architectures, due to differences in protocols, create complexities while migrating the in-house data from on-premises infrastructure to cloud-based software programs, as data can be stored in various formats and result in interoperability issues.
However, addressing such problems involves major application re-programming and integration. It also augments the intricacy of applications and advances the time consumed in solving these issues. Consequently, the problems associated with data integration across numerous architectures can be a challenge for the implementation of customer analytics applications. Such factors may hinder the market growth during the forecast period.
The market share growth by the retail segment will be significant during the forecast period. The introduction of customer analytics applications in the retail sector is growing owing to the growth and proliferation of retail and e-commerce companies worldwide. To analyze customer data better, develop customer relations, and enhance their performance in the marketplace, retail companies are adopting customer analytics applications.
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The retail segment was the largest and was valued at USD 1,561.74 million in 2017. The rising competition among retail companies is propelling the demand to shift their investment strategies. Retail companies generally interpret customer data to develop customer purchase patterns predict sales, smart inventory choices, competitive pricing, personalized advertisements, customer-specific offers, and store-specific product offerings. In addition, to provide an intelligent shopping experience to their customers based on their previous shopping history, retail companies are using customer analytics applications. Therefore, the rising use of customer analytics applications in the retail sector will fuel the growth of the global market during the forecast period.
The on-premises segment is experiencing significant growth in the global market. Customer analytics applications are installed and operated on the end-user's infrastructure rather than being hosted in the cloud or on a third-party server. However, an on-premises approach enables the retailer to construct the customer analytics application to their specific requirements. Also, on-premises customer analytics applications deliver organizations with the ability to have complete control over the analytics process. End-user can define their own data collection methods, choose which metrics to track, and analyze the data without relying on external service providers which allows for greater flexibility and adaptability to varying business needs. Therefore, these factors are anticipated to expand the demand for on-premises customer analytics applications, which will fuel the growth of the market during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The region contributes to the highest share of the overall global market. The demand in the region is majorly due to the advancement in the adoption of public cloud services and the existence of major companies in the market. Also, the growth of SMEs is another primary reason for the rising demand for customer analytics applications in the region.
Additionally, North America was the leader in the number of smart factory initiatives of all the manufacturers that are operational in 2021. Such developments will lead to an upsurge in the rate of data generation, thereby propelling the requirement to analyze the data. Such factors will fuel the demand and adoption of customer analytics applications and the growth of the market in the region during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adobe Inc. - The company offers customer analytics applications that are built on the Adobe Experience Platform which lets join all data from every channel into a single interface for real-time, omnichannel analysis and visualization, allowing to make better decisions with a holistic view of the business, under the brand name of Adobe.
Alphabet Inc. - The company offers customer analytics applications such as Google Analytics 360 that help in understanding the customers by improving the website and creating tailored audience lists.
Alteryx Inc. - The company offers customer analytics applications Alteryx Analytics Cloud for Customer Intelligence, ingest all sources of customer data, both internal and external, to develop a central, deep, and holistic customer profile.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market is experiencing significant growth due to the increasing adoption of cloud-based solutions and cloud analytics. These technologies enable businesses to gain insights into customer purchasing behavior and make informed operational decisions. Customer analytics applications are crucial for delivering personalized customer experiences, leveraging artificial intelligence (AI) and machine learning (ML) to analyze data and improve business processes. They play a vital role in automating marketing processes and creating personalized omnichannel experiences for customers.
With the rise of cross-border commerce, businesses are using customer analytics applications to predict customer behavior and tailor their strategies accordingly. This is facilitated by predictive analytics and business intelligence solutions that help businesses manage big data projects effectively. Customer journey analytics is a key focus area, with solutions like the Acquia Digital Experience Platform (DXP) offering comprehensive tools for analyzing and optimizing customer interactions. Overall, the customer analytics applications market is evolving rapidly, driven by the increasing demand for data-driven insights in today's competitive business environment.
Customer Analytics Applications Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.18% |
Market growth 2023-2027 |
USD 13,937.69 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.38 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adobe Inc., Alphabet Inc., Alteryx Inc., Exigent Group Ltd., International Business Machines Corp., LatentView Analytics, Microsoft Corp., Oracle Corp., QlikTech international AB, Qualtrics LLC, Salesforce Inc., SAP SE, SAS Institute Inc., Sisense Ltd., Tata Consultancy Services Ltd., Telefonaktiebolaget LM Ericsson, Teradata Corp., Thales Group, TikaMobile Inc., and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
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