The global customer analytics market is growing significantly, at a CAGR of 16.3% during the forecast period (2019-2025). Customer analytics is the natural extension of building brand awareness and part of customer relationship management (CRM). Customer analytics solutions provide various benefits such as short-term improvement in retained business and customers, the creation of competitive differentiation and improvements in customer loyalty for -long term gain. The shift of enterprises and businesses towards a customer-centric approach and the focus on providing complete customer analytics further propels the growth of the market. Moreover, the application of customer analytics solutions is increasing in various sectors such as retail, BFSI, telecom & IT and others owing to digitization in the banking services, focus on improving customer experience and brand reinforcement.

A significant rise in the retail sector has been witnessed over the years across the countries, including the US, China, India, and Germany. For instance, as per the US Census Bureau, in the US, around $1,361.8 billion of the total retail sales were estimated for the second quarter of 2019, an increase of 1.8% from the first quarter of 2019. Likewise, in China, in 2018, the total retail sales of consumer goods reached $5,539 billion, up by 9% year-on-year nominal growth rate (as per the National Bureau of Statistics of China). Owing to the emerging retail industry, a significant expansion of retail stores and e-commerce platforms, such as Walmart, Tesco, and Amazon have been reported over the years. This, in turn, is contributing to the demand for customer analytics platforms.

Hence, the growth and increasing competition in the retail industry is encouraging the demand for customer analytics platforms to enhance personalized customer experience and drive sales. However, data security and privacy concerns and discrepancies regarding data management arise from multiple domains are certain factors restricting the growth of the market. Data security is at the front and center for businesses to deal with the massive amount of customer data. Most of the people neglect to provide personal information, primarily in IT and telecom, and BFSI industry, which in turn, may act as a major restraining factor for the market growth.

Segmental Outlook  

The customer analytics market is classified on the basis of the deployment model, solution, and vertical. Based on the deployment model, the market is bifurcated into cloud-based and on-premises. Based on the solution, the market is segmented into social media analytical tools, web analytical tools, dashboard and reporting tools, and others. Based on vertical, the market is segmented into BFSI, IT & telecom, retail & e-commerce, travel and hospitality, and others.

Global Customer Analytics Market Share by vertical, 2018 (%)

Retail & Ecommerce contributes a significant share in the customer analytics market 

Retail is expected to be the largest segment in the customer analytics market globally. Growth of organized retailing and e-commerce industry coupled with rapid urbanization, rising disposable income and increasing demand for consumer electronics products are supporting to drive the demand for customer analytics in the retail sector. The retail industry is among the largest industry globally. For instance, as per US Commerce Department, total sales of the retail in 2018 were around $3.63 trillion as compared to $3.49 in 2017 with a growth of 3.9% YoY, and the sale of fuel, automobiles, and food at restaurants are not included in the value. The retail customer analytics software platform is used for various applications including dispute resolutions, fraud investigations, visitors' interactions, browsers level experience, and so on. Apart from this, the software offers features including survey/poll management, feedback management, customer analysis, sentiment analysis, text analysis and so on.

Regional Outlook 

The global customer analytics market is classified on the basis of geography into North America, Europe, Asia-Pacific, and Rest of the World. North America is estimated to have considerable market share in the global customer analytics market. The major countries which are contributing to the North American market growth include the US and Canada. The presence of major customer analytics companies, high internet penetration, high adoption of the digital economy and significant growth in the e-commerce market is providing significant growth to the company. Additionally, companies such as Visa Inc., Mastercard Inc., PayPal Holdings Inc., Google Pay, Walmart Inc., have their headquarters in the region, which are among major companies in the BFSI sector which are generating a significant amount of data related to customer capital spending pattern.

Global Customer Analytics Market Growth, by Region 2019-2025

Asia-Pacific is expected to propel with a considerable growth rate in the global market

The Asia-Pacific market of customer analytics has been growing at a considerable rate owing to a significant contribution from economies such as China, India, and Japan. China has a significant contribution to the customer analytics market as the country has the largest internet users and also it is the largest e-commerce market globally. Rapid growth in the IT and telecom sector coupled with the presence of a large number of service providers, such as Alibaba, Baidu and Xiaomi, and rapid internet penetration is expected to boost the demand for customer analytics platforms in the region. Countries such as Japan and India are also contributing significantly to increasing digital transactions which are providing significant market growth to the region. ASEAN countries, South Korea and Australia are also contributing significantly in the region to the market. 

Market Players Outlook

The key players in the customer analytics market are contributing significantly by providing advanced technology-based products and expanding their geographical presence across the globe. The key players operating in the global customer analytics market include Google LLC, Adobe Inc., Cisco Systems, Inc., Microsoft Corp., and SAP SE. Apart from these key market players, several other companies are contributing a significant share in the market, including SAS Institute Inc., Salesforce.com, Inc., Mixpanel International, Inc., Manthan Systems Inc., and NGDATA, Inc. These market players adopt various strategies such as product launch, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market.  

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global customer analytics market. Based on the availability of data, information related to products & services, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.