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

Market Overview

The customer analytics market was valued at USD 3.74 billion in 2020 and is expected to reach USD 10.2 billion by 2026, at a CAGR of 18.2% over the forecast period 2021 - 2026. Cloud is expected to continue its reign with more companies moving toward it, as a result of the proliferation of cloud-based tools available in the market. Moreover, firms may learn how to embrace the power of cloud analytics, where most of the elements, like customer data sources, data models, processing applications, computing power, analytic models, and data storage, are located in the cloud, which may help in integrating intelligence into existing workflows and improve decision-making across operations.

• Due to the rising demand for improved customer satisfaction, the market studied is growing faster. Customer analytics is highly used in the retail industry for the development of personalized communications and marketing programs. This may help to enhance customer experience and loyalty, by knowing precisely which buyers are buying which products, and personalizing marketing based on shopper data. According to Accenture, delivering a good shopping experience increased customer satisfaction, repeat purchases, customer loyalty, customer referrals, revenues, and customer engagement.
• Growth in social media concern is a key driver for the market studied. Social media analytics combines monitoring, measurement, and analysis tools to uncover user sentiments and businesses with customers through social media platforms by associating their product list with e-commerce sites, which helps in monitoring people and fostering relationships. Prominent retailers, such as Amazon and Walmart, have successfully managed to harness the benefits offered by different social media platforms, such as Facebook and Twitter.
• However, data security and privacy concern is a major restraint to the market studied. Big data architecture in customer analytics may become more critical to secure, which is expected to be a threat to the loss of information.

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Key Market Trends

Growing Retail Sector to Drive the Market Growth

• Currently, in the retail market, consumers not only appreciate, but also expect a personalized omnichannel experience. Due to this, many retailers are leveraging technologies, such as customer analytics, to gain a more in-depth understanding of a consumer’s wants and needs.
• As the growth of the retail sale is increasing, customer analytics is highly used in the retail industry for the development of personalized communications and marketing programs. It also helps to enhance customer experience and loyalty, by knowing precisely which buyers are buying which products, and personalizing marketing based on shopper data. 
• Predictive analytics is trending in the business intelligence solutions market, helping enterprises to draw accurate predictions about the future consumer buying preferences. Various models used in the predictive analysis are primarily designed to serve existing customers better, prevent attrition, and build stronger relationships.
• When retailers can monitor customer traffic, including flows, timing, and even the stops they make, they can draw extremely valuable conclusions. Motionlogic, a T-Systems solution, captures and analyzes movements, helping bricks-and-mortar retail to better understand the routes people take, and why. These traffic patterns can be correlated with specific triggers to identify particularly attractive positions and destinations, which may help the retailers to know the real-time data of the customers.

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