Customer Behavior Analytics Market Size (2023 – 2030)

As per our research report, the global Customer Behavior Analytics Market size was USD 7.39 billion in 2022 and is estimated to grow to USD 29.42 billion by 2030. This market is witnessing a healthy CAGR of 18.85% from 2023 - 2030.  They need to understand customer buying patterns and Behavior for a more personalized customer experience and the advent of technologies, such as Artificial Intelligence (AI), Machine Learning (ML), and business process automation to streamline marketing operations are majorly driving the growth of the industry.

Industry Overview:

Customer behavior refers to individual purchasing behavior, such as social trends, frequency patterns, and background factors that influence purchasing decisions. Companies investigate customer behavior to understand their target audience and create more compelling products and services. Customer behavior describes how they are shopping in your store, not who is shopping in your store. Evaluate factors such as how often customers make purchases, their favorite products, marketing, sales, and how they perceive customer service offerings.

Understanding these details will help businesses communicate with their customers productively and enjoyably. Customer behavior can be influenced by three types of factors: personal, psychological, and social. Let's discuss each type in the next section. Customer behavioral analytics is a qualitative and quantitative observation of how customers interact with your company. Customers are first segmented into buyer personas based on common characteristics. Next, observe each group at the stage of the customer journey map to analyze how personas interact with the business. Customer behavior analysis provides insight into the various variables that affect the target group. It outlines the motivations, priorities, and decision paths that will be considered during the customer journey.

This analysis helps you understand what your customers think about your business and whether their perceptions are in line with their core values. Performing customer behavioral analytics is becoming increasingly important for both B2C and B2-B companies. This is due to the growing need for highly personalized content that is unique to each customer. Last year, 41% of customers switched companies due to inadequate personalization, according to Accenture. However, you can't personalize your content until you fully understand your customers' preferences and trends.

COVID-19 impact on the Customer Behavior Analytics Market industry

The COVID19 pandemic has profoundly changed the way we live and work, how and where we buy, what we value, and how we think about the future. While some of these changes are temporary, others will last long after this pandemic. As COVID19 is reshaping industries and accelerating fundamental long-term trends, which is more important than ever. businesses to understand consumer behavior and get a comprehensive view of market trends. This short report is for an overview of the short- and long-term impacts of COVID19 on consumer behavior. The widespread economic stagnation at the start of the pandemic caused panic buying and led to a short-term increase in demand for long-lasting staples and potentially frozen items. cold, such as cuts of meat, canned foods, and cereals.

GlobalData predicts that many categories in the food sector will record gains from the 2020 baseline forecast, while Alcohol and non-alcoholic beverages will see the biggest drop in sales as consumers shift spending away from food services. and discretionary items to necessities. The market value of alcoholic beverages in 2020 is expected to decrease by 12.5%, compared with the baseline forecast.

 Impact of COVID19 on blended soft drinks. Water should maintain a near-stable position in 2020, relative to the reference scenario, while soft drinks, energy and sports drinks, and frozen tea and coffee will plummet by 10.1% revenue compared to the original forecast. In addition, consumer spending on seafood and snacks declined significantly in the first quarter of 2020 and continue to decrease. According to GlobalData's forecast, overall, while the food sector will grow slightly by 2.1%, Alcoholic and non-alcoholic beverages will decrease by 7.4% and 6.4% respectively compared to the 2020 guess.

MARKET DRIVERS:

Personalized Customer Service Demand Is Driving the Growth of the Market

The main driver for the growth of the market during the forecast period is the growing demand for personalized customer service. Customers expect to be seen as individuals with distinct preferences, which underlines a personalized brand experience. The trend that continues to be seen is the growing acceptance of customer journey analytics. There is high demand for consumer behavior analytics that show how customers are buying things in a certain pattern and taking useful information from that to increase the sale of anything in the market.

Growing Retail Sector to Drive the Market Growth

As retail growth accelerates, customer analytics is widely used in the retail industry to develop personalized marketing and communication programs. It also helps improve customer experience and loyalty, know exactly what products shoppers are buying, and personalize marketing based on shopper data. Predictive analytics is all the rage in the business intelligence solutions market, helping companies make accurate predictions about consumers' future purchasing preferences. The different models used in predictive analytics are primarily designed to better serve existing customers, prevent disruptions, and build stronger relationships.

MARKET RESTRAINTS:

Privacy and Security Concern Among the People and Loss of their Personal Information is restraining the growth of the Market

To understand the behavior of customers, there is a high demand for data of customers of different types to analyze and then take important information from that data to understand their behavior and buying patterns to increase sales. But, it is not that easy to find the correct data of customers because many customers don’t provide exact information fearing the loss of their data can create security issues for them. Thus this factor restrains the growth of the market. 

CUSTOMER BEHAVIOR ANALYTICS MARKET REPORT COVERAGE:

This research report on the global Customer Behaviour Analytics Market has been segmented and sub-segmented based on Deployment Mode, application, and region.

Customer Behaviour Analytics Market - By Deployment Mode:

• On-premise
• Cloud

Based on the Deployment method, Cloud solutions are software as a service (SaaS) solutions provided by service providers in data centers or other facilities. These solutions are usually accessible over the Internet and can be accessed from anywhere as needed. Cloud solutions enable a variety of benefits such as scalability, adaptability, ease of deployment, and cost-effectiveness to help enterprises adopt cloud deployments. The low cost and ease of implementation make the cloud a highly desirable delivery model for enterprises. Small and medium-sized enterprises (SMBs) are more likely to choose cloud-based solutions over on-premises solutions because of cost factors and 24/7 support and maintenance provided by software vendors. The majority of vendors in this market offer cloud-based analytics solutions to attract customers.

Customer Behaviour Analytics Market - By Application:

• Brand Management
• Campaign Management
• Churn Management
• Customer Behavioral Analysis
• Product Management
• Others*

Based on the application, the customer journey generates a large amount of product-related information, such as product features, features, prices, and shipping-related data. This helps customers on different journeys to provide valuable information about product features, features, pricing, and delivery models. Customer analytics helps you analyze your customers' buying behavior. This helps shed light on poorly performing product categories. Large companies invest large amounts of capital in product management to better serve their customers and improve their experience. Marketers can easily analyze customer behavior concerning a product or service and make the necessary changes to maintain customer interest. Customer analytics can help you change these strategies in real-time and stay one step ahead of your competitors. Marketers can adapt pricing, product development, and add new purchasing options based on the information gathered through customer journey mapping.

Customer Behaviour Analytics Market - By Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World
• Latin America
• The Middle East and Africa

Geographically, North America is expected to hold the largest share of the global customer analytics market share, while Asia-Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. The region is dominated by the US and Canada, where organizations have deployed customer analytics solutions to use customer data to stay competitive in the market. The increase in customer insights through multiple data sources drives new development and better integration into new and existing customer analytics solutions and services to meet business needs and diverse customers. Additionally, North America is home to several customer analytics solution providers, such as Google, Adobe, SAP, Microsoft, Oracle, and Salesforce. These companies are aiming to increase revenue and expand their business due to strong competition and widespread demand in the North American region. Organizations in North America are focusing on innovations to keep up with the latest market advancements.

E-commerce has stopped the pandemic from wiping out many businesses, but this has not been true of shopping malls. Home to one of the world's largest shopping malls, the Asia-Pacific has been hit hard by travel bans and lockdowns that have kept consumers out of the mall. Malls in Indonesia and Thailand suffered a similar fate but are reopening after the government began easing travel restrictions. Compared to other regions, most consumers in the Asia Pacific still prefer to spend time going to the mall, trying new products, and purchasing products. 

The European customer analytics market is expected to witness a CAGR of 18.7% during the forecast period. The European behavioral analytics market is driven by a lack of trained cybersecurity professionals. According to a study conducted by the Center for Cybersecurity and Education, Europe will face a shortage of 350,000 cybersecurity professionals by 2022. The network has increased the workload for cybersecurity personnel, making it impossible for them to adequately respond. Leverage existing cybersecurity technologies. This has led enterprises to strengthen their defenses through the adoption of different security platforms, driving the growth of the market.

Customer Behaviour Analytics Market Share by company

• Google (US)
• Microsoft (US)
• Adobe (US)
• SAP (Germany)
• SAS Institute (US)
• Teradata (US)
• Oracle (US)
• Salesforce (US)
• Mixpanel (US)
• Manthan System (India)
• Second Measure (US)
• Absolute Data (US)
• data (Belgium)
• Customer Analytics (US)
• Neustar (US)
• NICE Systems (Israel)
• Segment (the US)
• Calibremind (US)
• Clarity Insight (US)
• Amperity (US)

Salesforce is a global provider of customer relationship management (CRM) technology that helps companies improve their relationships and interactions with customers. In June 2019, Salesforce acquired Tableau, a leading data analytics provider, which will strengthen the Salesforce Customer 360 platform, enabling customers to make smarter decisions. The integrated platform provides a single view of every customer across all departments, such as marketing, sales, commerce, and service. Salesforce has a community of over 10 million innovators, disruptors, and community shapers known as Trailblazers. The company offers a wide range of products and services across all segments, including sales, service, marketing, applications, analytics, employee experience, forerunners and claimants, support, and collaboration, most of which run on a trusted cloud platform. Its services can be easily deployed through mobile devices and web browsers and can be integrated with other enterprise platforms and applications. Salesforce offers its cross-cloud technology, Salesforce 360, which helps its customers have a comprehensive customer profile integrated across different departments. the company has more than 36,000 employees. It delivers customer analytics solutions through Salesforce Marketing Cloud, a platform to deliver tailored and personalized journeys across all channels and devices, empowering marketers to deliver the right message at the right time across all stages of the relationship.

Suppliers invest in research and development to develop technologically advanced systems that give them a competitive advantage over other providers and provide an economic benefit to the industry. The industry is expected to see several mergers and acquisitions over the next few years. Companies are taking proactive steps to gain market share and provide a diversified product portfolio.

NOTABLE HAPPENINGS IN THE CUSTOMER BEHAVIOUR ANALYTICS MARKET IN THE RECENT PAST:

Product Launch - In April 2021, Nielsen Consumer LLC launched Buzzer, a retail analytics customer intelligence platform for emerging and small consumer packaged goods (CPG) companies. The platform provides the needs of trending CPG brands and actionable retail insights to drive growth.

Product Expansion - In January 2022, Microsoft Corporation announced cloud technology offerings for the retail industry. Microsoft Cloud can provide advanced support to stores and retailers, along with more well-known customers, resilient supply chains, fast delivery, and authorized employees.