Market Size of Customer Behavior Analytics (2024 – 2030)

According to recent analysis, the global market size for Customer Behavior Analytics stood at USD 8.78 billion in 2023 and is projected to reach USD 29.42 billion by 2030. This market is experiencing a robust Compound Annual Growth Rate (CAGR) of 18.85% from 2024 to 2030. The increasing necessity to comprehend customer purchasing patterns and behavior for enhanced personalized customer experiences, coupled with the emergence of advanced technologies like Artificial Intelligence (AI), Machine Learning (ML), and business process automation, are key factors propelling industry expansion.

Customer Behavior Analytics Market Overview:

Customer behavior analytics pertains to the examination of individual purchasing behaviors, encompassing social trends, frequency patterns, and underlying factors influencing buying decisions. Companies delve into customer behavior to grasp their target audience better and craft more compelling products and services. It delineates how customers engage within a store rather than identifying the individuals shopping therein. Assessment entails factors such as purchase frequency, favored products, marketing strategies, sales approaches, and perceptions of customer service offerings.

Such insights aid businesses in fostering productive and enjoyable communication with their clientele. Customer behavior may be influenced by personal, psychological, and social factors, each of which plays a distinct role. Subsequent sections will elaborate on these categories. Customer behavioral analytics involves both qualitative and quantitative observations of customer-company interactions. Initially, customers are segmented into buyer personas based on shared characteristics, followed by observing each persona's interaction with the business across various stages of the customer journey map. This analysis offers valuable insights into the myriad variables impacting the target demographic, elucidating their motivations, priorities, and decision-making pathways throughout their customer journey.

Given the escalating demand for highly tailored content tailored to individual customers, comprehensive customer behavior analysis has become imperative for both Business-to-Consumer (B2C) and Business-to-Business (B2B) enterprises. This imperative stems from the heightened need for personalized content, with inadequate personalization prompting 41% of customers to switch companies, as per Accenture's findings from the previous year. Effective personalization hinges on a thorough understanding of customer preferences and trends.

COVID-19 Impact on the Customer Behavior Analytics Market:

The COVID-19 pandemic has wrought profound shifts in lifestyles, purchasing behaviors, and market dynamics, underscoring the need for businesses to grasp consumer behavior comprehensively and monitor evolving market trends. This concise report offers insights into the short- and long-term ramifications of COVID-19 on consumer behavior. The initial phase of the pandemic precipitated widespread economic stagnation, sparking panic buying and a surge in demand for enduring essentials and perishable items like meats, canned goods, and cereals.

GlobalData forecasts gains in numerous food categories relative to the 2020 baseline projection, with alcoholic and non-alcoholic beverages experiencing the most significant sales downturn as consumers prioritize essential purchases over discretionary spending on food services. The alcoholic beverage market is anticipated to contract by 12.5% in 2020 compared to the baseline forecast. Blended soft drinks are expected to remain relatively stable, while segments such as energy drinks and frozen tea and coffee are poised for a 10.1% revenue decline compared to initial projections. Consumer expenditure on seafood and snacks witnessed a notable decline in the first quarter of 2020, with a sustained downward trajectory projected. Overall, while the food sector is anticipated to grow marginally by 2.1%, alcoholic and non-alcoholic beverages are poised for respective declines of 7.4% and 6.4% compared to the 2020 estimates.

Market Drivers:

The Growth of Personalized Customer Service Drives Market Expansion:

The primary driver propelling market growth is the escalating demand for personalized customer service, with customers increasingly expecting individualized brand experiences tailored to their unique preferences. Concurrently, there's a discernible uptick in the adoption of customer journey analytics, with heightened demand for consumer behavior analytics facilitating insights into discernible buying patterns and leveraging this information to drive sales.

Retail Sector Expansion Fuels Market Growth:

The burgeoning retail sector is leveraging customer analytics to devise personalized marketing initiatives and communication strategies. Such analytics also play a pivotal role in enhancing customer experiences, fostering brand loyalty, and facilitating targeted marketing based on shopper data. Predictive analytics, a prominent feature in the business intelligence landscape, empowers companies to make accurate forecasts regarding consumers' future purchasing behaviors, thereby fortifying customer relationships and mitigating disruptions.

Market Restraints:

Privacy and Security Concerns, and Data Privacy Loss Deter Market Growth:

While understanding customer behavior necessitates access to diverse customer data for analysis, the acquisition of accurate customer data is often impeded by privacy and security apprehensions. Many customers refrain from providing accurate data due to concerns regarding data security and privacy breaches, hindering market growth.

Customer Behavior Analytics Market - By Deployment Method:

• On-site
• Cloud-based

Regarding the Deployment Method, cloud-based solutions represent software as a service (SaaS) provided by service providers from data centers or similar facilities. Typically accessible via the Internet, these solutions offer flexibility in access from any location. They offer numerous advantages including scalability, adaptability, easy deployment, and cost-effectiveness, making them an attractive option for enterprise adoption. The affordability and simplicity of implementation render the cloud an appealing delivery model for many enterprises. Notably, small and medium-sized enterprises (SMBs) often prefer cloud-based solutions due to cost considerations and the round-the-clock support and maintenance provided by software vendors. As a result, a majority of vendors within this market focus on offering cloud-based analytics solutions to attract customers.

Customer Behavior Analytics Market - By Application:

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

Concerning applications, the customer journey generates a wealth of product-related data encompassing features, pricing, and shipping details. Such data proves invaluable across various customer journeys, offering insights into product features, pricing, and delivery models. Customer analytics facilitates the analysis of buying behaviors, shedding light on underperforming product categories. Large enterprises invest significantly in product management to enhance customer service and experience. Marketers leverage customer behavior analytics to analyze customer responses to products or services, enabling them to make necessary adjustments to sustain customer interest. Real-time insights from customer analytics empower marketers to adapt pricing strategies, product development, and introduce new purchase options based on customer journey insights.

Customer Behavior Analytics Market - By Region:

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

From a geographical standpoint, North America is poised to command the largest share of the global customer analytics market, with Asia-Pacific (APAC) expected to exhibit the highest compound annual growth rate (CAGR) during the forecast period. North America, dominated by the US and Canada, witnesses widespread deployment of customer analytics solutions by organizations to leverage customer data for competitive advantage. The proliferation of customer insights from diverse data sources drives innovation and integration in customer analytics solutions and services to meet evolving business requirements and diverse customer needs. Additionally, North America hosts several customer analytics solution providers, including Google, Adobe, SAP, Microsoft, Oracle, and Salesforce, aiming to capitalize on robust demand and intense competition in the region. Innovation remains a key focus for North American organizations to stay abreast of market advancements.

The COVID-19 pandemic spared many businesses due to the rise of e-commerce, but its impact on shopping malls, particularly in the Asia-Pacific region, has been severe. Home to one of the world's largest shopping malls, the Asia-Pacific region endured significant setbacks due to travel restrictions and lockdowns, which deterred consumers from visiting malls. Although malls in Indonesia and Thailand faced similar challenges, they are gradually reopening following eased travel restrictions by respective governments. Unlike other regions, a substantial proportion of consumers in the Asia-Pacific region still prefer visiting malls, trying out new products, and making purchases in person.

The European customer analytics market is anticipated to witness a CAGR of 18.7% during the forecast period, driven partly by a shortage of trained cybersecurity professionals. A study by the Center for Cybersecurity and Education indicates that Europe will face a shortfall of 350,000 cybersecurity professionals by 2022. The burgeoning workload on cybersecurity personnel, exacerbated by increased network activity, underscores the imperative for enterprises to fortify their defenses through various security platforms, propelling market growth.

Customer Behavior Analytics Market Share by Company:

1. Google (US)
2. Microsoft (US)
3. Adobe (US)
4. SAP (Germany)
5. SAS Institute (US)
6. Teradata (US)
7. Oracle (US)
8. Salesforce (US)
9. Mixpanel (US)
10. Manthan System (India)
11. Second Measure (US)
12. Absolute Data (US)
13. data (Belgium)
14. Customer Analytics (US)
15. Neustar (US)
16. NICE Systems (Israel)
17. Segment (the US)
18. Calibremind (US)
19. Clarity Insight (US)
20. Amperity (US)

Salesforce, a global leader in customer relationship management (CRM) technology, specializes in enhancing customer relationships and interactions. The acquisition of Tableau, a prominent data analytics provider, in June 2019 fortified Salesforce's Customer 360 platform, enabling customers to make informed decisions. Offering a unified view of every customer across multiple departments including marketing, sales, commerce, and service, Salesforce boasts a community of over 10 million innovators, disruptors, and community shapers known as Trailblazers. The company provides a comprehensive suite of products and services spanning sales, service, marketing, applications, analytics, employee experience, pioneers and claimants, support, and collaboration, mostly hosted on a reliable cloud platform. Its services are easily deployable via mobile devices and web browsers and seamlessly integrate with other enterprise platforms and applications. Salesforce's cross-cloud technology, Salesforce 360, facilitates the creation of comprehensive customer profiles across different departments. With a workforce exceeding 36,000 employees, the company delivers customer analytics solutions through Salesforce Marketing Cloud, empowering marketers to deliver tailored and personalized customer journeys across all channels and devices, thereby enabling precise message delivery throughout the customer relationship.

Suppliers allocate resources to research and development, aiming to develop technologically advanced systems that confer a competitive edge and economic benefits to the industry. The industry anticipates several mergers and acquisitions in the coming years, with companies actively pursuing market share gains and diversification of product portfolios.

Recent Developments in the Customer Behavior Analytics Market:

• Product Launch - In April 2021, Nielsen Consumer LLC unveiled Buzzer, a retail analytics customer intelligence platform catering to emerging and small consumer packaged goods (CPG) companies. The platform addresses the requirements of trending CPG brands and furnishes actionable retail insights to drive growth.
• Product Expansion - In January 2022, Microsoft Corporation introduced cloud technology offerings tailored for the retail sector. Microsoft Cloud delivers advanced support to stores and retailers, alongside resilient supply chains, swift delivery, and empowered employees, catering to a wide spectrum of customers, including renowned brands.