< Key Hightlight >

The global customer journey analytics market size to grow from 8.3 billion in 2020 to USD 25.1 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 20.3% during the forecast period. Various factors such as the growing need to provide seamless customer experience, a higher focus on better customer engagement strategies through omnichannel, and adoption of advanced analytics solutions to leverage the increasing customer data and reduce customer churn rate, are expected to drive the demand for customer journey analytics solutions and services. 

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COVID-19 Impact on Global Customer Journey Analytics Market

The customer journey analytics market is projected to witness a slight slowdown in its growth in 2020 due to COVID-19 lockdowns imposed worldwide. These lockdowns have been impacting all the verticals, including retail and eCommerce, BFSI, healthcare and life sciences, media and entertainment, and government. The pandemic has led to a shift in customer behavior, with lockdown driving customers to opt for omnichannel for purchasing. The condition is expected to come under control by mid-2021. The demand for customer journey analytics solutions and services is expected to increase due to customers shifting toward online purchasing. Due to lockdown regulations, there was a surge in the number of online media and entertainment users, which has created the demand for customer journey analytics solutions and services for understanding customer needs.

Market Dynamics

Driver: Growing need to provide better customer experience to drive need for customer journey analytics

The recent technology and digital transformation boom have led to a customer revolution in terms of changes in buying behaviors, choices, and modes. Customers no longer base their loyalty on price or product. Instead, they stay loyal to companies due to the experience they receive. Customer experience encompasses every aspect of a company’s offering—the quality of customer care, of course, but also advertising, packaging, product and service features, ease of use, and reliability. Exceptional customer experience is the best competitive advantage a company can secure. Customer experience has risen in importance over the last decade and is now lauded as the primary competitive battleground for enterprises across industries. From financial services and telecommunications to healthcare and retail, it is now recognized that exceptional CX can significantly impact business outcomes, such as a share of wallet, retention, and customer lifetime value. Companies should have the ability to use both active and passive customer data to better gauge customer and their journey for creating the optimal CX. Companies must collect, analyze, understand — and most importantly use — customer data to learn how to make CX better.

Restraint: Difficulty in quantifying customer experience RoI

All organizations want to measure and manage their efforts with numbers. Quantifying the RoI of customer experience is the toughest challenge for CX leaders, but it is most important for brands to justify financial results. Organizations across industries struggle to connect customer behavior and journeys to business-critical KPIs, such as revenue, churn, and cost to serve. The organization faces an inability to measure the impact of CX on business outcomes, which makes it difficult to secure a CX budget. Organizations that are challenged to quantify the ROI of CX initiatives report stagnant budgets or small decreases. Without resources, CX leaders cannot invest in the technology necessary to effectively measure and improve customer experience. Investing in CX brings a strong return on investment. The key is using data to prove the RoI of CX. Investing in customer experience builds a powerful lifeline between customers and the company. A large amount of structured and unstructured databases require significant resources, such as money, time, and employees, to analyze. This creates issues that block the optimum RoI from customer journey analytics.

Opportunity: Rise in demand for real-time customer journey analytics for generating actionable insights

In today’s digital and big data era, data can be structured or unstructured, and most of it resides outside enterprises. Thus, it has become crucial to have a platform that can be used to integrate various customer information. Currently, enterprises need a comprehensive customer journey analytics platform that can collect a high volume of customer data in real time to provide meaningful insights. This can assimilate data, structure, refine, provide the exploratory capability, identify and evaluate various patterns, and help make insight-based decisions faster. The customer journey analytics offers layers that enable users to explore data in understanding customer needs and project trends, and draw valuable insights using known analysis methods, such as sales and marketing optimization, cost optimization, risk management, and social network analysis. The latest data and analytics tools are projected to provide growth opportunities to analyze data for the benefit of customers and the market. They help in making changes in internal processes and developing the product and service model.

Challenge: Data security and privacy concerns

Security threats are projected to grow even further in the future. In the past four years, the financial impact of cybercrimes has increased by nearly 78%, and the time it takes to resolve cyberattacks has doubled. The increase in data from various sources is cumbersome for several IT teams. The inefficiency of managing exabytes and petabytes of data has increased the chances of security breaches and data losses. In today’s competitive marketplace, the marketing team requires real-time and secure data to deliver an outstanding customer experience. The organizations are gathering data through multiple touchpoints and measuring it virtually. Such data, which is used in support and communications, may include a variety of data types, such as public information, big data, and small data collected from the customers. This data can include permissions, individual preferences, and updated contact information on products, services, and communication platforms. Thus, the vendors need to ensure high-level data security to maintain customer trust.

Among verticals, the retail and eCommerce segment to grow at a the highest CAGR during the forecast period

The customer journey analytics market is segmented on verticals into BFSI, government, healthcare and life sciences, retail and eCommerce, manufacturing, telecommunications and IT, transportation and logistics, media and entertainment, travel and hospitality, and other verticals (education, and energy and utilities). The BFSI vertical is expected to account for the largest market size during the forecast period. Moreover, the retail and eCommerce vertical is expected to grow at the highest CAGR during the forecast period. To meet the rapidly changing customer expectations, retail and eCommerce companies are inclining toward customer journey analytics solutions, which can monitor the customer’s journey in real time across different channels and guide them to meet their requirements.

The on-premises segments is expected to hold the larger market size during the forecast period

The customer journey analytics market by deployment mode has been segmented into on-premises and cloud. The cloud segment is expected to grow at a rapid pace during the forecast period. The high CAGR of the cloud segment can be attributed to the availability of easy deployment options and minimal requirements of capital and time. These factors are supporting the current lockdown scenario of COVID-19 as social distancing, and online purchasing of goods hit the industry and are expected to drive the adoption of cloud-based customer journey analytics solutions. Highly secure customer data encryption and complete data visibility and control feature are responsible for the higher adoption of on-premises-based customer journey analytics solutions.

North America to hold the largest market size during the forecast period

North America is expected to hold the largest market size in the global customer journey analytics market, while Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. T The growing awareness for enhancing customer experience in key countries, such as China, India, and Japan, is expected to fuel the adoption of customer journey analytics solutions and services. The commercialization of the AI and ML technology, giving rise to increased customer data, and the need for further advancements to leverage its benefits to the maximum are expected to drive the adoption of customer journey analytics solutions in the region.

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Key Market Players

The customer journey analytics vendors have implemented various types of organic as well as inorganic growth strategies, such as new product launches, product upgradations, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global customer journey analytics market include Oracle (US), Adobe (US), Salesforce (US), NICE (US), SAP (Germany), Microsoft (US), Google (US), Genesys (US), Cisco (US), Teradata (US), Alterian (US), [24]7.ai (US), Pointillist (US), BryterCX (US), inQuba (South Africa), Kitewheel (US), Verint (US), Thunderhead (UK), Servion (India), CallMiner (US), NGDATA (Belgium), Acoustic (US), FirstHive (US), CaliberMind (US), Amperity (US), and Cerebri AI (US). The study includes an in-depth competitive analysis of these key players in the customer journey analytics market with their company profiles, recent developments, and key market strategies.

Scope of the Report

This research report categorizes the customer journey analytics market based on components, deployment mode, organization size, data source, application, vertical, and region.

By Component:

• Solutions
• Services
  • Managed Services
  • Professional Services
    • Support and Maintenance
    • Deployment and Integration
    • Consulting

By organization size:

• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

By deployment mode:

• On-premises
• Cloud

By data source:

• Web
• Social Media
• Mobile
• Email
• Store
• Call Center
• Other Data Sources (Advertising, Loyalty Programs, Surveys, and Promotional Events)

By application:

• Customer Segmentation and Targeting
• Customer Experience Management
• Customer Behavioural Analysis
• Customer Churn and Retention Management
• Brand Management
• Campaign Management
• Product Management
• Other Applications (Compliance Management, Omnichannel Analysis and Customer Customer Lifetime Value Management)

By vertical:

• BFSI
• Government
• Healthcare and Life Sciences
• Retail and eCommerce
• Manufacturing
• Transportation and Logistics
• Media and Entertainment
• Telecommunications and IT
• Travel and Hospitality
• Other Verticals (Energy and Utilities, and Education)

By region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• APAC
  • China
  • Japan
  • India
  • Rest of APAC
• MEA
  • KSA
  • UAE
  • South Africa
  • Rest of MEA
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In January 2021, NICE launched the new integrated capabilities between NICE inContact CXone and Microsoft Teams, empowering real-time recording as well as compatibility with a range of related applications. This launch of new capabilities will enable customers to safeguard every interaction using global, carrier-grade voice services.
• In December 2020, Genesys launched Genesys Digital, a new business unit of Genesys. Genesys Digital will focus on enabling companies to keep pace with consumers’ evolving preferences for digital engagement across the customer journey, whether using webchat for an inquiry, scheduling an appointment via text, or receiving care from a chatbot.
• In November 2020, SAP completed the acquisition of Emarsys, an omnichannel customer engagement platform provider. The Emarsys products will be added to the SAP Customer Experience portfolio. The addition of Emarsys products in the SAP Customer Experience portfolio will enable SAP to engage customers and deliver hyper-personalized, omnichannel engagements in real time.
• In November 2020, NICE and NTT Data Germany formed a strategic partnership. The partnership aims to improve customer experience and drive cloud transformations with CXone. As a strategic partner in the EMEA region, NTT DATA will sell and support the entire NICE solution suite, including CXone, NICE Nexidia Analytics, and NICE Robotic Automation.
• In May 2020, Google Cloud and Splunk partnered to help customers gain deeper insights from data. This partnership aimed to help organizations drive actionable insights from their data and enable better, faster decisions with real-time visibility across the enterprise.
• In April 2020, Teradata announced the general availability of Teradata Vantage Customer Experience (CX) through the partnership with Celebrus. Vantage CX helps brands deliver relevant, personalized experiences in real time, across all customer interactions and touchpoints.
• In February 2020, Google acquired Looker, a provider of a unified platform for business intelligence, data applications, and embedded analytics. This acquisition would enable Google to extend its analytics offering by defining two capabilities that would define business metrics and provide an analytical platform to make business decisions.
• In January 2020, Adobe announced the availability of Adobe Experience Manager as a Cloud Service. Adobe Experience Manager as a Cloud Service brings together rich out-of-box capabilities and content customization options that marketers and developers demand.
• In November 2019, Salesforce launched Customer 360 Truth. This new set of data and identity services enables companies to build a single source of truth across all their customer relationships. This launch will enable companies to better cater to their customers and predict their needs, such as addressing a customer service problem, creating a personalized marketing journey, predicting the best sales opportunities, or surfacing product recommendations.
• In March 2019, Adobe announced the global availability of the Adobe Experience Platform. The platform claimed to be open and extensible that brings together data from across the enterprise, enabling real-time customer profiles leveraging Adobe Sensei AI and ML.