Companies across industries turn to customer journey analytics to connect all the dots of the fragmented customer journeys locked in silos within their organizations. This helps them create a consistent buyer’s journey, outperform competitors, and boost revenue by tailoring their services as per customers’ preferences and expectations to improve customer experience.
Customer journey analytics facilitates segmentation beyond demographic, firmographic, and geographic information, enabling behavioral segmentation, which is the division of customers based on how customers behave. This allows marketers to enhance campaign performance through improved targeting by connecting strategy and tactics to customer experience and business objectives, such as revenue, cost, and retention.
Last year, the customer journey analytics market was valued at US$ 9.4 billion as per IMARC Group’s report and will reach US$ 27.52 billion by 2027, exhibiting a CAGR of 18.5 percent during 2022-2027. The primary driver of this market growth is the rising desire for individualized customer experiences. Customers today demand to be treated as individuals with distinctive preferences. Consequently, it has forced businesses to shift their emphasis to customized/tailored brand interactions.
Customer journey analytics solutions and services have increasingly become a driving force behind customer acquisition, brand loyalty, and customer lifetime value. The aim is to ensure a single view of a customer when they interact with their company and then accordingly personalize the customer experience across channels and places always at the right moment. For creating this blended customer experience, the customer journey analytics space is transforming from retrospective reporting to real-time, behavior-driven interaction.
The growing investments in establishing advanced marketing technologies to assist marketers in making cognitive judgments and developing improved buyer management are also contributing factors to market growth. In addition, the growing tendency to invest in buyer retention methods instead of buyer acquisition strategies is driving the customer journey analytics market even more.
