Customer Experience Management Industry Overview
The global customer experience management market size was valued at USD 8.79 billion in 2021 and is expected to reach USD 38.98 billion by 2030, registering a CAGR of 18.1% over the forecast period. The growing importance of understanding customer behavior and their preferences drives various brands and organizations to adopt customer experience strategies, such as regular communication and engagement, longstanding program, and use of automation, to deliver the best service performance to customers in real-time.
The outbreak of the COVID-19 pandemic has significantly impacted some of the core sectors, such as manufacturing, logistics, and transportation. The adoption of digital technology tools is likely to set the digital transformation and digital optimization of both existing businesses and new businesses. The pandemic has forced enterprises to assess their growing customer preferences and business continuity plans. As a result, the market for customer experience management is expected to witness steady growth.
Gather more insights about the market drivers, restrains and growth of the Global Customer Experience Management market
The market will likely witness an increasing share of work delivered through digital engagement models based on collaboration tools and platforms. The rapid proliferation of smart technologies, such as Artificial Intelligence (AI) and advanced machine learning, has reduced the cost of computing and storage power. For instance, automakers use the Internet of Things (IoT), AI, and analytics to understand in-vehicle consumer behavior and to provide maintenance services within vehicle sensors that prompt service requests.
Technological advancements will help enterprises design, operate, and improve their end-to-end CEM and drive market growth. AI and its applications are transforming the way that enterprises interact with end-users and enterprises are investing in AI-based customer services to improve efficiency by decreasing complaint resolution and call processing. It allows brands and leaders to offer relevant content, increase sales opportunities, enhance the customer journey, and prioritize the content strategies that can align with the touchpoints with the buyer journey.
Technologies like big data analytics, remove the guesswork and understand customer needs, pain points, goals, and interests, and create total visibility into the buying process. Growing investments in implementing enhanced marketing technologies to assist customers to make cognitive decisions and to develop enhanced customer experience management are also fueling the growth. The growing trend of investment in customer retention strategies is one of the major factors that drive market growth.
For instance, according to Harvard Business Review, the cost to retain a customer is 25% lower than the cost of acquiring a new customer. Additionally, other research studies also indicate that repeat customers tend to buy more from a company with products priced at different prices and help drive higher business growth. Hence, improving customer experience management is critical for ensuring customer retention and satisfaction and subsequently enhancing sales for any business in industries such as banking, manufacturing, retail, and entertainment.
Customer Experience Management Market Segmentation
Based on the Analytical Tools Insights, the market is segmented into EFM Software, Speech Analytics, Text Analytics, Web Analytics & Content Management, and Others.
- The text analytics segment dominated the customer experience management market in 2021 with a revenue share of over 40%.
- The web analytics and content management segment are expected to witness significant growth over the forecast period.
Based on the Touch Point Type Insights, the market is segmented into Stores/Branches, Call Centers, Social Media Platform, Email, Mobile, Web Services, and Others.
- The call centers segment held the largest revenue share of over 32% in 2021.
- The web services segment is anticipated to expand at a significant CAGR over the forecast period.
Based on the Deployment Insights, the market is segmented into Cloud, and On-premise.
- The on-premise segment held the largest revenue share of over 61% in 2021. On-premise deployment provides hosting the customer experience management suite or applications on the organization’s server.
- The cloud segment is expected to witness significant growth over the forecast period. The growth can be accredited to the easy implementation, less cost, easy upgrade, and accessibility.
Based on the End-use Insights, the market is segmented into BFSI, Retail, Healthcare, IT & Telecom, Manufacturing, Government, Energy & Utilities, Construction, Real Estate & Property Management, Service Business, and Others.
- IT and telecom held the largest revenue share of over 24% in 2021. Customer churn has been a major issue for telecom operators, as it is one of the significant factors propelling telecom operators to spend more on retaining their most profitable customers.
- The healthcare segment is expected to witness significant growth over the forecast period. The health-related organizations, ranging from pharmaceutical companies to health insurers, are not perceived as the most consumer-centric organizations.
Based on the Customer Experience Management Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and MEA
- North America held the largest revenue share of over 40%in 2021. The rise in adoption of CEM solutions and services by various industries, such as telecom, retail, and banking to foster their customer relationships.
- Asia Pacific is anticipated to witness the fastest growth over the forecast period owing to the growing adoption of modern technologies.
Market Share Insights:
- November 2021: Adobe launched a real-time customer data platform, which is built for marketers operating in the B2B service model.
- July 2021: Southeast Asia Commercial Joint Stock Bank (SeABank) has transformed its business with products of Oracle Financial Services Performance and Balance Sheet Management Suite.
Key Companies Profile:
Players are engaging in new customer experience management services to expand and strengthen their existing touch point type portfolios and acquire new customers.
Some of the prominent players operating in the global customer experience management market are:
- Avaya Inc.
- Clarabridge
- Freshworks Inc.
- Genesys
- International Business Machines Corporation
- Medallia Inc.
- Open Text Corporation
- Oracle
- Qualtrics
- SAP SE
- SAS Institute Inc.
- Service Management Group (SMG)
- Tech Mahindra Limited
- Verint
- Zendesk
- Miraway
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