Customer Experience Management Market Size, Share & Trends Analysis Report By End-use (BFSI, Retail), By Analytical Tools (Speech, Text Analytics), By Deployment (Cloud, On-premise), By Touch Point Type, And Segment Forecasts, 2021 - 2028

Report Overview

The global customer experience management market size was valued at USD 7,540.6 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 17.5% from 2021 to 2028. The growing importance of understanding customer behavior and their preferences drives various brands and organizations to adopt Customer Experience Management (CEM) to deliver the best service performance in real-time. Moreover, the growing use of digital channels by users to communicate with brands and organizations is expected to boost market growth over the coming years. Modern businesses and enterprises are increasingly CEM solutions to realize customer-centricity across processes and hence, better differentiate themselves in the current competitive environment.

Advancements in technologies are transforming the way a buyer reacts to and works with brands across various channels. Currently, consumers use several devices to review, understand, and finalize products before buying. The digital technology disruption encouraged consumers to demand a smooth experience while interacting with companies over numerous channels or touchpoints. Due to the evolution in buyer expectations, companies are increasingly engaged in restructuring their customer management strategies to efficiently position and reposition their products and brands, with consumers as their strategic focus. This is expected to drive the market growth over the forecast period.

In addition, as the industry spending and demand for CEM solutions is increasing, CEM solution providers and technology partners are investing in strategic development and product updates and securing investments from venture capitalists. Moreover, data analytics advancements to help enterprises design, operate, and improve their end-to-end CEM are anticipated to drive the market. For instance, Deloitte offers 360-degree Customer Experience (CX) Retail Intelligence, Machine Learning (ML)- and Artificial Intelligence (AI)-based solutions for the retail and FMCG industries. It identifies critical points of poor buyer experiences & buyer trends and offers measurable direction to enhance an organization’s operational efficiencies, ROI, and consumer experiences.

Growing investments in implementing enhanced marketing technologies to assist users in undertaking cognitive decisions and to develop enhanced buyer management are also adding to the market growth. The growing trend of investments in buyer retention strategies, rather than buyer acquisition strategies, further drives the market. For instance, according to Harvard Business Review, the cost to retain a consumer is 25% lower than the cost of acquiring a new one. Other research studies also indicate that repeat customers tend to buy more from a company with products priced at different prices and help drive business growth.

Hence, improving CEM is critical for ensuring user retention and satisfaction and subsequently enhancing sales for any business in industries, such as banking, manufacturing, retail, and entertainment. Thus, enterprises worldwide are investing in marketing and product strategies focused on efficient engagement with their consumers and increasing sales from existing customers via CEM solutions. The need for a contactless environment due to the Covid-19 pandemic has highlighted the importance of digital medium as well as digital maturity attained by some companies on the strategic forefront.

The growing adoption of digital technology tools is likely to set the digital transformation and digital optimization of both existing and new businesses. The market is likely to witness an increasing share of work delivered through digital engagement models based on collaboration tools and platforms. These developments initiated due to the pandemic are expected to lead to an increase in the use of cloud technology and work collaboration tools, which is subsequently expected to aid the CEM market growth over the forecast period.

Analytical Tools Insights

The text analytics segment dominated the market in 2020 and accounted for a revenue share of over 41%. The growing generation of text-based data in comments, feedback, and reviews across numerous digital platforms and offline survey systems is one of the crucial factors contributing to the segment growth. In addition, this tool assists companies in extracting valuable insights in an unbiased manner and enhances business decision-making. The growing demand for classifying, understanding, and sorting customer interactions or Voice of the Customer (VoC) easily across various digital touchpoints has contributed to the overall segment growth.

The web analytics & content management segment is expected to witness considerable CAGR over the forecast period. The use of web analytics is increasing and is fueled by several trends, including the constant rise in online shopping, rapid implementation of marketing automation platforms, and shift toward data-driven businesses. Other major factors driving this segment include the growing requirement among businesses and companies to increase their revenue by providing personalized content for customers, enhancing interactions with customers online, and maintaining a brand presence across digital channels. The growth in digital content is also expected to boost segment development.

Touch Point Type Insights

The call centers segment dominated the market in 2020 and accounted for a revenue share of over 31%. Call centers are a vital component of the value chain of an organization as they help enterprises build effective buyer relationships via functions, such as the resolution of complaints and query handling in real-time. The rising popularity of call centers has propelled enterprises to invest in technologies that help improve their call resolution rate, buyer satisfaction rate, and multi-channel performance, among others. To meet this need, there is elevated pressure on the contact center to provide high-quality services. To offer improved and notable CEM, companies are increasingly using the capability of contact center analytics.

The web services segment is expected to witness a significant growth rate over the forecast period. Web CEM helps organizations provide powerful, responsive, and mission-critical buyer experiences throughout omnichannel touch points that support many enterprise information platforms, social and rich media, languages, and device requirements. Web CEM is an advanced platform that leverages the latest web technologies for supporting integration with the existing enterprise systems. With CEM, businesses can create a web presence that draws on video, text, images, and documents within the principles to deliver an optimized, social, and non-disruptive experience.

Deployment Insights

The on-premise segment accounted for the highest revenue share of over 60% in 2020. On-premise deployment envisages hosting the CEM suite or applications on the organization’s server. This deployment model is opted by organizations that prefer their business-critical information to be stored on their own servers for enhanced data protection. Large-scale enterprises have dedicated servers and computing infrastructures that allow them to purchase only a software license or software copy to operate the platform. This, in turn, helps them reduce the total ownership, implementation, and other related costs. Moreover, on-premise solutions offer enterprises better management and secure control over their data.

The cloud segment is expected to witness the fastest CAGR over the forecast period. The increasing advancements in technologies and network infrastructures have resulted in enterprises of all sizes shifting to cloud-based solutions. The cloud-based deployment model offers benefits, such as faster uptime, fewer disruptions in services, and secure interaction with customers. It also helps enterprises reduce their upfront and additional costs associated with managing and purchasing hardware and other related infrastructures. Cloud technology provides the advantage of low-cost integration of a CEM system within the current business environment.

End-use Insights

The IT & telecom segment accounted for the second-largest revenue share of over 23%. Buyer churn has been a major issue for telecom operators. It is one of the major factors impelling telecom operators to spend more on retaining their most profitable customers. Customer retention plays a major role in increasing revenues for the telecom operators as the demand from customers for multiple services, such as IP TV, mobile wallets, broadband, cable TV, data, and content has increased. This is driving the demand for CEM among IT and telecom operators. Furthermore, CEM helps telecom network providers to transform from network/resource-centric businesses to customer-centric businesses.

The healthcare segment is expected to witness significant CAGR over the forecast period as the industry is consistently adopting innovative methods to implement next-generation mobility. The health-related organizations, ranging from pharmaceutical companies to health insurers, are not perceived as the most consumer-centric organizations. There is a wide opportunity across the sector and allied sectors likewise for increasing the implementation of CEM for business process optimization. It is imperative for this vertical to resolve the issues of an aging and growing population amid the Covid-19 pandemic in a customer-centric manner. Furthermore, the growing demand for CEM can also be attributed to the advancements in digital technologies, which have enabled patients to choose from a wide range of healthcare providers and plans and share their feedback through various digital channels, such as the web and social media.

Regional Insights

North America dominated the market in 2020 and accounted for a revenue share of over 44%. The growth can be attributed to the continuous digital transformation across various industries, such as telecom, retail, and banking. Moreover, increasing investments and allocation of budgets for digital channels and marketing by the U.S. and Canadian enterprises are contributing to the regional market growth. The growing consumer preference to post reviews and share experiences across digital media is prompting brands and enterprises to embark upon a digital transformation and adopt CEM solutions as a part of the efforts to pursue a customer-centric business model. Enterprises in the U.S. and Canada are spending and allocating a dedicated budget for marketing and digital channels.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period owing to the growing adoption of modern technologies. The growing adoption of IoT-based sensors and devices and AI-driven advanced analytics tools to offer customized services to B2C and B2B consumers is one of the significant factors contributing to the market growth in the Asia Pacific. The presence of call centers, the increasing trend of social media, and emphasis on CEM and buyer satisfaction are contributing to the regional market growth. In countries, such as India, the number of SMEs is rising rapidly and these SMEs focus more on implementing CEM solutions as a part of their efforts to drive their regional and global businesses.

Key Companies & Market Share Insights

The analytical tools & touch point type segments for the market are dominated by a limited number of players holding significant shares. The key market participants are investing in research & development activities to drive organic growth and increase their market shares. In addition, these players are engaging in new touch point type development to expand and strengthen their existing touch point type portfolios and acquire new consumers.

Companies are also engaging in mergers & acquisitions and partnerships to develop technologically advanced touch point types and gain a competitive edge over their competitors. For instance, in March 2019, Adobe partnered with ServiceNow to empower brands to integrate buyer experience information and create unified digital workflows that can potentially help in offering personalized buyer experience across all the interaction channels. Prominent players in the global customer experience management (CEM) market include:

• Adobe

• Avaya, Inc.

• Clarabridge

• Freshworks, Inc.

• Genesys

• International Business Machines Corporation

• Medallia, Inc.

• Open Text Corp.

• Oracle

• Qualtrics

• SAP SE

• SAS Institute, Inc.

• Service Management Group (SMG)

• Tech Mahindra Ltd.

• Verint

• Zendesk

• Miraway

Customer Experience Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global customer experience management market report based on analytical tools, touch point type, deployment, end-use, and region:

• Analytical Tools Outlook (Revenue, USD Million, 2016 - 2028)

  • EFM Software

  • Speech Analytics

  • Text Analytics

  • Web Analytics & Content Management

  • Others

• Touch Point Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Stores/Branches

  • Call Centers

  • Social Media Platform

  • Email

  • Mobile

  • Web Services

  • Others

• Deployment Outlook (Revenue, USD Million, 2016 - 2028)

  • Cloud

  • On-premise

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Government, Energy & Utilities

  • Construction, Real Estate & Property Management

  • Service Business

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa