Customer Experience Management (CEM) Market Size, Share & Trends Analysis Report By Analytical Tool, By Touch Point Type (Call Centers, Mobile, Email, Social Media), By Deployment, By End-User, And Segment Forecasts, 2018 - 2025

Industry Outlook

The global customer experience management (CEM) market size was estimated at USD 5.18 billion in 2016. Surging demand for personalized experience by customers across different industries is one of the key trends escalating market growth. CEM represents evolving sets of practices and technologies to make a continuous transformation within organizations in order to meet and exceed consumer expectations. Business organizations have understood the importance of customer experience as it helps organizations to strengthen their brand presence, improve customer loyalty, reduce customer churn, and in turn boost business revenue.

Disruption in digital technology has empowered customers to demand seamless experience while interacting with companies over multiple channels or touch points. Technological advancements in cloud and big data analytics to design, manage, and improve end-to-end consumer experience process are expected to drive the market over the forecast period.

Organizations are developing their engagement models, keeping consumers as their strategic focus. Enterprises are reviving their brands across different touch point channels to get insights into their digital and physical experience to formulate a personalized and strong relationship with their customers, which is anticipated to influence the market positively.

A major roadblock in the widespread adoption of CEM is lack of availability of in-house resources within the organization necessary to implement technologies and processes required to formulate strategies for optimum CEM implementation. Most of the organizations turn to an external service provider such as system integrator, consultants, and digital agencies at initial stages for implementation of CEM within their enterprise.

Analytical Insights

Demand for text analytics is projected to remain high throughout the forecast period. A wide number organizations are using text analytical tools to analyze unstructured data, such as customer feedback, complaints, information noted by customer service representatives while customer conversation, to deliver superior consumer experience.

Adoption rate of speech analytics software is gaining traction in the contact center industry. The demand for the software is being largely driven by rising number of contact centers and increasing need for real-time cloud-based analytical solutions to improve customer experience. The segment is poised to witness a CAGR of 24.0% during the forecast period.

Touch Point Type Insights

The mobile touch point segment is anticipated to post a CAGR of 24.8% over the forecast period. The growth of the segment can be attributed to soaring use of mobile devices to instantly access their favorite brands. Number of CEM vendors are designing software platforms to engage and empower mobile-enabled customers through self-service help by providing seamless and enhanced experiences.

The call center segment is likely to represent the leading share in the market until 2025. In recent times, customer demand for quick response and personalized attention for their problems has registered a sharp rise. To meet this demand, there is high pressure on contact center to provide top quality services. To provide outstanding and notable customer experience, companies are increasingly using power of contact center analytics.

Deployment Insights

Based on deployment, the CEM market has been bifurcated into cloud and on-premises. The cloud-based segment is estimated to attain a significant size in terms of revenue by 2025, registering a phenomenal CAGR of 25.4% during the forecast period. Cloud technology offers the advantage of low cost integration of CEM system within the current business environment. Cloud-based CEM is widely acknowledged for its scalability and flexibility.

Various software vendors are coming up with cloud-based customer engagement solutions to help business organizations manage and deliver seamless customer services. On the other hand, the on premise segment is expected to dominate the market throughout the forecast period.

End-user Insights

On the basis of end user, the market has been segmented into BFSI, retail, healthcare, IT & telecom, manufacturing, and government, energy, & utilities. The IT & telecom segment is poised to exhibit the highest CAGR during the forecast period. Rising complexity in the telecom sector brings new challenges for telecom operators in terms of increasing their sales. Hence, focusing on customer expectation becomes critical for these telecom service providers.

As telecommunication companies continue to strive for customer loyalty, key differentiation factor that companies can use to distinguish themselves is the capability to provide subscribers with seamless customer experiences across various touch points and interaction channels.

Regional Insights

The North America market was valued at USD 2.40 billion in 2016. The region is likely to dominate the market throughout the forecast period. The growth of the regional market can be attributed to growing demand for CEM software in end-user sectors, such as retail, telecom, and banking, to provide consistent and enhanced consumer experience across the different channels.

Asia Pacific is projected to be the most promising destination for CEM vendors during the forecast period. Improving economic conditions, wide base of call centers, burgeoning trend of social media, and rising emphasis on customer experience and satisfaction are contributing to the growth of the market in APAC.

Customer Experience Management Market Share Insights

The global market is highly competitive in nature. Some of the prominent companies operating in the market are IBM Corporation; Oracle Corporation; Adobe Systems Incorporated; Nokia Networks; and Avaya, Inc. CEM vendors are using strategies such as mergers, acquisitions, and new product development and launches to strengthen their position in the market. For instance, Oracle acquired ATG, which helped the former to enhance its customer experience management capabilities to provide personalized experience to end customer of retail and commerce business.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global customer experience management (CEM) market on the basis of analytical tool, touch point type, deployment, end-user, and region:

• Analytical Tool Outlook (Revenue, USD Million, 2014 - 2025)

  • Enterprise Feedback Management (EFM) software

  • Speech analytics

  • Text analytics

  • Web analytics

  • Other analytics

• Touch Point Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Stores/ branch

  • Call Centers

  • Social Media

  • Email

  • Mobile

  • Web services

  • Others (Mobile, Third party website)

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • Cloud

  • On Premise

• End-User Outlook (Revenue, USD Million, 2014 - 2025)

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Government, Energy & Utilities

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa