Customer Experience Management Market Size, Share & Trends Analysis Report By Analytical Tools, By Touch Point Type, By Deployment, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global customer experience management market size was valued at USD 8.79 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 18.1% from 2022 to 2030. 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.

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.

Analytical Tools Insights

The text analytics segment dominated the customer experience management market in 2021 with a revenue share of over 40%. Growing demand for text-based data in comments, feedback, and reviews across numerous digital platforms and offline survey systems across several industries is one of the crucial factors contributing to the growth.

This tool assists companies in extracting valuable insights in an unbiased manner and enhances business decision-making, and also enhances customer experience with secure authentication and self-service channels. Growing demand for easily classifying, understanding, and sorting customer interactions or Voice of the Customer (VoC) across various digital touchpoints has contributed to the growth.

The web analytics and content management segment are expected to witness significant growth over the forecast period. The global web analytics market is expected to gain momentum from the steady rise in marketing automation and online shopping trends across all the digital channels. The growth in digital content is also likely to drive the growth of the web content management segment.

For instance, Starbucks and Netflix are using artificial intelligence engines and machine learning to create hyper-personalized experiences for customers. With the continuous usage of web analytics, business across the globe can attract more customers. Various companies are also using these tools to attract new customers for goods and services.

Touch Point Type Insights

The call centers segment held the largest revenue share of over 32% in 2021. The key segment drivers include the rising adoption of advanced contact center technologies, the emerging role of social media in contact center operations, increasing adoption of virtual and cloud-based contact center solutions, and streamlined customer interactions to achieve high customer satisfaction.

There is elevated pressure on the contact center to provide high-quality services and to meet the constantly evolving consumer needs. To offer improved and notable customer experience management, the companies are increasingly using the capability of contact center analytics. This factor is contributing to the growth of the segment.

The web services segment is anticipated to expand at a significant CAGR over the forecast period. Web CEM organizations provide responsive and mission-critical customer experiences that support several enterprises information platforms.WithCEM, 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 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. It is opted by large organizations that prefer their business-critical information to be stored on their servers for enhanced data protection.

Large enterprises have dedicated servers and computing infrastructures that allow them to purchase only a software license or software copy to operate the platform. Moreover, on-premise solutions offer enterprises better management and secure control over their data which is boosting customer satisfaction and brand loyalty.

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. The cloud-based deployment model offers benefits such as faster uptime, fewer disruptions in services, and secure interaction with customers.

Moreover, cloud-based solutions are preferred over traditional systems as they are effective and compatible in addressing the rising level of customer expectations. Cloud technology provides the advantage of low-cost integration of a CEM system within the current business environment.

End-use Insights

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. For IT and telecom industries, customer retention is the growth driver. Customer Experience Management (CEM) helps telecom network providers to transform from network/resource-centric businesses to customer-centric businesses. Other segments of the market include BFSI, retail, manufacturing, government, energy and utilities, construction, real estate and property management, service business, and others.

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. There is a wide opportunity across the sector and allied sectors likewise for increasing the implementation of CEM for business process optimization. Increasing adoption of digitalization, technological advancements in cloud and AI solutions, rapid integration of multichannel touchpoints into a single platform, and the increasing need to analyze customer data to draw insights are the primary factors boosting this market.

Regional Insights

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. Increasing investments in digital channels and marketing by the U.S. and Canadian enterprises are contributing to the 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 customer experience management solutions. This results in the enterprises spending aggressively on digital channels.

Asia Pacific is anticipated to witness the fastest growth over the forecast period owing to the growing adoption of modern technologies. The continuous rise in the adoption of IoT-based sensors and devices and AI-driven advanced analytics tools to B2C and B2B consumers is one of the significant factors contributing to the growth.

The vast presence of call centers, the increasing trend of social media, and the increasing emphasis on customer experience management and customer satisfaction are contributing to the growth. The continuous rise of SMEs in countries like India is placing a strong emphasis on implementing CEM solutions as a part of their efforts to drive their regional and global businesses.

Key Companies & Market Share Insights

A significant number of players hold a major market share. The key players include Adobe; Clarabridge; Freshworks Inc.; Genesys; and International Business Machines Corporation. These players are engaging in new customer experience management services to expand and strengthen their existing touch point type portfolios and acquire new customers. Companies are also engaging in mergers and acquisitions and partnerships to develop technologically advanced touch point types and gain a competitive edge over their competitors.

For instance, in November 2021, Adobe launched a real-time customer data platform, which is built for marketers operating in the B2B service model. It brings the data from multiple sources and combines it into a single view of people and account profiles. This allows marketers to precisely target specific audiences and engages those audiences across all available channels. Some of the prominent players operating in the global customer experience management market are:

• Adobe

• 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

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 2017 to 2030. For 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, 2017 - 2030)

  • EFM Software

  • Speech Analytics

  • Text Analytics

  • Web Analytics & Content Management

  • Others

• Touch Point Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Stores/Branches

  • Call Centers

  • Social Media Platform

  • Email

  • Mobile

  • Web Services

  • Others

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Manufacturing

  • Government, Energy & Utilities

  • Construction, Real Estate & Property Management

  • Service Business

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA