Customer Communication Management Market Size, Share & COVID-19 Impact Analysis, By Component (Software and Services), By Channel (SMS, Email, Website, Social Media, and Others), By Industry (BFSI, Retail, IT & Telecom, Government, Healthcare, and Others), and Regional Forecast, 2023 – 2030

The global customer communication management market size was valued at USD 1.73 billion in 2022. The market is projected to grow from USD 1.89 billion in 2023 to USD 4.13 billion by 2030, exhibiting a CAGR of 11.8% during the forecast period.

Customer Communication Management (CCM) is a comprehensive strategy and set of technologies organizations use to design, manage, deliver, and optimize customer communications across various channels. This solution is mainly used to enhance the quality of customer interactions, improve customer satisfaction, and strengthen customer relationships. Customer communication management solution providers help users design and deliver relevant, personalized transactional communication across multiple channels such as SMS, email, website, social media, and others with ease. They focus on offering end-to-end solutions for managing customer communications. This solution is significantly used in a wide range of industries, including retail, BFSI, healthcare, government, IT & telecom, and others.

In the scope of work, we have included solutions offered by companies such as Quadient, Open Text Corporation, Doxee S.p.A, Intense Technologies, Precisely, Smart Communications, and others.

COVID-19 IMPACT

Increased Demand for Digital Transformation Across Industries Fueled Market Growth

With lockdowns and social distancing measures in place, businesses relied more on digital channels for customer communications. This increased the demand for CCM solutions that could effectively manage digital channels such as email, SMS, website, social media, and prints. The pandemic accelerated digital transformation initiatives across industries. Businesses that were previously slow to adopt these solutions recognized the need to digitize their communication processes to maintain customer engagement and support remote workforces. In addition, cloud-based CCM platforms became popular as they allowed teams to collaborate and manage customer communications from remote locations. With these tools, customer inquiries can be answered quickly with minimal latency, and interactions can be personalized based on each customer's history and profile. These important results helped brands to exceed customer expectations and improved customer communication services during the COVID-19 pandemic. These factors fueled the customer communication management market growth during the pandemic.

LATEST TRENDS

Growing Adoption of Omni Channel Communication to Drive Market Growth

Businesses have focused on consistent messaging across various channels, including email, text, and social media. Organizations must continually provide relevant documents and promotions to their customers in order to maintain healthy customer relationships. In today's technology-driven world, customers expect to relate with businesses through channels of their choice, such as email, short message services, voice, web, mobile, and social media at their convenience. 

The growth of omni-channel communication can be attributed to several key factors, as mentioned below:

• Changing Customer Expectations: Consumers now expect a seamless experience across channels, driving businesses to adopt omni-channel communication to meet these expectations.


• Personalization: Omni-channel communication allows businesses to deliver personalized messages and offer enhanced customer engagement and satisfaction.


• Efficiency and Cost Savings: Streamlining communication processes across channels can lead to operational efficiency and cost savings in the long run.

The above factors are contributing to the market growth.

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DRIVING FACTORS

Increased Adoption of Cloud-based Customer Communication Management or Cloud Communication by Major Companies to Augment Market Growth

Cloud communication is a method that allows businesses to establish contact points with customers over the internet instead of using a connection through the telephone network. This type of communication leverages cloud-hosted technologies, platforms, and tools to build customer contact strategies, including hosting chats, sending messages, and video conferencing. Some of the benefits of using a cloud communications strategy are:

• More Adaptable: Cloud communication systems give more freedom to operations staff. The cloud solution is accessible from any device connected to the internet and eliminates location restrictions.


• Artificial Intelligence (AI) & ML Automation: These technologies take customer data and use it to form more human-like conversations that are more relevant to them. This, in turn, helps businesses scale their customer communication faster.

In addition, cloud-based platforms are constantly evolving, allowing software applications to be deployed without the complexity and costs of managing and purchasing underlying software and services. Therefore, businesses are adopting cloud environments to provide flexibility in their communication systems, which are driving market growth.

RESTRAINING FACTORS

Rising Complexity of Templates and Data Synchronization May Hamper Market Growth 

Companies collect huge

amounts of data through various channels to better understand customer preferences, needs, and buying habits. With the rise of digital technology and mobile devices, organizations are flooded with data collected from internal and permanent sources. In such cases, better synchronization plays an important role in designing and analyzing the customer journey. Traditionally, businesses have relied on batch file synchronization. However, under this approach, the organization may face a reduction in profits due to profit coding and customer loyalty erosion. Thus, increasing template complexities and data synchronization may restrain market growth.

SEGMENTATION

By Component Analysis

Software Segment Dominates by Pioneering Personalized Customer Communications

Based on component, the market is bifurcated into software and services. The software segment captured the maximum share in the market in 2022 due to its ability to enable businesses to create highly personalized customer communications. By leveraging customer data and preferences, organizations can tailor messages and offers to individual recipients, improving engagement and response rates. Owing to these features, it is expected to continue its dominance during the forecast period.

The services segment is expected to grow at a significant CAGR during the forecast period, given its capability to help users personalize their customer communication effectively. In addition, it can efficiently manage communications across various channels, ensuring consistency and reach. Moreover, this allows organizations to focus on their core competencies while leaving communication management to experts. This can lead to better resource allocation and strategic growth.

By Channel Analysis

Email Segment Takes the Spotlight by Leveraging Personalization and Automation

Based on channel, the market is classified into SMS, email, website, social media, and others (print, phone calls, and others). The email segment held a larger share of the market in 2022. The increasing demand for personalized and targeted email communication, automation of customer interaction with various systems, improved customer engagement, and enhanced analytics for optimizing email campaigns drive growth of the email segment.

The website segment is expected to grow at the highest CAGR during the forecast period. Increasing reliance on online interactions, the convenience of web-based communication, and the potential for global reach all drive the growth of website-based communication. This medium is cost-effective, reducing the need for extensive phone support, which is expected to help the market grow.

By Industry Analysis

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BFSI Segment's Dominance Led by Enhancing Customer Engagement

By industry, the market is divided into IT & telecom, BFSI, government, healthcare, retail, and others (energy & utilities, media & entertainment, and others). The BFSI segment held the maximum customer communication management market share in 2022. Banks and financial institutions are significantly adopting CCM solutions to improve their efficiency and reduce operational costs. The banking industry is still heavily reliant on print media and SMS mediums to reach out to its customers, which drives the segment growth.

The retail segment is anticipated to grow at the highest CAGR during the forecast period. The retail industry is using CCM to create highly personalized marketing campaigns. By analyzing customer data and purchase history, the industry sends tailored promotions, product recommendations, and discounts to individual customers on various modes of channels.

REGIONAL INSIGHTS

Based on region, the market is categorized into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

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North America holds the largest share in the customer communications management market. The growth of the market is driven by the presence of a large number of CCM solution providers in the region. In the U.S., telecommunication companies are majorly adopting this solution to communicate with subscribers regarding billing statements, service upgrades, outage notifications, and promotional offers. The growing need for a holistic view of consumers and understanding risks and industry trends are some of the key factors driving market growth in the region.

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Asia Pacific is witnessing the gradual adoption of customer communication management solutions, owing to the entry of various key market players into the market. Moreover, developing economies such as China, South Korea, and India are attracting more key players to enter the market and expand their geographical footprint, which is further expected to drive the market growth in the region. Businesses in this region primarily deploy customer communication management solutions on their premises to improve customer reach and retain existing customers. All these factors are expected to support the regional growth during the forecast period.

In Europe, data privacy regulations such as the General Data Protection Regulation (GDPR) are stringent. Customer communication management solutions include features that facilitate compliance by ensuring secure data handling and management of consent and preferences. In addition, demand for customer communication management is anticipated to grow across the region as a result of the goal of gaining valuable insights into real-time consumer product adoption, which will help analyze the customer's use of the product and services of communication channels.

The increasing adoption of Machine Learning (ML) and Natural Language Processing (NLP) is expected to drive market growth in the Middle East & Africa. AI-powered customer contact management services can efficiently manage the complexities of personalized, structured, and compliant omni channel customer communications more productively and effectively.

In South America, the digital revolution has led to an increase in communication channels through multi-channel communication platforms. It allows customers to connect with the brand through their preferred channel and facilitates an easy transition with customers. These factors play a vital role in the significant growth of the market in the region.

KEY INDUSTRY PLAYERS

Players Are Emphasizing Merger & Acquisition Strategies to Expand their Operations Globally

Leading companies are emphasizing the expansion of their geographical boundaries globally by coming up with industry-specific solutions. These players are collaborating and acquiring local companies strategically to capture a strong regional hold. Moreover, prominent players in the market are coming up with new products for attracting and retaining their customer base. In addition, continuous research and product development investments are thriving the global market. Thus, by deploying such corporate strategies, companies sustain their competitiveness in the market.

List of Key Companies Profiled:

• Quadient (France)


• Doxee S.p.A (Italy)


• Doxim (Canada)


• Newgen Software Technologies Limited (India)


• Open Text Corporation (Canada)


• Intense Technologies (in10stech) (India)


• BelWo, Inc. (U.S.)


• Precisely (U.S.)


• Smart Communications (U.K.)


• Nagarro (Germany)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – Quadient announced its new partnership with Plexus Tech, a technology company focusing on IT products and services. This partnership provides Plexus Tech customers access to an advanced centralized platform powered by Quadient Inspire to efficiently optimize and manage their internal and external communications activities.


• May 2023 – Doxim was selected by TradeStation Securities, Inc. to provide them with a CCM solution and help their clients communicate effectively and reliably. This solution would play a vital role in streamlining the operational processes of TradeStation in the creation, tracking, and delivery of physical and digital client account statements.


• August 2022 – Newgen Software Technologies Limited partnered with FPT Information System Corporation, a Vietnam-based company. Through this partnership, the company aims to expand its footprint in Asia Pacific by extending its sales team in Vietnam.


• June 2022 – Smart Communications engaged in a partnership with Areteans. With this partnership, Smart Communications aims to enhance its customer conversations platform, which would help government organizations and large enterprises to provide personalized customer conversations experience.


• April 2022 – Doxim announced the new addition to the Doxim Digital Initialization platform, ‘Doxim Self-Service Business Account Opening (BAO)’. This new solution would provide support for business accounts, offering a full suite of fully integrated digital initiation solutions, with data shared across the platform. This will also include complete integration into the customer's banking system experience.

REPORT COVERAGE

An Infographic Representation of Customer Communication Management Market

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The report provides a detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation