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The global customer experience management (CEM) market size valued at USD 6.28 Billion in 2018 is projected to reach USD 23.91 Billion by 2026, exhibiting a CAGR of 18.5% during the forecast period.
Due to the growing adoption of digitalization, customer service is becoming more complex as customers use several channels to engage with companies. As a result, organizations are now challenged to not only support and manage different customer channels but also provide a consistency of experience across all of them.
Customer experience management is primarily gaining in-depth knowledge about customers’ requirements, which can be drawn from extracting customer insight from several Touchpoint and channels. The customer experience management system is all about harnessing mountains of customer data from online as well as offline channels and extracting valuable information from the data with fast speed and high precision.
The primary goal of CEM (customer experience management) is to convert a satisfied customer into a loyal customer. Customer experience management software addresses the cross-channel such as contact centers, internet, self-service, and mobile devices. Similarly, it also addresses cross Touchpoint, including phone, chat, email, and web services — too, cross-lifecycle including ordering, billing support, quality of service, and others.
Customer experience management solutions focus on the operations and processes of business across the needs of the individual customers, which involves strategy, integration of advanced technology, enhancing business models, and brand management. An effective customer experience management system would collect customer feedback from multichannel and generate real-time alerts and actions regarding the same.
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Customer experience management software includes the collection of data from network infrastructure and organizations system, manipulation and correlation of information and statistics, and provide reporting and analysis capabilities. This would help the organizations to identify business opportunities and actual needs of the customers, giving short-term benefits and limitations and constraints in the customer-business relationship.
“Growing Technological Advancements in Cloud and Integration of Multichannel Touchpoint into a Unified Platform.”
The marketers face challenges such as creating particular brand experiences across channels, integrating channels, and brand experience, consolidating the customer data into a single unified platform. All these challenges can be overcome by deploying effective customer experience management systems. Customer experience management is essential for businesses since it would provide effective, and enhanced customer experience management (CEM) can strengthen brand preference in comparison to the other brands. It would also help to boost the overall revenue of the organization with a significant increment in the sales from existing customers and get new sales from word of mouth. Furthermore, enhance customer loyalty through valued and effective communication with the customers and ensure lower cost by lowering customer retention would also be obtained from customer experience solutions. These factors will drive the customer experience management market growth during the forecast period.
“The Increasing Need to Understand and Analyze Customer Data to Draw Actionable Business Insights.”
As time and technology change, the customers’ preferences change accordingly. The customer experience management strategy provides a simple, effective, and intelligence means to reach out to the customers for their valuable feedback. However, organizations have realized the importance of customer feedback to analyze the business profits and shaping process policies and regulations. This would drive the demand for advanced CEM software across the globe. Organizations are now planning to drill down to understand and analyze raw customer data to draw actionable and useful business insights in order to enhance the workflow within the organization.
“Solution segment is expected to augment the customer experience management market during the forecast period”
Based on the component, the market is classified into solution and services. Customer experience management solution is a software system that helps the company to manage interactions with the current as well as potential customers. CRM software enhances the customer relationship by managing customer interactions, tracking activities, and streamlining processes. The primary goal of CRM software is to increase sales by improving business relationships.
Customer relationship software offers the ability to store customer information, interactions, and analytics. This database can be analyzed to draw actionable market insights and make effective market strategies. In short, CRM systems assist with sales, service, marketing, analytics, and others.
Along with the solutions, organizations also provide professional and managed services. Professional service may include training and education, consulting services, and others. Whereas the managed services include testing, installing, and others. The service segment is estimated to witness a remarkable growth rate during the forecast period.
“Growing need for agile and flexible customer experience management solution would drive the demand for cloud-based customer experience management technology”
Based on the deployment, the market is segmented into the cloud and on-premise.
Cloud-based solutions are a low-cost integration of CEM (customer experience management) system, and it is known for its scalability and flexibility. Cloud-based customer experience management software helps organizations to deliver and manage enhanced customer service to their users. Cloud-based CEM software solutions would bring agility and flexibility to management operations. The rising demand for cloud-based solutions is likely to foster the customer experience management market size by 2026.
In the current scenario, a growing number of organizations focus on cloud deployment models to enhance and empower their customer experience management operations to efficiently and effectively engage with customers across several Touchpoint, including voice, mails, chat, social media, mobile, and video. Primary factors that drive the adoption of cloud-based service models are the organizational priorities, budget availability and technology, and process readiness.
Deploying customer services in the cloud offers effective corporate strategy, technology investments, and business processes. Organizations can choose to leverage different choices and types of call routing, email, webchat, workforce optimization, and self-service. Organizations that aim to achieve cost savings and customer satisfaction are focusing on implementing customer experience management solutions, which help the growth of the CEM market.
Cloud deployments of customer experience management will witness a remarkable adoption rate. Deployment regulations and privacy issues in on-premise customer management solution would turn the interest of organizations towards the cloud-based deployments. However, the majority of customer experience management will be located on-premise as enterprises in this phase would have low investments in premise-based legacy infrastructure; subsequently, they will migrate to the cloud in the coming years.
“Large enterprises are expected to inflate the market growth owing to substantial investments in customer experience management strategy”
By organization size, the market is divided into SME’S and large enterprises. Owing to the substantial investments in IT infrastructure and advanced customer services, large enterprises are expected to inflate the customer experience management (CEM) market growth. Also, large enterprises have huge customer databases, and sometimes it becomes difficult to effectively manage this data.
CEM software would be a potential solution for large enterprises to collect, store, and analyze the enormous customer data. Furthermore, there are a lot of supply chains and outlets of large enterprises that demand an effective customer experience management solution.
Small enterprises have limited customer database compared to large enterprises. Though they try to adopt an efficient CEM (customer experience management) strategy to strengthen their market position and provide quality services to the customers. SME’s are expected to witness moderate growth during the forecast period.
“The increasing number of customer Touchpoint are contributing to the growth of the customer experience management solution.”
By touchpoint, the market is classified as telephone, email, web, social media, and others.
Ever-evolving digitization of services drives more and faster disruptions across the industries. As a result, customers are increasingly desired towards the immediacy, personalization, and convenience of dealing with product-related services. Products, services, and other essential factors, both physical and online, are being merged to meet rising customer demands.
In the customer experience management market by touchpoint, the telephone touchpoint segment would ensure to generate the highest revenue during the forecast period. Nowadays, organizations are using various Touchpoint for customer experience technology solutions, but the most effective channel is the voice. Talking on the phone with the customer is often a difficult task as compared to messaging, or sending an email. However, the telephonic conversation offers the ability to understand what the customer is saying on the phone; it gives a sense of the productive discussion.
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Effective telephone communication would result in more productive relationships that lead to better customer service and perhaps increased sales. The main advantage of telephonic conversation over other touchpoint is that the customers will certainly recognize the manner they are being treated with care, courteousness, and considerations, which will help to achieve loyal customers.
Email would be a convenient and authorize mode of communication, mainly for the BFSI and IT sectors. Customer email management is not replying from one mailbox, but it is a centralized platform for all incoming emails into one standard system. Email communication provides a complete help desk solution for all types of queries. Automatic email systems would be developed to automatically classify, categories, and assigns replies to emails based on the requirement. Email communication would personalize and strengthen customer relationships.
“IT and Telecommunications, BFSI, and Retail end-user segments are expected to lead the market during the forecast period”
By the end-user, the market is segmented into BFSI, retail, IT and telecommunications, healthcare, manufacturing, government, travel and transportation, and others.
The IT and telecommunications industry is expected to dominate the market during the forecast period. The service providers are focusing on digital customer experience management solutions for greater ease and simplicity. Organizations are also investing in analytical solutions for real-time actionable insights into the customer journey.
BFSI industry is projected to witness a remarkable growth rate. The development of digital technology has positively influenced the BFSI industry. Many major banks are adopting customer experience management strategy to recognize the flaws in the services. For instance, a U.S. based payment company used customer experience management software with advanced analytics to identify customers’ problems in the service provided by them.
The retail industry is projected to hold a significant position in the market. Many retailers are leveraging customer experience management strategies to maintain a reliable customer database and analyze it to draw effective business insights. Analytics has transformed the retail industry in recent years. Hence, it has given an open platform for customer experience management software.
However, other industries such as healthcare, government, travel and transportation, manufacturing and others would witness moderate market growth.
The customer experience management market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America this region is further categorized into countries.
North America is projected to augment the market during the forecast period. In 2018, North America generated a revenue of USD 2.62 Billion and is expected to reach up to USD 9.38 Billion by 2026. North America will be the dominant region in the global market during the forecast period. Growing demand to provide consistent and enhanced customer experience across various industry verticals, including retail, BFSI, and IT and Telecommunications, is driving the growth of the CEM market in the region.
Europe is expected to hold a leading position in the market and is expected to grow at a remarkable CAGR till 2026. Addressing growing customer expectations and providing quality customer services through several Touchpoint and communication channels, organizations are making investments in customer experience management software. This factor is likely to trigger market growth across the region.
Asia Pacific is projected to hold a significant market share. The emergence of disruptive technologies has increased the customers’ demands for seamless services across various Touchpoint. Whereas, technological advances in artificial intelligence, big data analytics to improve end-to-end consumer experience is expected to expand the market size until 2026. The continuous development in social media is emerging as a significant Customer Experiment Management market trend.
North America Customer Experience Management Market Size, 2018 (USD Billion)
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The Middle East and Africa are anticipated to witness a steady growth rate in the market. The rising complexities due to developments and enhancements in the industry, the industry is now facing new challenges to cater to the customers’ expectations. This is one of the critical factors which will drive the market in the Middle East and Arica. The importance of customer experience management is well known to all businesses as it helps them to enhance their brands, improve customer loyalty, manage customer retention, and have a positive impact on the revenues. This will fuel the demand for customer experience management technology in the region.
The customer experience management market landscape in Latin America forecasted to experience a substantial growth rate during the forecast period. Customer experience management vendors in Latin America are working towards developing software platforms to engage, enhance, and empower the customer service. Call centers in the region will demand improved customer experience management technology. These factors will drive the CEM market in Latin America. Customers’ demands for a quick response and personalized feedbacks will drive the adoption of customer experience management technology solutions.
“Adobe, Verint Systems, Clarabridge, and Medallia, Inc. would strengthen their market position backed by heavy investments and developments in customer experience management strategies”
Adobe has been actively working in providing customer experience management platforms. Among the largest brands Best Buy, DXC technology, The Home Depot, Verizon Wireless, and Sony Interactive Entertainment are already using the beta version of Adobe Experience Platform. The Adobe Experience platform enables the organization to activate insights across all Adobe Experience cloud solutions. Furthermore, enterprises can obtain unique data from enterprise resource planning, customer relationship management, and other resources.
Verint systems focus on customer experience strategies to drive success. Verint customer experience management solutions, help organizations to elevate the customer experience and reduce operating costs by simplifying, automating, and modernizing customer engagement. Automation and Artificial Intelligence capabilities help organizations to optimize the cost and errors associated with manual work and enhance the customer experience management experience to be personalized and faster.
Similarly, Clarabridge aims to provide enhanced customer experience platform integrated with natural language processing, sentiment, and data categorization to measure effort, intent, and root cause analysis using rule-based and machine learning and Artificial Intelligence approaches. Clarabridge also uses text analysis to provide highly useful insights from the customer. From several Touchpoint such as calls, emails, chats, social media, or forums, Clarabridge solution connects to the number of sources and collects data about the customer feedback on a centralized platform.
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The report offers an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are macro and microeconomic factors, SWOT analysis, Porter’s five forces analysis, and key customer experience management industry trends, competitive landscape, and company profiles inclusive of recent industry developments such as mergers & acquisitions.
Value (USD Billion)
By Organization Size
May 2019 - Medallia acquired Strikedeck, an advanced platform that enables companies to efficiently drive customer success. This acquisition is aimed at further augmenting Medallias’ leadership in B2B customer experience management. The combination of these two organizations would provide clients intelligence on how to improve and focus on the flaws and enhance the ability to manage the entire lifecycle of business customers. Both organizations will integrate deep artificial intelligence, predictive analytics, and machine learning to understand risks and opportunities for customers and uncover the flaws in the overall customer journey.
March 2019 - Adobe announced the availability of Adobe Experience Platform. The Adobe Experience Platform is a real-time platform for customer experience management. This platform offers the ability to collect and process real-time data from multiple sources and converts the data into experience data models.
As per our (Fortune Business Insights) study, the customer experience management market is predicted to reach USD 23.91 Billion by 2026 with a CAGR of 18.5% (2019 -2026).
As per our study, business owners are more inclined towards customer experience management. Currently (in 2019), the customer experience management market value at USD 7.27 Billion, and it is anticipated to reach USD 23.91 Billion by 2026 at a CAGR of 18.5% during the forecast period (2019 -2026).
Globally, spending on customer experience management is increasing each year. For instance, North America generated a revenue of USD 2.62 Billion in 2018 and is expected to create a remarkable revenue share by 2026. Advances in smart technologies and analytics have led to remarkable investments of businesses in deploying customer experience management strategy.
In the customer experience management market, cloud-based customer experience management software and Touchpoint are the leading segments. The emergence of cloud technology has given an unprecedented opportunity to the developers to leverage advanced software to analyze massive data. The touchpoint segment includes telephone, email, web, social media, and others.
Some of the driving factors for the customer experience management market are growing technological advancements in cloud and integration of multichannel Touchpoint into a unified platform and increasing need to understand and analyze customer data to draw actionable business insights.
In the customer experience management market, some of the key players are Adobe, Oracle, SAP, IBM, Avaya Inc. These market players are focusing on agreements, acquisitions, and developments in the customer experience management market.
North America is expected to hold the highest market share in the customer experience management market. The region is expected to witness a remarkable growth as it houses the major key players in the customer experience management market. Well-established IT infrastructure and substantial investments of businesses in advanced technology would fuel the market growth across the region.
By touchpoint, the telephone would generate the highest revenue during the forecast period. Increasing the adoption of smartphones and social media platforms would ensure to boost the adoption of customer experience management strategies
The IT and telecommunications industry is expected to lead the customer experience management market. Research and development in customer experience management solution would contribute to the market growth.