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Customer Experience Management Market Size, Share & COVID-19 Impact Analysis, By Component (Solution, Services), By Deployment (Cloud, On-Premise), By Organization Size (SMEs, Large Enterprises), By Touchpoint (Call Center, Website, Mobile Applications, Email, Social Media, and Others), By End-User (BFSI, Rental and Consumer Goods, IT and Telecom, Healthcare, Automotive, Media and Entertainment, Government), and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI101661

 

KEY MARKET INSIGHTS

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The global customer experience management market size was USD 8.29 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with CEM witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market will exhibit a stellar growth of 11.7% in 2020. The market is projected to grow from USD 9.26 billion in 2020 to USD 21.86 billion in 2027 at a CAGR of 13.0% in the 2020 to 2027 period.


Customer experience management (CEM or CXM) is the practice of designing strategies used by enterprises to oversee, organize, and track customer interactions to meet their expectations and augment customer loyalty, advocacy, and satisfaction. Enterprises have recognized the significance of customer experience solutions as they enable enterprises to improve customer loyalty, reduce customer churn rate, and strengthen their brand presence, which fuels business revenues. Enterprises are focusing on increasing funding to accelerate product demand and growth in the market.



  • For instance, in September 2018, Cloud Cherry, a CEM platform and subsidiary of Cisco Systems, raised around USD 9 million in Series A funding. The aim of the company is to improve customer experiences among enterprises.


Such activities are likely to propel the customer experience management market growth during the forecast period.


COVID-19 Impact


COVID-19 Pandemic to Boost the Demand for Innovative CXM Solutions among Enterprises


The coronavirus pandemic has brought pervasive uncertainty, sustained attention to health, and extended lockdown. Thus, consumer behavior has fundamentally changed in this period across the globe. As various industries are grappling with this situation, enterprises are intensely focusing on customer loyalty & retention, and customer engagement. Businesses have found a renewed need to identify customers' weak points and accordingly produce innovative ways to cater to their changing expectations. The Covid-19 situation has forced enterprises to assess their growing customer preferences and business continuity plans. This has created a great opportunity for enterprises to offer a good customer experience (CX) and develop a flexible and agile staffing model to boost sustained success.


However, lockdowns have put massive workloads and pressures on the supply chain process, causing product shortages worldwide. Thus, companies are concentrating on developing innovative CXM solutions to cater to customer requirements.



  • For instance, in April 2020, iperceptions launched its customer feedback program, iperceptions adapt, for various businesses. The aim is to help businesses understand the disruptions caused by the COVID-19 crisis on their business and accelerate their digital transformation.


In addition, various enterprises are focused on improving funding to strengthen their market position amid COVID-19.



  • In September 2020, Sprinklr, an American software company raised around USD 200 million on USD 2.7 billion valuations from Hellman & Friedman LLC during the COVID-19 period. Sprinklr has also raised an extra USD 150 million in convertible securities from the US-based investment firm, Sixth Street. This investment aims to strengthen the position of Sprinklr in the customer experience management market.


These initiatives are projected to fuel the demand for CXM solutions in the coming years.


LATEST TRENDS


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Increasing Demand for AI-powered Customer Experience Solutions to Propel Market Growth


Artificial intelligence (AI) is rapidly transforming the way that enterprises interact with their end-users. In recent years, market-leading organizations have been concentrating on investing in AI-based technologies to augment their customer experience efforts. Enterprises are also investing in AI-based customer services to improve efficiency by decreasing complaint resolution times & call processing. End-use industries, such as retail, BFSI, and IT & telecom, among others, are adopting AI-enhanced CXM solutions to drive customization, bring a deeper understanding of customer preferences, and create personalized journeys.


Machine learning (ML) and AI's combination for analyzing and gathering historical, behavioral, and social data enable various brands to gain a more accurate understanding of their consumers. Unlike traditional analytics solutions, AI is continuously improving and learning from its analyzed data and augments consumer behavior. This allows brands to offer relevant content, increase sales opportunities, and enhance the customer journey. Various organizations are focused on developing new products to meet customer needs and to improve their product portfolios.



  • In September 2020, for example, Qualtrics, an American experience management company, launched its ML and AL engine, Delighted AI, built directly into the Delighted Company’s customer experience platform. The aim is to automate every step of the customer's open-ended feedback process in response to COVID-19.


With advancements in technology, enterprises are actively involved in implementing AI-based and autonomous platforms to provide reliable, fast, efficient, and an enhanced customer experience in real-time. AI-enabled CEM platforms help enterprises deliver high-impact customer experiences effectively and rapidly, which drives the market growth.


The successful application of AI in customer experience requires the following fundamental capabilities:



  • Real-time Insights Delivery

  • Data Unification

  • Business Context


DRIVING FACTORS


Rising Adoption of CXM Platforms to Decrease Customer Churn Rates to Aid Market Growth


Customer churn rate is the annual percentage rate where consumers stop buying a solution or subscribing to a service. The lack of proper customer service results in an increased customer churn rate. Organizations can calculate the customer churn rate for a specific period with customer experience management solutions. CX solution providers are focused on offering a wide range of customer experience solutions and services that enable customer profile management and their requirements. They also provide real-time tracking and monitoring of customers and their changing buying patterns. CEM services help in tapping unexplored markets, improving customer satisfaction, increasing loyalty, and retaining customers. Enterprises need to understand customer needs and work on fulfilling their requirements to avoid the churn rate. Therefore, enterprises are focusing on various strategies to improve customer experience.



  • For instance, in May 2019, Infiniti Research completed its latest customer experience management strategy for a CPG company to enhance customer retention and experience. The aim is to enhance CX and reduce the customer churn rate for the said company.


RESTRAINING FACTORS


Information Security and Privacy Issues to Impede Market Growth


In today’s competitive marketplace, companies need secure and real-time information to deliver an exceptional customer experience. Enterprises are collecting customer experience data via various touchpoints and measuring it virtually. Such information, used in communications and support, may include various data types, such as big data, small data collected from consumers, and public information. These data can include individual permissions & preferences, updated contact information on communication platforms, solutions, and services. Hence, end-users are deeply concerned about the privacy and security of their valuable information. According to a White Paper published by Cognizant, around 91% of consumers are more concerned about the privacy of their data online. Thus, customer experience solution providers need to ensure high-level information privacy and security to maintain the consumers’ trust.


Cyber-attacks have increased considerably and have become highly sophisticated. Sensitive information is often stored on-premise databases and cloud, allowing cybercriminals to subvert vital company data and use them to enter unlawful dealings. For example, in recent times, cybercriminals have at their disposal various tools to gather crucial information. In such situations, marketing and IT teams need to work synchronously by offering insights related to data gathering and processing. Such factors are expected to obstruct the growth of this market.


SEGMENTATION


By Component Analysis


Increasing Adoption of CEM Solutions and Services among Organizations to Augment the Market


Based on the market by component solutions, this market is segmented into solutions and services. Among these, the solutions segment is likely to hold the largest market share during the forecasted period. The segment’s growth is mainly driven by an increasing number of contact centers and a growing need for real-time CEM solutions to improve customer experience. Customer experience management solutions allow enterprises to manage interactions with customers. The adoption rate of CXM software is gaining traction in the contact center sector as it offers conversational analytics to identify and organize key phrases and words spoken during calls.


The services segment is expected to showcase the highest CAGR during the forecast/estimated period. Along with customer experience solutions, enterprises are also focusing on offering professional and managed services to end-users. The growing demand for customer experience services, such as consulting services, e-services, etc., among various industries is expected to fuel the growth of the services segment.


By Deployment Analysis


Rising Demand for Advanced CEM Deployment by Enterprises to Support Growth


Based on deployment, the market is categorized into cloud and on-premise. The cloud segment is anticipated to dominate the market and exhibit the highest CAGR during the estimated period. The increasing adoption of cloud-based CEM platforms across various verticals, such as BFSI, government, healthcare, retail, and others, is likely to drive the demand for cloud-based CXM deployment. Cloud-based CXM software allows enterprises to manage and deliver enhanced customer services to their end-users.


The on-premise segment is expected to show radical growth due to the tightening of data security standards and regulations, such as GDPR, upgraded requirements, and high initial setup effort. On-premise solutions provide enterprises secured control over their data with better management.


By Organization Size Analysis


Increasing Adoption of CX Solutions among Small and Medium Enterprises to Aid Market Growth


Large enterprises are expected to hold a major share in the organization size segment and dominate the market during the forecast period. The development of advanced customer services, large workforces, and significant investments in IT infrastructures and advanced technologies are expected to drive the segment’s growth.


SMEs, on the other hand, are likely to showcase moderate growth during the estimated period. SMEs have a smaller customer database compared to large enterprises. Thus, SMEs, such as Eero, Kin, EpiAnalytics, Smokeball, and others, are focused on adopting and implementing cost-effective CXM solutions integrated with innovative technologies, such as AI, cloud, ML, etc., in their operations. For instance, Smokeball, a software start-up, offers AI and cloud-based CEM solutions to help small law firms improve their overall customer service experience.


By Touchpoint Analysis


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Rising Uptake of Mobile-based CEM Applications to Accelerate Market Growth


The market is classified into call center, website, mobile applications, email, social media, and others, based on touchpoint.


The mobile application segment is expected to post the highest CAGR over the projected period. The segment’s growth is attributable to the rising uptake of advanced connected devices, such as smartphones, laptops, iPads, etc., which is encouraging organizations to develop and launch mobile communication and marketing strategies. In addition, mobile CXM applications enable mobile carriers to develop sustainable customer relationships through service portals and customer-initiated requests. This allows organizations to retain existing customers and build brand awareness using email-based marketing, personalized marketing, and mass marketing.


The call center segment is expected to hold the largest market share in the foreseeable future. Rising customer demand for personalized attention and quick response to their problems has created a need for better customer experience management services. Thus, there is high pressure on call centers to deliver enhanced CEM services. To provide notable and outstanding CXM, enterprises are progressively using the power of advanced call center analytics.


The rise in online commerce businesses and social media platforms across the globe are the other factors responsible for the increasing traction of the website, social media, email, and others segments.


By End-User Analysis


Booming Popularity of CX Solutions across the Rental and Consumer Goods Industries to Fuel Market Growth


By end-user, the market is segmented into BFSI, rental and consumer goods, IT and telecom, healthcare, automotive, media and entertainment, government, and others.


The healthcare industry is poised to exhibit the highest growth rate during the forecasted period. The need to augment real-time patient experience is the key factor aiding the adoption of customer experience management solutions in the healthcare industry.


The rental and consumer goods industry is likely to hold a significant position in the market. The CXM solutions' adoption anticipates rental and consumer goods demand with optimized supply chains and engaging experiences that boost customer loyalty.


However, other industries, such as BFSI, government, IT and telecom, automotive, media, and entertainment, and others, would witness moderate growth. The rising adoption of customer experience solutions to offer efficient and reliable real-time customer service is expected to drive the growth of the market across these end-use industries.


REGIONAL INSIGHTS


North America Customer Experience Management Market Size, 2019 (USD Billion)

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The global market is divided into five regions, namely, North America, Europe, Asia Pacific, Middle East & Africa and Latin America.


 North America is likely to dominate the customer experience management market share during the forecast period. The regional market's growth is attributed to the early adoption of advanced technologies and continued digital transformation by various end-use industries, including retail, telecom, and banking. The rising investments and allocation of budgets for digital channels and marketing among organizations in the U.S. and Canada are the other key factors contributing to market growth. The presence of key market players, such as Cisco Systems, Oracle Corporation, IBM Corporation, Adobe Systems, Alida, and others, is expected to propel product demand in this region. These players are focusing on offering innovative customer experience management solutions to improve user experience.



  • For example, in October 2020, Alida, a Canada-based customer experience solution provider, launched its new CXM platform, Alida CXM. It has been designed to help marketers gather consumer insights to improve global engagement, and to achieve better customer feedback on their marketing efforts.


The Asia Pacific region is anticipated to be the fastest-growing region during the projected period. The large-scale implementation of customer experience solutions by various enterprises is likely to accelerate product demand in this region. The growing adoption of the internet of things (IoT)-based devices, AI-enabled predictive analytics tools, and sensors to deliver personalized services to end-users is expected to contribute to the regional market growth. Companies are focusing on product development and launching strategies to enhance their product portfolios.



  • In September 2018, for instance, Sitel Group, a US-based customer service company, launched business process outsourcing (BPO) operations via Sitel's subsidiary in China. The aim is to deliver customer experience through both WeChat and voice to support clients in the Asian market.


Europe is expected to display significant growth in the coming future. The burgeoning trend of digital & social media, the growing emphasis on CXM & consumer satisfaction, and the vast presence of call centers are contributing to the growth of the market in Europe.


Latin America and the Middle East & Africa are expected to showcase a gradual CAGR during the estimated period. The growth is attributable to the growing adherence of companies to data privacy & security and theft regulations. Rising investments towards the deployment of advanced marketing technologies to develop enhanced CXM is also contributing to the growth of the market.


KEY INDUSTRY PLAYERS


Key Players to Develop Innovative CEM Solutions to Cater to the Rising Consumer Demands


Prominent players, such as IBM Corporation, Oracle Corporation, Adobe Inc., SAP SE, Avaya, Inc., and others, are focused on developing and offering innovative CEM solutions to the end-users. These players are implementing advanced technologies, such as ML, AI, the cloud, and others, to cater to various industrial applications. The global market is highly competitive. CX vendors are adopting various strategies, including new product launches & development, mergers, and acquisitions, to strengthen their market position.


January 2019 – SAP SE acquired Qualtrics International Inc. (Qualtrics) for USD 8 billion. Through this acquisition, SAP SE and Qualtrics can now accelerate the new XM category, aimed at providing organizations an effective brand, product, customer, and employee experience.


LIST OF KEY COMPANIES PROFILED:



  • Adobe Inc. (California, United States)

  • Oracle Corporation (California, United States)

  • SAP SE (Walldorf, Germany)

  • IBM Corporation (New York, United States)

  • Avaya Inc. (North Carolina, United States)

  • Verint Systems (New York, United States)

  • Tech Mahindra (Maharashtra, India)

  • Open Text Corporation (Waterloo, Canada)

  • Zendesk Inc. (California, United States)

  • Sitecore (California, United States)

  • Clarabridge (Virginia, United States)

  • Medallia, Inc. (California, United States)

  • MaritzCX Research LLC (Utah, United States)

  • Nokia Corporation (Espoo, Finland)

  • Teradata Corporation (California, United States)

  • Sprinklr (New York, United States)

  • SAS Institute (North Carolina, United States)

  • InMoment (Utah, United States)

  • NGDATA (Ghent, Belgium)

  • Amperity (Washington, United States)

  • Mixpanel (California, United States)

  • Segment.io, Inc. (California, United States)

  • ZephyrTel, Inc. (Texas, United States)

  • MindTouch, Inc. (California, United States)

  • Pointillist (Massachusetts, United States)

  • Genesys Telecommunications Laboratories, Inc. (California, United States)


KEY INDUSTRY DEVELOPMENTS:



  • December 2020 – Genesys launched its new business unit, Genesys Digital, to help various enterprises address the recent technology trends and consumers' requirements in the digital landscape.

  • August 2020 – Pointillist launched its Orchestration and Customer Journey Analytics platform to help enterprises provide better customer experiences. The company’s AI-powered software combines with Genesys’ contact center and customer experience solutions. This integration can enable companies to reduce cost-to-serve and enhance customer experience.


REPORT COVERAGE


An Infographic Representation of Customer Experience Management (CEM) Market

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The customer experience management market report offers qualitative and quantitative insights on the industry and a detailed analysis of the size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative study of market dynamics, emerging trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of CEM solutions, recent industry developments, such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.


Report Scope and Segmentation


























































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2018



Unit



  Value (USD billion)



Segmentation



  Component; Deployment; Organization Size; Touchpoint; End-     User; and Geography



By Component




  • Solution

  • Services


    • Professional Services

    • Managed Services




By Deployment




  • On-premise

  • Cloud



By Organization Size




  • SMEs

  • Large Enterprises



By Touchpoint




  • Call Center

  • Website

  • Mobile Applications

  • Email

  • Social Media

  • Others (Virtual Assistants, Loyalty Programs, etc.)



By End-User




  • BFSI

  • Rental and Consumer Goods

  • IT and Telecom

  • Healthcare

  • Automotive

  • Media and Entertainment

  • Government

  • Others (Oil and Gas, Education, etc.)



By Region




  • North America (By Component; Deployment; Organization Size; Touchpoint; End-user; and Country)


    • The United States

    • Canada




  • Europe (By Component; Deployment; Organization Size; Touchpoint; End-user; and Country)


    • The United Kingdom

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe




  • Asia Pacific (By Component; Deployment; Organization Size; Touchpoint; End-user; and Country)


    • China

    • Japan

    • India

    • Southeast Asia

    • Rest of Asia Pacific




  • The Middle East & Africa (By Component; Deployment; Organization Size; Touchpoint; End-user; and Country)


    • GCC

    • South Africa

    • Rest of the Middle East & Africa




  • Latin America (By Component; Deployment; Organization Size; Touchpoint; End-user; and Country)


    • Brazil

    • Mexico

    • Rest of Latin America




Frequently Asked Questions

Fortune Business Insights says that the market value stood at USD 8.29 billion in 2019.

By 2027, the market size is expected to reach USD 21.86 billion.

The market is expected to grow at a CAGR of 13.0% in the forecast period (2020-2027).

Within the component, the solutions segment is expected to lead the market during the forecast period.

The rising adoption of CXM platforms to decrease customer churn rates is one of the key drivers for market growth.

Adobe Inc., Oracle Corporation, SAP SE, IBM Corporation, and Open Text Corporation are the top companies in the market.

The rental and consumer goods segment holds the major market share.

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Customer Experience Management (CEM) Market Size, Share and Global Industry Trend Forecast till 2026
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