Customer Experience Management Market Overview
Customer experience management market size is forecast to reach $16 billion by 2025,growing at CAGR 11 % during 2020-2025 owing to the increasing emphasis on customer retention due to lack of proper communication and customer relationship. The companies especially falling under for red ocean category, are prominently increasing their focus on improving customer experience strategy and bridge the gap created due to deficiency in customer engagement. Additionally, advanced techniques such as machine learning and analytics get a better understanding of their customer's buying pattern and behavior to pitch better deals along withtargeting the proper customer pool which can actuallyconvert marketing qualified leads to sales qualified leads. This is set to bolster the adoption of CEM technology during the forecast period 2020-2025 thereby driving the market
Key Takeaways- Customer Experience Management Market Industry Analysis
• Customer experience management services vertical to witness the highest growth rate owing to the adoption of these services by SMEs during the forecast period.
• North America to dominate the global customer experience management market owing to the wide scale adoption by large enterprises in 2019.
• Implementation of Data Analytics in customer experience management to avail new growth potential
Offering Type - Segment Analysis
By offering type, the global customer experience management market has been segmented by solutions and services. The customer experience management services market is estimated to witness the highest growth rate during 2020-2025 owing to the shift to these services from solutions to cut down operational expenses and growing preference among the SMEs. The cloud deployment models for customer experience management solutions marketis estimated to witness significant growth by the large enterprises owing to the scalability, flexibility, cost effectiveness, ease of integration with other Customer Relationship Management(CRM) solutions and various others as compared to on premise solutions.
Geography- Segment Analysis
North Americaheld the major share of the global customer experience management market acquiring around 38% in 2018. The is mainly due to large scale adoption of customer experience management solutions and services by the large enterprises as well as the SMEs operating in the B2C and B2B space to foster their customer relationships. The APAC customer experience market demandis estimatedto grow at the highest rate during the forecast period 2020-2025. This is due to the increasing adoption of advancedartificial intelligence customer service technologiesincluding speech analytics, text analytics, web analytics and others by the SMEs especially operating in consumer good and retail, automotive and transportation, IT and telecommunication sector and others to reduce wait time by automating customer engagement and in certain cases collect customer feedback as well. The APAC customer experience market for consumer goods and retail sector is estimated to witness a growth of CAGR 13% during 2020-2025.
Drivers –Customer Experience Management Market Trends
• Adoption of Advanced Data Analytics
The coalescence of data analytics customer experience workspace avails new grounds for understanding customer's behavior, buying pattern, brand preference, buying cycle, geographic preferences and various others to understand the various customer pools which can be immediately targeted. Apart from that it also assists in understanding the customer defection and the gaps challenging in building up a strong customer relationship. This not only helps the companies to understand their internal challenges in real time but also the focus on new opportunities. Owing to these benefits of advanced data analytics, the customer experience management market is estimated to witness significant growth during 2020-2025
Challenges – Customer Experience Management Market
• Lack of Skilled Workforce
The availability of skill workforce for handling analytics based customer experience management has been analyzed to be low and pay scale of the same is also high owing to which only large enterprises houses dedicated teams and procure solutions for effectively focusing onto customer relationship. However, in case of SMEs maintaining an in-house dedicated teams for customer experience puts a strain to reducing operational expenses. This is set to pose a significant challenge to the customer experience management market growth during 2020-2025
Some of the key players analyzed for the customer experience management marketshare analysis includes IBM Corp, Oracle Corp, Verint Systems, Adobe Systems, Avaya Inc., SAS Institute, InMoment, Salesforce.com, Inc, SAP, Nokia, Service Management Group and so on. The customer experience management market is estimated to be moderately fragmented with the top 10 players' accounted around 30 to 40% share of the market in 2018. These players are opting for various strategies such as acquisition, product launch,and collaboration and among others to maintain their market position and gain a stronghold through innovative offerings. However, the threat of new entrants in the market is significantly high due to the lack of regulatory barriers, IP rights and dynamic affinity for innovative solutions and services.
- In October 2019, Subaru selected MaritzCX Customer Experience Platform for transition from its former measurement tools to an action-oriented program for collaborative working of the company's dealers, field support, corporate teams and others to enhance its customer experience
- In October 2019, Marston a U.K. based company operating in independent brewing and pub retailing business chose Service Management Group (SMG) for collecting, analyzing and share guest feedback across the country to better understand the guest experience and take actionable steps for improving its services
- In November, 2019, Tech Mahindra Ltd. acquired Born Group Pte. Ltd. a U.S. based media outsourcing company to strengthen its commerce and customer experience capabilities
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