Customer Experience Management Market Size, Market Research and Industry Forecast Report, 2027 (Includes Business Impact of COVID-19)

  • TBI306631
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel

Industry Insights, Market Size, CAGR, High-Level Analysis: Customer Experience Management Market

The global customer experience management market size was valued at USD 6.5 billion in 2019 and is expected to register a CAGR of 17.7% from 2020 to 2027. Surging demand for personalized experience by customers across different industries is one of the key trends escalating market growth. Customer experience management represents evolving sets of practices and technologies to make a continuous transformation within organizations in order to meet and exceed consumer expectations. Business organizations have understood the importance of customer experience management as it helps organizations to strengthen their brand presence, improve consumer loyalty, reduce consumer churn, and in turn boost business revenue. Advancement in technologies is revolutionizing the way customer reacts and interacts with the brands across multiple channels. Currently, consumers use multiple devices to understand, review, and finalize products. This disruption in digital technology encouraged consumers to demand seamless experience while interacting with companies over multiple channels or touch points. Owing to the rise in customer expectations, organizations are increasingly involved in restructuring their customer experience management strategies to effectively position and reposition their brands and products, keeping consumers as their strategic focus. Additionally, advancements in big data analytics to help enterprise design, manage, and improve their end-to-end consumer experience management are expected to drive the market over the forecast period. For instance, Deloitte Touche Tohmatsu Limited offers 360 degree CX Retail Intelligence, an AI and ML based solution for the FMCG and retail industry. It identifies key points of poor consumer experiences, understands customer trends, and provides measurable direction to improve operational efficiencies, ROI, and consumer experiences of an organization. Furthermore, growing investments towards implementation of advanced marketing technologies to help consumers undertake cognitive decisions with an effort to develop enhanced customer experience management, is also contributing to market growth. Increasing trend in the investment towards customer retention strategies than that of customer acquisition strategies is further enhancing the growth of the market for customer experience management. According to Harvard Business Review, the cost to retain a customer is 25% cheaper as compared to the cost of acquiring a new customer. Additionally, other research studies also suggest that repeat customers tend to buy more from a company with additional prices and help in driving higher business growth. Thus, improving customer experience management is one of the key factors for ensuring customer satisfaction and retention, and subsequently improving the sales for any business across industries such as retail, banking, manufacturing, and entertainment. As a result, enterprises across the globe are investing in products and marketing strategies focused on effective engagement with their customers and to improve sales from existing customers through management.

Analytical Tools Insights

Demand for text analytics is projected to remain high throughout the forecast period. The increasing generation of text-based data in the form of feedback, comments, and reviews across several digital platforms and offline survey systems is one of the key factors contributing to segment growth. Text analytics tools help enterprises to understand unstructured text-based data and gain valuable insights through social media comments and product reviews. They also enable enterprises to provide real-time responses and reduce manual efforts. Owing to these benefits, a wide number of organizations are using text analytical tools for text classification and in depth analysis of unstructured customer data. The adoption rate of speech analytics software is gaining traction in the contact center industry as it provides conversational analytics to organize and identify words and key phrases spoken during calls into themes. Moreover, the tools also prove beneficial in improving agents performance, monitor compliance, and improve first call resolution in the contact centers. The demand for the software is being largely driven by rising number of contact centers and increasing need for real-time cloud-based analytical solutions to improve customer experience management. The segment is poised to witness a CAGR of 19.4% during the forecast period. Touch Point

Type Insights of Customer Experience Management Market

The mobile touch point type segment is anticipated to post a CAGR of 19.5% over the forecast period. The growth of the segment can be attributed to the increasing use of smartphones, which is encouraging enterprises to develop mobile marketing and communication strategies. Moreover, mobile customer experience management enables mobile carriers to engage in building sustainable consumer relationships through customer-initiated requests. It allows enterprises to acquire existing customers and build brand awareness using mass marketing, email-based marketing, and personalized marketing. The call center segment is likely to represent the leading share in the market for customer experience management until 2027. In recent times, consumer demand for quick response and personalized attention for their problems has registered a sharp rise. To meet this demand, there is high pressure on contact center to provide top quality services. To provide outstanding and notable customer experience management, companies are increasingly using power of contact center analytics.

Deployment Insights of Customer Experience Management Market

Based on deployment, the customer experience management market has been bifurcated into cloud and on-premises. The cloud-based segment is estimated to attain a significant size in terms of revenue by 2027, registering a phenomenal CAGR of 20.0% during the forecast period. Cloud technology offers the advantage of low cost integration of customer experience management system within the current business environment. Cloud-based customer experience management is widely acknowledged for its scalability and flexibility. On the other hand, the on-premise segment is expected to dominate the market customer experience management throughout the forecast period. Large enterprises have dedicated servers and computing infrastructures that enable them to purchase only a software license or software copy to operate the platform. This, in turn, helps them reduce the implementation, total ownership, and other related costs. Furthermore, on-premise solutions provide enterprises with better management and secured control over their data.

End-user Insights of Customer Experience Management Market

On the basis of end user, the market has been segmented into BFSI, retail, healthcare, IT and telecom, manufacturing, government, energy, and utilities, and others. The BFSI segment is poised to exhibit the highest CAGR during the forecast period. The increasing usage of smartphones to conduct banking transactions has enabled more personalized engagement, facilitating seamless banking through the mobile channel for consumers. This new trend has increased both potential and complexity of creating a positive customer experience through management. The retail segment dominated the market in 2019 with a market share of more than 24%. The increasing shift to an omnichannel model to provide apt customer support and services at every touch point is the key factor contributing to the segment growth. Furthermore, the increasing product pricing competition and lack of product differentiation in the retail sector have encouraged retailers to develop effective management strategies to gain a competitive edge in the market. Additionally, increase in spending on marketing to provide customers with personalized content and services is further enabling the retailers to adopt customer experience management solutions.

Regional Insights of Customer Experience Management Market

The market in North America was valued at USD 2.9 billion in 2019. The region is likely to dominate the market throughout the forecast period. The growth of the regional market can be attributed to the continued digital transformation across various industry verticals, including retail, telecom, and banking. Furthermore, increasing investments and allocating budgets for marketing and digital channels among the enterprises in U.S. and Canada is other factor contributing to market growth. The market in Asia Pacific is anticipated to witness at the highest CAGR over the forecast period. The increasing adoption of IoT-based devices and sensors as well as AI-driven predictive and advanced analytics tools to offer personalized services to both B2B and B2C consumers is one of the major factors contributing to the growth of the regional market. Furthermore, the wide presence of call centers, burgeoning trend of social media, and rising emphasis on customer experience management and customer satisfaction are contributing to the growth of the market in Asia Pacific. Additionally, B2B consumers growing preference for quality products that add value to their business, growing expectations for services based on outcome and customer journey, and demand for tangible results to drive the growth of the business are some of the factors driving the adoption of customer experience management solutions in Asia Pacific

Market Share Insights of Customer Experience Management Market

The global market is highly competitive in nature. Some of the prominent companies operating in the market are IBM; Oracle; Adobe; SAP SE; and Avaya, Inc. Customer experience management vendors are using strategies such as mergers, acquisitions, and new product development and launches to strengthen their position in the market. For instance, In January 2019, SAP SE acquired Qualtrics, a U.S. based customer experience management software provider. Through the acquisition, the former company envisages to enhance its XM category by combining Qualtrics experience data with its softwares operational data. With the newly formed XM category, both the companies aimed to provide enterprises effective customer, brand, product, and employee experience.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Customer Experience Management Market Research Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global customer experience management market report on the basis of analytical tools, touch point type, deployment, end user, and region:

Analytical Tools Outlook (Revenue, USD Million, 2019 - 2030)

  • EFM software
  • Speech analytics
  • Text analytics
  • Web analytics & content management
  • Other analytics

Touch Point Type Outlook (Revenue, USD Million, 2019 - 2030)

  • Stores/ branches
  • Call Centers
  • Social Media Platform
  • Email
  • Mobile
  • Web Services
  • Others

Deployment Outlook (Revenue, USD Million, 2019 - 2030)

  • Cloud
  • On-Premises

End-user Outlook (Revenue, USD Million, 2019 - 2030)

  • BFSI
  • Retail
  • Healthcare
  • IT & Telecom
  • Manufacturing
  • Government, Energy & utilities
  • Others

Table of Content
Chapter 1. Methodology and Scope                    1.1. Market Segmentation and Scope                    1.2. Market Definition                    1.3. Information Procurement                        1.3.1. Purchased database                        1.3.2. GVR’s internal database                        1.3.3. Secondary sources & third-party perspectives                        1.3.4. Primary research                    1.4. Information Analysis                    1.5. Market Formulation & Data Visualization                    1.6. Data Validation & PublishingChapter 2. Executive
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