Customer Engagement Solutions Market to Grow by $16.31 Billion Through 2028

Research firm Technavio has projected the global customer engagement solutions market to grow by $16.31 billion through 2028, expanding at a compound annual growth rate of 13.1 percent.

The customer engagement solutions market is currently experiencing significant growth, with a focus on artificial intelligence and chatbots for enhancing customer experiences, it said.

Technavio defines customer engagement solutions as a range of self-service applications and platforms, including social media and web chat, to streamline grievances handling and enhance consumer satisfaction. These solutions leverage artificial intelligence, analytics, and automation to manage call volume, improve workforce efficiency, deliver personalized experiences, improve customer satisfaction, and drive business growth, it said, noting that key features include chatbots, social media management, email marketing, and voice assistants.

Companies in various sectors, from retail to healthcare, are increasingly adopting these solutions to streamline customer interactions, reduce response times, and gain valuable insights, the firm said.

Inventory management, customer service, and marketing are key areas where businesses are investing in these technologies, according to Technavio, which noted that leading solutions provide personalized experiences, such as product recommendations and proactive customer support. Additionally, self-service platforms and social media integration are becoming essential components of effective customer engagement strategies, it said.

Companies are also exploring the use of voice assistants and search functionality to streamline interactions and improve overall customer satisfaction, according to Technavio.

The firm also credits increasing adoption of e-commerce business models, growing demand for social interaction, and the availability of cloud-based solutions as key market growth drivers.

Consumer satisfaction is a key priority, driving the continued growth and innovation of this market. Products and mobile devices play a crucial role in facilitating seamless engagement between businesses and their customers, it also said.

At the same time, though, Technavio said a number of significant challenges face the industry: In today's business landscape, effective customer engagement is crucial for success. However, implementing customer engagement solutions comes with challenges. Digitizing customer interactions can be complex, especially when dealing with various platforms and technologies. Payments can also be a challenge, as converting sales into transactions requires seamless integration. Customers expect personalized experiences, which can be difficult to deliver at scale. Additionally, data collection and analysis are essential for improving engagement, but ensuring data security and privacy is a significant concern.

And while cloud-based solutions are on the rise, particularly as they offer numerous benefits, including low upfront costs, flexibility, and ease of use, these solutions also come with security and privacy concerns, Technavio said.

Technavio identified Accenture, Avaya, Calabrio, Crmnext, eGain, Enghouse, Freshworks, Genesys, IFS World Operations , IBM., Microsoft, NICE, Open Text, Oracle, Pegasystems, Pitney Bowes, Salesforce, SAP, ServiceNow, and Verint as the key vendors of customer engagement technologies.