Customer Experience Management Market to Double in Four Years
The customer experience management market is likely to grow from $7.75 billion in 2019 to $14.5 billion by 2024, at a compound annual growth rate of 13.3 percent, according to a new report from research firm MarketsandMarkets.
The major growth drivers cited in the report include an increasing need to improve customer engagement and reduce customer churn, growing deployment of cloud-based solutions, and rising demand for big data analytics.
These drivers allow CEM solution vendors to deliver a wide range of solutions and services for managing customer profiles and queries, tracking customers and their behavior in real time, retaining customers, and tapping into unexplored markets, it said
Vendors have also recently increased the availability of digital technologies, such as artificial intelligence, machine learning, cloud computing, big data and analytics, mobility, and social media. At the same time, companies are adopting more digital channels, such as web chat, SMS, social media, virtual assistants, and chatbots.
The research also projects the services segment to grow at a higher rate than the solutions segment. Of those, managed services handled by outsourcers are expected to see the highest growth.
These services are very useful for companies that do not have internal budgets or analytical skills to implement and manage customer experience solutions on their own. They are very helpful in helping companies reduce costs, increase revenue, and improve business performance.
By vertical, the travel and hospitality segment is expected to lead the market, while geographically, North America is expected to continue to account for the largest market size.
By deployment type, the cloud is expected to account for the largest market share. The growth of the cloud segment can be attributed to the ease of deployment, low cost, easy upgradeability, and accessibility, the report said.
The report also emphasizes the importance of being able to share data extracted from customer experience solutions with different departments within the organization, something that is hampered by the many corporate silos that still exist.
"As a result of consistent growth and the complexity of touchpoints in the customer feedback process, businesses gather significant amounts of data related to customer behavior and expectations," it stated. "And when the data is not synchronized with other technologies, organizations face problems.
"Data is collected from different touchpoints, and businesses must categorize it based on customer needs and expectations," it continued. "Data collected from different touchpoints, such as company websites, mobiles, social media, and email, differ from one another, making it difficult for organizations to combine them. Customer analytics is not helpful when organizational data is not synchronized."