June 22, 2024
customer experience management market
Ict

Improving customer satisfaction to boost growth of Customer Experience Management market

The global Customer Experience Management Market is estimated to be valued at US$ 9.6 Bn in 2022 and is expected to exhibit a CAGR of 13.46% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Customer experience management aims to optimize customer interactions and touchpoints across various channels such as email, phone, SMS, web etc. It helps organizations better understand customer needs, expectations and behaviors at each stage of engagement. Customer experience management solutions combine data from various sources including CRM systems, web analytics, call center interactions etc. to gain customer insights. This data is then analyzed using advanced analytics techniques to identify areas of improvement. Organizations can then take targeted actions to enhance customer satisfaction levels and loyalty.

The growing need among organizations to retain existing customers and attract new customers is a key factor driving growth of the customer experience management market. According to studies, the cost of acquiring a new customer is 5 times more than the cost of retaining an existing customer. Therefore, improving customer experience has become a priority to boost customer retention and lifetime value. Moreover, changing customer expectations and proliferation of digital channels has necessitated a more personalized omnichannel customer experience. This is propelling demand for customer experience management solutions.

Market key trends:

Integration of advanced technologies – There is a growing trend of integrating technologies such as AI, machine learning and predictive analytics within customer experience management solutions. This is allowing organizations to gain enhanced customer insights. For example, AI/ML can identify patterns in customer data to predict purchasing behavior, support needs, churn risks etc. Personalized recommendations can then be provided at each customer touchpoint.

Focus on omnichannel experience – Today’s customers seamlessly switch between digital and in-person channels based on convenience. Therefore, there is rising focus among organizations on delivering a consistent, unified experience across all channels. Omnichannel customer experience management solutions allow organizations to have a unified view of customers and provide a personalized experience regardless of the channel used.

Data driven decision making – Customer expectations are rapidly evolving. Organizations are incorporating analytics tools within customer experience solutions to gain real-time, data driven insights into factors influencing customer satisfaction levels. This data is helping companies make informed, strategic decisions that can optimize the customer journey at each touchpoint.
Porter’s Analysis
Threat of new entrants: The customer experience management market requires high initial capital investment and established distribution channels. Therefore, the threat of new entrants is low.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various customer experience management software providers in the market. However, switching costs are relatively high which limits their bargaining power.

Bargaining power of suppliers: A few large players dominate the supply market. This gives them moderate bargaining power over customers.

Threat of new substitutes: There are limited substitute products and services for customer experience management. Existing alternatives cannot fully replace customer experience management solutions.

Competitive rivalry: The customer experience management market is highly competitive with the presence of various international and regional vendors. Price competition is high.

Key Takeaways
The global Customer Experience Management Market Share size is expected to reach US$ 26.6 billion by 2030, exhibiting a CAGR of 13.46% over the forecast period. Rapid growth in digital transformation initiatives and increasing need to understand customer lifecycle are fueling demand for customer experience management solutions.

North America dominated the market in 2021 with over 35% revenue share due to strong presence of CX solution providers in the region. Asia Pacific is expected to witness highest growth during the forecast period supported by increasing adoption of cloud technologies across various verticals including retail, IT & telecom and BFSI in countries such as China, India.

Key players operating in the customer experience management market are MaritzCX Research LLC (Inmoment LLC), Adobe Inc., Medallia Inc., Oracle Corporation, Clarabridge, SAP SE, Sitecore, IBM Corporation, Zendesk, Avaya Inc., Open Text Corporation, Verint Systems Inc., and Tech Mahindra. Major players are focusing on partnerships, mergers and acquisitions to expand their offerings and geographic footprint.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it