Customer Experience Management Market Growth & Trends [2031]

Report Description

The global customer experience management market was valued at USD 7.5 billion in 2020 and is projected to expand at a CAGR of 17.6% during the forecast period, 2021 – 2028. The growth of the market is attributed to the increasing demand for personalized experience among customers.

Customer experience management (CXM) is the method of understanding customers and implementing strategies, which enable cross functional efforts as well as customer centric culture to increase advocacy, satisfaction, and loyalty. It is used to oversee, track, and organize all engagements, to help a business to focus on customers’ requirements. The method is especially designed to eliminate the gap between the expected customer experience and the real customer experience.

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Several business organizations are now understanding the significance of customer experience management as it helps the organizations to build a strong presence of their brand. It helps to improve consumer loyalty and reduce consumer churn, which in turn, is fueling the market growth in terms of revenue.

The continuous development of technologies is improving the process through which the customer reacts and interacts with the brand through multiple channels. Consumers are using multiple devices to review, understand, and buy goods. The development in digital technology has inspired the customers to demand a smooth experience while interacting with companies across multiple channels.

Organizations are largely participating in reorganizing their customer experience management strategies such as usage of advanced data analytics to analyze the customer preference and build a strong position of their brands and products among the consumers. For instance, Deloitte Touche Tohmatsu Limited provides a 360-degree CX retail intelligence, an artificial intelligence (AI)- and machine learning (ML)-based solution for the FMCG industry. It recognizes prime points that are leading to poor and unsatisfied consumer experiences, identifies consumer trends, and offers significant direction to develop operational proficiencies and excellent consumer experience for the organization.

Thus, CXM helps in providing stellar customer satisfaction and improving the sales across several industries including banking, manufacturing, retain, and media & entertainment.

Market Trends, Drivers, Restraints, and Opportunities:

• Rapid development in big data analytics to support the business design and improve the consumer experience management is projected to fuel the market growth.
• Increasing investments in the development of marketing technologies to improve customer experience management is expected to enhance the growth of market.
• Rising trend in the investment toward customer retention strategies instead of customer acquisition strategies is projected to boost the market growth.
• The resistance of customer-focused enterprises to adopt latest technology to improve customer experience can hinder the market growth during the analysis period.
• Several enterprises are heavily investing in products and marketing strategies to improve the sales and acquire new customers, which can generate numerous opportunities for the expansion of market.

Scope of the Report

The report on the global customer experience management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global Customer Experience Management Market Segment Insights:

Text analytics segment anticipated to account a large market share

Based on analytical tools, the market is segmented into web analytics & content management, text analytics, speech analytics, and EFM software. The text analytics segment is anticipated to account for a large market share owing to the rising generation of text-based data in the form of reviews, comments, and feedbacks across numerous offline survey systems and digital platforms. Several organizations are using text analytical tools for in-depth analysis and text classification of complicated customer data. To understand complicated text-based data and get valuable insights through social media product reviews and comments, text analytics tools have become a prime choice among organization.

A speech analytics software provides conversational analytics to organize and identify words as well as key phrases spoken during calls into themes. Such benefits has increased the adoption of speech analytics software, which in turn, propelling the speech analytics segment growth. Rising requirement for real time cloud-based analytical solutions is further spurring the segment growth. This segment is anticipated to expand at a CAGR of around 19% during the forecast period.

Call centers segment expected to dominate the market

On the basis of touch points, the market is divided into web services, stores/ branches, social media platforms, mobile, emails, and call centers. The call centers segment is expected to dominate the market during the forecast period owing to the growing demand for personal attention and experience among consumers. A requirement to offer top quality customer services, has increased the pressure on the contact centers. Several companies are widely using contact centers analytics tools to offer foremost customer experience.

The mobile segment is projected to account a CAGR of around 19.4% during the analysis period owing to the rising penetration smartphones, which is helping enterprises to improve their communication and mobile marketing strategies. Additionally, the mobile customer experience management supports mobile carriers to build significant consumer relationship. Growing use of email-based marketing, personalized marketing, and mass marketing has encouraged enterprises to focus on improving mobile customer experience.

On-premise segment is anticipated to dominate the market

By deployments, the market is bifurcated into on-premise and cloud. The on-premise segment is anticipated to dominate the market during the forecast period. Major companies are engaging in buying software license for the dedicated servers and computing infrastructure. In result, this has reduced the total ownership and offers a secure control and better management of the data. Meanwhile, the cloud segment is anticipated to expand at a CAGR of at around 20% in the coming years. The cloud technology enables low-price engagement of customer experience management system in the existing business atmosphere.

Retail segment is expected to dominate the market

Based on end-users, the market is classified as BFSI, government, energy & utilities, healthcare, IT & telecom, manufacturing, and retail. The retail segment is expected to dominate the market during the forecast period owing to the change in omnichannel model to offer better customer support and services up to end-to-end touch point. Additionally, the increasing competition between the product owing to pricing and lack of product differentiation in the retail sector are urging the retailers to improve their management strategies in account to acquire a competitive edge in the market. On the other hand, The BFSI segment is anticipated to account for a high CAGR due to the growing usage of smartphone devices among the customers to process banking transactions.

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North America is anticipated to dominate the market

In terms of regions the global customer experience management market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period owing to the rapid penetration in several industry verticals such as banking, telecom, and retail. Furthermore, increasing budgets of organizations on digital in the Canada and the US. are also contributing to the regional market growth.

The market in Asia Pacific is projected to witness a high CAGR due to the growing adoption of IoT-based devices, sensors, and advanced analytics tools to provide personalized services to B2C and B2B consumers. Additionally, the growing importance of customer experience management and customer satisfaction, increasing trend of social media, and large number of call centers are some of the factors adding contribution to the regional market growth.