North America Customer Experience Management Market

North America Customer Experience Management Market Outlook 2031

The North America customer experience management market size was valued at USD 8.55 billion in 2022 and is expected to reach USD 36.22 billion by 2031, expanding at a CAGR of 17.4 during the forecast period, 2023 – 2031. The growth of the market is attributed to increasing demand for personalized experience by customers across different industries.

Customer experience management (CEM) is the process of understanding customers and deploying plans that allow customer-centric culture. It involves cross functional efforts to improve loyalty, advocacy, and satisfaction.

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North America Customer Experience Management Market Trends, Drivers, Restraints, and Opportunities

• Technological advancements are transforming the way customers interact and react with brands across various channels.
• Business organizations have understood the importance of customer experience management, as it helps organizations to strengthen their brand presence, reduce consumer churn, and improve consumer loyalty, which in turn, boosts business revenue.
• Developments in big data analytics help enterprises manage, improve, and design end-to-end consumer experience management. This is anticipated to boost the market.
• Increasing inclination towards digital channels for interaction allows enterprises to understand needs of end-users through digital experience.
• Today’s tech-savvy population is demanding on-time and personalized interaction services. This has increased the demand for CEM solutions.
• Customer experience management solutions, along with technologies such as artificial intelligence and business analytics, help businesses to create optimal CEM strategies.
• Lack of quality control is expected to hamper the market growth.
• Companies providing outsourced CEM services are expected to charge huge amounts for scaling up of operations in business processes. This is estimated to hinder the market growth.

Scope of North America Customer Experience Management Market Report

The report on the North America 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.

North America Customer Experience Management Market Segment Insights

The call center segment accounted for USD 850.01 million of the total revenue in 2018

Based on touch points, the North America customer experience management market is segregated as store, call centers, social media platform, e-mail, mobile, web services, and others. The call center segment is expected to expand at a rapid pace during the forecast period. Growth of the segment is attributed to expanding global call center spaces where customers can expect quick answers on call.

Additionally, rising investment in advanced skill and training of the call center workforce in the US has increased the demand for customer experience management. Moreover, automated solutions have decreased the overhead cost of customer service operations for companies and have caused high customer satisfaction.

The web service segment is estimated to expand at a robust CAGR during the forecast period. Web service technology such as UDDI and WSDL has helped organizations to minimize the time for generating sustainable profits and achieving consistent growth. Growing number of e-businesses worldwide are demanding tools for accessing customer address and data, which is driving the market. Time spent on transferring data from one system to another is reduced by adopting CEM solutions.

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The text segment accounted for USD 1014.6 million of the total revenue in 2018

On the basis of analytical tools, the North America customer experience management market is fragmented as enterprise feed management software, text analytics, speech analytics, web analytics, and others. The text segment is estimated to expand at a high CAGR during the forecast period. Organizations are benefitting from text analytics tools to decode the text written by customers.

Development of software for text analytics using a mixture of text mining and natural language processing helps evaluate a huge amount of text, saving time and resources spent on doing manual work.

Demand for web analytics and content management tools is rising in North America. Web analytics helps in understanding customers and provides insights about changing consumer preferences. Web content management has changed customer experience in the customer service industry. Hence, web analytics is anticipated to be an essential part of customer experience management during the forecast period.

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The on-premise segment held a major share of the total revenue in 2018

In terms of deployment, the North America customer experience management market is bifurcated into on-premise and cloud-based. The on-premise segment is expected to expand at a robust CAGR during the forecast period. On-premise deployment of CEM tools is preferred by large organizations for data security and optimal control.

The cloud segment is projected to expand at a rapid pace in North America attributed to features such as reasonable pricing, convenience, flexibility, and speed. This segment offers advantages such as real-time operation and high storage capacity, which are useful for a technical perspective. For example, live chat option provides real time engagement with consumers. In the US, cloud solutions are recognized for high agility. Thus, deployment lifecycle experiences continuous developments.

The IT & telecom segment held a major market share of the total revenue in 2018

On the basis of end users, the North America customer experience management market is segregated as BFSI, healthcare, retail, IT & telecom, manufacturing, government, energy & utilities, and others. The IT & telecom segment is expected to expand at a high CAGR during the forecast period. The segment growth is attributed to rising focus of companies on digital platforms and improving front desk experience.

Need for effective analytical tools for restructuring the contextual interaction process with customers and leveraging data collected for analysis are expected to boost the demand for CEM in the IT & telecom segment.

The BFSI segment is estimated to expand at a high CAGR during the forecast period. Increasing use of mobile banking along with internet banking has increased the demand for CEM tools in this sector. Organizations in the BFSI sector are focused on personalizing customer experience to build long-term customer loyalty and trust.

Segments

The North America customer experience management market has been segmented on the basis of

Touch Points

• Store
• Call Centers
• Social Media Platform
• E-Mail
• Mobile
• Web Services
• Others

Analytics Tools

• Enterprise Feed Management Software
• Text Analytics
• Speech Analytics
• Web Analytics
• Others

Deployments

• On-premise
• Cloud-based

End-Users

• BFSI
• Healthcare
• Retail
• IT & telecom
• Manufacturing
• Government, energy & utilities
• others

Key Players

• Adobe
• Clarabridge
• Avaya Inc.
• Freshworks Inc.
• Open Text Corporation
• Nokia
• Genesys
• Qualtrics

Competitive Landscape

Key players in the North America customer experience management market include Adobe, Clarabridge, Avaya Inc., Freshworks Inc., Open Text Corporation, Nokia, Genesys, and Qualtrics. CEM retailers are adopting strategies such as acquisitions and mergers, collaborations, and product launches to uphold their market position. Companies are focused on optimization and development of their KPIs to reduce costs.