(MENAFN- GetNews) Adoption of Advanced Data Analytics Driving the Growth of Customer Experience Management Market
Customer Experience Management Market size is forecast to reach $17.2 billion by 2026, growing at CAGR 11.4% during 2021-2026 owing to the increasing emphasis on customer retention due to lack of proper communication and customer relationship. The companies especially falling under for red ocean category, are prominently increasing their focus on improving customer experience strategy through customer engagement and customer feedback and bridge the gap created due to deficiency in customer engagement. Additionally, advanced techniques such as machine learning and analytics get a better understanding of their customer’s buying pattern and behavior to pitch better deals along with targeting the proper customer pool which can actually convert marketing qualified leads to sales qualified leads. This is set to bolster the adoption of CEM technology during the forecast period 2021-2026 thereby driving the market.
Customer Experience Management Segment Analysis – By Offering Type
By offering type, the global customer experience management market has been segmented by solutions and services. The customer experience management services market is estimated to witness the highest growth rate during 2021-2026 at 13.6% owing to the shift to these services from solutions to cut down operational expenses and growing preference among the SMEs. The cloud based services models for customer experience management solutions to improve customer engagement and customer feedback is estimated to witness significant growth by the large enterprises owing to the scalability, flexibility, cost effectiveness, ease of integration with other Customer Relationship Management (CRM) solutions and various others as compared to on premise solutions.
Customer Experience Management Segment Analysis – By End Use Industry
Customer Experience Management in BFSI market is projected to grow at a CAGR of 14.2% through 2026. The outbreak of COVID-19 has significantly impacted some of the core sectors, such as manufacturing, logistics and transportation, and retail; and has moderately impacted the non-core sectors, such as IT and telecom and eCommerce. On the other hand, industry sectors, such as healthcare and public sector, are significantly adopting Customer Experience Management (CEM) solutions during the pandemic, due to a sudden rise in the number of customers.
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Customer Experience Management Segment Analysis – By Geography
North America held the major share of the global customer experience management market acquiring around 37.1% in 2020. The is mainly due to large scale adoption of customer experience management solutions and services by the large enterprises as well as the SMEs operating in the B2C and B2B space to foster their customer relationships. The APAC customer experience market demand is estimated to grow at the highest rate during the forecast period 2021-2026. This is due to the increasing adoption of advanced artificial intelligence customer service technologies including speech analytics, text analytics, web analytics and others by the SMEs especially operating in consumer good and retail, automotive and transportation, IT and telecommunication sector and others to reduce wait time, improve customer feedback and customer engagement by automating customer engagement and in certain cases collect customer feedback as well. The APAC customer experience market for consumer goods and retail sector is estimated to witness a growth of CAGR 13% during 2021-2026.
Customer Experience Management Market Trends Drivers
Adoption of Advanced Data Analytics
The coalescence of data analytics customer experience workspace avails new grounds for understanding customer’s behavior, buying pattern, brand preference, buying cycle, geographic preferences and various others to understand the various customer pools which can be immediately targeted. Apart from these cloud based services and artificial intelligence customer services also assist in understanding the customer defection and the gaps challenging in building up a strong customer relationship. This not only helps the companies to understand their internal challenges in real time but also the focus on new opportunities. Owing to these benefits of advanced data analytics, the customer experience management market is estimated to witness significant growth during 2021-2026
Customer Experience Management solutions help in reducing customer churn rates
Churn rate means the annual percentage rate at which customers stop buying a product or subscribing to a service. Poor customer service is one of the major reasons for the increasing churn rate of customers. With the help of CEM solutions, organizations can calculate the customer churn rate for a certain time period, such as quarterly or yearly. CEM solution vendors deliver a wide range of solutions and services that enable the management of customer profiles and queries about their requirements. They also provide real-time tracking of customers and their behavior through improved customer engagement and customer feedback. All these services help in retaining customers and also tapping unexplored markets.
Lack of Skilled Workforce
The availability of skill workforce for handling analytics based customer experience management has been analyzed to be low and pay scale of the same is also high owing to which only large enterprises houses dedicated teams and procure solutions for effectively focusing onto customer relationship. However, in case of SMEs maintaining an in-house dedicated teams for customer experience puts a strain to reducing operational expenses. This is set to pose a significant challenge to the customer experience management market growth during 2020-2025
Some of the key players analyzed for the customer experience management market share analysis includes IBM Corp, Oracle Corp, Verint Systems, Adobe Systems, Avaya Inc., SAS Institute, InMoment, Salesforce.com, Inc, SAP, Nokia, Service Management Group and so on. These players are opting for various strategies such as acquisition, product launch, and collaboration and among others to maintain their market position and gain a stronghold through innovative offerings. However, the threat of new entrants in the market is significantly high due to the lack of regulatory barriers, IP rights and dynamic affinity for innovative solutions and services.
Contracts & Acquisitions
In October 2019, Subaru selected MaritzCX Customer Experience Platform for transition from its former measurement tools to an action-oriented program for collaborative working of the company’s dealers, field support, corporate teams and others to enhance its customer experience.
In October 2019, Marston a U.K. based company operating in independent brewing and pub retailing business chose Service Management Group (SMG) for collecting, analyzing and share guest feedback across the country to better understand the guest experience and take actionable steps for improving its services.
In November 2019, Tech Mahindra Ltd. acquired Born Group Pte. Ltd. a U.S. based media outsourcing company to strengthen its commerce and customer experience capabilities.
Customer experience management services vertical to witness the highest growth rate owing to the adoption of these services by SMEs during the forecast period.
North America to dominate the global customer experience management market owing to the wide scale adoption by large enterprises in 2020.
Implementation of Data Analytics in customer experience management to avail new growth potential.
A. Customer Experience Platforms Market
B. Customer Relationship Management (Crm) Market
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