Customer Experience Management Market

[159 Pages Report] The global customer experience management market is expected to grow from USD 5.98 billion in 2017 to USD 16.91 billion by 2022 at a CAGR of 23.1%. Customer Experience Management (CEM) is a set of processes that use multiple technologies to gather customer feedback, understand their expectations, and improve overall customer experience. Customer experience management offer several advantages, such as increasing need to manage customer experience throughout the customer journey, need to retain customers, provide competitive differentiation, and increase e-commerce and m-commerce which, in turn, help in the growth of the market.

The increasing adoption of mobile applications and internet usage among regions and connecting with customers through virtual touchpoints acts as an opportunity for the growth of the Customer Experience Management Market. The customer experience management solutions are being used in many industry verticals such as IT communication service providers, telecommunication service providers, banking, financial services and insurance, consumer goods & retail, healthcare, automotive & transportation, travel & hospitality, public sector, energy & utilities, media & entertainment, manufacturing, and others. The base year considered for the study is 2016, and the forecast has been provided for the period between 2017 and 2022.

Customer Experience Management Market Dynamics

• Need of effective customer accessibility throughout the customer journey
• Increasing adoption of customer experience management solutions to reduce customer churn rate
• Rising need for competitive differentiation
• Incraesing use of e-commerce and m-commerce platforms

Restraints

• Security concerns Data synchronization between customer experience management solutions and other technologies
• Personalized expectation of customers

Opportunities

• Major focus on virtual touchpoints
• Integral part of the digital market
• Rise in demand for employee engagement solutions

Challenges

• Choosing the proper mix of technology and personnel

Use of customer experience solution in the IT communication services providers drives the global customer experience management market

The IT communication service providers segment is witnessing intense competition due to an increase in the number of players in the IT sector. These service providers are faced with the challenge of differentiating with other service providers in terms of providing better services, with well bundled solutions, from customer analytics to employee engagement, so as to retain existing customers and attract new customers. Therefore, to overcome these challenges, IT communication service providers are adopting Customer Experience Management (CEM) solutions to enhance and optimize customer interactions, thereby improving customer loyalty. Moreover, various solution providers such as Oracle offer the field service customer communication cloud service that provides customers greater choices, flexibility, and information, and also reaches customers on their preferred channels including text, email, voice, or web.

 The following are the major objectives of the study.

• To define, describe, and forecast the global customer experience management market on the basis of five regions, namely, North America, Europe, Asia Pacific, Middle East and Africa, and Latin America
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, industry specific challenges, and burning issues)
• To analyze micromarkets1 with respect to individual growth trends and contribution made towards the overall market
• To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape of the market
• To track and analyze competitive developments, such as mergers & acquisitions, agreements & contracts, joint ventures, partnerships, and strategic alliances in the market
• To profile key players and comprehensively analyze their core competencies2 including innovation, quality, and customer experience

During this research study, major players operating in the customer experience management market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

BREAKDOWN OF PRIMARY PARTICIPANTS

To know about the assumptions considered for the study, download the pdf brochure

The customer experience management market comprises a network of players involved in the research and product development; raw material supply; component manufacturing; distribution and sale; and post-sales services. Key players considered in the analysis of the market are Adobe Systems (US), Oracle Corporation (US), IBM Corporation (US), Nokia Networks (Finland), Tech Mahindra Limited (India), Avaya Inc. (US), OpenText Corporation (Canada), Nice Systems Limited (Israel), Verint Systems (US), MartizCX LLC (US), Medallia (US), Qualtrics (US), and InMoment, Inc. (US).

Major Customer Experience Management Market Developments

1. In March 2017, Adobe Systems launched adobe experience cloud, a set of cloud services, which comprise Adobe Marketing Cloud, Adobe Advertising Cloud, and Adobe Analytics Cloud. Adobe Experience Cloud offers an integrated set of solutions that empower organizations to differentiate their brands, connect with customers and proactively engage them.

2. In April 2017, Oracle enhanced its existing Oracle Customer Experience (CX) Cloud Suite by combining innovative technologies such as chatbots and artificial intelligence with enhanced mobile, video, and messaging capabilities, the latest updates to Oracle CX Cloud Suite. This will enable CRM, marketing, sales and service professionals to reduce IT complexity.

3. In June 2017, IBM partnered with LivePerson, a provider of cloud mobile and online business messaging solutions to combine IBM’s Watson Virtual Agent technology with LivePerson’s LiveEngage platform. This will help brands easily deploy conversational bots and enable consumers to message those brands from their smartphones.

Target Audience:

• Customer Experience Management Solution Providers
• Industries
• IT Hardware/Software/Services Suppliers
• Software and System Integrators
• Value Added Resellers (VARs)
• Software Developers
• Application Developers 

Report Scope:

By Touchpoint:

• Company Website
• Branch/Store
• Web
• Call Center
• Mobile
• Social Media
• Email
• Others

By Vertical

• IT communication
• Telecommunication
• Banking, Financial Services, and Insurance
• Healthcare
• Automotive & Transportation
• Consumer Goods & Retail
• Media & Entertainment
• Travel & Hospitality
• Manufacturing
• Others

By Geography

• North America
• Europe
• Asia Pacific (APAC)
• Middle East & Africa (MEA)
• Latin America

Critical questions which the report answers

• What are new application areas which the customer experience management companies are exploring?
• Which are the key players in the market and how intense is the competition?

Available Customizations:

Based on the given market data, MarketsandMarkets offers customizations in the reports as per the client’s specific requirements. The available customization options are as follows:
Geographic Analysis

• Further breakdown of the North America customer experience management market into countries, such as the US and Canada
• Further breakdown of the Europe market into countries, such as Germany, the UK, and France
• Further breakdown of the Asia Pacific market into countries, such as India, China, and Japan

Company Information

Detailed analysis and profiling of additional market players (Up to 5)

The overall customer experience management market is expected to grow from USD 5.98 billion in 2017 to USD 16.91 billion by 2022 at a CAGR of 23.1%. The increasing need to manage customer experience throughout the customer journey, need to retain customers, provide competitive differentiation, and increase e-commerce and m-commerce are the key factors driving the growth of this market.

Customer Experience Management (CEM) is a set of processes that use multiple technologies to gather customer feedback, understand their expectations, and improve overall customer experience. It is a revolutionary step that connects organizations with their customers whereby solutions such as contact center solution, digital customer experience solution, customer analytics solution, employee engagement solution, and language translation services solution are majorly used. The CEM solution collects the unstructured feedback in the form of comments and with the help of customer analytics, obtains structured insights which are valuable in understanding and connecting with the customers. CEM is a solution through which organizations interact with customers to understand their experiences related to specific products and services. The CEM process makes use of different tools and techniques, such as Enterprise Feedback Management (EFM), web analytics, text analysis, and speech analytics.

The customer experience management market has been segmented, based on touchpoint, vertical, and region. Based on touchpoint, the call center segment is projected to lead the market during the forecast period. The primary reason for this high growth is the rapid adoption of CEM solutions to track customer experience through telephone, email, internet, fax, and video and through which customers share responses with customer care executives. Among verticals, the telecommunication service providers segment is projected to lead the market during the forecast period, which is attributed to the increasing demand for CEM solutions from telecommunications service providers. The travel & hospitality segment of the market is projected to grow at the highest CAGR during the forecast period.

The customer experience management market in APAC is expected to grow at the highest CAGR during the forecast period. The APAC region is expected to experience extensive growth opportunities for the market during the forecast period. Major countries such as India, China, Russia, Australia, and Japan are considered for the market analysis in this region. This growth is mainly attributed to the rapid growth in digitization and smartphone adoption which is expected to lead to the increasing deployment of customer experience solutions.

CUSTOMER EXPERIENCE MANAGEMENT MARKET, BY REGION, 2022 (USD BILLION)

IT Communication Service Providers

The IT communication service providers segment is witnessing intense competition due to an increase in the number of players in the IT sector. These service providers are faced with the challenge of differentiating with other service providers in terms of providing better services, with well bundled solutions, from customer analytics to employee engagement, so as to retain existing customers and attract new customers. Therefore, to overcome these challenges, IT communication service providers are adopting Customer Experience Management (CEM) solutions to enhance and optimize customer interactions, thereby improving customer loyalty. Moreover, various solution providers such as Oracle offer the field service customer communication cloud service that provides customers greater choices, flexibility, and information, and also reaches customers on their preferred channels including text, email, voice, or web.

Telecommunication Service Providers

The telecommunication sector is driven by intense competition among services providers. Currently, telecommunication service providers focus on a customer-centric approach rather than a network-centric approach. CEM solutions in the telecom sector are used to handle customer queries related to billing or network issues, purchase of services, and information on services. Telecom service providers are reaching out to subscribers through websites, call centers, social media, their applications, and others to experience of the product offered. The telecom sector is a mature market place, where the pressing value proposition is customer loyalty. It has therefore become essential for providers to ensure that their offering both, differentiates and delivers. The telecom sector accounts for the largest market share in the Customer Experience Management Market due to the proliferation of devices such as smartphones and tablets which drive the need to provide outstanding customer experience.

Public Sectors, Energy & Utilities

The public sector and energy & utilities segment is estimated to account for the second-largest market size during the forecast period from 2017 to 2022. Public sector and energy & utilities are facing challenges such as, increase in the number of private players expanding their presence in the energy & utilities and other public sectors. Thus, in order to retain existing customers and sustain their foothold in the Customer Experience Management Market, these public-sector companies have increased the adoption of customer experience management solutions also to gain customer engagement and loyalty.
 
Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming solutions and services offered by the customer experience management providers?

The growing data synchronization between customer experience management solutions and other technologies is a major factor restraining the growth of the market. Customer information is a critical component in CEM for interaction between customers and organizations. 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. Customer contact with companies generates data, and when data is not synchronized with other technologies, organizations face problems in synchronizing the large amount of information in a structured format. Data is collected from different touchpoints, and businesses have to categorize it based on customer needs and expectations. Data collected from different touchpoints such as company websites, web, mobiles, social media, and emails differs from one another, making it difficult for organizations to combine it together, since it has to be structured it in different forms. Customer analytics is not helpful when organization data is not synchronized. A large amount of structured and unstructured data requires significant resources such as money, time, and expertise to analyze. This creates issues that block the optimum Return on Investment (ROI) from CEM solutions.

Key players in the Customer Experience Management Market include Adobe Systems (US), Oracle Corporation (US), IBM Corporation (US), Nokia Networks (Finland), Tech Mahindra Limited (India), Avaya Inc. (US), OpenText Corporation (Canada), Nice Systems Limited (Israel), Verint Systems (US), MartizCX LLC (US), Medallia (US), Qualtrics (US), and InMoment, Inc. (US). These players are increasingly undertaking mergers and acquisitions, and product launches to develop and introduce new technologies and products in the market.

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