The global customer experience management market size was estimated at USD 11.68 billion in 2022 and is expected to hit around USD 47.87 billion by 2032, growing at a CAGR of 15.2% during the forecast period from 2023 to 2032. A rising focus on customer preferences and communication is observed to boost the demand for customer experience management services.
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The customer experience management market provides businesses with a range of capabilities, including customer feedback management, customer journey mapping, customer analytics, and personalized marketing. Customer experience management solutions allow businesses to better understand their customers, improve the quality of their products and services, and build long-term relationships with their customers.
Businesses have started recognizing the importance of investing in customer experience management to build customer loyalty and drive long-term growth. The rising adoption of social media platforms and other communication platforms from both consumers and businesses are offering a transformational shift for the global customer experience management market.
With rapidly changing market conditions and customer needs, businesses require real-time insights to stay ahead of the curve. This has led to increased adoption of data analytics and AI-powered tools for customer experience management. Market players are focused on providing solutions and personalized solutions for clients while utilizing AI-tools and platforms.
Zendesk, an America service software provider company recently published an article (in January 2023), which stated that the company used AI to collect consumer information in real-time.
Similarly, Amazon uses artificial intelligence and machine learning tools to understand the reasoning behind questions and queries raised by consumers.
In January 2023, Demicon GmbH announced that it has achieved a revolution in customer experience management services through the penetration of AI-powered chatGPT technology to improve customer experience. By utilizing the new AI-based technology, Demicon GmbH aims to offer faster, more accurate and personalized solutions to its clients.
In December 2022, a unified customer experience management platform, Sprinklr announced that it has been recognized as an Exemplary Vendor in Ventana Research 2023 customer experience management value index. Sprinklr has been recognized for providing an artificial intelligence-based (AI-based) software platform for CXM, to help clients understand and maximize long-term product value.
AI and similar tools/technologies manage the service platforms for businesses by reducing the chances of errors. Considering such multiple benefits of artificial intelligence, the rising deployment of AI-tools and other advanced technologies to improve customer experience is observed as a major driver for the market’s growth.
Rising consumer expectations from brands and stores are considered to be major driving factors for the growth of the customer experience management market. The rising focus on personalized solutions for clients and consumers is another factor to propel the growth of the customer experience management market during the forecast period. Personalized solutions give customers a tailored experience that meets their needs and preferences. Customer experience management solutions can provide a competitive advantage for brands. By offering customized solutions, brands can differentiate themselves from their competitors and create a unique selling proposition that attracts customers.
With the rise of e-commerce and online shopping, business competition has increased. To stand out in a crowded market, businesses need to offer exceptional customer experiences that differentiate them from their competitors. Customer experience management solutions provide companies with a competitive advantage by allowing them to understand and meet their customers' needs; such beneficial factors are observed to boost the growth of the customer experience management market.
Overall, the rising demand for customer experience management solutions is driven by the need for businesses to create exceptional customer experiences that differentiate them from their competitors and meet customers' high expectations.
Report Scope of the Customer Experience Management Market:
|Market Size in 2023||USD 13.4 Billion|
|Market Size by 2032||USD 47.87 Billion|
|Growth Rate from 2023 to 2032||CAGR of 15.2%|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Segments Covered||By Deployment, By Touch Point Type, By Analytical Tool, and By End-Use|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Shift towards value-based care
Value-based care is a model that focuses on improving consumer outcomes and reducing costs. Customer experience management solutions can help organizations engage with consumers and empower them to take an active role in services. Value-based care models are designed to incentivize providers to deliver better patient outcomes. By using customer experience management solutions to improve outcomes, organizations can increase their revenue and profitability.
Overall, the shift towards value-based care is driving the growth of the customer experience management market by increasing the demand for solutions that can improve consumer outcomes, deliver personalized solutions, increase engagement, provide data analytics, and increase revenue for organizations. As industries continue to focus on value-based care, the demand for customer experience management solutions is likely to continue to grow.
Data security and privacy concerns
CEM solutions typically involve collecting and analyzing large amounts of customer data, including personal information such as names, addresses, and payment details. As a result, data security and privacy are critical concerns for both businesses and customers. Data breaches and cyber-attacks can also significantly impact businesses, leading to financial losses, reputational damage, and legal liabilities. These risks can be a substantial barrier to the adoption of CEM solutions, particularly for businesses in highly regulated industries.
In addition, businesses that operate in multiple countries or regions may face challenges in complying with different data privacy and security regulations. This can increase the complexity and cost of implementing CEM solutions, further restraining their adoption. Data security concerns are a critical factor that businesses must consider when implementing CEM solutions. Addressing these concerns through robust data security and privacy policies and practices can help to build customer trust and support the growth of the CEM market.
Rising expansion in the healthcare industry
The healthcare industry is increasingly focused on improving the patient's experience. Customer experience management (CEM) solutions can be used to analyze patient data and provide personalized experiences, which can improve patient satisfaction and loyalty. The healthcare industry is rapidly adopting digital health solutions, such as telemedicine and remote patient monitoring. CEM solutions can be integrated with these solutions to provide a more seamless and personalized experience for patients.
Overall, the expansion of the healthcare industry presents several opportunities for CEM market players to develop solutions that improve the patient experience, increase patient engagement, and support the shift toward value-based care. Vendors that can successfully capitalize on these opportunities are likely to see significant growth in the healthcare sector during the forecast period.
The Covid-19 pandemic has had a significant impact on the customer experience management market. With social distancing measures in place, customers have increasingly turned to digital channels for their shopping and service needs. This has accelerated the shift towards digital customer experience management solutions, such as chatbots, virtual assistants, and personalized messaging.
In response to the pandemic, customers started seeking contactless service options. This has led to the adoption of new technologies such as QR codes, mobile ordering, and touchless payment options. The pandemic has shifted customer expectations around safety, convenience, and speed. Considering the shifted consumer preferences, businesses started adapting customer experience strategies to meet these changing expectations. Such factors showed a significant increase in the demand for customer experience management services across the globe.
However, the pandemic has created economic uncertainty, leading many businesses to cut back on customer experience investments. Overall, the COVID-19 pandemic has accelerated the adoption of digital technologies and changed customer expectations around safety and convenience. To succeed in this new environment, businesses are focusing on their customer experience strategies to meet these changing needs.
The on-premise segment held a dominating share of the global customer experience management market in 2022. The greater control and multiple customization options offered by on-premise customer experience management services have fueled the segment’s growth. Moreover, the convenience with accessible technology present in on-premise customer experience management solutions is observed to maintain the demand for the same. On-premises solutions are essential for companies with specific requirements or unique business processes that need to be integrated into their customer experience management system.
The cloud segment of deployment is expected to account for a significant share of the market during the forecast period. The segment’s growth is attributed to the rising penetration of advanced technologies, including artificial intelligence, machine learning, and numerous others, to boost the effectiveness of customer experience management solutions. Moreover, the flexibility and accessibility offered by cloud-based solutions are observed to fuel the segment’s growth.
Touch Point Type Insights:
The call center segment accounted for the largest market share in 2022; this includes phone calls, live chats, emails, and any other communication that takes place through the call center. A significant rate of consumer satisfaction from call centers, along with brand loyalty, is an essential factor in maintaining the segment’s growth during the forecast period.
The web services segment is predicted to witness a significant rise during the forecast period. Web services offer easy interference for consumers through mobile apps or websites. The segment’s growth is driven by the advantages offered by web services, including seamless and user-friendly web-based experiences for customers. The segment is rising exponentially as a result of modern customer experience management strategy.
Analytical Tool Insights:
The text analytical tool segment accounted for over 40% of the share of the global customer experience management market. The text analytical tool allows extraction and analysis of data from unstructured text sources, such as customer feedback, reviews, social media posts, and other forms of textual data. Additionally, such tools allow companies/organizations to identify consumer trends, demands, and behaviors, which helps overall business growth.
The web analytics segment will witness significant growth during the forecast period; brands involved in maintaining their online presence, rising communication with consumers through websites or apps, and increasing role of digital content are a few factors to accelerate the growth of the web analytics market during the analyzed period.
The retail segment held the dominating market share in 2022; the enormous requirement for collecting data, feedback, reviews, and demands from consumers in the retail industry as a significant growth factor has supplemented the segment’s growth.
The retail industry is highly competitive, with new players entering the market and established companies constantly striving to maintain and grow their market share. Providing a superior customer experience is a key way for retailers to differentiate themselves from their competitors.
The BFSI segment is expected to witness noticeable growth during the forecast period. The rising investment in customer care services by the banking, finance, and insurance sectors is observed to fuel the segment’s growth. Moreover, the segment’s growth is attributed to the rising focus on consumer acquisition and loyalty, along with risk management.
The healthcare segment is predicted to be the most lucrative segment of the market owing to the rising penetration of customer experience management services in hospitals and specialty care centers for better patient outcomes.
North America generated more than 44% of the revenue share in 2022. owing to the presence of massive competition in the retail industry. The market’s growth in North America is driven by the high adoption of digital technologies, the increasing demand for personalized customer experiences, and the strong presence of key market players in the region. The United States is the largest market for CEM in North America, accounting for the majority of the regional market share.
The North American customer experience management market is also characterized by the adoption of emerging technologies such as artificial intelligence (AI), machine learning (ML), and natural language processing (NLP). These technologies are used to improve customer insights, automate processes, and personalize customer experiences.
Asia Pacific is the fastest-growing region in the customer experience management market. Asia Pacific is a rapidly growing market for customer experience management (CEM) due to the increasing adoption of digital technologies, rising customer expectations, and the growing importance of customer loyalty in the region.
Several governments in the Asia Pacific region are promoting the adoption of Customer experience management services to support their digital transformation initiatives and drive economic growth.
For instance, the Indian government has launched the Digital India program, which aims to provide digital services to every citizen, while the Singapore government has launched the Smart Nation initiative, which aims to use technology to improve the lives of citizens.
The customer experience management market in Europe is also expected to witness noticeable growth due to the presence of competitive industries. Businesses across Europe are facing increasing competition, which is driving the need for better customer experiences. To remain competitive, companies are investing in CEM solutions that help them better understand and serve their customers.
Key Market Players:
The global customer experience management market is fragmented with multiple companies, few of the leading companies in the market are-
Segments Covered in the Report:
By Touch Point Type
By Analytical Tool
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