Customer Experience Management Market Trends

Customer Experience Management Market Overview

The customer experience management market is projected to register a CAGR of 17.9% from 2022 to 2030. The process of developing and responding to consumer contacts in order to cater their expectations is known as customer experience management (CEM). Organizations must constantly change if they are to meet and exceed client expectations. Customer experience management is valuable to businesses because it improves brand awareness, fosters consumer loyalty, reduces churn, and ultimately boosts revenue.

Figure 1: Customer Experience Management Market, 2018 - 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Also, it involves a plan that, in order to be successful, requires a variety of technologies and a change in process in order to increase loyalty & advocacy. Customer experience management solutions have made it easier to retain lost customers and reduce at-risk revenues. The system also makes it possible for business owners to connect their customers as a long-term driver of advancement. CEM significantly reduces the expense of acquiring new customers.

One of the main factors anticipated to accelerate the growth of the worldwide customer experience management industry is the surge in demand for personalized experiences by consumers across various sectors. Other factors supporting the market growth include the cloud and big data analytics technological advancements for managing, designing, and improving end-to-end customer experience processes as well as the introduction of this solution by various companies to survive in the fierce competition.

Industry News of Customer Experience Management Market

March 2023- On March 15, 2023, Q-nomy has presented cubu, the Newest Innovation in Customer Experience Management, in Partners Conference. An innovative new product called Cubu integrates customer flow management, appointment scheduling, and customer contact management into one seamless solution.

Cubu is the most straightforward and user-friendly all-in-one solution available right now, and it was created to augment the customer experience by streamlining the customer journey. From SMEs to huge enterprise organizations, it is appropriate for all kinds of organizations.

Regardless of whether a customer connection takes place in person, via video, or via other digital channels, cubu offers a single platform for managing all of those interactions. With the use of digital signs, e-tickets, text messages, & other means of communication, the solution enables businesses to set up appointments, control client flow, and communicate with consumers.

Businesses may easily automate procedures with cubu's workflow automation features and adjust to shifting business requirements. The product offers full omnichannel assistance and codeless business process automation, making managing customer engagement easy and wise.

COVID-19 Impact Analysis

Due to the growing popularity of online purchasing, the COVID-19 pandemic had a negligible effect on the market for customer experience management. ly, consumers' shopping choices and habits have undergone a profound transformation during these difficult times. Customers are moving away from traditional buying habits and toward digital media. It is anticipated that businesses implementing virtual assistants or bots to meet shifting customer expectations will open up new markets for consumer experience solutions. Nevertheless, the demand for CEM has stabilized due to the growth of online shopping and a shift in consumer priorities toward adopting digital platforms.

Customer Experience Management Market Dynamics

One of the main factors anticipated to accelerate the growth of the worldwide market is the surge in demand for personalized experiences by consumers across various sectors. Modern technology completely changes how consumers react to and engage with brands through various platforms. Technological developments will assist businesses in designing, running, and improving their end-to-end CEM and fostering market expansion. Businesses are investing in AI-based customer services to increase productivity by reducing call processing and complaint resolution, changing how businesses interact with end customers. It enables businesses and thought leaders to provide pertinent information, boost sales prospects, improve the customer experience, and give top priority to content strategies that complement the touchpoints of the buyer journey.

Market Drivers

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  The demand for consumer experience solutions is increasing as retail and healthcare undergo increased digital transformation

  
  

Customers have shifted more toward digital channels due to e-commerce and digital banking development. Retailers are now using internet platforms instead of physical stores. Retailers have implemented AI-enabled chatbots, virtual trial rooms, and surveillance to record and examine consumer behavior. To boost their visibility, brands use a variety of platforms, including social media, mobile applications, websites, and others. Direct shopping, brand awareness, and marketing have all increased due to the social media platforms that are becoming more and more prevalent, such as Facebook, Instagram, YouTube, Twitter, and Pinterest. For instance, Retailers can increase customer lifetime value, lower customer churn, and keep customers longer with the aid of consumer experience solutions. These shifting consumer purchasing patterns fuel the expansion of the customer experience management business.

Market Restraints

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  Concerns about data privacy and rising regulatory compliance

  
  

Concerns about data security and privacy have increased with the use of digital platforms. The consumer experience is significantly impacted by rising cybercrime and data theft operations. The government adopted new legislation in response to an increase in data breaches and protection. These laws permit data security and protection. For instance, a person's activity within the European Union is monitored by the General Data Protection Regulation, which the European Union enacted in May 2018. Similarly, in January 2020, the federal government introduced the California Consumer Privacy Act to give consumers access to or updated control over their data.

Market Opportunities

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  Artificial intelligence and augmented reality are increasingly used, creating lucrative growth opportunities

  
  

Due to rapid digitization and changing consumer demand, major companies have used cutting-edge customer experience management systems to increase customer loyalty and lower customer churn rates. Additionally, the use of bots or virtual assistants by enterprises results from consumers' shifting purchasing habits. The dynamic nature of consumer wants and businesses' growing emphasis on enhancing customer experiences are expected to fuel market expansion. Considering task automation and self-service solutions may be done with the incorporation of A.I. and A.R., the increased acceptance of these technologies is expected to create attractive growth prospects for the industry. The consumer experience and profitability are also enhanced by cutting-edge A.I. applications like chatbots, digital assistants, biometric measurements, and facial recognition.

Customer Experience Management Segmentation

Touch Point Insights

The  customer experience management market segmentation, based on touch point, is call centers, email, and social media. The  customer experience management market growth was prominently high under the call centers category in 2021. The primary segment drivers include the growing use of advanced contact center technologies, the increasing use of virtual and cloud-based contact center solutions, and the streamlining of customer interactions to increase customer satisfaction.

End User Insights

Based on end user, the  customer experience management market segmentation is divided into BFSI, healthcare, manufacturing, and retail. The BFSI category dominated the market for contact lenses in 2021. The adoption of customer experience solutions throughout BFSI is facilitated by increasing customer contacts with multiple touch points, including call centers, emails, online banking platforms, and social media. Organizations use cutting-edge technologies to provide clients throughout the BFSI industry with a convenient, secure, and digitized customer experience. Global Customer Experience Management Market Share, by Region, 2021 (%)

By Region

By region, the  customer experience management market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Asia-Pacific will exhibit the highest CAGR during the forecast period.

North America

North America dominated the market share in 2021 owing to the increase in the use of CEM products and services by various sectors, including banking, retail, and telecommunications, to strengthen client connections. The surge is fueled by US and Canadian businesses investing more in digital marketing and platforms. Customer experience management systems are being used by brands and businesses due to the increased consumer propensity to publish reviews and share experiences across digital media. Because of this, businesses spend much on digital media.

Asia-Pacific

Asia-Pacific accounted for the second-largest market share in the  market in 2021 because more people are utilizing current technologies. One of the key factors influencing the growth is the increasing usage of IoT-based sensors, devices, and advanced analytics tools by B2C and B2B consumers. The prevalence of call centers, the rise of social media, and the growing importance of customer satisfaction and customer experience management are all factors in the expansion. Implementing CEM solutions is being heavily prioritized by SMEs in developing nations like India as a part of their initiatives to grow their regional and international operations.

Customer Experience Management Market Competitive Landscape

The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have  reach with diverse product portfolios. Companies such as Oracle; Open Text Corporation; Qualtrics; SAP SE; Medallia Inc.; and SAS Institute Inc. dominate the  market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, product introduction, joint ventures, and partnerships, to strengthen their market position and capture an extensive customer base.

Prominent players in the customer experience management market research include:

• IBM Corporation (US)


• Adobe Systems Incorporated (US)


• Tech Mahindra Limited (India)


• Oracle Corporation (US)


• Open Text Corporation (Canada)


• Nokia Networks (Finland)


• Avaya Inc. (US)


• SDL (UK)


• SAS Institute Inc. (US)

Touch Point Outlook

• Call Centers


• Email


• Social Media

End User Outlook

• BFSI


• Healthcare


• Manufacturing


• Retail

Region Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


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  Europe

  
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa