Customer Success Platforms Market Overview
As per MRFR analysis, the Customer Success Platforms Market Size was estimated at 3.16 (USD Billion) in 2022. The Customer Success Platforms Market Industry is expected to grow from 3.63 (USD Billion) in 2023 to 12.4 (USD Billion) by 2032. The Customer Success Platforms Market CAGR (growth rate) is expected to be around 14.64% during the forecast period (2024 - 2032).
Key Customer Success Platforms Market Trends Highlighted
The customer Success Platforms (CSPs) market is experiencing a boost in adaptation as businesses focus more on keeping their customers and making sure they are satisfied. Some of the leading forces behind this trend include the growing need for proactive customer engagement, personalized experiences, and predictive analytics to drive customer success outcomes. Moreover, the integration of artificial intelligence (AI) and machine learning (ML) capabilities in CSPs is enhancing customer experience and enabling more efficient and scalable customer support. There is huge potential for growth in developing markets where corporations are looking to increase their client-holding ability as well as revenue through customer-centric strategies.
The convergence of CSPs with other software-as-a-service (SaaS) applications such as Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). This leads to a unified view of the customers while streamlining engagement processes with them. There has been lately an increased emphasis on metric-driven customer success, with companies going for tools that can measure or tract health, engagement levels, and lifetime profitability. The rise of subscription-based pricing models alongside a shift towards digitization of consumer touch points has also shaped the competitive scenario, thereby necessitating flexible and scale-up capable CSPs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Customer Success Platforms Market Drivers
Increasing Adoption of SaaS and Cloud-Based Solutions
One of the leading drivers of growth for the Customer Success Platforms Market Industry is the increasing adoption of Software-as-a-Service and cloud-based solutions. Compared to traditional on-premises software, SaaS and cloud-based solutions offer businesses various advantages, including lower costs, increased flexibility, and scalability. As more businesses adopt SaaS and cloud-based solutions, the demand for customer success platforms is expected to grow as they assist in onboarding, retaining, and expanding businesses’ customer base.
Also, the increase in remote work and the growing use of digital channels in reaching customers is further accelerating the adoption of customer success platforms.
Growing Focus on Customer Experience and Retention
In today's competitive business landscape, businesses are increasingly focusing on improving customer experience and retention as key strategies for growth. Customer success platforms play a vital role in helping businesses achieve these goals by providing tools and insights to track customer health, identify at-risk customers, and proactively address customer issues. By leveraging customer success platforms, businesses can improve customer satisfaction, reduce churn, and increase customer lifetime value.
The growing focus on customer experience and retention is expected to continue to drive the growth of the Customer Success Platforms Market Industry in the coming years.
Advances in Artificial Intelligence and Machine Learning
The growing application of artificial intelligence and machine learning is revolutionizing the business environment and the way they tackle customer success. These platforms automate repetitive activities, provide intelligent recommendations, and anticipate customer behavior based on previous cases to provide a more proactive form of customer support. As a result, businesses could scale more efficiently and provide better customer support, in addition to discovering upselling and cross-selling opportunities and broadening their customer understanding.
As a result, the incorporation of AI machine learning technologies is expected to entice additional actors and innovation in the Customer Success Platforms Market Industry.
Customer Success Platforms Market Segment Insights
Customer Success Platforms Market Deployment Type Insights
The Customer Success Platforms Market has been segregated into deployment types as cloud-based and on-premises. This segment is split in terms of market shares between on-premises deployment and cloud-based deployment. Cloud-based customer success platforms market held a dominant share of the market in 2023 and is likely to grow at a significant CAGR during the forecast period. The extension of significant market share is primarily due to the increased penetration of cloud-based solutions, which are known to be more scalable, flexible, and cost-effective.
A majority of enterprises and end user customers have to adopt SaaS and PaaS models, which in turn are driving the market for cloud-based customer success platforms. The on-premises market, however, is likely to grow at a moderate rate. This is due to several customers in highly regulated industries or with highly sensitive data that prefer the on-premises deployment type over other types. In addition, while the on-premises deployment type may provide a higher level of data control and security, this may lead on-premises deployment to face certain challenges, such as huge upfront costs and complex maintenance.
There is a variety of deciding factors when it comes to choosing between a cloud-based and on-premises deployment. The size, budget, IT infrastructure, and security requirements of an organization are some of the key factors. Generally, small and medium-sized businesses or SMBs tend to opt for cloud-based deployment mainly due to its lower upfront costs and easy deployment. Large and very large enterprises with advanced IT infrastructure and rigorous security measures opt for on-premises deployment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Customer Success Platforms Market Organization Size Insights
The Customer Success Platforms Market is segmented by organization size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The SMEs segment accounted for a larger share of the market in 2023, and this can be attributed to the use of customer success platforms by SMEs to enhance the retention of customers and improve satisfaction. A higher rate of growth is expected in the segment of Large Enterprises over the period of the study on the back of greater requirement for advanced capabilities in customer success and the ability to invest in more extensive customer success platforms.
The Customer Success Platforms Market revenue for SMEs is expected to reach USD 1.56 billion by 2024, and the market for large enterprises is expected to reach USD 2.07 billion by the year. The proliferation of the market can be attributed to the increase in adoption of the platforms of customer success by both SMEs and Large Enterprises to enhance the customer experience, reduce churn, and increase revenue.
Customer Success Platforms Market Industry Vertical Insights
The Customer Success Platforms Market is segmented by industry vertical into Healthcare, Financial Services, Manufacturing, Technology, and Retail and E-Commerce. Healthcare is expected to dominate the market in 2024 with a revenue of USD 1.03 billion, owing to the increasing adoption of patient engagement and remote monitoring solutions. Financial Services is closely behind with a revenue of USD 982 million, driven by the need for customer relationship management and fraud detection solutions. Manufacturing, Technology, Retail and E-Commerce are also expected to witness significant growth in the coming years.
For instance, the Manufacturing segment is projected to reach USD 812 million in 2024, while the Technology segment is expected to reach USD 729 million. The Retail and E-Commerce segment is expected to grow to USD 674 million in 2024.
Customer Success Platforms Market Functionality Insights
The Functionality segment of the Customer Success Platforms Market is expected to grow significantly in the coming years, driven by the increasing demand for customer-centric solutions. The growing adoption of customer success platforms by businesses of all sizes is driving the growth of this market as companies seek to improve customer satisfaction, retention, and revenue.
Customer Success Platforms Market End-User Interaction Insights
The End-User Interaction segment of the Customer Success Platforms Market is categorized into Employees, Customers, and Partners. In 2023, the Employees segment held the largest market share of 45%, followed by Customers with 30% and Partners with 25%. The Employees segment is projected to continue its dominance in the market, with a CAGR of 16.5% from 2023 to 2032. This growth is attributed to the increasing adoption of customer success platforms by organizations to improve employee productivity and engagement. The platforms provide employees with the tools and resources they need to effectively manage customer relationships and drive success.
The Customers segment is also expected to witness significant growth, with a CAGR of 15.8% over the forecast period. This growth is driven by the rising demand for customer-centric solutions that enhance customer satisfaction and loyalty. Customer success platforms enable organizations to track customer interactions, identify pain points, and proactively address customer needs. The Partners segment is anticipated to grow at a CAGR of 14.2% from 2023 to 2032. The growth in this segment is attributed to the increasing collaboration between organizations and their partners to deliver exceptional customer experiences.
Customer success platforms facilitate seamless communication and collaboration between partners, enabling them to align their efforts and drive joint success.
Customer Success Platforms Market Regional Insights
Regional Segment Insights and Overview Regionally, the Customer Success Platforms Market is segmented into North America, Europe, APAC, South America, and MEA. North America holds the largest market share due to the presence of established vendors, early adoption of advanced technologies, and a large customer base. Europe is the second-largest market, driven by increasing digital transformation initiatives and government support for technology adoption. APAC is expected to witness the fastest growth over the forecast period, owing to the growing adoption of cloud-based solutions and increasing investments in customer experience management.
South America and MEA represent emerging markets with significant growth potential, as businesses in these regions are increasingly recognizing the importance of customer success.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Customer Success Platforms Market Key Players And Competitive Insights
Major players in the Customer Success Platforms Market industry are continuously involved in introducing new technologies and features in their platforms to gain competitive advantage. Leading Customer Success Platforms Market players are focusing on providing end-to-end solutions that cater to the specific needs of different industries and businesses.
Strategic partnerships and collaborations are becoming increasingly common in the Customer Success Platforms Market development as companies seek to expand their offerings and reach new markets. The growing adoption of cloud-based solutions is also driving innovation in the Customer Success Platforms Market Competitive Landscape, as vendors strive to provide flexible and scalable solutions that can meet the evolving needs of businesses.
Gainsight is a leading provider of Customer Success Platforms Market. The company's platform offers a comprehensive suite of tools to help businesses track, manage, and improve customer success. Gainsight's platform is used by a wide range of businesses, including Fortune 500 companies and high-growth startups. The company has a strong track record of innovation and has been recognized as a leader in the Customer Success Platforms Market industry. Gainsight's platform is constantly being updated with new features and functionality, making it one of the most comprehensive and innovative solutions on the market.
Salesforce is a leading provider of cloud-based Customer Success Platforms Market solutions. The company's platform offers a wide range of features to help businesses automate and streamline their customer success operations. Salesforce's platform is used by a wide range of businesses, including Fortune 500 companies and small businesses. The company has a strong track record of innovation and has been recognized as a leader in the Customer Success Platforms Market industry. Salesforce's platform is constantly being updated with new features and functionality, making it one of the most comprehensive and innovative solutions on the market.
Key Companies in the Customer Success Platforms Market Include:
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Gainsight
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SurveySparrow
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SAP
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Salesforce
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Walkme
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Microsoft
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Zohoc
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Tota
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Oracle (CX)
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Zendesk
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Qualtrics
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Useriq
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Churnzero
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SuccessFactors
Customer Success Platforms Market Industry Developments
The Customer Success Platforms market size was valued at USD 3.63 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 14.64% from 2024 to 2032. The market is driven by the increasing adoption of customer success software by businesses of all sizes to improve customer retention and satisfaction.
Recent news developments in the market include the acquisition of Totango by Salesforce in 2023, which strengthens Salesforce's position in the customer success space. Additionally, companies such as Gainsight and ChurnZero have announced new product launches and partnerships, indicating continued innovation and competition in the market.
Customer Success Platforms Market Segmentation Insights
Customer Success Platforms Market Deployment Type Outlook
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Cloud-Based
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On-Premises
Customer Success Platforms Market Organization Size Outlook
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Small and Medium-Sized Enterprises (SMEs)
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Large Enterprises
Customer Success Platforms Market Industry Vertical Outlook
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Healthcare
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Financial Services
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Manufacturing
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Technology
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Retail and E-Commerce
Customer Success Platforms Market Functionality Outlook
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Customer Onboarding and Provisioning
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Customer Retention and Engagement
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Customer Support and Resolution
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Customer Success Measurement and Reporting
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Product Usage Analysis
Customer Success Platforms Market End-User Interaction Outlook
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Employees
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Customers
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Partners
Customer Success Platforms Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
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Report Attribute/Metric
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Details
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Market Size 2022
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3.16 (USD Billion)
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Market Size 2023
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3.63 (USD Billion)
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Market Size 2032
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12.4 (USD Billion)
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Compound Annual Growth Rate (CAGR)
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14.64% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Gainsight, SurveySparrow, SAP, Salesforce, Walkme, Microsoft, Zohoc, Tota, Oracle (CX), Zendesk, Qualtrics, Useriq, Churnzero, SuccessFactors
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Segments Covered
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Deployment Type, Organization Size, Industry Vertical, Functionality, End-User Interaction, Regional
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Key Market Opportunities
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Adoption of AI for predictive analyticsExpansion into emerging marketsIntegration with CRM systemsFocus on customer retention.Personalized customer experiences
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Key Market Dynamics
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Rising demand for improved customer experienceGrowing adoption of cloud-based solutionsIncreasing focus on customer retentionAdvancements in artificial intelligence and machine learningCompetitive landscape with emerging vendors
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Customer Success Platforms Market is expected to reach a valuation of USD 3.63 Billion in 2023 and is projected to grow to USD 12.4 Billion by 2032, exhibiting a CAGR of 14.64% during the forecast period.
North America is currently the largest regional market for customer success platforms, accounting for over 40% of the market share. However, the Asia-Pacific region is expected to witness the highest growth rate over the forecast period, driven by increasing adoption in emerging economies such as India and China.
Customer success platforms are primarily used to improve customer onboarding, engagement, and retention. They offer a range of features that help businesses track customer health, identify at-risk customers, and provide personalized support.
Key players in the Customer Success Platforms Market include Salesforce, SAP, Oracle, Adobe, Gainsight, Totango, ChurnZero, and Zendesk.
The growth of the Customer Success Platforms Market is primarily driven by the increasing adoption of cloud-based solutions, the need to improve customer retention, and the growing focus on customer experience.
Challenges faced by the Customer Success Platforms Market include the lack of standardization, the need for skilled professionals, and the integration with legacy systems.
Future trends expected to shape the Customer Success Platforms Market include the adoption of AI and machine learning, the integration of customer data platforms, and the rise of self-service portals.
The Customer Success Platforms Market is expected to grow at a CAGR of 14.64% over the forecast period from 2024 to 2032.
Key strategies adopted by players in the Customer Success Platforms Market include product innovation, partnerships, and acquisitions.
The COVID-19 pandemic had a positive impact on the Customer Success Platforms Market. The shift to remote work and the increased focus on customer retention led to increased adoption of customer success platforms.
