Customer Success Software Market Research Report: By Deployment Model (On-Premise, Cloud-Based), By Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises), By Industry Vertical (Technology, Healthcare, Financial Services, Retail, Manufacturing), By Functionality (Customer Onboarding, Customer Health Scoring, Customer Relationship Management (CRM) Integration, Customer Analytics and Reporting), By End-User Objective (Customer Retention, Customer Satisfaction, Upselling and Cross-Selling, Product Adoption) and By Region (N

Customer Success Software Market Overview

Customer success software market size was estimated at 4.47 (USD Billion) in 2022.  The customer success software market industry is expected to grow from 5.05 (USD Billion) in 2023 to 15.1 (USD Billion) by 2032. The customer success software market CAGR (growth rate) is expected to be around 12.95% during the forecast period (2024-2032).

Key Customer Success Software Market Trends Highlighted

The Customer Success Software Market is experiencing significant growth, driven by the increasing adoption of cloud-based and subscription-based models for software delivery. The market is expected to witness further expansion in the coming years, as businesses recognize the importance of customer retention and success.

Key drivers include the rising demand for tools and platforms that help organizations track and measure customer progress, automate customer onboarding and engagement processes, and provide insights into customer behavior.

Emerging market trends include the adoption of artificial intelligence (AI) and machine learning (ML) to improve customer success processes, the growing popularity of self-service and customer-led initiatives, and the increasing focus on customer experience management. Opportunities abound for providers that can offer innovative solutions that address the evolving needs of businesses.

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

Customer Success Software Market Drivers

Rising Demand for Improved Customer Experience

The present-day competitive business environment makes companies realize the enhanced importance of providing a superior customer experience to promote growth and encourage customer retention. Existing tools and software dedicated to customer success allow a business to track customer health effectively, identify any risks of churn on time, adequately address the needs of various audience groups, and design appropriate forms of support and intervention.

Overall, data analytics and automation options available to businesses when they use customer success software provide a platform for gaining better insight into the needs of a target population and designing products, services, and support tools that will meet the previously specified needs of customers.

As a result, the demand for customer success software is likely to increase because of companies’ interest in improving customer satisfaction and, consequently, giving customer lifetime value. In particular, the Customer Success Software Market is expected to witness a tremendous increase because of a rise in the demand for a better customer experience.

Growing Complexity of Enterprise Software Solutions

The increasing adoption of complex enterprise software solutions, such as CRM, ERP, and marketing automation platforms, has created a need for specialized software to ensure successful implementation and ongoing support. Customer success software provides the necessary tools and capabilities to help businesses navigate the complexities of these systems, maximizing their value and minimizing disruptions.

By providing real-time visibility into customer usage, identifying potential issues, and facilitating proactive support, customer success software enables businesses to ensure a smooth user experience and achieve their desired business outcomes. The growing complexity of enterprise software solutions is expected to drive the demand for customer success software, as organizations seek to optimize their technology investments and drive business value.

Expansion of SaaS and Cloud-Based Software Adoption

The increasing uptake of SaaS and cloud-based software solutions has influenced how companies offer and access software. Customer success software is ideally perfect for the SaaS and cloud-based businesses since it gives them the flexibility and scalability required in managing a massive and wider customer base. As such, businesses can monitor how customers use their software, track key performance indicators, and offer timely help to customers regardless of the location or device used.

As more businesses continue to adopt SaaS and cloud-based software solutions, this implies that the market for customer success software will grow as more businesses seek to optimize customer experience and increase adoption of their software.

Customer Success Software Market Segment Insights

Customer Success Software Market Deployment Model Insights

The Customer Success Software Market is segmented based on deployment model into on-premise and cloud-based. The cloud-based segment is expected to hold a larger market share over the forecast period due to the increasing adoption of cloud-based solutions by businesses of all sizes.

Cloud-based customer success software offers several advantages over on-premise solutions, such as lower upfront costs, increased flexibility and scalability, and easier access to the latest features and updates. The on-premise segment, on the other hand, is expected to witness a steady growth rate during the forecast period.

On-premise customer success software offers greater control over data and security, making it a more suitable option for businesses with strict compliance requirements. Additionally, on-premise solutions can be customized to meet the specific needs of an organization, which can be an advantage for businesses with unique requirements.

In terms of market size, the Customer Success Software Market is expected to reach a valuation of USD 6.57 billion by 2024, growing at a CAGR of 14.5% over the forecast period. The cloud-based segment is expected to account for a larger share of the market, with a valuation of USD 4.27 billion by 2024, growing at a CAGR of 16.3%.

The on-premise segment is expected to reach a valuation of USD 2.30 billion by 2024, growing at a CAGR of 12.1%. Overall, the Customer Success Software Market is expected to experience significant growth over the forecast period, driven by the increasing adoption of cloud-based solutions and the rising demand for customer success software from businesses of all sizes.

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

Customer Success Software Market Organization Size Insights

The Customer Success Software Market is segmented by organization size into small and medium enterprises (SMEs) and large enterprises. The SME segment is expected to grow at a higher CAGR and account for a larger share of the market in 2023, as increasing numbers of SMEs are adopting customer success software to improve customer retention and customer satisfaction and to drive better customer experience via segmentation and targeting.

The SME segment is anticipated to account for the larger share of the market in 2023, as its CAGR is expected to be higher than the CAGR of the large enterprises segment.The large enterprises segment is also anticipated to expand at a steady CAGR in the forecast period. This is because an increasing number of large enterprises are becoming aware of the benefits of investing in customer success software, as it helps them to retain customers, ensure customer satisfaction, and foster customer loyalty. Furthermore, as organizations look to grow their customer base, the application of customer success software is expected to increase in the coming years.

Customer Success Software Market Vertical Insights

The Customer Success Software Market segmentation by Industry Vertical is expected to grow significantly in the coming years. In 2023, the technology segment held the largest market share of 28.5%, followed by healthcare (22.1%), financial services (19.4%), retail (16.7%), and manufacturing (13.3%).

The technology segment is expected to continue to dominate the market, driven by the increasing adoption of digital technologies and the need for businesses to improve customer retention and satisfaction. The healthcare segment is also expected to grow at a significant rate, as healthcare providers increasingly focus on improving patient outcomes and reducing costs.

The financial services segment is expected to grow steadily, as banks and other financial institutions seek to improve customer relationships and increase revenue. The retail segment is expected to grow at a moderate rate, as retailers focus on improving customer experience and increasing loyalty. The manufacturing segment is expected to grow at a slow rate, as manufacturers focus on improving operational efficiency and reducing costs.

Customer Success Software Market Functionality Insights

The functionality segment of the Customer Success Software Market is expected to witness significant growth in the coming years, driven by the increasing adoption of customer-centric strategies by businesses.

The customer onboarding sub-segment is projected to hold a major share of the market, as businesses seek to improve the onboarding experience for new customers and increase customer retention. The customer health scoring sub-segment is also expected to grow rapidly, as businesses realize the importance of tracking customer health metrics to identify at-risk customers and take proactive measures to prevent churn.

The customer relationship management (CRM) Integration sub-segment is expected to benefit from the growing adoption of CRM systems by businesses, as they seek to gain a 360-degree view of their customers. The Customer Analytics and Reporting sub-segment is also expected to grow, as businesses increasingly rely on data to make informed decisions about their customer success strategies.

Customer Success Software Market End-User Objective Insights

The end-user objective segment plays a crucial role in shaping the Customer Success Software Market revenue, segmentation, data, statistics, and industry. By focusing on strategic end-user objectives, vendors can develop tailored solutions that cater to specific needs and drive market growth.

One of the key end-user objectives is customer retention, which has a significant impact on the market. A study by Gartner highlights that businesses with high customer retention rates experience up to 25% more revenue than those with low retention rates.

Customer success software solutions that automate retention strategies, track customer behavior, and provide early warning signs of churn can help businesses improve their customer retention rates. Customer satisfaction is another critical end-user objective that drives the demand for customer success software.

Satisfied customers are more likely to stay loyal, make repeat purchases, and provide positive reviews. Software solutions that measure customer satisfaction, gather feedback, and facilitate real-time issue resolution can help businesses enhance customer satisfaction levels.

Upselling and cross-selling is also a key end-user objective that contributes to market growth. Customer success software can identify cross-selling and upselling opportunities by analyzing customer purchase history, preferences, and usage patterns. This can help businesses maximize revenue by offering complementary products and services to existing customers. Finally, Product Adoption is an important end-user objective that influences the adoption of customer success software.

Solutions that provide onboarding and training, usage tracking, and feature adoption monitoring can help businesses ensure successful product adoption and drive long-term customer success. By understanding and addressing these end-user objectives, Customer success software vendors can develop innovative solutions that meet the evolving needs of the market and drive industry growth.

Customer Success Software Market Regional Insights

The Customer Success Software Market is segmented into North America, Europe, APAC, South America, and MEA. North America is the largest regional segment, accounting for a significant share of the global market. The region is home to many technology companies and has a high adoption rate of customer success software.

Europe is the second-largest regional segment, followed by APAC. The APAC region is expected to experience the highest growth rate over the forecast period, driven by the increasing adoption of customer success software in emerging economies such as China and India.

South America and MEA are expected to witness steady growth over the forecast period. The Customer Success Software Market is expected to reach a valuation of USD 15.1 billion by 2032, expanding at a CAGR of 12.95% during the forecast period from 2024-2032.

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

Customer Success Software Market Key Players and Competitive Insights

Prominent customer success software providers are operating in a highly competitive environment, and the key players in the industry are constantly evolving their offering or expanding their product portfolio. In this regard, the leading customer success software market players are focusing on the development of new types of tools, data and application of AI technologies.

The development of tools that can accommodate other software used by the companies is of high priority as well, as it allows for a more holistic look at customer engagement, as well as the synergy between the tools used and better business outcomes. The competitive landscape is characterized by strategic partnership, taxes, and mergers, as well as strategic acquisition aimed at the growth of market presence and the extension of the geographical scope.

One of the most prominent companies in the customer success software market is Gainsight. The company has a developed suite, which serves the purpose of customer onboarding, activation, and other functionalities of similar value. Gainsight has invested in the data-driven insight of customer engagement, which has proven to be a successful strategy for the company. The company’s innovation in the customer success software market is promising due to several prestigious awards won for their successful customer success platform.

Totango has also developed tools focused on customer journey mapping, segmentation, and automated workflow alignment. Many businesses have been attracted to Totango’s offer due to their high level of customer success and a low churn rate.

Overall, both Totango and Gainsight were actively developing and aligning their products to the market demand. Both companies developed strategic partnerships with other technology providers, and as a result, both companies are very promising in the customer success software market.

Key Companies in the Customer Success Software Market Include

• Salesforce


• Zendesk


• Oracle


• ChurnZero


• Medallia


• Amplitude


• Tota


• Gainsight


• Mixpanel


• Pendo


• Qualtrics


• WalkMe


• ServiceNow


• SAP


• Heap

Customer Success Software Market Developments

The Customer Success Software Market is anticipated to grow significantly, driven by increasing demand for improved customer retention and engagement. In 2023, the market size was valued at approximately USD 5.05 billion, and it is projected to reach USD 15.1 billion by 2032, exhibiting a CAGR of 12.95%. This growth is attributed to the rising adoption of cloud-based solutions, growing focus on customer experience, and increasing investments in customer success initiatives.

Major players in the market include Salesforce, SAP, Oracle, Totango, and Gainsight. Recent developments include the acquisition of Totango by Salesforce in 2023, highlighting the strategic importance of customer success software in the CRM landscape.

Customer Success Software Market Segmentation Insights

Customer Success Software Market Deployment Model Outlook

• On-Premise


• Cloud-Based

Customer Success Software Market Organization Size Outlook

• Small and Medium Enterprises (SMEs)


• Large Enterprises

Customer Success Software Market Vertical Outlook

• Technology


• Healthcare


• Financial Services


• Retail


• Manufacturing

Customer Success Software Market Functionality Outlook

• Customer Onboarding


• Customer Health Scoring


• Customer Relationship Management (CRM) Integration


• Customer Analytics and Reporting

Customer Success Software Market End-User Objective Outlook

• Customer Retention


• Customer Satisfaction


• Upselling and Cross-Selling


• Product Adoption

Customer Success Software Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa