Radical ubiquity of smartphones in the past decade has paved numerous new avenues for enterprises to engage customers and entice sales, and almost entirely restructured the customer experience management market. Smartphones enable personalization with mobile marketing tools and location-based services, allows emotional analytics to conclude whether the prospected customer benefitted from the initial interaction, and supports the knowledge management systems – all in real time. In the present scenario, and for a foreseeable future, the onus is on enterprises to leverage the new tools offered by the customer experience management market companies and stay ahead of the curve or trail in the competition. As of 2018, the global customer experience management market valued $8.2 billion and is projected to prosper at a notable compound annual growth rate (CAGR) of 12.7% during the forecast period of 2019 to 2025.
Among multifarious end-use industries that the customer experience management marketplace caters to, the banking, financial services, and insurance (BFSI) is currently the most lucrative segment. The BFSI segment will be exhibiting an above-average CAGR of 14% over the forecast period, driven primarily by the realizations of banking sector giants that a happy customer is an opportunity for lifetime profitability, and their recommendation to fellow friends and family has far greater benefits than the negative perception of a dissatisfied customer.
North America Leading the Global CEM Market
North America dominated the global customer experience management market with a regional share of 36.7% in 2018. The growth of North America is attributed to the increasing demand for the CEM software in the end-user industries, such as telecom, retail, and banking & finance. These end-user sectors provide enhanced and consistent customer experience across various channels. Moreover, with an increase in the adoption of technology, customer experience has become a major reason for operators’ digital transformation. The customer service providers look for customer experience to be a key service as the business organizations in North America understand the importance of their customers. Furthermore, the U.S. based customers are likely to try additional services or products from brands that provide superior customer experience. Furthermore, Walmart in the United States has introduced several digital initiatives to help streamline their customers’ in-store experience. They launched touch-screen, tire-search kiosk, and fun-for-all-ages toy explorer. Along with the sensor-driven smart-life hub to a fast and efficient process known as Walmart Pay. These initiatives help Walmart create a more engaged overall experience for its customers. Thus, the customer experience management market is likely to expect further growth owing to such technological adoption by the companies.
Growth Drivers and Market Trends:
- Robotics Process Automation Gains Importance
Robotic process automation (RPA) supports the business to automate repetitive tasks to decrease costs and increase efficiency. When the machines control the tedious and monotonous tasks, humans have more dedication towards handling uniquely human tasks such as being creative, strategizing, innovating, connecting with customers, and developing the strong customer experience. Additionally, RPA tools are developed software programs to communicate with other digital systems and interpret transactions. These can be customized to exactly what each company needs. Companies use different tools for CEM, Allstate Corporation, an insurance provider company, uses Chatbot called Amelia to interact with their customers.
- Digital Transformation Surpassing Business Problems
The companies are scrambling to become more digital these days as the digital transformation has generated a lot of interest amongst businesses. This has provided a solution in solving the business-related problems. However, some companies are still planning to change their business model and some of them have a completely adopted the innovation with a drastic transformation. This has given success to the companies in handling their customers and providing them with better customer experience. Thus, customer experience management is leaping up at the global level.
The major companies that are dominating the customer experience management market are SAP, Nokia, Oracle Corporation, Tech Mahindra, IBM, Avaya Inc., OpenText, Qualtrics, MaritzCX, and Zendesk. For instance, in April 2019, Centerbridge Partners, a private investment firm, acquired IBM’s marketing technology space. Centerbridge is planning to form a standalone company with a new name and brand identity. The new company will handle all marketing and commerce activities including the customer experience management & analytics and payment gateway. The new acquisition will lead to the next-generation of marketing and customer satisfaction software solutions by investing in AI, giving marketers’ tools to protect customers’ privacy, and growing the marketing eco-system. This latest acquisition is promoting growth for the companies in the customer experience management market.