The global Customer Experience Management (CEM) market size is expected to grow from US$9.5 billion in 2021 to US$16.9 billion by 2026 (at a Compound Annual Growth Rate of 12.3% during the forecast period), according to the ‘Customer Experience Management Market with COVID-19 Impact’ report, available from Markets & Markets.
It is true to say that CEM has changed the way organizations interact with their employees and customers because it provides insights for day-to-day decision-making, resulting in enhanced operational efficiency, optimized business outcomes, and increased customer satisfaction.
The transformation enables innovation and creativity in a particular domain, rather than simply improving and supporting traditional methods. CEM is rapidly gaining traction as enterprises seek solutions, technologies, and platforms to transform operating processes and business models. For example, online services are now firmly established in the banking and financial sectors, resulting in the proliferation of online activities and websites.
The services component of the industry is expected to record a higher growth rate during the forecast period. The overall services segment has a major influence on the Customer Experience Management Market’s growth, as these services assist end users in reducing overall costs, increasing overall revenues, and improving business performance. With the help of these services, organizations can track, evaluate, and analyze the requirements of their business to make better-informed decisions.
Looking at organization size, large enterprises are expected to hold the largest market size during the forecast period, as compared to SMEs. Large enterprises deploy CEM solutions to enhance their CE and satisfaction. Large enterprises encompass distributed data related to customers scattered across different departments and are, hence, opting for cloud-based CEM solutions to gain valuable insights from this data.
The adoption of CEM solutions helps large enterprises enhance customer interaction and loyalty. Large enterprises are keen on investing in new and latest technologies such as artificial intelligence, big data, and machine learning to automate the customer engagement process.
Looking at deployment modes, Cloud-based service is expected to have a higher growth rate in 2021, compared to on-premises deployment mode. Cloud-based CE solutions are preferred over traditional systems as they are effective and compatible in addressing the rising level of customer expectations. Besides reducing costs associated with upgrading and updating CE solutions, cloud deployments also help organizations integrate technologies to provide a better CE to their customers.
Considering vertical markets, the Healthcare sector is expected to have a higher growth rate from 2021-2026. In the healthcare vertical, consumer expectations and demographics evolve and influence the desire to seek more detailed information about their health.
A great difficulty comes when there is a mismatch between the different communication channels consumers use and the limited ways with which healthcare organizations can interact with customers. Many consumers expect a different experience and set of interactions with their health care providers than they have in the past, and this is a fact across age groups and customer segments. If health care providers do not completely use the customer-driven encounters, they can be at a high risk of losing their market share.
And on a regional basis, North America is expected to represent the largest market size in the global Customer Experience Management market during the forecast period. The region constitutes developed economies, such as the US and Canada, which have fairly adopted the latest instruments in domains such as customer data analytics and real-time reporting, besides incorporating advanced technologies such as machine learning and AI; this makes organizations in these economies excel in the Customer Experience Management Marketspace. North America is a front-runner when talking about digital advancement and technology adoption.
According to the report, key and emerging market players in the Customer Experience Management Market include: Adobe, IBM, Oracle, Avaya, Nice (Israel), Nokia (Finland), SAP (Germany), OpenText (Canada), Tech Mahindra (India), Verint Systems, Zendesk, Teradata, Sprinklr, Medallia, InMoment, SAS, Clarabridge, Sitecore, NGDATA (Belgium), Amperity, Mixpanel, Segment.io, ZephyrTel, MindTouch, Algonomy, and SoGoSurvey.