Customer Experience Management Software Market Statistics - 2027
The global customer experience management software market size was valued at $7,571 million in 2019, and is projected to reach $23,835 million by 2027, registering a CAGR of 15.6% from 2020 to 2027. Customer experience management software have been gaining a rapid traction with the growing demand for online business channels, initially by the retail & e-commerce sector, but is also slowly shifting this trend toward the other industrial sectors. In addition, growing preference of adopting operational based solutions (OpEx) over CapEx solutions to seek variable cost model for the computing purpose and offering the solution as per pay-as-use service has strengthened the demand for cloud-based solutions. Now, considering the COVID user behavior where major focus is on online channels, considering both the model of B2B and B2C, has led the software companies to focus on cloud-based CEX solutions that are expected to provide a strong foundation for the overall market growth.
By platform, the global customer experience management software market share was dominated by the mobile app segment in 2019, and is expected to maintain its dominance in the upcoming years. Mobile apps and software are primarily integrated with in built analytics software ranging from ratings & reviews, app sessions, demographics and other factors that would provide a clear idea about the customer needs in present and future.
By deployment type, the global customer experience management software market was dominated by the local (on-premise) segment in 2019, and is expected to maintain its dominance in the upcoming years, owing to rise in concerns about security of data or content associated with media & entertainment projects, which is highly valuable, and encourages companies to adopt local or on-premise solutions. Leading companies in the storage industry such as Adobe Inc., Avaya and Salesforce, provide cloud software for their customers within the various industries.
Within North America, Canada is estimated to achieve a lucrative growth within the market, registering a higher CAGR, primarily backed by following factors and trends that has mandated the need for effective customer experience management system for gaining higher profit margins and long term customer retention factor. Factors that support the market growth within the region are personalized experience and on-demand shopping and growing focus on health and wellness. However, Asia-Pacific is expected to observe highest growth rate during the forecast period, owing to growing adoption of technology by the consumers in enhancing the retail shopping experience. This has alerted the companies in understanding overall customer satisfaction during the purchase and aftermarket process.
The report focuses on the growth prospects, restraints, and customer experience management software analysis. The study provides Porter’s five forces analysis of the internet advertising industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the customer experience management software market trends.
The customer experience management software market is primarily segmented based on component, deployment, platform, industry, and region. Based on component, the market is segmented into software and services, while on the basis of deployment the market is bifurcated into on-premise and cloud. Based on platform, the market is segmented into website, email, voice assistants, mobile app and others. By industry, the market primarily studies retail, BFSI, healthcare, media and entertainment, government sector and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Impact of COVID-19 Pandemic on Customer Experience Management Software Market:
Post COVID-19, size of the customer experience management software market is estimated to grow from $8,617 million in 2020 and projected to reach $23,835 million by 2027, at a CAGR of 15.6%. The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on growth of the customer experience management software market. Social distancing measures has led the business to transition toward the adoption of online channel for optimizing the sales and profit margin. This online consumer behavior has led the companies to adopt analytics and experience management technologies for understanding the ever-changing consumer needs and requirements. This confronting issue has led the users to adopt digital media and technologies, irrespective of their age, linguistic preference or physical challenges.
Service segment is projected as one of the most lucrative segments.
Top impacting factors
Growing popularity of on-demand business model; increasing adoption of omnichannel shopping experience and the need for personalization within the consumer behavior has mandated the companies to adopt strategic initiatives that are expected to boost the overall product sales, thereby creating higher profit margins. However, complexities in integrating electronic data interchange and data synchronization and bias issue within the operational data is estimated to hinder the overall market growth.
On-demand business model that has a primary emphasis on customers to have a colossal impact on the market growth
There has been drastic structural changes over the traditional business structure, giving rise to a new and lucrative concept termed as “On-demand” business model. This business structure primarily focuses on offering direct customer oriented services, thereby fulfilling the customer demands in a short time frame, which results in widening the customer base backed by excellent customer products and services. As these business model operates on higher profit margins coupled with better customer services, the investors are primarily focusing on investing in such firms. For instance, one of the popular cases of such massive funding is the Uber that received a funding of around $8.6 billion till 2016 and Airbnb that raised an amount of around $2.4 billion 2016.
Voice Assistant Platform is projected as one of the most lucrative segments.
From the aforementioned pointers, one thing that has to be noted is that all operational success of these companies wholly depend on the customer oriented needs and services. Thus, gaining an in depth understanding of customer requirements as per the trend variation turns out to be a significant measure. Similarly, gaining total experience about the overall customer interaction with an aim to improve the flaws also becomes important, this scenario elevates the need for customer experience management software. Furthermore, as customers are adopting multiple platforms such as mobile app, websites, chats and various others in gaining such services, there is a need for garnering the customer reviews in a unified platform, thereby alleviating the need for experience management software.
Omnichannel shopping turning out to be a game changer for the market growth structure
Omnichannel shopping structure primarily aims in providing a multi-platform sales approach adopted by the companies in delivering an enhanced shopping experience to the customer, both from online and brick-and-mortar stores. As per the statistics, this shopping model provides a customer retention rate of around 89%, as compared to the retention rate of 33% for the companies with a weak omnichannel strategies. Various well known retail brands including Bed Bath & Beyond, Kohl’s, and DSW has plans to invest around $250 million on omnichannel strategies including click-and-collect, Omni-inventory management, digital marketing, and personalization. Thus, a rapid growth in the adoption of this strategy has encouraged the companies to minutely analyze the operational model, right from presenting the data about the products, buying procedure and aftermarket services, thereby creating an immense demand for experience management software.
Asia-Pacific is projected as one of the most significant region.
Key Benefits For Stakeholders
- This study includes the customer experience management software market analysis, trends, and future estimations to determine imminent investment pockets.
- The report presents information related to key drivers, restraints, and customer experience management software market opportunity.
- The customer experience management software market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in customer experience management software industry.
Customer Experience Management Software Market Report Highlights
By DEPLOYMENT TYPE
Key Market Players
SAS, SAP SE, IBM CORPORATION, NICE LIMITED, ORACLE CORPORATION, ADOBE INC., VERINT SYSTEMS, SALESFORCE, ZENDESK INC., AVAYA.
Customer analysis right from their decision in product choice, comparison of competitors, delivering product and aftermarket support has been the major key pointers in all business model operating within the economy. With the growing influence of online sales and marketing channel not only for the retail & e-commerce sector but also within the colossal manufacturing, healthcare and also in educational one the scope of customer experience has widened creating a high profitable scenario for the market. Additionally, with the emergence of COVID pandemic there has been a major upgradation within the business model, bringing a transition towards the adoption of online working scenario thereby creating the demand for efficient customer analysis, depicting a highly positive correlation within the market structure.
With the strengthening of analytics technology, understanding the scope of customer need and behavior for current and future time period is gaining a rapid traction, thereby reducing the risk of colossal losses. B2B e-commerce has gained a rapid growth, within these COVID scenario, as the companies has shifted to digital sales, giving a fivefold revenue growth. As such scenario is being observed within all the industries, the need for understanding the customer right from platform choice for product/service availability, wide range of personalization and offers has one of the major agenda, putting customer experience management software in the forefront. In October 2020, SAP launched its customer data platform that primarily focuses on integrating data from multiple sources within and outside of a company, including online sources and social channels. This decision primarily signifies the development taken by SAP within the customer experience software and thereby building a leadership in building an intelligent enterprise model.
Growing importance of omnichannel shopping experience and personalization method has been creating a lucrative opportunity for the overall market growth, as it presents a wide range of choice to the customer for gaining an immersive product buying experience, widening the scope of improvements both in terms of performance and appearance. The company Zappos that was acquired by Amazon is known for its excellent customer experience techniques, it immensely focuses on creating an immersive customer experience methods, paying around 75% rate of its repeat customer.
Integration of advanced technologies such as AI and machine learning is set to take the software to a next level, with a deep level understanding of customer behavior and needs, thereby creating a higher profit margins. Voice assistants and facial recognition are gaining a rapid demand, thereby increasing the adoption rate to around 77% on a global basis. With these integration and plugins customer experience management software market is estimated to reach at a newer heights.
Customer experience management software market comprises of large number of players ranging from tier 1 to tier 3 companies, thereby creating a concentrated market scenario with the major players acquiring around 40-50% share. With the demand for such software on the rise, there is an intense competitive rivalry within the market scenario. This competitive scenario is estimated to create a higher innovation within the product portfolio, including the integration of AI, machine learning and analytics based feature that is set to boost the product demand during the forecast period. In March 2018, Nokia has unveiled the latest version of its Cognitive Analytics for Customer Insight software, providing powerful new capabilities so service provider business, IT and engineering organizations can consistently deliver a superior real-time and personalized customer experience.