Customer Experience Management Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Solution and Service), Deployment Mode (On-Premise and Cloud-Based), Organization Size [Small and Medium Enterprises (SMEs) and Large Enterprises], Touchpoint (Call Center, Website, Mobile Application, Email, Social Media, and Others), and Industry Vertical (IT & Telecom, BFSI, Energy & Utilities, Government, Retail, Manufacturing, and Others)
The customer experience management market size is projected to grow from US$ 11,555.18 million in 2022 to US$ 29,780.95 million by 2028; the customer experience management market share is expected to grow at a CAGR of 17.1% from 2022 to 2028.
With the development of e-commerce and digital banking, customers are becoming more open to digital channels. Several retailers have moved from physical stores to digital channels over the decade. For instance, Statista stated that over 2 billion people purchased products and services online in 2020, with global electronic retail sales exceeding US$ 4.5 trillion. As a result, retailers employ AI-enabled virtual rehearsal rooms, chatbots, and surveillance to capture and analyze customer behavior. Brands use multiple channels such as social media, mobile applications, and websites to increase awareness. Such factors are propelling the growth of the customer experience management market. Further, the proliferation of social media channels such as Facebook, Instagram, YouTube, Twitter, and Pinterest drives brand awareness, marketing, and direct purchases. Various brands use social media shops to simplify the customer purchasing process. For example, Facebook and Instagram shops help retailers to attract new customers and shop directly on social media platforms. Consumer experience solutions help these retailers to reduce churn, increase lifetime value, and retain customers. Hence, changing consumer buying behavior is boosting market growth. Furthermore, the digitization of healthcare is accelerating the adoption of e-health applications, telemedicine, smart health devices, and wearable devices. The digitization of healthcare is changing customer expectations for 24/7 service and immediate response. Therefore, companies are adopting different digital strategies to improve the customer experience. Thus, the factors mentioned above are driving the market growth.
According to a global survey of executives, South American business professionals are most enthusiastic about adopting customer experience management tools. The report explores the views of 700 executives on CEM tools and reveals that South American business leaders are among the fastest-growing region regarding technology adoption and future expectations. Hence, such factors prove that the region is set to be the next go-to market for CEM vendors over the forecast period. Companies in South America are progressively boosting the adoption of technology solutions across the region. For instance, in May 2020, New Relic worked with Agencia Sabia, a South American agency, to raise awareness of brand differences and solutions in South America and increase its potential audience. New Relic has decided to take a new step toward localizing and disseminating local stories. It is leveraging Sabiá's support at every step in understanding best practices and interacting with customers to show the difference between solutions through customer experience. Such initiatives are likely to propel the growth of the customer experience management market over the forecast period. The large presence of call centers in countries such as Brazil and Colombia and the growing social media trends such as social e-commerce and D2C are anticipated to propel the market growth over the forecast period, as these businesses rely on the customer feedback experience. Moreover, the continued rise of SMEs in countries such as Chile and Argentina is highly influencing the implementation of CEM solutions to boost regional and global businesses.
The presence of various developing countries in SAM makes this region one of the key markets for CEM. The growing adoption of cloud-based technologies and a huge focus on good customer experience are key factors attributed to the growth of the customer experience management market before the emergence of the COVID-19 pandemic. The pandemic boosted the adoption of CEM solutions due to the rise in internet penetration and the growing need for good customer experiences to gain new customers and increase retention rate. According to World Bank data, the COVID-19 pandemic exposed Brazil to unprecedented health, social, and economic challenges. Furthermore, Brazil witnessed a decline of 4.1% in GDP in 2020, which recovered owing to a rise in economic activities underpinned by private consumption and investment. However, the COVID-19 pandemic disrupted the economic stability of South American countries, which led to slower adoption of CEM software. Thus, 2021 was a recovery year from the pandemic that augmented the growth prospects for the customer experience management market.
The customer experience management market is segmented into component, deployment mode, organization size, touchpoint, industry vertical, and geography. The customer experience management market analysis by component, the customer experience management market is bifurcated into solution and service. The customer experience management market analysis by deployment mode, the customer experience management market is bifurcated into cloud-based and on-premise. Based on organization size, the market is divided into large enterprises and small and medium enterprises (SMEs). Based on touchpoint, the market is segmented into call center, website, mobile applications, email, social media, and others. Based on industry vertical, the market is segmented into IT & telecom, BFSI, energy & utilities, government, retail, manufacturing, and others. By geography, the customer experience management market is categorized into five regions—North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
The overall customer experience management market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the customer experience management market. The process also serves the purpose of obtaining an overview and forecast for the customer experience management market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants—valuation experts, research analysts, and key opinion leaders—specializing in the customer experience management market.
Reason to buy
Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the global customer experience management market.
Highlights key business priorities in order to assist companies to realign their business strategies
The key findings and recommendations highlight crucial progressive industry trends in the global customer experience management market, thereby allowing players across the value chain to develop effective long-term strategies.
Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook