The customer experience management market is estimated to be valued at US$ 9.6 Bn in 2022 and is expected to exhibit a CAGR of 13.46% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Customer experience management (CEM) solutions help companies gather insights about customer needs, emotions, behaviors, and satisfaction levels at each touchpoint across various channels. It enables organizations to deliver improved customer experience and enhances customer retention. CEM solutions offer holistic customer data management, customer analytics, marketing automation and other capabilities.
Increasing focus of companies on customer retention and growing need to understand complex customer journeys are expected to drive the market growth over the forecast period. According to a study, over 50% of customers switch to competitors after just one bad customer experience. Therefore, many companies are adopting CEM to gain a comprehensive view of customers and improve experience at every stage. In addition, rapid digital transformation and growing adoption of cloud and mobile technologies is resulting in generation of large volumes of customer data. CEM solutions help companies harness this customer data to gain deeper insights and drive experiences. However, data privacy regulations pose a challenge for customer data collection and analytics.
The customer experience management market is fragmented in nature with presence of several global and regional players. Key players are focusing on mergers & acquisitions and partnerships to expand their product portfolio and market reach. For instance, in 2021, Sitecore acquired Boxever to strengthen their capabilities in real-time personalization and journey orchestration.
Strength: The customer experience management market has strong revenue and consistent growth prospects. Companies like Adobe Inc. and Oracle Corporation have dominated the market with robust product portfolios and continuous innovation efforts. Their products and platforms provide advanced analytics capabilities, personalized omnichannel experiences and actionable insights to drive business outcomes.
Weakness: Startups and smaller players face difficulties in competing against giant tech companies due to lack of resources. Further, high implementation and maintenance costs of CX solutions pose challenges for SMEs. Data privacy and security also remain key concerns.
Opportunity: Growing digitization and emphasis on enhancing customer experiences across industries offer huge growth avenues. Emerging technologies like AI, machine learning and IoT provide opportunities to develop innovative solutions that deliver hyper-personalized experiences. The COVID-19 pandemic has further accelerated digital transformation initiatives.
Threats: Stiff competition from open source and cheaper alternatives restrict premium pricing. Changing customer expectations and emergence of newdigital trends threaten existing CX strategies. Regulatory changes around data privacy also introduce compliance challenges.
The global Customer Experience Management Market Share is expected to witness high growth, exhibiting a CAGR of 13.46% over the forecast period, due to increasing adoption of CX solutions to enhance customer retention and loyalty. North America dominates the market currently due to presence of major CX vendors and early adoption by enterprises. However, Asia Pacific is expected to offer lucrative opportunities with growing digitization and customer-centric approach of companies in emerging economies.
North America currently holds the largest share in the customer experience management market owing to strong presence of CX solution providers like Oracle, Adobe and Medallia in the US and Canada. Asia Pacific is anticipated to grow at the fastest pace during the forecast period on back of rising digital transformation initiatives across industries coupled with growing consumerism in countries like China, India. Expanding e-commerce and IT industries supplement regional market growth.
Key players operating in the customer experience management market are MaritzCX Research LLC (Inmoment LLC), Adobe Inc., Medallia Inc., Oracle Corporation, Clarabridge, SAP SE, Sitecore, IBM Corporation, Zendesk, Avaya Inc., Open Text Corporation, Verint Systems Inc., and Tech Mahindra. Major players are focusing on regular product innovations and M&A activities to consolidate their market share.