The size of the global market for customer experience management was estimated at USD 6.5 billion in 2020 and by 2027 USD 17.5 billion with CAGR of 17.7 per cent is forecast from 2020 to 2027. The that demand from consumers across various industries for personalised experience is one of the main trends in the market growth. In order to reach and surpass consumer standards, customer experience management reflects changing sets of strategies and technologies to allow a continuous transition within organisations. The value of customer experience management has been recognised by business organisations as it helps companies increase their brand identity, enhance consumer loyalty, reduce consumer turnover, and in turn raise business profits.
Driver: CEM solutions help to minimise churn rates for customers. Churn rate is the average percentage rate at which consumers cease to purchase a product or subscribe to a service. Bad customer service is one of the big reasons why consumers are rising their churn rate. Organizations can measure the consumer churn rate for a given time span, such as quarterly or annually, with the aid of CEM solutions. CEM solution vendors deliver a wide range of solutions and services that enable the management of customer profiles and queries about their requirements. They also provide real-time customer tracking and their behaviour. Both of these offerings help to attract clients, as well as reach unexplored markets. Organizations concentrate on long-term market growth and through positive word of mouth boost their consumer base. To avoid customer churn rates, companies need to understand customer needs and work on fulfilling these needs.
Restraint: Complexities in data synchronisation. Businesses collect huge amounts of data through a variety of channels to get a better understanding of customer preferences, needs, buying patterns, etc. Enterprises need to improve the speed of integration in the customer feedback process, with consistent growth and complexity of touchpoints. The data is collected from various touchpoints, which differ from each other, and businesses must categorise the data based on customer needs and expectations. One touchpoint data is not similar to the other; therefore, companies cannot combine it, as they have to structure it in different ways. A large number of structured and unstructured databases require substantial resources to analyse it, such as money, time and employees. This creates problems that obstruct customer journey analytics' optimal Return on Investment (ROI).
Challenge: Privacy and data protection problems. The marketing team needs real-time and safe data in today's dynamic environment to offer outstanding CX. The organisations collect and digitally measure the data through multiple touchpoints. Such data, which is used for supporting and interacting, may include a number of data types, such as public information, big data, and small customer data. These data can include approvals, user preferences, and modified product, service, and communication network contact information. The vendors therefore need to ensure high quality data protection in order to retain customer confidence. Cyber-attacks have dramatically increased and become sophisticated. For example, in recent times, cyber criminals have widespread tools to get everything from passwords to secret questions and passwords created with tokens. Marketing and IT departments need to operate together in such circumstances, providing each other with feedback as to where and how the data is obtained, stored, and used in operations.
Vendors of customer experience management adopt tactics such as mergers, acquisitions, and new product development and releases to improve their market position. For example, SAP SE acquired Qualtrics, a customer experience management software provider based in the US, in January 2019. Through the purchase, the former company intends to enhance its XM segment by combining data from the Qualtrics experience with operational data from its applications. In the newly established XM group, both companies aimed to provide productive consumer, brand, product and employee experience to enterprises.
Report : Customer Experience Management Market by Component (By Deployment Type, (on-premises and cloud by deployment type), By Organization Size, (SMEs Large Enterprises) By Vertical, (IT and telecom; banking, financial services, and insurance (BFSI); retail; healthcare; automobile; travel and hospitality; media and entertainment; public sector; and others). By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) And Industry Analysis, Opportunity and Forecast 2020 To 2027.