Customer Experience Market size was valued at USD 12.28 Billion in 2023 and is projected to reach USD 37.09 Billion by 2030, growing at a CAGR of 17.1% from 2023 to 2030.
Customer Experience Market Overview
The process of developing and responding to consumer contacts in order to meet their expectations is known as customer experience management (CEM). Organizations must constantly change if they are to meet and exceed client expectations. Customer experience management is valuable to businesses because it improves brand awareness, fosters consumer loyalty, reduces churn, and ultimately boosts revenue.
Additionally, it involves a plan that, in order to be successful, requires a variety of technologies and a change in process in order to increase loyalty and advocacy. Customer experience management services have made it easier to retain lost customers and reduce at-risk revenues. The system also makes it possible for business owners to engage their customers as a long-term driver of advancement. CEM significantly reduces the expense of acquiring new customers.
It covers how customers communicate with one another, how they utilize websites, how they react to product installation instructions, how well a product works, and how well all parties—including internal staff and dealers—deliver services. Customer experience management relates to the interactions that customers have with businesses, their staff, products, services, or advertisements. Additionally, the experience is shared throughout the entire business in order to tailor the service provided to the customer through the fusion of customer feedback to enhance the experience quickly and with the highest level of quality using the greatest resources.
One of the main factors anticipated to accelerate the growth of the worldwide customer experience management market is the surge in demand for personalized experiences by consumers across various sectors. Other factors that are anticipated to support the market growth include the cloud and big data analytics technological advancements for managing, designing, and improving end-to-end consumer experience processes as well as the introduction of this solution by various companies to survive in the fierce competition.
Additionally, the market is growing as a result of growing investments in the implementation of cutting-edge marketing technologies that help consumers make cognitive decisions in an effort to enhance customer experience management. Through numerous channels, modern technology is fundamentally altering how customers interact with and respond to brands. Nowadays, consumers use a number of gadgets for product evaluation, research, and purchases.
Customers are now expecting a seamless experience when interacting with businesses across many channels or touchpoints as a result of this disruption in digital technologies. Organizations are increasingly interested in restructuring their customer experience management strategies due to the rise in customer expectations in order to successfully position and reposition their brands and products while keeping consumers as their strategic focus. One of the main trends driving the growth of the customer experience management market is the rising desire for tailored experiences by consumers across all sectors.
The market for customer experience management is expanding as a result of a growing trend in which more money is being invested in customer retention initiatives than in customer acquisition strategies. Additionally, other studies have found that recurring consumers tend to spend more money with a business that charges higher pricing, which promotes greater business expansion. The market’s expansion, however, is anticipated to be constrained in the near future by the requirement to develop a consistent multi-channel brand experience. Other obstacles that can impede market expansion include the high cost and a lack of awareness of technology.
Analytical Tools Outlook (Revenue, USD Million; 2018 – 2030)
- EFM Software
- Speech Analytics
- Text Analytics
- Web Analytics & Content Management
Touch Point Type Outlook (Revenue, USD Million; 2018 – 2030)
- Call Centers
- Social Media Platform
- Web Services
Deployment Outlook (Revenue, USD Million; 2018 – 2030)
End-use Outlook (Revenue, USD Million; 2018 – 2030)
- IT & Telecom
- Government, Energy & Utilities
- Construction, Real Estate & Property Management
- Service Business
Regional Outlook (Revenue, USD Million; 2018 – 2030)
- North America
- Asia Pacific
- New Zealand
- Latin America
In 2021, North America had the highest revenue share of more than 40%. the increase in the use of CEM products and services by a variety of sectors, including banking, retail, and telecommunications, to strengthen their client connections. The surge is being fueled by U.S. and Canadian businesses investing more in digital marketing and platforms.
Customer experience management systems are being used by brands and businesses as a result of the increased consumer propensity to publish reviews and share experiences across digital media. Because of this, businesses spend much on digital media.
As a result of the increasing use of contemporary technology, Asia Pacific is predicted to experience the quickest growth during the projection period. One of the key factors influencing the growth is the increasing usage of IoT-based sensors, devices, and advanced analytics tools by B2C and B2B consumers.
The prevalence of call centers, the rise of social media, and the growing importance of customer satisfaction and customer experience management are all factors in the expansion. Implementing CEM solutions is being heavily prioritized by SMEs in developing nations like India as a part of their initiatives to grow their regional and international operations.
- June 2022: Kyndryl, a top global provider of IT infrastructure services, has teamed up with Oracle to help clients hasten their journey to the cloud by providing managed cloud solutions to companies throughout the world. As a result of the collaboration, Kyndryl would increase its significant experience in collaborating with and supporting clients who utilize Oracle goods and services by becoming an Oracle Cloud Infrastructure (OCI) key delivery partner. Customers have access to security features, continuous high performance, straightforward, predictable pricing, and the knowledge and resources needed to move company workloads to the cloud quickly and effectively.
- BMW Group, one of the top worldwide auto and motorcycle manufacturers, increased its cooperation with Adobe in March 2022 as a part of the digital transformation of its sales and marketing business, according to an announcement from Adobe. BMW Group, which owns the brands BMW, Rolls-Royce, MINI, and BMW Motorrad, is using Adobe Experience Cloud to create personalized digital experiences as it works toward its three-year goal of selling a quarter of all its vehicles online. Using a data-driven, individualized strategy, BMW Group will provide customers with seamless online and offline experiences, including tailored vehicles, doorstep delivery, and custom post-purchase services.
The key players in the Customer Experience Market include
- Avaya Inc.
- Freshworks Inc.
- International Business Machines Corporation
- Medallia Inc.
- Open Text Corporation
- SAP SE
- SAS Institute Inc.
- Service Management Group (SMG)
- Tech Mahindra Limited