Vancouver, Feb. 01, 2024 - The global Customer Experience Management (CEM/CXM) market witnessed a size of USD 10.76 Billion in 2022, with a projected rapid revenue Compound Annual Growth Rate (CAGR) of 12.3% during the forecast period. Key drivers include the escalating deployment of omnichannel CEM solutions and the widespread adoption of Artificial Intelligence (AI) and Augmented Reality (AR) across industries such as retail, IT & telecom, banking, and insurance.
Customer Experience Management focuses on ensuring positive customer encounters at every interaction stage. This involves delivering exceptional customer service, understanding preferences, and facilitating seamless customer-business interactions. The approach enhances customer understanding, increasing the potential for building a loyal customer base.
Positive Customer Experiences Drive Revenue
Customers, willing to pay a premium of approximately 13% to 18% for quality customer experiences, contribute to the rising demand for CEM solutions. A significant 86% of consumers express their willingness to pay extra for an exceptional customer experience.
Lack of Innovation and Evolving Customer Needs
Despite the market growth, challenges include the struggle of customer-focused businesses to innovate. Focusing entirely on customer needs can impede creativity, making it challenging for companies to develop new products. Moreover, continually meeting changing customer demands requires significant resources, posing challenges for smaller organizations.
- Customer Feedback Management: Anticipated to dominate the CEM market, as customer feedback provides valuable insights into satisfaction levels, enabling effective issue resolution and fostering customer loyalty.
- Cloud-Based: Expected to experience a steady revenue growth rate due to its benefits, including customization, enhanced collaboration, and simplified data gathering for analysis.
- Expected to witness the fastest market growth due to an evolving regulatory framework. Notable initiatives, such as Swrve's entry into China, contribute to regional expansion.
- Expected to hold a significant market share, with initiatives like Tata Consultancy Services collaborating with Phoenix Group for digital transformation in the UK.
The global CEM market is fragmented, with major players like Adobe, IBM, Oracle, and SAP accounting for a substantial market share. Key strategies include mergers & acquisitions and strategic agreements to enhance database security.
Note: Market figures are presented in USD Billion.
Disclaimer: This report provides an overview and analysis of the global Customer Experience Management market. The information presented is based on the latest available data as of February 01, 2024.