CEM to enjoy rapid growth for next five years
MarketsandMarkets forecasts the Customer Experience Management Market to grow from $3.77 billion in 2014 to $8.39 billion in 2019. This represents a Compound Annual Growth Rate (CAGR) of 17.3% from 2014 to 2019.
The report has been segmented in such a way that it covers various forms of the market which include simple Customer Experience Management (CEM), Customer Relationship Management (CRM), Social Customer Relationship Management (SCRM), Social Customer Experience Management (SCEM), and Telco Customer Experience Management (Telco CEM).
CEM is a collection of process, which uses a variety of technologies to gather customer feedback, understand their expectations, and improve the overall customer experience through different touch points. The aim of CEM is to change customers from satisfied to loyal and to become promoted thereafter. The CEM market is segmented by type, touch point, organization size, vertical, and region.
CRM is the strategy of managing and nurturing the interactions of a company and its sales force with its clients. The CRM application manages sales activities, marketing as well as customer services, by using data management, business intelligence, and analytical tools.
SCRM is a new concept in CRM that consolidates the power of online customer communities, social media analytics, and traditional CRM systems to foster the customer experience in various stages of customer life cycle.
SCEM is a business strategy that companies will adopt to interact with customers through social media to get their continuous feedback about products and services. It helps to deliver an experience which builds brand loyalty among customers which will provoke them to promote products and services on social media channels.
CEM is garnering increasing popularity mainly driven by the application of tools that are employed for analyzing customer feedback from various touch points, such as company websites, branch, web, mobile, and social media. CEM, as a concept, is gaining widespread adoption, since it enables companies to serve customers efficiently, thereby creating retention, reducing churn, and improving competitive abilities. Previously, several companies had begun to invest heavily on solutions that optimize interactions from the customer's perspective and thereby enhance customer loyalty. The growth of communication media majorly affects customer expectations and behavior, ultimately impacting end user experiences. To understand these experiences and to drive the appropriate insight from the Voice of the Customer (VOC), companies uses analytical tools such as Enterprise Feedback Management (EFM) software, text analytics, web analytics, speech analytics, and other analytics.
The usage of mobile and social media touch points is increasing rapidly for sharing views and ideas. In order to get globally connected, companies must frequently monitor these touch points and follow up with their customers by understanding their needs and wants for improving customer loyalty and experience. In the competitive world, leading companies will be focusing on customer-centric approach rather than company-centric approach. Toward this, enterprises will be adapting newer ways to connect customers with organizations for regular feedback.
The report focuses on the latest trends and advancements in customer experience solutions that provide strategies, process models, and Information Technology (IT) to design, manage, and optimize the end-to-end customer experience processes. The report also includes, market analysis and forecasts across various touch points, types of analytical tools, vertical segments, size of organizations, and geographical regions.
The report also focuses on CEM for Telco providers by taking into consideration aspects of Service Quality Management (SQM), Service Level Agreement (SLA) monitoring, service monitoring, fault management, and performance management with respect to network planning and network management. The Telco CEM market is segmented into five geographical regions, namely North America, South America, Europe, Asia-Pacific, and Middle East and Africa.
Under types of CEM, the Y-o-Y growth rates of text analytics are expected to be the highest throughout the forecast period. Most organizations prefer to have this software as it identifies the general market trend of customer needs, discloses the early warnings, product problems, and customer suggestions for improvement in product lifecycle period that helps to improve customer experience. Thus, this software is extremely crucial for organizations to maintain a competitive edge over others.
MarketsandMarkets expects that the communication service provider vertical will account for the largest market share throughout the forecast period, while CEM in SMBs is expected to account for the fastest growth during the same period.
There are various assumptions that we have taken into consideration for the market sizing and forecasting exercise. A few of global assumptions include political, economic, social, technological, and economic factors. For instance, exchange rates, one of the economic factors, are expected to have a moderate rating of impact on this market.
The report will help the market leaders/new entrants in this market in the following ways:
· This report segments the market on the basis of product type, company size, deployment type, vertical, and region, covering this market comprehensively. The report provides the closest approximations of the revenue numbers for the overall market and the sub-segments. The market numbers are further split across the different verticals and regions.
· This report will help them better understand the competitors and gain more insights to better position their business. There is a separate section on competitive landscape, including competitor ecosystem, mergers and acquisitions, and venture capital funding. Besides, there are company profiles of the top 10 players in this market. In this section, market internals are provided that can put them ahead of the competitors.
· The report helps them understand the pulse of the market. It provides information on key market drivers, restraints, challenges, and opportunities.