Global Customer Engagement Solutions Market - 2023-2030

Global Customer Engagement Solutions Market - 2023-2030

Market Overview

The global customer engagement solutions market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 11.10% during the forecast period (2023-2030).

Customer engagement is a process that brands can use to maximize their interaction with customers across numerous channels to create and strengthen customer relationships. Customer engagement can be achieved in several ways, including marketing campaigns, new content production & publication on websites and outreach via social media platforms, mobile devices and wearables.

Client engagement is developing as one of the most effective customer retention techniques. It is quickly becoming a critical area for small and large businesses worldwide. With the increased digitization of marketing organizations’ ability to communicate with potential and existing customers through multiple digital channels to establish relationships is becoming increasingly important. It has become critical for competitive advantage.

Market Dynamics

The use of smartphones, laptops and tablets has increased e-commerce and m-commerce services, propelling the market forward. Furthermore, a growing focus on AI investments is another aspect that helps market growth.

The growing investments in AI

Alibaba, BT Global Services, Lexus, Nubank, Uber and Zurich Insurance are among the organizations that use AI technology for chatbots and guide customer analytic skills in customer interaction. Using modern technologies like AI to engage clients at every stage of their journey has always been a key growth strategy for established businesses. These businesses have also discovered that automated AI-based technologies work best when they enhance and extend the capabilities of their customer service teams. As a result, most of the world's most well-known firms heavily invest in AI technology to improve client engagement.

Microsoft purchased Nuance Communications (NUAN), a speech recognition software company with AI tools widely utilized in the healthcare business, in April 2021. Alphabet, Microsoft, Facebook and Amazon are investing heavily in AI. These companies are developing consumer products and services like voice-activated smart home gadgets. Companies are looking into combining human and automated consumer communication channels to improve customer engagement. As a result, growing AI investments generate lucrative development prospects for customer engagement solution developers.

The rising adoption of engagement solutions to reduce customer churn rate

According to HubSpot's 2021 State of Inbound study, more than half of businesses have seen lead generation. Customer happiness will continue to be a major marketing objective in the coming years, as it has been for several years. According to a Harvard Business School study, a 5% improvement in client retention rates resulted in a 25–95 percent boost in earnings. The main reason for the rise in customer churn is poor customer experience. Poor customer experience could be transformed into a positive brand image for the firm with the help of customer engagement solutions.

Customers are engaged through various touchpoints, including social media, surveys, advertising campaigns and direct conversation. Customer analytics, a component of Customer engagement solutions, gives periodic analytical insights into customer attrition rates and enables successful relationship management between businesses and their customers. Client engagement solutions help companies increase customer retention and loyalty.

Synchronization of data between other technologies and customer engagement solutions

Customer data is essential for customer engagement since it facilitates interactions between customers and businesses. Because of the variety of touchpoints in the customer feedback process, firms have collected enormous data about customer behavior and expectations. Organizations confront data synchronization challenges when customer contact centers generate a high volume of data that is not synchronized with other technologies. Data is collected from various touchpoints and organizations must categorize it based on the requirements and expectations of their customers.

Data collected from various touchpoints, such as company websites, the web, mobile phones, social media and emails, varies, making it difficult for businesses to manage information in various formats. When corporate data is not synchronized, customer analytics solutions are ineffective. To evaluate a huge amount of structured and unstructured data, money, time and experience are needed. It causes challenges that prohibit Customer Engagement Solutions from providing the best return on investment (RoI).

COVID-19 Impact Analysis

The COVID-19 outbreak has significantly impacted markets, customer behavior, economies and communities in a short period. In the post-crisis period, sales and service companies will have to continue to accommodate changing attitudes and behaviors and take immediate action to satisfy customer expectations. As the use of digital channels grew throughout the pandemic, the norms of engagement transformed and customer expectations for fundamental digital skills also moved.

The inadequacy of traditional continuity strategies has been revealed by COVID-19. Companies that invested in responsive human and digital workforce skills throughout the crisis fared better than their competitors. COVID-19's disruption of daily life pushed call centers and customer service operations to their limits, especially with a smaller workforce.

Segment Analysis

By end-user, the customer engagement solutions market is segmented into BFSI, healthcare, retail & e-commerce, education, IT & IT services, government and others.

The expanding number of new players in the retail & e-commerce

New firms are emerging among the long-established established players in the retail business to capitalize on the market expansion. To capitalize on the rising popularity of smartphones, new players are embracing an e-commerce business strategy. With e-commerce behemoths like Amazon raking in US$ 71.84 billion in online sales, traditional retailers such as Walmart and Macy's are struggling to stay up. To remain competitive, a few brick-and-mortar businesses are cutting stores worldwide and emphasizing a smaller number of stores. These merchants likewise embrace the internet business platform to diversify their revenue streams and establish an omnichannel presence.

According to a report by Aspect Software, retail is one of the industries with the highest customer churn rate, with bad customer experience being the primary reason for switching brands. In such a competitive retail industry, merchants must focus on new customer acquisition and retention of existing customers. The expanding variety of use cases among market suppliers, from furniture makers to big-box stores, demonstrates retail's strong market share in customer engagement solutions.

Geographical Analysis

The early adoption of cloud-based technologies in North America

Due to U.S.’s early adoption of cloud-based technologies and IoT, North America is expected to see the fastest growth in demand. However, advantages such as a rise in agility & flexibility and the ability to deploy new applications are important. Furthermore, the market for Customer Engagement Solutions in North America is driven by industry giants such as IBM Corporation, Microsoft Corporation, Nuance Communications oracle Corporation and Salesforce.com Inc. Because U.S. was an early adoption of Social, Mobile, Analytics and Cloud (SMAC) technology, customer engagement solutions have acquired widespread acceptability. To take advantage of this potential, collaborations, mergers and acquisitions have occurred across North America.

For example, IBM Corporation has partnered with Performance Bicycle, the nation's largest independent bicycle retailer, to help create personalized customer experiences that extend from online to each brick-and-mortar store. Watson Customer Engagement solutions, which run on the IBM Cloud, help create personalized customer experiences that extend from online to each brick-and-mortar store. Communications, retail, healthcare and manufacturing applications in North America are predicted to increase substantially over the forecast period due to these expenditures.

Competitive Landscape

The customer engagement solutions industry is segmented since it comprises a variety of new and established vendors. They all strongly focus on small and medium businesses competing in the large enterprise segment. Calabrio purchased Teleopti, a workforce management software vendor that is creating a new worldwide standard for the customer experience business, in June 2019. Teleopti's workforce management (WFM) software and Calabrio's customer experience solutions have been combined to build the market-leading, genuine multi-tenant SaaS customer experience intelligence platform. Customers worldwide use Calabrio and Teleopti, including Best Buy, Rabobank, Shopify, Netflix and GE Appliances, a Haier subsidiary.

Major global customer engagement solutions market companies include IBM Corporation, Aspect Software Inc., Calabrio Inc., Verint Systems Inc., Nice Systems, Nuance Communications Inc., OpenText Corporation, Salesforce.com Inc., Pegasystems Inc. and Oracle Corporation.

IBM Corporation

Overview: IBM Corporation is a major American computer manufacturer with a sizable local and international market share. The headquarters of the corporation are in Armonk, New York. In 1911, the Computing-Tabulating-Recording Company merged three smaller businesses that made punch-card tabulators and other office equipment. The company now has over 40,000 active patents, which generate significant revenue.

IT & telecom, healthcare & life sciences, government, automobile, manufacturing, FMCG, chemicals & petroleum, electronics, energy & power, media & entertainment, mining, retail, BFSI, travel & transportation and education are the industries that IBM serves. The corporation operates in over 175 countries across North America, Europe, Asia-Pacific, Middle East & Africa and Latin America.

Product Portfolio: IBM's customer experience and engagement solution for utilities are intended to assist utility businesses in developing targeted, omnichannel analytics-driven programs, products and services that provide a personalized customer experience and strengthen customer relationships dramatically. IBM® Predictive Customer Intelligence is an analytics method that integrates industry-specific predictive analytics and decision support tools. It helps to increase marketing productivity, target the best candidates for new energy programs, increase cross-sell, upsell, loyalty and retention & build a comprehensive and ongoing profile of the energy customer.

Key Development: IBM announced today the debut of new AI and automation capabilities in IBM Watson Assistant, which will make it easier for organizations to build superior customer support experiences across any channel – phone, web, SMS and any messaging platform – in 2021. It includes a new partnership with IntelePeer, a Communications Platform-as-a-Service provider, to set up & test a new voice and agent app that allows for a seamless hand-off to an agent while keeping the conversation's context.

Why Purchase the Report?
• Visualize the composition of the Customer Engagement Solutions market segmentation by component, deployment mode organization size, vertical and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the Customer Engagement Solutions market by analyzing trends and co-development deals.
• Excel data sheet with thousands of Customer Engagement Solutions market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global customer engagement solutions market report would provide access to an approx. 69 market data table, 63 figures and 213 pages.

Target Audience 2022
• Customer Engagement Solutions Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Customer Engagement Solutions Manufacturers