Customer Engagement Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Customer Engagement Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The customer engagement solutions market is anticipated to reach a CAGR of 12.65% during the forecast period (2021 - 2026).

Key Highlights

• With the rapidly increasing internet and smartphone usage, customers easily access information about different products and services across various channels, like the web, social media, and other applications. With the average time spent on mobile phones crossing five hours per day, and the availability of multiple customer touchpoints, like social media, websites, live chats, and phone calls, apart from the in-person assistance, brands are finding many opportunities to engage customers with their brand and generate more revenues.
• Organizations are dealing with this change in customers' behavior by adopting multiple engagement platforms, primarily to automate their processes. The solutions, which include functionalities, such as centralized customer service, multi-channel communication, and customer insights, with analytics support, are gaining traction.
• Vendors in the market are also offering individual solutions for each of the functionalities mentioned above and a unified solution that can address an enterprise's customers' engagement needs. For instance, Calabrio, a US-based customer engagement platform provider, offers Calabrio ONE, which is a unified workforce optimization (WFO) and employee engagement suite. The suite includes quality and workforce management, call recording feature, analytics based on voice-of-the-customer, and advanced-reporting capabilities.
• Large companies have already embraced AI as a part of their digital transformation. For instance, banking service providers like JP Morgan Chase, Bank of America, and Capital One, have already implemented virtual assistants in the form of chatbots and have also successfully streamlined their back-end operations, such as workforce management, thereby saving high costs. IBM, which offers AI solutions for call centers, quoted that bot interactions in the banking industry are expected to hit 90% by 2022.
• The retention of customers is becoming challenging for organizations, such as credit card companies, credit unions and banks, and insurance agencies that cannot offer fixed contracts. In the banking industry, there are multiple options for customers who are no longer limited by their location and can shop around online and choose whichever bank or organization attracts their attention.
• COVID-19 has been one of the most influential worldwide challenges. Customer behavior is rapidly changing, and digital adoption is now a requirement for survival. When the pandemic has passed, sales and service businesses must continue adapting to new attitudes and practices. In the post-crisis world, companies must respond quickly to meet customer expectations. The rules of interaction have altered as the usage of digital channels has increased across the epidemic, and customer expectations for what constitutes basic digital capabilities have shifted. Organizations are now planning for a future-focused digital engagement that accelerates the development of client relationships rather than merely digital transactions.

Key Market TrendsBFSI Industry Have the Significant Market Share

• Customers are rapidly rejecting banking companies that do not understand their demands and do not deliver customized real-time advice. Creating compelling banking experiences throughout the client journey across all channels is now a must.
• India is one of the most rapidly rising Fintech markets, with a digital adoption rate nearly double that of the previous year. The Reserve Bank of India has redirected its focus to the Fintech industry, creating a separate department that would be entirely responsible for Fintech policies. In order to create a "cashless" economy, officials guarantee that safe, secure, and affordable e-payment technologies are always available. Engaging clients and establishing trust is one of the most important components of boosting digital payment with a new twist.
• Digital payment is witnessing extraordinary development due to increased internet usage, and the current epidemic has acted as a catalyst in the process. The rural sector, on the other hand, still prefers cash to digital technologies and relies on local institutions for daily financial needs. Customers want financial institutions and banks to understand their needs and provide a customized solutions for a hassle-free experience in an increasingly fast-paced and digital world. As a result, customer interaction software is in high demand in the banking industry.
• In April 2022 - Gupshup, a pioneer in conversational engagement, announced the acquisition of Active.Ai, a premier conversational AI platform utilized by banks and fintech firms, to improve customer experience solutions for BFSI consumers. Active.Ai, based in Singapore, provides conversational banking as a service (CBaaS) platform to BFSI customers in 43 countries, allowing them to interact with millions of customers each month. With 95% accuracy, Active.Ai has facilitated over 300 million user interactions via voice, video, and text, managed over 30 million service requests, and answered more than 50 million questions.
• BFSI firms of all shades are now adopting a digital-first strategy, ensuring that their customers have a positive experience across all platforms, including video, Facebook Messenger, and WhatsApp. Today, the routes of communication appear to be in place. A robust engagement plan, on the other hand, is what will produce the desired amount of impact. Effective communication is the cornerstone of trust, and it is the bedrock of all successful financial institutions.

North America Holds the Largest Share in Customer Engagement Solutions Market

• Housing most of the solution providers such as IBM Corporation, Microsoft Corporation, Nuance Communications, Oracle Corporation, and Salesforce.com Inc. The North American region is anticipated to be an innovation hub and is also expected to have a significant market share, considering the volume of enterprises undergoing digital transformation.
• Customer engagement solutions have gained universal acceptance across North America, as the region is an early adopter of mobile, social, analytics, and cloud technologies. According to the Google Consumer report, the United States has a well-established infrastructure and boasts of a very high number of active internet users, accounting for about 88.5% of the total population. Out of this population, the age group 18-28 is active on social media, generating significant content. Furthermore, about 80% of the country's population lies in the age group of 30-49, and 64% in the age group of 50-64 is also found to be active across different social media platforms.
• Owing to the high participation of people on different social media, prominent companies, such as Avaya, IBM, and Oracle, have been deploying customer engagement solutions to generate insights and gain a better understanding of consumer behavior, which further guides their business and strategic decision-making.
• Further, in March 2022, TeleSign, a prominent provider of customer identity and engagement solutions, released a new set of HIPAA-compliant solutions to aid healthcare providers in the United States adopt a smart and secure engagement strategy. Providers can use the new TeleSign for Healthcare service to efficiently organize appointments, communicate confidently and anonymously, and adequately safeguard protected health information (PHI) and the systems that handle PHI. TeleSign for Healthcare is highly relevant, as the American patient population is increasingly willing to adopt tailored and secure digital healthcare services.
• Moreover, Canada is witnessing investments in the customer engagemnet solutions market to meet the growing customer demand. For instance, In January 2022, Braze, a customer engagement platform, announced the expansion of its footprint to counties including Canada. The investment in these countries allows the company to deliver localized support for its existing customers in the markets.
• With these series of investments, North America's communications, retail, Healthcare, and manufacturing applications are expected to witness a significant growth rate over the forecast period.

Competitive Landscape

The customer engagement solutions market is fragmented due to the market consists of various new and major vendors with a strong focus on the small and medium enterprises that compete in the large enterprise segment. Some of the major players are Avaya Inc., Aspect Software Inc., Calabrio Inc., Genesys, IBM Corporation, Verint Systems Inc, Nice Systems, Nuance Communications Inc., OpenText Corporation, Oracle Corporation, and Pegasystems Inc., among others.

• May 2022 - Avaya, Inc announced that it had expanded its global partnership with Microsoft Azure to provide organizations with more options to increase their productivity and customer engagement with unrivaled reliability, agility, and scale. The partnership will provide the Avaya OneCloud portfolio on Azure for customers that want maximum flexibility to deploy in a hybrid, public or private cloud environment.
• June 2021 - Calabrio, the customer experience intelligence company, has announced the availability of its cloud workforce engagement management (WEM) platform through a local point of presence in Singapore. The WEM cloud service will help to meet the rising need in Southeast Asia for cloud-first contact center services from local as well as global organizations looking to move into the region.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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