Global Customer Information System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Customer Information System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Customer Information System (CIS) market was valued at USD 927.3 million in 2020. It is projected to reach USD 1955.8 million by 2026, registering a CAGR of 12.3 % during 2021-2026. The outbreak of COVID-19 prompted organizations across the region to undertake all the necessary steps to ensure the safety of their employees and the community. However, the organizations operating in multiple verticals need to pursue market opportunities, close sales and resolve customer issues despite the pandemic. Also, following the mandate of work from home, companies have increasingly been required to collaborate with their clients in this remote working environment. This has created a positive impact on the studied market, which has been offset by the discontinuation of several projects that had the potential for the deployment of CIS solutions and services. The pandemic highlighted the vitality for companies to move towards remote working environments, which placed focus on organizations embracing collaboration tools and practices to support the virtual workplace. Owing to the pandemic, enterprises are looking to cut costs by reducing their tech spending. However, CIS software, especially its customer relationship management features, emerged as one of the investments for firms, owing to its help with mobile working features embedded as part of various solutions, which became one of the most sought-after features during the pandemic.

Key Highlights

• The growing adoption of Customer Information System (CIS) is driven by the increasing focus on customer satisfaction, with companies moving toward a suite of solutions that can effectively integrate CRM solutions into a dynamic database with user-defined fields. Further, CIS solutions allow companies to seamlessly integrate their unique customer management needs with the software rather than compelling companies to streamline according to the software needs.
• Companies are keen on decreasing customer response times and providing sales personnel with a full history of the customer data and accompanying documents to help them understand the problem better. Central to the customer satisfaction theme, Customer Information Systems equip sales personnel with real-time customer database data, which leads to an enhanced quality of service. The follow-up of issues and queries becomes faster with the integration of CIS solutions as the scope of duplicate data entries is eliminated with direct access to useful customer information.
• The current market trends of vendors offering CIS solutions can be characterized by the increasing integration of information that can be extracted from documents added to the CRM software, which includes the likes of company names and addresses, order numbers, and support issues and their resolution. The CIS systems help with providing analytical support by integrating these documents with related information like proposals, contracts, correspondence, and emails that provide the context for that data.
• The rise in the adoption of cloud and IoT technologies across businesses has created a favorable space for the deployment of a Customer Information System. The deployment can be attributed to the need to monitor large complex data sets and provide customers with retractable solutions within a stipulated amount of time to mitigate the risk of malignant reviews.
• CIS is expected to be at the center of enterprise efforts to increase customer satisfaction in several sectors due to the blurring lines between social media and commerce in the region. The growing penetration of the internet and the growing usage of the internet across different demographics is a prominent factor helping to blur these lines. The retail sector, especially with the rise of e-commerce, is expected to adopt CIS for effective management of the online information available of the customers, which includes purchase history, previous issues, and documented resolution of the same.

Key Market TrendsRetail to Witness Significant Growth

• Information system solutions in the retail sector play a vital role and perform a variety of tasks, including planning, inventory control, budgeting, maintaining customer information and sales targets management, as well as point-of-sale transactions and logistics.
• Consumer information management software analyses data about existing and potential customers to help a firm better understand the client to keep and grow customer relationships. To assist businesses in driving sales and obtaining a better understanding of their customers, customer relationship management systems collect the following information: contact details, personal information, sales history, customer communication, and customer feedback.
• According to a survey shared with Marketing Dive by Arm Treasure Data, as retailers aim to build differentiated omnichannel experiences to match customer expectations, they plan to employ fresh data methods in 2020 that promise to alter how they engage shoppers.
• In 2020, 29% of retailers' customer data strategies prioritized empowering customer experience (CX) teams to build better relationships, followed by 26% who want to create a single view of customers across all touchpoints, 26% who want to improve analytics to unlock the full potential of this data, and 19% who want to adopt new data technology and analytics tools.
• Many consumer-oriented businesses are primarily concerned with adhering to local privacy laws, which may come at the expense of enhancing their entire data management program. Customer data, as well as the process of acquiring and improving that data, is ultimately at the heart of B2C firms. Organizations may better understand consumers' behaviors and target new products and services to specific segments by enhancing the quality and completeness of their customer data, all while achieving and maintaining compliance.
• Organizations must first connect all of their siloed customer systems together with a user ID or a unique set of identifiers to produce advanced customer analytics with loyalty program data. Typically, businesses will retain one group of prospective clients in a sales database, another set of names in marketing, and yet another set of names in a billing and invoicing system.
• To turn the data into meaningful knowledge, the company must link the various systems together by customer and associate both unstructured and structured data — from the loyalty app and any related social media with each individual. A business can establish a comprehensive data management program to incorporate fresh insights for its customers by tying all available actions to a single consumer.

North America is Expected to Hold Major Share

• North America is one of the major adopters of CIS software and is considered to be one of the leading markets for utility and energy analytics. A higher focus on innovations mainly drives the demand in the region through R&D and technology advancement in the developed economies.
• Moreover, the region has a strong foothold of vendors in the market. Some of them include IBM Corporation, Oracle Corporation, and SAP SE, among others.​ The United States plays a crucial role in increasing the demand when compared to Canada. The country has increased demand, especially from oil and gas, refining, and power generation segments.​
• Over the last few years, integrated systems have matured to the point where CIS as a Service (CaaS) has become a reality. The advantages of using CIS as a Service are varied and immediate. The TCO (total cost of ownership) for CaaS, as compared with traditional implementations, is at least 40% lower, and the run cost can be between USD 1 and USD 2 per meter per month, depending on the size and services needed.
• One example is of a municipally owned and operated utility in the Ohio Valley of the US. The utility provides water to about 235,000 accounts. It adopted CaaS and is now planning to offer it in the form of a Service Bureau that allows other water utilities to share the infrastructure.
• In the United States, there is a huge demand for smart metering due to the renewed focus on the reduction of NRW by the utilities. The added advantages of smart billing and leak detection have spurred the installation of smart meters, which is expected to drive the growth of the studied market.
• With metering and newer needs (from smart grids and smart systems, etc.), CIS has become essential to the meter-to-cash (M2C) process, to the creation of new products, and to optimizing supply. Also, CIS can be able to manage the large volume of data generated by AMI (Advanced Metering Infrastructure).
• In the United States, NV Energy was one of the first investor-owned utilities (IOUs) to fully roll out AMI, with its 1,310,000 smart meter deployment. It is one of the few major IOUs working with most of AMI data's potential, according to the American Council for an Energy-Efficient Economy (ACEEE). The widest use is for online home energy audits through Bidgley's enterprise data analytics and non-behavioral demand-side management (DSM) programs.​

Competitive Landscape

The market for the customer information system is moderately fragmented, as few players own a major market share. The major players with a prominent share in the market are focusing on expanding their customer base across regions. These companies are leveraging strategic innovations and collaborative initiatives to increase their market share and increase their profitability.

• JUN 2021- EDAMS Maintenance Management System received a significant upgrade. The new version of EDAMS-MMS is based on the company's EDAMS-CRM engine that provides the flexibility to organizations to define maintenance workflows with any level of complexity. The system is fully web-enabled comes with new features, including standard workflows which can be deactivated, cloned, grouped, or modified to the exact needs. The new version of EDAMS-MMS is fully web-enabled.
• AUG 2021- Itineris announced the integration of UMAX to the ONLINE Utility Exchange, a premier bad-debt elimination tool. This integration was developed in conjunction with the Lansing Board of Water and Light (BWL), allowing UMAX users to eliminate bad debt during the application process. Through its partnership with ONLINE, Itineris now offers an integrated real-time credit risk assessment and Red Flag compliance tool to its users.

Additional Benefits:

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

Companies Mentioned
 
Oracle Corporation
Fluentgrid Limited
IBM Corporation
Wipro Limited
Cayenta CIS
Gentrack Group Limited
SAP SE
Itineris NV
Hydro Comp Enterprises Ltd
Open International LLC

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