DUBLIN--(BUSINESS WIRE)--The "Customer Engagement Solutions Market - Growth, Trends, and Forecast (2019 - 2024)" report has been added to ResearchAndMarkets.com's offering.
The customer engagement solutions market was valued at USD 13.78 billion in 2018, and it is expected to reach USD 27.45 billion by 2024, with a CAGR of 12.65%, during the forecast period (2019-2024).
In 2018, 44% of consumers stopped doing business with a company due to bad service, which is a decrease as compared to 54% of consumers in 2017.
With the increasing smartphone and internet usage, customers can easily access information about different products and services across multiple channels, like the web, social media, and other applications. With an average time spent on mobile phones reaching around 5 hours per day and the availability of multiple customer touchpoints, like websites, social media, live chats, phone calls, apart from the in-person assistance, brands find ample opportunity to engage customers with their brand and generate more revenues.
Customer service is the main reason that empowers customers to exhibit brand loyalty, thus bringing continuous revenues to organizations across industries. As per the Aspects Software report, 66% of consumers did more business with at least one company because of good customer service. Moreover, in 2018, 56% of consumers used AI for their customer service interactions at least once a week.
Customer engagement software helps to manage customer communications and interactions throughout a variety of channels and touchpoints. For instance, the watchmaker, Titan Company, has adopted the IBM Watson Customer Engagement solution to design its marketing campaigns, targeted at individual customers.
Vendors in the market are offering individual solutions for each of the functionalities mentioned above and also a unified solution that addresses the customer engagement needs of an enterprise. For instance, Calabrio, a US-based customer engagement platform provider's flagship offering, Calabrio ONE, is a unified workforce optimization (WFO) and employee engagement suite. The suite includes call recording feature, quality and workforce management, analytics based on voice-of-the-customer, and advanced-reporting capabilities.
In addition to the cloud-based solutions, the integration of AI is another trend that is becoming a standard offering by the vendors in the market. According to Pegasystems, a prominent vendor in the market, in 2018, 67% of customer experience leaders that embraced AI believed that it is not only a tool to make the customer experience more efficient, but also to create more meaningful relationships with consumers. However, Data security and privacy issues can hinder the growth of the customer engagement solutions market.
Key Market Trends
Retail & Consumer Goods Industry Have the Significant Market Share
- The retail industry was valued at USD 24.69 billion in 2018 and is estimated to register a CAGR of 7.24% over the forecast period. New players are emerging amid the longstanding established players in the retail market to leverage market growth.
- New players are adopting the e-commerce business model to benefit from the increasing smartphone usage. With e-commerce giants, like Amazon, making USD 71.84 billion in online sales, the brick and mortar retail giants, like Walmart, Macy's, among others, are struggling to keep up. A few of the brick-and-mortar retailers are cutting store locations and focusing on a smaller number of stores for efficiency and flexibility, to sustain the competition. These retailers are also adopting the online business platform for new revenue streams and to create an omnichannel presence.
- According to the study by Aspect Software, retail is among the top industries to have a high customer churn rate, with the main reason for brand switching being poor customer experience. In such a competitive retail market, the need for new customer acquisition and retention of existing customers becomes crucial for retailers.
- The growing number of use cases among the vendors in the market, which include furniture makers, to big-box retailers, indicate the significant market share of retail in the customer engagement solutions market.
North America Holds the Largest Share in the Customer Engagement Solutions Market
- The North American region is projected to experience the largest growth in demand, during the forecast period (2019-2024), due to the early adoption of cloud-based technologies and IoT by the United States. However, benefits, such as improved agility and flexibility as well as being able to deploy new applications, also hold significance.
- Additionally, the market for the Customer Engagement Solutions in North America is predominantly driven by the presence of market leaders, such as IBM Corporation, Microsoft Corporation, Nuance Communications, Oracle Corporation, and Salesforce.com Inc.
- Customer engagement solutions have gained universal acceptance in the United States, as the country was an early adopter of Social, Mobile, Analytics, and Cloud (SMAC) technologies. There have been a series of collaborations and mergers and acquisitions in North America to take advantage of this opportunity.
- For instance, IBM Corporation has partnered with Performance Bicycle, the nation's largest independent bicycle retailer, which is using Watson Customer Engagement solutions, running on the IBM Cloud, to help create personalized customer experiences that extend from online to each of its brick-and-mortar stores.
- With these series of investments, communications, retail, healthcare, and manufacturing applications in North America are expected to witness a significant growth rate, over the forecast period.
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, Pegasystems Inc., among others.
- June 2019 - Calabrio has acquired Teleopti, a workforce management software provider building the new global standard for the customer experience industry. The combination brings Teleopti's workforce management (WFM) software together with Calabrio's customer experience solutions to create the market-leading, true multi-tenant SaaS customer experience intelligence platform. Calabrio and Teleopti bring together customers from across the globe, including Best Buy, Rabobank, Shopify, Netflix, and GE Appliances, a Haier company.
- May 2019 - Verint Systems Inc. has launched the industry's first comprehensive, enterprise-wide view of the voice of the customer, now a cornerstone of its expanding Voice of Customer (VoC) strategy. Tailored to serve the unique needs of CX leaders, Verint Unified VOC* provides a complete view of direct, indirect and inferred VoC from across key customer engagement channels with a powerful, automated analytics engine to deliver actionable insights. These insights empower organizations to prioritize and act upon the CX initiatives that deliver the most significant financial impact.
- Avaya Inc.
- Aspect Software Inc.
- Calabrio Inc.
- IBM Corporation
- Verint Systems Inc.
- Nice Systems
- Nuance Communications Inc.
- OpenText Corporation
- Oracle Corporation
- Pegasystems Inc.
- Salesforce.com Inc.
- SAP SE
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