Radical ubiquity of smartphones in the past decade has paved numerous new avenues for enterprises to engage customers and entice sales, and almost entirely restructured the customer experience management market. Smartphones enable personalization with mobile marketing tools and location-based services, allows emotional analytics to conclude whether the prospected customer benefitted from the initial interaction, and supports the knowledge management systems – all in real time. In the present scenario, and for a foreseeable future, the onus is on enterprises to leverage the new tools offered by the customer experience management market companies and stay ahead of the curve or trail in the competition. As of 2018, the global customer experience management market valued $8.2 billion and is projected to prosper at a notable compound annual growth rate (CAGR) of 12.7% during the forecast period of 2019 to 2025.
Among multifarious end-use industries
that the customer experience management marketplace caters to, the banking,
financial services, and insurance (BFSI) is currently the most lucrative
segment. The BFSI segment will be exhibiting an above-average CAGR of 14% over
the forecast period, driven primarily by the realizations of banking sector
giants that a happy customer is an opportunity for lifetime profitability, and
their recommendation to fellow friends and family has far greater benefits than
the negative perception of a dissatisfied customer. In the past year or so,
banks across the world have introduced a number of innovative customer
experience tools –
Erica, AI-powered chatbot by the Bank of America: Launched in March 2019, Erica garnered more than one million users in the first quarter, helping customers search transaction history, deposit or transfer funds, and gain an advance on other financial products offered by the bank. The integration with Bank of America’s financial literacy library helps Erica to seamlessly retrieve resources for customers. The chatbot is capable of understanding voice and text commands.
Bconomy App by BBVA: Over in Spain, Banco Bilbao Vizcaya Argentaria is aspiring to aid customers set goals, save money, and track their progress on a daily or monthly basis. Additionally, the app makes a suggestion on how to save money as well as provides a comparison between daily needs including groceries and utilities. Irrespective of their real-time location, Bconomy is making it easier for BBVA’s customers to track their financial activities and, within the first three weeks of its release, it the app lured half a million users. Such instances from the global players are simultaneously driving the growth of the customer experience management market.
Financial Habits Improved by AI-Powered Virtual Assistant: In 2017, Sberbank of Russia, adopted an AI-based tool, known as Tips to serve its customer by achieving automation. This algorithm offers personal tips that are relevant to the specific bank customers. Tips have been helpful to its users in saving time, efforts and money. In addition to this, Tips is created at the digital assistance intersection such as financial services Mint and Siri. Therefore, the more a customer uses Tips, the better is the recommendations.
Grab+GO, Barclaycard Phone Wallet: Barclaycard in the U.K is using an innovative technology that has transformed the customers’ mobile phone to pocket checkouts, Grab+Go are being used by the shoppers’ to scan and pay for goods. Without having to wait in line, the customers can scan and shop and can pay through the mobile application. This application helps the customers to streamline their shopping and can spend more time doing things that they love. Similar innovations are anticipated from Barclaycard competitors and generate greater demand in the customer experience management market.
Smart Branches Introduced by BMO: Banking industry is evolving as the customers are expecting more from their banks. BMO Harris Bank opened a smart branch recently with a combination of best interactive human and technology devices. The branch now has video teller installed that provide customers with live on-demand interactions with the bankers on the video screen. Additionally, the banks also offer smart ATMs for the customers that give an option for mobile cash withdrawals with using the debit card.
Another prominent factor making BFSI the
most significant application industry of the customer experience management
market is the arrival of a whole new array of competitors such as Amazon Cash,
Paypal, Google Pay, Facebook Messenger P2P, and other mobile money market
players. These non-traditional financial services companies are excellent at
customer ease and experience.
Therefore, digital payments and Revised Payment Service Directive (PSD2) have made its way that is booming the marketplace. This year is considered as the game-changing year for retail banking as many new opportunities such as digital currencies and cryptocurrencies have knocked the doors. Owing to this, PSD2 has introduced new concepts such as open banking, consumers allowed to choose free payment services, and digital payment services. Moreover, digital payment has brought the revolution that is boosting the market. The national and international initiatives that are taken to promote digital payments, need to provide better customer service at POS terminals, and the high rate of smartphone adoption. One such example is the Irish Central Bank that has opened its doors for Facebook to allow the transfer of money in European Union socially without seeking authorizations from the individual member states.
America Leading the Global CEM Market
North America dominated the global customer experience management market with a regional share of 36.7% in 2018. The growth of North America is attributed to the increasing demand for the CEM software in the end-user industries, such as telecom, retail, and banking & finance. These end-user sectors provide enhanced and consistent customer experience across various channels. Moreover, with an increase in the adoption of technology, customer experience has become a major reason for operators’ digital transformation. The customer service providers look for customer experience to be a key service as the business organizations in North America understand the importance of their customers. Furthermore, the U.S. based customers are likely to try additional services or products from brands that provide superior customer experience. Furthermore, Walmart in the United States has introduced several digital initiatives to help streamline their customers’ in-store experience. They launched touch-screen, tire-search kiosk, and fun-for-all-ages toy explorer. Along with the sensor-driven smart-life hub to a fast and efficient process known as Walmart Pay. These initiatives help Walmart create a more engaged overall experience for its customers. Thus, the customer experience management market is likely to expect further growth owing to such technological adoption by the companies.
Drivers and Market Trends:
· Robotics Process Automation Gains Importance
Robotic process automation (RPA) supports the business to automate repetitive tasks to decrease costs and increase efficiency. When the machines control the tedious and monotonous tasks, humans have more dedication towards handling uniquely human tasks such as being creative, strategizing, innovating, connecting with customers, and developing the strong customer experience. Additionally, RPA tools are developed software programs to communicate with other digital systems and interpret transactions. These can be customized to exactly what each company needs. Companies use different tools for CEM, Allstate Corporation, an insurance provider company, uses Chatbot called Amelia to interact with their customers.
· Digital Transformation Surpassing Business Problems
The companies are scrambling to become more digital these days as the digital transformation has generated a lot of interest amongst businesses. This has provided a solution in solving the business-related problems. However, some companies are still planning to change their business model and some of them have a completely adopted the innovation with a drastic transformation. This has given success to the companies in handling their customers and providing them with better customer experience. Thus, customer experience management is leaping up at the global level.
The major companies that are dominating the customer experience management market are SAP, Nokia, Oracle Corporation, Tech Mahindra, IBM, Avaya Inc., OpenText, Qualtrics, MaritzCX, and Zendesk. For instance, in April 2019, Centerbridge Partners, a private investment firm, acquired IBM’s marketing technology space. Centerbridge is planning to form a standalone company with a new name and brand identity. The new company will handle all marketing and commerce activities including the customer experience management & analytics and payment gateway. The new acquisition will lead to the next-generation of marketing and customer satisfaction software solutions by investing in AI, giving marketers’ tools to protect customers’ privacy, and growing the marketing eco-system. This latest acquisition is promoting growth for the companies in the customer experience management market.
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