Investment in customer experience technology is set to soar in the next decade, as organisations seek to increase customer understanding, improve loyalty, reduce churn rate, and meet consumer demand for more personalised experiences.
The Future of Customer Experience Spend
Research by market research and consulting firm Reports and Data has predicted that the customer experience (CX) application market will grow nearly 30% over the next seven years, rising from its current valuation of $6.17 billion today, to a huge $38.5 billion by 2026.
Retail and ecommerce firms are expected to be the biggest investors in CX application suites, which includes technology such as sales and marketing automation, customer support helpdesk, product configuration and reporting and customer analytics software.
North America remains the single biggest geography for such technology, accounting for 38.5% of the total sector due to a well-established, banking, retail and ecommerce customer base.
But Asia Pacific is growing at by far the fastest rate due to rapid urbanisation, industrialisation and digitalisation. The region is forecast to experience a compound annual growth rate (CAGR) of 29.6% between 2019 and 2026, owing largely to the huge potential of untapped consumer markets in China, Japan and India.
A Fragmented Marketplace
The increasing adoption of emerging technologies such as artificial intelligence and the Internet of Things is likewise anticipated to encourage further market growth as the amount of data collected and the number of digital transactions continues to rise, leading to a desire by both private and public sector organisations for appropriate technology to help manage the customer experience more effectively.
The market itself, meanwhile, is currently divided into software, which is by far the biggest chunk at 62% of the total, and services, which is the area growing the most swiftly. The latter is expected to demonstrate a CAGR of 33.8% over the next seven years due to an increasing need by organisations for skills to help them integrate their CX applications with existing systems.
But it is these very integration issues that are expected to dampen growth somewhat in the short-term as a result of the complexities involved in collating data from a wide range of different touch points combined with data security and privacy concerns.
Over the longer term, however, vendors are expected to overcome such challenges and convert them into “an opportunity for the market to thrive upon”, the report says.
Conn3ct is a trusted advisor that draws on over 30 years of knowledge and experience to solve complex communications challenges in three areas: Contact Centres, Unified Communications and Network Services. Our truly vendor-agnostic capability allows us to build completely bespoke solutions for your business. Our exceptional people, innovative processes and proprietary technology are our key differentiators.
Our customers want insight and thought leadership, but their overarching need is innovation that delivers tangible value. Their pain points result from an industry that lacks innovation and flexibility and has traditionally failed to anticipate change. Our long-established record of designing, implementing and commissioning innovative solutions are planned to ensure proven business outcomes.
Conn3ct delivers end-to-end digital transformation by refining the people, processes, and technology required to implement your chosen solution. Whether your organisation needs support with Contact Centres, Unified Communications, or Managed Network Services, we will help to ensure your transformation journey is seamless, cost-effective, and pain-free.