Customer experience management (CEM or CXM) is a method where the organization monitors and analyses the various experiences and points of communication that the customer shares with the brand during the customer journey. The data obtained will assist the companies to guide the design of future interactions in the hope of better serving individual consumer needs. Marketers need to identify and appreciate their customers to offer the superior, customized experience required to fulfill their needs. Some of the objectives of customer experience management understand the user behavior, interacting with every customer, to listen, analyze, and act on the feedback.
One of the main trends driving the market growth is the rising demand for customized experiences across Japan's various industries. To meet and surpass consumer needs, CXM reflects changing sets of strategies and technologies to make a continuous change within organizations. Organizations have taken cognizance of CXM’s value as these solutions allow organizations to improve brand presence, enhance consumer loyalty, minimize customer churn, and in turn increase business revenue.
Developments in big data analytics to help businesses design, manage, and optimize their end-to-end CXM are also expected to drive the market during the forecast period. For instance, Deloitte Touché Tohmatsu Limited provides a 360-degree CX Retail Intelligence, an AI- and ML-based solution for the FMCG and retail industry. Digital transformation has grown beyond the data center and IT infrastructure to encompass CX. For instance, Amazon has already realized CX's importance and launched prime membership, which is a huge success. Of late, artificial intelligence (AI) and machine learning (ML) is employed to enhance CX.
Organizations are currently relying on CEM solutions as one of the key instruments for identifying customer needs and predicting their intentions with the help of data. Knowing customer intent aids an organization in offering a pleasant experience and providing the customer the ability to purchase across the lifecycle of marketing, sales, and service by making the customer feel appreciated.
Also, right data processing helps an organization develop solutions that provide an opportunity to predict consumers who are at risk of quitting or diverting from a product. Companies may use retention tactics, such as discount vouchers or product updates, and propose consumer benefits. To produce concrete outcomes, the enterprise should work in an integrated way together through various roles.
Data are collected through many platforms to obtain a deeper understanding of consumer needs, desires, purchase habits, and so on. Enterprises need to increase integration speed in the customer feedback process with consistent development and sophistication of touchpoints. The information gathered from various touchpoints increases with the intensive use of smartphones, allowing companies to build mobile marketing and communication strategies. This information varies, and companies have to categorize it by consumer needs and preferences.
There is no similarity between one touchpoint data, and other companies do not merge them, so they have to arrange them in different ways. To have excellent and prominent customer service management, businesses are still looking to fetch data faster in their database. This, in turn, leads to the loss of significant resources, such as money, time, and personnel, which are needed to analyze a large number of structured and unstructured databases, creating problems that block the desired market scope for CXM solutions.
The call center segment is expected to witness substantial growth during the forecast period on account of the increasing demand for personal attention in case of customer assistance, issues, and complaints. Enterprises are adopting contact center analytics to deliver the best possible customer service. The ‘State of Independent service Report, 2018’, published by Microsoft corporation stated that the phone/voice channel was the most preferred customer service channel.
Figure 1: Preference for Customer Service Channels
Source: State of Independent service Report, 2018
In November 2019, Nemesysco, a provider of voice analytics technologies and solutions, installed its contact center analytics solutions in CENTRIC, a call center service in Japan, to enhance the customer journey and customers' sales performance. The increasing penetration of the internet and social media also fuels the demand for call centers, as customers prefer voicing their views and grievances on public platforms rather than channels such as email. Moreover, a quick response over voice calls also improves CX and brand image.
The on-premise segment caters to the maximum share but is expected to register moderate growth during the forecast period due to substantial adoption among large enterprises, as they have dedicated servers and computing infrastructures that enable them to purchase only a software license or software copy to operate the platform. This, in turn, enables them to reduce the implementation, total ownership, and other related costs.
On-premise solutions provide enterprises with better management and secure control over their data. For instance, in August 2020, Infosys partnered with Genesys, a global leader in CX, to enhance and expand its CX capabilities, enabling clients of both companies to improve their CX capabilities.
North America is expected to cater to the maximum share in the customer experience management market. The growing adoption of the latest technologies, the presence of key players, and the flourishing industry verticals, such as BFSI, retail, and IT, and Telecom, drive the market growth. As per the 'CISCO Annual Internet Survey, 2018,' by 2023 the number of internet users in the country is estimated to be 92 %of the total population. The study further reports that 75% of the computers connecting to a wired or wireless network will be in the area and the remainder will be mobile-based. In 2016, 66% of the call center organizations were located in the U.S.
The customer experience management market is anticipated to exhibit the fastest growth in Asia-Pacific, owing to the rising adoption of digital technologies. Initiatives such as the Government of India's Digital India project, the Digital Economy Growth Agency by the Government of Thailand, and others have accelerated digitization in these countries.
The growing collaborations to improve digitization in Japan to enhance CX also fuels market growth. For instance, in December 2019, the Japanese government collaborated with Nokia for local 5G to accelerate IoT for Japan's industries by uniquely offering an end-to-end industrial-grade private wireless portfolio. Additionally, the region is home to one of the leading call center service providers Tata Consultancy Services.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|