Customer Success Management Market Size, Share & Trends Analysis Report By Deployment (Cloud, On-Premise), By Size of Organization (Small and Medium Enterprises, Large Enterprises), By End-User Vertical (Healthcare, Retail, BFSI, IT and Telecom, Government, Other End-user Verticals), By Applications (Sales and Marketing Management, Customer Experience Management, Risk and Compliance Management, Other Applications) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global customer success management market was valued at USD 1,817.39 million in 2023. It is expected to reach USD 13,279.64 million in 2032, growing at a CAGR of 24.73% over the forecast period (2024-32). The widespread adoption of subscription-based business models, particularly in Software-as-a-Service (SaaS) and cloud-based industries, has increased the focus on customer success. Customer success management plays a critical role in maximizing customer lifetime value (CLV) and reducing churn in subscription-based businesses.

The customer success platform refers to a new and advanced technology that helps manage some significant business problems with unprecedented success rates by incorporating data from various sources, like websites, social media, email, Customer Relationship Management (CRM) systems, and several third-party websites. Based on multiple requirements, such as customer onboarding, churn analysis, workflow management, and sales and marketing management, leading market suppliers and functions offer these solutions as an extensive independent system or software. Various tools provided by customer success platforms are used to obtain the results that the customer requires. This is done when clients use any form of service or product from a vendor. The customer success platform enables the centralization of all customer data into a searchable 360-degree perspective of the customer. Companies can now gather analytical information to improve and maximize customer service operations by utilizing customer success platforms.

Market Dynamics

Global Customer Success Management Market Drivers

Rapid Adoption of Cloud-based Technology

The capacity of cloud-based solutions to deliver dependable, scalable, flexible, and effective IT administration is driving up demand for them. Small businesses are eager to implement cutting-edge solutions that combine real-time self-service analytics with cloud-based solutions to accelerate market expansion in the shortest amount of time with the least amount of capital expenditure. Cloud-based customer success solutions provide highly scalable tools with simple data storage and access. Accurate customer success prediction is improved by developing cloud-based solutions and speeding up automation. As a result, several crucial issues are resolved, including data collection and reporting, decision-making, and data optimization, giving businesses and Customer Success Managers more insights (CSMs). 

The use of the cloud is increasing, and by 2020, cloud-specific investment is expected to grow at a rate more than six times that of general IT spending. Many large businesses still need to fully reap the rewards of moving most of their business systems to the cloud, despite some having adopted specialist software-as-a-service (SaaS) solutions or selected a cloud-first strategy for new designs. Netflix is one of the most notable examples of such dedication to and investment in cloud-enabled, next-generation infrastructure. It took seven years for the company to convert, rebuilding all of its technology and rearranging its business processes in line with a cloud-native approach. It deconstructed conventional monolithic applications into more manageable, flexible components using application software interfaces (APIs) and then moved those components to AWS.

Global Customer Success Management Market Restraint

Issues in Data Synchronization and Implementation

Data aggregation across channels managed by different departments could be a barrier for dispersed enterprises. Businesses gather a lot of data about consumer behavior and expectations to improve the customer feedback process. Data is generated when businesses and customers connect. When that data is not synchronized with other technologies, organizations find it difficult to synchronize massive amounts of data in a structured fashion. Organizations must classify data by client wants and expectations. Data is obtained from various sources, including company websites, the web, mobile devices, social media, and emails. Businesses find it challenging to combine information because the data they collect must be structured in various ways. Customer success is only possible if company data is coordinated. It takes a lot of time, money, and expertise to analyze a vast amount of organized and unstructured data. It can be challenging to synchronize consumer data from all touch points in a uniform format.

Global Customer Success Management Market Opportunities

Growing Demand for Personalized Customer Experience

.Customer experience is essential to keep customers interested in the business and convert them into brand evangelists. More than just regular visits to the website or store, customer satisfaction is also characterized by favorable brand mentions. This would encourage customer contact with the company, client retention, and client acquisition. Consumer acquisition expenses are six to seven times higher than customer retention costs, according to the White House Office of Consumer Affairs. According to Harvard Business Review, a 5% increase in client retention can increase revenue by 25% to 95%. One of the most crucial tools for determining client requests and foreseeing their intent is CSM systems. Marketers may forecast which customers are about to abandon or switch away from a product using the analytics feature of the service. The marketer could create customer retention strategies and rewards like discount coupons or product improvements.

Regional Analysis

The global customer success management market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the most significant revenue contributor and is expected to grow at a CAGR of 23.83% during the forecast period. Large and medium-sized businesses in the United States increasingly emphasize multichannel services to create a seamless experience for clients across all touchpoint channels. In 2020, the American Customer Happiness Index (ACSI), which tracks customer satisfaction across the country, remained at 76.7% for more than a year, indicating that consumer spending had not changed. Business analytics tools, including text, speech, and sentiment analytics, are being adopted by organizations. Such initiatives are anticipated to assist businesses in understanding the insights from unstructured data obtained from consumer interactions to offer improved digital services. 

Companies like Cisco set operations standards for their product range to guarantee optimal use. The Cisco Advanced Customer Experience (CX) Specialization honors an organization's capacity to assist clients throughout the whole lifespan of Cisco solutions, favorably influencing client success and client experience. The growth of new and old vendors in North America is mainly responsible for the market there. For instance, Carousel Industries offers subscription lifecycle management services in the US. These services include a Customer Success Manager (CSM) who helps users with subscription management, lifecycle requests, needs, and questions.

Europe is expected to grow at a CAGR of 24.06% during the forecast period. Small and medium-sized businesses in Europe, including those in Germany, France, Spain, and the United Kingdom, are responsible for the bulk of job opportunities, driving investment and innovation. Most UK businesses think that GDPR has changed how they manage data. Many firms have put in place data collection, data aging and removal, security measures, and other protocols and guidelines. Others have implemented opt-in strategies or created secure portals for engaging with customers and partners. Businesses solely rely on consumer needs and desires to improve customer experience, which may harm a business's ability to innovate. Companies that prioritize the customer experience can find it challenging to develop new product concepts or enhance existing ones, which would lead to a lack of innovation. Customers may be aware of what they want, but businesses should use research and development to develop ideas that customers may not have thought of. Customer success management is assisting European companies in resolving this problem, fostering market expansion there.

In the Asia-Pacific area, by implementing customer experience and customer relationship management solutions, an increase in customer success has been witnessed. The rapid integration of multichannel touchpoints into a single platform, the rising demand for customer data analysis to derive business insights to boost revenue, and the increasing adoption of digitalization are some of the key drivers propelling the customer success management market. Contact centers now have many new opportunities thanks to digital transformation, and many firms are using customer experience platforms in the Asia-Pacific region. For instance, one of the best airlines in the world, Singapore Airlines, has partnered with Insider to advance its customer satisfaction initiatives this year. Due to Insider's growth management platform, based on the most recent artificial intelligence technology, Singapore Airlines can provide highly personalized, relevant experiences to each individual based on historical, real-time, and predictive data. Small and medium-sized businesses (SMEs) that require technology to provide better and more competent customer care are most prevalent in Asia. SMEs make up around 80% of SAP's clientele and can profit from lessons learned and data to expand into larger companies.

Africa and the Middle East are included in the rest of the world. The customer success management industry in the area is forecast to proliferate over the estimated time frame. The population's high discretionary spending and quick digitalization are the leading causes of this. The organizations mainly use ERP software, which has helped businesses manage all aspects of their operations for many years, from procurement to production to financial reporting, to increase customer success and satisfaction. A new generation of cloud-based ERP solutions that offer considerable advantages to businesses in areas like automation, deployment, and AI-based analytics are gradually replacing traditional ERP systems. In the Middle East and Africa, SMEs are expanding quickly. To offer affordable and practical solutions, larger firms shrink and outsource operations to SMEs. Applications for marketing, sales, and support have increased dramatically for SMEs at the same time. SMEs use CRM and social CRM solutions to manage these tasks. The use of CRM by SMEs is anticipated to drive the industry's growth.

Segmental Analysis

The global customer success management market is segmented by deployment, size of an organization, end-user vertical, and application.

Based on deployment, the global customer success management market is bifurcated into the cloud and on-premise. 

The cloud segment is the highest contributor to the market and is estimated to grow at a CAGR of 26.46% during the forecast period. Applications for a business are hosted remotely on a cloud-based server using virtual technology. Data can be regularly backed up, there are no upfront charges, and companies only pay for the services they use. Since the cloud facilitates simple communication between users and clients, partners, and other organizations from any place, it is especially attractive to firms seeking quick worldwide expansion. Cloud computing allows for quick provisioning everything is already set up. Any updates made to the user environment once a business has subscribed are immediately available for use. Customers may use the solution directly, thanks to instant provisioning, which removes the need for setup and installation time. By automating decisions using a business rules management system, organizations can create and maintain business logic independent of applications and procedures (BRMS). Additionally, businesses may make more accurate decisions and intelligently target each client engagement using cloud servers by utilizing AI and machine learning.

On-premise is widely employed in a variety of business industries. This is because highly regulated businesses frequently utilize on-premise management decision software, and sensitive data cannot be hosted in a public cloud environment. Firms with these restrictions must employ on-premise management decision software because most cloud-based software runs in a public cloud environment. An enterprise must first acquire a license or copy of the program to employ on-premises solutions. When acquired, the software is licensed, and the entire instance is stored on the business's property. In other words, if there are any issues with the program, the business can remedy them using its staff. The drawback of on-premise configurations is that they may incur far higher costs for managing and maintaining the entire solution than in a cloud computing environment. An on-premise solution needs local server hardware, software licensing, integration capabilities, and IT staff to assist and handle potential issues.

Based on the size of organization, the global customer success management market is bifurcated into small and medium enterprises and large enterprises. 

The large enterprise segment owns the highest market and is estimated to grow at a CAGR of 22.19% during the forecast period. For departments and functions that engage with consumers to operate in barriers, large organizations in the market are striving to use customer success management solutions. Additionally, these customer experience management solutions need cross-functional involvement, brand alignment, and a particular set of abilities from staff members solely responsible for providing customer care. To offer consumer experiences, vendors from various sectors, including banking, retail, and government, have embraced an API-led strategy for connectivity. Application programming interfaces (APIs) have been a popular way to quickly extract value from company data, which has increased their importance to enterprises, created new revenue streams, and given them the ability to provide crucial data that enables businesses to make better decisions.

Furthermore, according to a DBS survey, 65% of significant businesses in Asia-Pacific anticipate API access that will serve banks during the anticipated period. Additionally, by employing API analytics systems, several larger organizations' Customer Success Management (CSM) teams actively assist clients in achieving their goals, encouraging them to renew their subscriptions and upgrade contracts. These methods can help CSM staff members recognize and lower customer turnover during economic downturns.

Customer success is one area that is crucial for these organizations' sales goals because small and medium-sized businesses need a deliberate sales approach. More and more companies are anticipating looking for customer success management solutions as the SaaS sector shifts toward a customer-centric business model. Customer success management methods are increasingly important for small and medium-sized businesses to reduce customer turnover and promote growth. These solutions ought to be stand-alone in their attention to gathering client feedback, evaluating that feedback, guaranteeing overall success, and presenting new sales opportunities. Many SMEs are eager to transition from short-term to long-term focus in their customer success solutions. These long-term solutions are made to continue offering assistance and support to get clients up and running as smoothly as possible. SMEs are embracing long-term CS strategies since these solutions can help support sustained growth for the clients, increasing their likelihood to stay.

Based on the end-user vertical, the global customer success management market is bifurcated into healthcare, Retail, BFSI, IT and telecom, government, and other end-user verticals. 

The IT and telecom segment is the highest contributor to the market and is estimated to grow at a CAGR of 26.70% during the forecast period. Cloud-based customer success solutions provide highly scalable tools with simple data storage and access. The introduction of cloud-based solutions accelerates automation and enhances client success prediction accuracy. As a result, numerous essential concerns such as data collecting and reporting, decision-making, and data optimization are addressed, providing enterprises and Customer Success Managers with more significant insights (CSMs). Cloud-based customer success platforms have accelerated the adoption of customer success platforms among small businesses, and this trend is projected to continue as suppliers spend on R&D. 

In addition, organizations can proactively address concerns about real-time optimization and make faster decisions by installing appropriate cloud-based solutions, thereby boosting overall operational efficiency. Enterprise business applications have traditionally been intended to run on bespoke IT systems, with each application requiring its own highly specialized setup of computer storage and network resources. As a result, IT required armies of administrators only to maintain systems up to date and working, add more capacity as demand spiked manually, and apply speedy solutions to low-performance issues.

Based on application, the global customer success management market is bifurcated into sales and marketing management, customer experience management, risk and compliance management, and other applications. 

The sales and marketing management segment owns the highest market and is estimated to grow at a CAGR of 24.30% during the forecast period. Other deals and marketing solutions that allow users to provide highly integrated, tailored, and relevant communications across channels have been in high demand in the market under study. Personalization is improved by using sophisticated customer knowledge in marketing strategies, techniques, and one-on-one encounters. Thus, sales enablement programs have been gaining popularity due to how these features increase average sellers' sales sophistication and success. Sales enablement also aids in facilitating a more seamless, customer-centered selling process.

Customer experience management (CEM or CMX) is a collection of procedures a business uses to monitor, manage, and plan each client interaction with the business during this time. CEM programs usually use the voice of the customer efforts, which gauge how customers feel about their interactions with a company. A customer experience management program will gradually alter the customer experience's problematic elements to correct wrong impressions. For help implementing Oracle CX, a cloud-based customer relationship management platform, Federal has hired Infosys. This will help the Federal, among other things, improve its marketing, sales, and customer experience. The goal is to create a unified dashboard that provides a 360-degree, real-time view of customer portfolios. This "single source of truth" would enable quick access to customer data, increased productivity, and happier customers. These partnerships will boost demand for CEM during the anticipated term.

Recent Developments

• June 2024 - Success4U, Unit4's outcome-based customer success model for clients, officially launched. The service was first introduced in August and currently consists of two parts. Customers who purchase one of Unit4's SaaS solutions, such as Unit4 ERPx, Unit4 FP&A, or Unit4 Financials, get access to Success4U Essentials.
• April 2024 - During its Spring Spotlight platform launch, HubSpot said that the "customer experience is broken." The CRM pioneer said that this reactive approach to CX, in which brands don't communicate with customers until there is a problem, "isn't working." HubSpot introduced the "all-new" Service Hub to upend the current quo.