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.
North
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.
Growth
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.
Competitive
Landscape:
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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