Customer Engagement Solutions Market

Customer Engagement Solutions Market Snapshot (2022 to 2032)

Newly-released Customer Engagement Solutions Market analysis report by Future Market Insights shows that global sales of the Customer Engagement Solutions Market in 2021 were held at USD 17.4 Billion.

With 10.9% projected growth from 2022 to 2032, the market is expected to reach a valuation of USD 55 Billion by 2032. Revenue through customer engagement services is expected to grow at a CAGR of over 10.8% from 2022 to 2032.

Attributes	Details
Customer Engagement Solutions Market Size (2022)	USD 19.5 Billion
Customer Engagement Solutions Market Size (2032)	USD 55.0 Billion
Customer Engagement Solutions Market CAGR (2022 to 2032)	10.9%
USA Market CAGR (2022 to 2032)	9.7%
Key Companies Covered	Microsoft Corporation; Oracle Corporation; SAP Group; Nice Ltd; ServiceNow Inc; Pegasystems Inc.; Nuance Communications, Inc.; Enghouse Systems; Avaya Inc; Aspect Software Inc; OpenText Corporation

Revenue of Customer Engagement Solutions Market from 2017 to 2021 Compared to Demand Outlook for 2022 to 2032

As per the Global Customer Engagement Solutions Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2017 to 2021, the market value of the Customer Engagement Solutions Market increased at around 10.9% CAGR. With an absolute dollar opportunity of USD 35.5 Billion, the market is projected to reach a valuation of USD 55 Billion by 2032.

Due to the widespread use of the internet, it is projected that the market for customer engagement solutions would grow fast in the forthcoming years. Customer engagement solutions use the internet to reply to consumer inquiries digitally using media such as email, social media, live chat, and messaging programs. According to Internet World Stats, a US-based provider of internet statistics, the number of internet users worldwide climbed from 4.5 Billion in June 2019 to 5.1 Billion in March 2021, with a penetration rate of 65.6%. The typical internet user logs on for 6 hours and 43 minutes per day. Therefore, the increased usage of the internet is driving the demand for client engagement solutions.

The food industry aggressively uses big data to grow and maintain its competitiveness. The growth of the e-commerce industry has increased the availability of data regarding online consumer behavior.

These statistics show that more customer engagement technologies are being adopted by the food and beverage industry. Consumer purchase trends are being examined and researched using data analytics. Businesses employ big data technologies to enhance customer interactions and personalize experiences.

Which Factors Are Propelling Customer Engagement Solutions Demand?

One of the key factors of the higher customer churn rate is poor customer experience. A negative customer experience could become a positive brand image for the business with the help of customer engagement tools.

Interacting with customers directly as well as through a range of touchpoints, such as social media, surveys, marketing campaigns, and direct communication, is known as customer engagement.

Customer analytics, a component of customer engagement solutions, guarantees effective client relationship management while routinely disseminating analytical data on customer attrition rates. By deploying customer engagement technologies, businesses may increase customer loyalty and retention.

According to HubSpot's 2021 State of Inbound study, more than 50% of organizations are using inbound marketing to generate leads. Increasing customer satisfaction will continue to be a key marketing objective, as it has been in recent years. A 5% improvement in client retention rates usually results in a 25-95% gain in revenue, according to a Harvard Business School study.

Owing to the increase in smartphone and internet usage, customers can easily find out information about various products and services through a variety of channels, including the web, social media, and other applications.

Brands have many possibilities to interact with their target audience and boost sales given that consumers use their mobile phones on average for five hours per day and that there are many customer touchpoints, including websites, social media, live chats, phone calls, and in-person help.

Customer service is the key driver for consumer brand loyalty, which results in continued sales for companies across all industries. Around 66% of clients grew their business with at least one company as a result of receiving exceptional customer service. Additionally, 56% of customers are engaged in customer support conversations using AI at least once each week in 2018.

There is software available for managing customer communications and engagement across a variety of touchpoints and channels. As an example, the watchmaker Titan Company develops marketing efforts that are especially targeted at each customer using IBM Watson Customer Engagement technology.

Both distinct solutions for each of the aforementioned functionalities and a combined solution that fits an enterprise's goals for client engagement are offered by suppliers. For instance, the company's main product, Calabrio ONE, is a suite for workforce optimization and employee engagement with US headquarters. In-depth reporting capabilities, quality and workforce management, analytics based on customer’s voice, and call recording functionality are all included in the suite.

Which factors restrain the Growth of the Customer Engagement Solutions Market?

Since it makes it simpler for individuals to interact with organizations, customer information is crucial for promoting customer engagement. Due to the intricacy of the touchpoints in the customer feedback process, businesses have been able to gather a significant amount of data regarding customer expectations and behavior.

Customer contact centers generate significant data, and businesses have trouble syncing it when it is not synchronized with other systems. Businesses are obliged to group the information they collect from different touchpoints according to the wants and expectations of their clients.

Since the data that businesses obtain from various touchpoints, such as company websites, the web, mobile devices, social media, and emails, is diverse, it is difficult for businesses to organize it. Evaluating significant structured and unstructured data requires a large number of resources, including money, time, and expertise. This poses issues that could restrict the possible return on investment for consumer engagement solutions.

Which Region is projected to Offer the Largest Customer Engagement Solutions Market Opportunity?

During the projection period, the Customer Engagement Solutions Market in North America is projected to lead throughout the analysis period. Adobe, Microsoft, and C3.ai, for instance, are working together to improve CRM systems with AI. This collaboration of Adobe Experience Cloud, Microsoft Dynamics 365, C3.ai, and AI models, industry-specific data models, and connectors creates a comprehensive set of AI-enabled CRM solutions for marketing, customer support, and sales in each industry.

Country-wise Analysis

Which Country Lies at the Centerstage for Customer Engagement Solutions Market Revenue?

The USA is expected to account for the highest market of USD 17.2 Billion by the end of 2032. Also, the market in the country is projected to account for an absolute dollar growth of USD 10.9 Billion. The USA was a pioneer in the adoption of Social, Mobile, Analytics, and Cloud technologies, and consumer engagement solutions are now widely used there.

For instance, IBM Corporation and Performance Bicycle, the largest independent bicycle retailer in the country, have partnered to use Watson Customer Engagement solutions, which are hosted on the IBM Cloud, to help create tailored customer experiences that span the business' website and each of its physical stores. It is estimated that the USA would see significant growth in manufacturing, healthcare, retail, and communications applications owing to these expenditures over the forecast period.

Category-wise Insights

Why Customer Engagement Services projected to Witness the Fastest Growth?

Market revenue through customer engagement services is forecasted to grow at a CAGR of over 10.8% from 2022 to 2032. To boost customer conversion and retention rates and build more successful sales teams, businesses are heavily investing in customer engagement technologies.

CRM software helps collect customer data and analyze previous customer interactions in order to enhance customer service and relationships, which will consequently lead to higher sales and revenue.

The federal government currently places a high priority on the customer experience as a result of the changes in customer expectations over the past 10 years, which have raised the bar for customer service standards.

For instance, in February 2021, Oracle Customer Experience made improvements to its Oracle Marketing, Oracle Sales, and Oracle Service platforms to assist users in accelerating sales cycles, resolving customer inquiries and issues, and developing engaging customer loyalty programs. The enhanced marketing capabilities are intended to help companies increase consumer engagement, retention, and lifetime value through personalized experiences.

Competitive Analysis

Players in the market are constantly developing improved analytical solutions as well as extending their product offerings. The companies in the Customer Engagement Solutions market are focused on alliances, technology collaborations, and product launch strategies.

Some of the recent developments of key Customer Engagement Solutions providers are as follows:

• In March 2022, Microsoft's acquisition of Nuance Communications, Inc. with its security-focused, cloud-based products supplemented with robust, vertically targeted AI. Microsoft and Nuance will provide organizations across industries with the tools they need to achieve their goals faster. Customers will gain from the improved consumer, patient, clinician, and employee experiences as well as, eventually, from higher productivity and financial success.
• In July 2021, Salesforce acquired Slack. With this acquisition, Salesforce will be able to offer the Slack-first Customer 360, giving companies a single point of accountability for their operations as well as a platform to connect employees, clients, and partners with one another and the daily-use apps they use, all within their existing workflows.
• In June 2019, a new standard for the customer experience sector is being established with the acquisition of Teleopti by Calabrio. The industry-leading, real multi-tenant SaaS customer experience intelligence platform is created by combining the workforce management software from Teleopti and the customer experience solutions from Calabrio.

Similarly, recent developments related to companies in Customer Engagement Solutions Market have been tracked by the team at Future Market Insights, which are available in the full report.

Customer Engagement Solutions Market Segmentation

By Component:

• Solution
  • Omni Channel
  • Workforce Optimization
  • Others
• Services
  • Managed Services
  • Professional Services

By Deployment Type:

• On-Premises
• Cloud

By Organization Size:

• Small and Medium Enterprises
• Large Enterprises

By Verticals:

• Banking, Financial Services, and Insurance
• Telecom and IT
• Retail and Consumer Goods
• Media and Entertainment
• Education & Training
• Other End-user Industries

By Region:

• North America
• Latin America
• Europe
• Asia-Pacific (APAC)
• Middle East and Africa (MEA)

Frequently Asked Questions

How much is the current worth of the Customer Engagement Solutions Market?

The global Customer Engagement Solutions Market is worth more than USD 19.5 Billion at present.

What is the sales forecast for the Customer Engagement Solutions Market?

The value of the Customer Engagement Solutions Market is projected to increase at a CAGR of around 10.9% from 2022 to 2032.

What was the last 5 year’s market CAGR?

The value of the Customer Engagement Solutions Market increased at a CAGR of around 12.5% from 2017 to 2021.

At what percentage is sales of the Customer Engagement Solutions Market going to register growth in the USA?

The growth of the market for Customer Engagement Solutions in the US is projected to expand at a CAGR of around 9.7% from 2022 to 2032.

At what percentage is sales of the Customer Engagement Solutions Market going to register growth in China?

The growth of market for Customer Engagement Solutions in China is projected to expand at a CAGR of around 11.8% from 2022 to 2032.

What do statistics for South Korea and Japan reveal?

While the market in South Korea is expected to grow at nearly 11.3%, the market in Japan is projected to register a CAGR of nearly 11.7% from 2022 to 2032.