Customer Engagement Solutions Market | Contrive Datum Insights

Market Overview :

Global Customer Engagement Solutions Market size was valued at USD 16.89 Billion in 2022 and is projected to reach USD 48.11 Billion by 2030, growing at a CAGR of 12.34% from 2023 to 2030.

Customer engagement is the way that businesses talk to and connect with their customers. They use different strategies to get more customers and keep the ones they have. Customer engagement options include software that handles personalization in marketing, customer service, webchat, Omni channels, and other things. This answer can be used in a lot of different ways to improve the efficiency of the workforce, build engagement applications, and automate tasks.

Customer engagement solutions are business talks and interactions that use a variety of methods to reach out to new customers and keep the ones they already have. Customer engagement options also include software that handles personalization in marketing, customer service, web chat, omni-channel, and more. This answer can be used in a lot of different ways, including automating tasks, making the most of the people who work for you, and developing applications with your help.

The customer engagement solutions market is growing because more companies are using customer engagement solutions to keep customers and because more people are using e-commerce and m-commerce networks. The market for customer interaction solutions is also driven by the desire to improve customer engagement through omnichannel. But the rise of the customer engagement solutions market is limited by the fact that data has to be synchronized between customer engagement solutions systems, customer engagement solutions, and other technologies. This is because data security and privacy are important. On the other hand, more investment in artificial intelligence (AI) in customer engagement solutions is likely to help the customer engagement solutions market grow over the next few years.

Key Market Updates:

• In May 2022, Avaya, Inc. revealed that it had expanded its global partnership with Microsoft Azure to give organizations more ways to improve productivity and customer engagement with unmatched reliability, agility, and scale. The Avaya OneCloud portfolio will be available on Azure for customers who want the most freedom to install in a hybrid, public, or private cloud environment.
• In June 2021, Calabrio, a company that analyzes customer experiences, said that its cloud Workforce Engagement Management (WEM) tool is now available through its local offices in Singapore. WEM cloud services will help regional and international companies that want to move to Southeast Asia meet the growing demand for cloud-first contact center services.

Significant Market Dynamics:

• Driver:

Increasing customer happiness will be a top marketing goal for the next few years, just as it has been for the last few years. A report from the Harvard Business School says that a 5% increase in customer retention can increase sales by 25% to 95%. One of the main reasons why more customers leave is because of bad customer service. With the help of customer engagement solutions, your business can turn a bad customer experience into a good brand image. Customer engagement is the process of interacting with customers in different ways, such as through social media, surveys, advertising efforts, and face-to-face meetings. Customer analytics, which are part of a customer engagement solution, not only give frequent analytical information about customer churn rates, but they also make sure that a company and its customers have a good relationship. Using solutions for customer interaction helps businesses keep customers and keep them coming back.

• Restraints:

Customer information is an important part of customer involvement because it makes it easier for customers and businesses to talk to each other. Companies have been able to learn a lot about their customers' behavior and expectations because the customer feedback method has so many points of contact. A lot of information is made in customer contact areas. Data synchronization problems happen when this data is not in sync with other systems. Data is taken at different points of contact, and businesses need to divide data into groups based on what customers want and need. Data collected from different touchpoints, like a company's website, web, mobile phone, social media, and email, is different and hard to organize in different ways across companies. It costs money, takes time, and takes knowledge to analyze a lot of organized and unstructured data. This makes it hard to come up with methods for customer engagement that give the best return on investment. (RoI).

• Opportunity: 

Well-known companies like Alibaba, BT Global Services, Lexus, Nubank, Uber, and Zurich Insurance are using AI technology in chatbots and guiding customer analytics skills in the customer engagement process. This shows that a key growth strategy for incumbents has always been to connect with customers at every step of their trip, with the help of new technologies like AI. Also, these companies are finding that AI-powered automatic tools work best when they add to and expand the skills of their customer service teams. As a result, most of the world's biggest brands are putting a lot of money into AI technologies to improve how engaged their customers are. In April 2021, Microsoft bought Nuance Communications (NUAN), a company that makes speech recognition software and whose AI tools are widely used in the healthcare market. Alphabet, Microsoft, Facebook, and Amazon are all spending a lot of money on AI technology. AI is being used by these companies in consumer goods and services, such as smart home devices that can be controlled by voice. Google and Facebook use AI tools in digital ads. Businesses are looking for ways to improve customer engagement by combining employee communication channels with automated customer contact channels. So, the growing investment in AI is making growth chances for customer engagement solution developers that are very good.

• Challenge:

 As web, mobile, cloud, and social media become more popular, organizations are worried about keeping customer data safe. When there are many connections, there is a greater chance that customer data will be seen by people who don't want to see it. Security breaches and hackers must not be able to get to customer info. Since putting in place customer engagement solutions involves handling a lot of unstructured data, one of the biggest challenges to the growth of the customer engagement solutions market is making sure customer data is kept safe.

Market Segments:

By Type:

The cloud segment is anticipated to dominate the global customer engagement solutions market in 2020. Currently, cloud storage is gaining popularity among enterprises. Particularly, the public cloud is anticipated to gain popularity. This could be a result of its lower administrative expenses. An additional factor that is likely to boost the global customer engagement solutions market in the coming years. In 2020, the global market for customer engagement solutions is anticipated to be dominated by North America due to its early adoption of cloud computing and the Internet of Things.

By Application:

Due to the growing prevalence of smartphones and the adoption of an e-commerce business strategy by new market participants, the retail and consumer goods sector is expected to dominate the global customer engagement solutions market in 2020. With Amazon generating USD 71.84 billion in online sales, traditional retailers such as Walmart and Macy's are struggling to compete.

By Organization Size:

Due to SMEs' limited budgets and emphasis on cost-effectiveness, the segment for small and medium-sized businesses is anticipated to dominate the global market for consumer engagement solutions in 2020.

By Region:

During the forecast period, the market for customer engagement solutions in North America is anticipated to experience the highest growth, at a CAGR of 10.5%. The leading software vendors on the continent provide businesses with a variety of customer engagement solutions to resolve end-users' issues in a timely manner. These solutions provide metrics and actionable insights that enhance the overall customer experience, thereby increasing brand loyalty and decreasing customer attrition.

In June of 2020, for instance, Walgreens Boots Alliance Inc. announced an expansion of its strategic partnership with Microsoft and Adobe in order to establish a customer insights platform to provide personalized healthcare and general retail offerings. This personalization platform enables Walgreens to provide patients with a uniquely tailored prescription experience. In addition, Boots will introduce an enhanced beauty experience for its customers by empowering its beauty consultants to make individualized product recommendations.

In addition, North America is a hub for the healthcare, IT & telecom, and energy & utility sectors due to the increasing use of emerging technologies, such as machine learning and industrial automation, which is itself a result of the massive transition toward digital transformation among businesses. North America is also a hub for the healthcare, IT & telecommunications, energy and utilities sectors as business shifts towards digital transformation are driving the increasing use of emerging technologies such as machine learning and industrial automation.

The Asia-Pacific market accounted for the second largest revenue share and is anticipated to record a rapid revenue growth rate as a result of rising investments in the BFSI sector. India is one of the fastest-growing Fintech markets, with digital adoption rates that are more than double what they were in 2020. The Reserve Bank of India (RBI) has shifted its focus to the Fintech industry and created a separate department responsible for Fintech regulations. Officials guarantee that secure and cost-effective e-payment technology will always be available for the development of a "cashless" economy, which is contributing to the revenue growth of the regional market. Due to rising demand for mobile engagement services via SMS, e-mail, and others, the market in the region is experiencing revenue growth. Using a mobile application simplifies interactions, such as greeting users with a pushed notification or assisting. Successful apps use mobile engagement to establish the consumer experience by being attentive and purposeful in their interactions with users.

Europe's market contributed significantly to revenue in 2021. This is attributable to a heightened emphasis on omnichannel consumer engagement.

Scope of Report :

Market Key Players:

Avaya Inc., Aspect Software Inc., Calabrio Inc., Genesys, IBM Corporation, Verint Systems Inc, Nice Systems, Nuance Communications Inc., OpenText Corporation, Oracle Corporation, and Pegasystems Inc., Microsoft, SAP 

• Avaya Inc

Avaya Holdings Corporation, commonly abbreviated as Avaya, is an American multinational technology corporation with headquarters in Durham, North Carolina that provides cloud communications and workstream collaboration services. The company's platform consists of unified communications, contact center, and additional services.

They provide services Unified Communications, Contact Centers, Small & Midsize Business, Cloud Computing, Enterprise, UCaaS, CCaaS, and CPaaS

• SAP 

The German multinational software corporation SAP SE is headquartered in Walldorf, Baden-Württemberg. It develops software for managing business operations and customer relations. The company is the largest enterprise resource planning software provider in the globe.

Their services are ERP, Financials, Business Intelligence, Procurement, HCM, SCM, business, planning, efficiency, sustainability, innovation, analytics, reporting, and dashboarding

• Aspect Software Inc.

Formerly known as Aspect Software, Inc., Alvaria, Inc. is an American multinational software corporation that sells call center and customer experience software technology to large enterprises. Its headquarters are located in Westford, Massachusetts. Flexible, highly scalable, best-of-breed applications for self-service, live contact management and workforce optimization help companies keep agents engaged while providing exceptional customer service experiences. Available on-premises or in your choice of hosted, private or public cloud environment.

Their services are Call Center, Call Center Solutions, Call Center Software, Cloud Call Center, Enterprise Call Center Solutions, Average Speed of Answer, Service Level, Average Time in Queue,  Enterprise Call Center Software, Call Center Workforce Management, Call Center Metrics, 250+ Seats, Omni-Channel Customer Experience Management, Large Call Centers,  Performance Management, Workforce Optimization, Contact Center, First Call Resolution, Occupancy Rate, Average Handle Time, Average Call Abandonment Rate, Customer Satisfaction, Back Office, Workforce Management, IVR Self Service, Quality Management, Customer Care, Cloud Solutions, Customer Service, Hosted Solutions, On Premise Solutions, Average After Call Work Time, Percentage of Calls Blocked, Mobile Customer Care, Call Center Managers, and Customer Engagement Platform.

• Microsoft

Microsoft Corporation is a multinational American technology company based in Redmond, Washington, United States. The Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers are Microsoft's most well-known software products.

Their services are Business Software, Developer Tools, Home & Educational Software, Tablets, Search, Advertising, Machine Learning, Laptops, Mixed Reality, Servers, Cloud Computing, Quantum Computing, Future of Work,  Windows Operating System, Productivity, AI, Windows Applications & Platforms, Smartphones, Artificial Intelligence, Virtual Reality, Gaming, Developers, and IT Professional

• Calabrio Inc.

The company Calabrio provides software solutions. The company develops and markets software applications for call recording, quality management, speech analytics, personnel management, and performance management solutions, in addition to providing planning, implementation, training, and support services.

Market Segmentation

By Type:

• Cloud
• On-Premises

By Component:

• Solution
• Omnichannel
• Workforce optimization
• Robotic process optimization
• Analytics and reporting
• Services
• Professional services
• Integration and deployment services
• Support and maintenance services
• Consulting services
• Managed services

By Application:

• BFSI
• Telecom and IT
• Retail and Consumer Goods
• Media and Entertainment
• Other End-user Industries

By Verticals:

• Banking, Finance services, and Insurance (BFSI)
• Healthcare and Life Sciences
• Telecom and IT
• Automotive
• Transportation and Logistics
• Retail and Consumer Goods
• Media and Entertainment
• Travel and Hospitality
• Other Verticles (energy and utilities, and education)

By Organization Size:

• Small & Medium Enterprises
• Large Enterprise

By Region:

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe

• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Top Impacting Factors

Rise in the use of customer engagement tools to lower the number of customers who leave a business

Customer engagement solutions are becoming more popular, which helps turn a bad customer experience into a good business image for the company and keep more customers. Customer engagement also involves getting customers involved in different ways, such as through social media, surveys, advertising efforts, and face-to-face interactions. For instance, according to HubSpot's study on the state of inbound marketing in 2021, over 50% of companies have seen that generate leads. Also, customer engagement solutions give periodic analytical information about the rate at which customers leave and make sure that organizations and customers can handle their relationships well. Using solutions for customer interaction helps businesses keep customers and make them more loyal. Customer interaction solutions are growing because of these kinds of needs.

E-commerce and M-commerce networks are being used more and more.

E-commerce and m-commerce are being used more and more. The industry is likely to see new ways for the market to grow and new ways to spend in new technologies. Also, e-commerce and m-commerce have changed a lot in the past few years, opening up new ways to use tactics that have already been tried and tested in the U.S. For example, the U.S. Department of Commerce says that in the first quarter of 2022, online sales reached $231.35 billion, which was up just 6.7% from $216.74 billion in the same quarter the year before. That's another slowdown from the 9–10% quarterly growth in e-commerce seen in the second half of 2021. Also, giving customers a great experience is a key part of eCommerce and M-commerce strategies to keep them coming back. For instance, Dentsu will start Merkle Canada in April 2021 to improve its customer experience services. During the pandemic, many end users are using customer interaction solutions to help customers feel emotionally connected to a brand. This, in turn, is driving the growth of the market.

Conclusion :

Customer Engagement refers to the communication and interaction employed by businesses in an effort to expand and retain their customer base. Customer engagement solutions comprise software for managing marketing personalization, customer services, webchat, Omni channels, and others. This solution is highly applicable for workforce optimization, engagement application development, and automation.

The Global Customer Engagement Solutions Market size was valued at USD 16.89 Billion in 2022 and is projected to reach USD 48.11 Billion by 2030, growing at a CAGR of 12.34% from 2023 to 2030.

Customer engagement is the way that businesses talk to and connect with their customers. They use different strategies to get more customers and keep the ones they have. Customer engagement options include software that handles personalization in marketing, customer service, webchat, Omni channels, and other things. This answer can be used in a lot of different ways to improve the efficiency of the workforce, build engagement applications, and automate tasks.