The customer engagement solutions market generated revenue of $18,186.8 million in 2021, and the market size will advance at a CAGR of 10.1% during the forecast period, to reach $43,398.9 million by 2030. This will majorly be due to the rising focus of firms across industries on enhancing customer satisfaction and reducing the churn rate through customer-centric engagement solutions.
The solutions category dominates the market, with a share of 66.2% in 2021. To achieve higher customer conversion and retention rates, along with building more-productive sales teams, companies are investing heavily in customer engagement solutions. CRM software helps with collecting customer data and analyzing the history of customer interactions, to provide better services and build better relationships with customers, in order to ultimately drive sales and revenue.
Moreover, the expectations of customers have evolved dramatically over the last decade, and the bar for customer service standards has risen, in fact, so much that the Federal Government now considers customer experience rather important. For example, in February 2021, Oracle Customer Experience (CX) enhanced its Oracle Marketing, Oracle Sales, and Oracle Service platforms to assist users in accelerating sales cycles, addressing customer inquiries and issues, and developing engaging customer loyalty programs. The enhanced marketing capabilities are intended to help advertisers increase customer engagement, retention, and lifetime value through personalized experiences.
North America is expected to grow the fastest during the forecast period, owing to the existence of major customer engagement solutions market players, who are actively investing in strategic partnerships to deliver customized solutions. For instance, C3.ai, Microsoft, and Adobe are partnering to enhance CRM solutions with AI. This collaboration integrates Adobe Experience Cloud (including Adobe Experience Platform), Microsoft Dynamics 365, and C3.ai’s industry-specific data models, AI models, and connectors, thus creating a comprehensive suite of AI-enabled CRM solutions for each industry for marketing, customer service, and sales.
Key players in the customer engagement solutions market have been involved in product launches to remain competitive. For instance:
Some of the major players in the customer engagement solutions market are Microsoft Corporation, Oracle Corporation, SAP Group, Salesforce, Inc., Nice Ltd., ServiceNow Inc., ChurnZero Inc., Pegasystems Inc., and OpenText Corporation.