Customer Experience Management Statistics 2024 By System With Growth

Customer Experience Management Statistics: Customer Experience Management (CXM) is a comprehensive strategy businesses employ to enhance customer interactions across all connections.

Customer Experience Management (CXM) focuses on understanding customer needs. Mapping their journey, personalizing interactions, ensuring consistency across all channels, and engaging employees. It heavily relies on data analysis, customer feedback, and ongoing improvements.

The benefits of CXM include enhanced customer loyalty, a competitive edge, and revenue growth. Although it faces challenges such as data privacy concerns and adapting to changing customer preferences.

Ultimately, CXM aims to deliver outstanding experiences throughout the customer journey, strengthening brand reputation and driving long-term success.

Editor’s Choice

• In 2022, the global customer experience management market had a total value of USD 9,350 million, and it is anticipated to exhibit a robust compound annual growth rate (CAGR) of 15.53% from 2023 to 2032.
• North America emerged as the leading region in 2021, accounting for a significant 41.01% of the revenue share.
• 83% of businesses that focus on customer satisfaction experience higher revenue growth.
• In 2022, 54% of customers used email as their primary digital channel for customer service, making it the most commonly used medium.
• 33% of businesses focus on retaining their existing customers by delivering exceptional experiences to foster loyalty.
• By 2025, approximately 75% of brands plan to integrate AI-based strategies into their sales approaches, reflecting a major shift.
• Companies that prioritize customer-centric operations are 60% more profitable than those that don’t.
• In 2022, 19% of brands saw a decline in customer experience quality, the lowest rate in 17 years.

Global Experience Management Market Overview

• The Loyalty Management Market will grow at a CAGR of 8%.
• In 2022, the global customer experience management market had a total value of USD 9,350 million, and it is anticipated to exhibit a robust compound annual growth rate (CAGR) of 15.53% from 2023 to 2032.
• Analyzing the market by analytical tools, the text analytics segment took the lead in 2021. Holding a significant revenue share of more than 41.2% within the customer experience management sector.
• Regarding touchpoint types, the call center segment constituted a notable portion, contributing 33.01% of the overall revenue 2021.
• Examining deployment methods, the on-premise segment dominated in 2021, accounting for 62.01% of the total revenue.
• Regarding end-use, the IT and telecom sectors held the largest share, exceeding 23.29% in revenue for 2021.
• Geographically, North America emerged as the dominant region, capturing a substantial 41.01% of the revenue share in 2021.

(Source: Market.us)

Customer Satisfaction Statistics

• 83% of businesses that prioritize customer satisfaction also see increased revenue.
• For 73% of consumers, having a positive experience plays a significant role in their loyalty to a brand.
• An overwhelming 96% of customers consider customer service a pivotal factor in their decision to remain loyal to a brand.
• 84% of customers prefer brands that treat them as individuals rather than statistics.
• Among consumers, 68% believe having friendly customer service representatives is a primary factor in creating positive service interactions, while 62% value the staff member’s knowledge and problem-solving abilities.
• A substantial 76% of customers expect companies to have a deep understanding of their unique needs and preferences.

(Source: Forbes, Salesforce)

Communication Channels for Service and Handling

• Customer Relationship Management Software Market size is expected to be USD 174,174.76 million.
• In the past year, 54% of customers utilized email as their primary digital channel for seeking customer service, marking it as the most frequently used medium.
• A significant majority, accounting for 62% of customers, prefer interacting with companies via email for customer service.
• Meanwhile, 48% favor phone use, 42% opt for live chat, and 36% choose “Contact Us” forms.
• Among individuals aged 18-44, over 65% rely on mobile devices to seek customer service on multiple monthly occasions.
• Regarding customer service via social media, 65% of those aged 18-34 view it as an effective channel, while this figure drops to 75% for those aged 55 and above.
• With 79% of American internet users actively present on Facebook, it stands as the most widely used social media platform.
• Approximately 31% of customers report reaching out to companies through Twitter.
• Millennials prefer live chat regarding customer service, ranking it above all other communication channels.

(Source: Forrester, Hubspot, Software Advice, Lyfe Marketing, Microsoft)

Utilization of Various Channels in Customer Experience Management Statistics

• In Customer Experience Management, multiple communication channels are essential for both service teams and customers.
• Email is a dominant channel, with 95% of service teams and 98% of customers actively using it. Phone calls also remain crucial, used by 95% of service teams and 93% of customers.
• In-person interactions are valued by 89% of service teams and 94% of customers, while social media is used by 72% of service teams and 71% of customers.
• Online forms and knowledge bases are used by 68% and 66% of service teams, respectively, with even higher usage by customers at 83% and 82%. Customer portals are utilized by 64% of service teams and 84% of customers.
• Text/SMS is engaged by 63% of service teams and 78% of customers, while messenger apps are used by 55% of service teams and 72% of customers. Online chat/live support is favored by 52% of service teams and 81% of customers.
• Mobile apps are employed by 51% of service teams and 82% of customers, while online communities and discussion forums attract 48% of service teams and 68% of customers. Voice-assisted personal assistants have lower engagement, with 20% of service teams and 54% of customers using them.
• These statistics highlight the diverse communication preferences in Customer Experience Management.

(Source: Help Scout)

Attributes of Customer Experience Management Statistics

• The key attributes that customers value in their overall experience with a business are diverse, with different percentages indicating their significance.
• Notably, fast response times are the most crucial, with 75% of customers emphasizing receiving quick answers and assistance.
• Consistency across various communication channels also holds significant weight, with 55% valuing a seamless and uniform experience.
• Knowledgeable staff members are highly regarded, with 52% considering their expertise crucial.
• Clear, consistent messaging is essential for 46% of customers while having a person to speak with directly matters to 37%.
• Multiple contact points are valued by 28% of customers, and easy-to-use service tools are significant by 23%.
• These attributes collectively contribute to a positive customer experience, demonstrating the multifaceted nature of customer preferences.

(Source: SuperOffice AS)

Reasons Why Businesses Are Investing in Customer Experience

• Businesses have compelling reasons to invest in enhancing their customer experience.
• A significant driver for such investments is the desire to improve cross-selling and up-selling opportunities, with 42% of businesses recognizing the potential for increased sales and revenue generation through a positive customer experience.
• Additionally, focusing on customer retention is crucial, as 33% of businesses aim to retain their existing customer base by providing exceptional experiences that foster loyalty.
• Moreover, 32% of businesses are committed to improving overall customer satisfaction, understanding that satisfied customers are likelier to remain loyal and recommend their products or services to others.
• These reasons underscore the strategic importance of investing in customer experience for business growth and success.

(Source: SuperOffice AS)

Customer Preferences and Priorities

• On average, customers utilize nine different contact points to interact with businesses, with 60% occurring digitally.
• A significant majority, close to 80% of consumers, prefer phone interactions as their primary choice for customer service.
• When it comes to making a purchase, 18% of consumers consider free shipping to be the most crucial factor.
• The ability to seamlessly transition between different communication channels is desired by 73% of consumers.
• 94% of customers regard video support as a positive and valuable experience.
• Over 80% of consumers have shopped across at least three channels within six months.
• Environmental practices play a role in the purchasing decisions of 78% of customers, influencing their choice of which companies to buy from.
• Over the last year, 71% of customers have changed brands on at least one occasion, driven by shifts in priorities, lifestyles, or financial circumstances.

(Source: Salesforce, Calabrio, Loqate, Zendesk, Hubspot, PwC)

Technologies Utilized in Customer Experience Management Statistics

• Looking ahead to 2025, around 75% of brands are expected to integrate AI-based strategies into their sales tactics. Industry leaders overwhelmingly recognize AI’s impact, with 94% acknowledging its potential to enhance customer self-service.
• For customers, 57% prefer digital channels when interacting with companies. In contact centers, 70% of consumers prioritize investing in agent training over adding more channels like chatbots.
• 47% of consumers prefer websites with chatbots, and 48% feel comfortable interacting with automated bots. Additionally, 90% of customers want to engage in interactive conversations within messaging systems to ask questions and seek information.
• Among digital channels, 52% of customers favor chat, and mobile devices account for 66% of these chat interactions, underscoring the importance of mobile-friendly customer service solutions.

More Tech Facts

• The world of messaging channels is satisfactory for most customers, as 67% report contentment with their current customer service experiences.
• Speed is of the essence, with the typical initial response time for chat interactions averaging around 48 seconds.
• Despite being relatively new, Chatbots are making positive impressions, with 64% of consumers reporting satisfaction in their interactions with these automated agents.
• Looking ahead, 89% of consumers aspire to engage in two-way conversations with brands through messaging channels and apps, highlighting the desire for more engaging and interactive experiences.
• The trend toward self-service is rising, as 69% of consumers attempt to address issues independently.
• In response to the evolving landscape, 62% of brands are stepping up their investments in self-service, aligning with the wishes of 81% of consumers who express a strong interest in having more self-service options.
• The adoption of video support has been on a significant upswing, with a notable 47% increase since 2020.

(Source: Forbes)

Experience ROI and Conversion Management Statistics

• Companies that excel in delivering exceptional customer experiences achieve sales growth rates that outpace the market average by 4-8%.
• This heightened success can be attributed to superior customer experiences cultivating stronger customer loyalty, transforming them into enthusiastic advocates with a lifetime value ranging from 6 to 14 times higher.
• The cost dynamics of customer acquisition versus retention can vary significantly by industry, with the expense of acquiring a new customer often ranging from five to twenty-five times higher than retaining an existing one.
• Companies that utilize effective tools such as customer journey maps experience revenue growth of up to 10-15% and reduce their service costs by 15-20%.
• Furthermore, 86% of respondents express a willingness to pay a premium for a positive customer experience.
• Personalization emerges as a key factor, with 80% of respondents indicating a preference for businesses that offer tailored experiences and a striking 90% expressing their desire for personalized interactions.
• Remarkably, even a modest 5% enhancement in customer retention can result in profit growth exceeding 25%.
• The influence of customer experience on purchasing decisions is substantial, with 97% believing that poor experiences negatively affect decisions, while 87% attest that exceptional experiences positively influence choices.

Customer-Centric Experience Management Statistics

• The impact of customer experience extends to impromptu buying behavior, with 49% of shoppers making spontaneous purchases following more personalized experiences. This willingness to pay more for a superior customer experience is underscored by 86% of buyers.
• Research demonstrates that personalization consistently leads to revenue increases, typically ranging from 10 to 15%. However, specific results can span 5 to 25% depending on the industry and the company’s proficiency in leveraging data to enhance customer understanding and engagement.
• Additionally, 43% of all customers are willing to pay extra for enhanced convenience, while an equal 42% are willing to pay a premium for a pleasant and welcoming experience.
• Brands that prioritize delivering superior customer experiences outperform their competitors, generating 5.7 times more revenue.
• It’s worth noting that customer-centric businesses exhibit 60% higher profitability than those that do not prioritize customer-centric approaches.

(Source: Ninetailed)

Key Priorities for Businesses in the Upcoming Years

• In the coming five years, businesses have set their sights on key priorities. With customer experience emerging as the foremost focus, garnering the attention of 45.9% of companies.
• Ensuring a top-notch customer experience is paramount in their strategies.
• Pricing also holds significance, with 20.5% of businesses directing their efforts toward this aspect. Recognizing its importance in the competitive landscape.
• Product development remains a key concern for 33.6% of companies as they strive to innovate and offer compelling offerings to meet evolving customer demands.
• These priorities underscore the business landscape’s commitment to enhancing customer satisfaction, maintaining competitive pricing, and driving innovation in their products and services over the next half-decade.

(Source: Super Office)

Omnichannel & Multichannel Customer Experience Management Statistics

• A majority of individuals, 60%, prefer using email for their service requests, while 58% favor phone communication, 48% opt for live chat, 24% choose SMS/text, and 18% prefer social media for simple service inquiries.
• An outstanding customer experience, as defined by 28% of respondents, includes having multiple communication options. Companies that implement top-tier omnichannel strategies have seen 10% year-on-year growth. A 10% increase in average order value, and a 25% surge in close rates.
• However, only 8% of companies have fully integrated communication channels, with 70% lacking connected channels, limiting their understanding of customer journeys. Additionally, 27% of individuals cite the inability to contact support through their preferred channel as a negative experience.
• Globally, 64% of US and 59% of consumers feel businesses have lost touch with the human aspect of customer service. 71% of Americans prefer interacting with a human representative over automated systems. The desire for seamless engagement across platforms is clear, with 62% of customers wanting to use various digital channels. 77% expect internal teams to collaborate efficiently without requiring customers to repeat information.
• According to PwC research from 2020, the percentage of organizations investing in omnichannel experiences has risen from 20% to over 80%. Highlighting the increasing focus on comprehensive customer engagement strategies.

(Source: Zendesk, Adobe, Dimension Data, Zendesk, PWC, Khoros)

Benefits of Customer Experience Management Statistics

• When businesses prioritize customer satisfaction, 83% also observe an increase in their revenue.
• Brands that provide outstanding customer experiences generate an impressive 5.7 times more revenue than their competitors, who fall short in this aspect.
• For 73% of consumers, having a positive experience is crucial in influencing their brand loyalty.
• Companies that center their operations around customers and prioritize their needs are, in fact, 60% more profitable than those that do not prioritize customers.
• Loyal customers show a strong inclination to make repeat purchases, being five times more likely to do so, and they are also four times more likely to recommend the company to their friends.

(Source: Forbes)

Challenges in Customer Experience Management Statistics

• In 2022, customer experience (CX) quality declined for 19% of brands, the lowest in 17 years. During the same year, only 3% of U.S. companies were truly customer-focused, marking a 7% decrease from the previous year.
• Notably, 39% of consumers showed reduced patience compared to pre-pandemic times, and 54% feel that brands often neglect customer service. Additionally, 49% of customers reported more negative service encounters than the previous year, and 56% believe many companies treat them as numbers without personalization.
• A significant 60% of customers feel disconnected when communicating with businesses. Perceiving interactions with different departments rather than a cohesive entity. Shockingly, 62% of companies do not respond to customer service emails, and only 20% offer comprehensive answers in initial responses.
• Frustration has led to 61% of consumers hanging up during phone conversations with agents. Highlighting the need for businesses to improve customer experiences and communication strategies.

(Source: Forbes)

Recent Developments

Acquisitions and Mergers:

• Qualtrics acquired by Silver Lake and CPP Investments: In 2023, Qualtrics, a leader in customer experience management, was acquired by Silver Lake and CPP Investments in a deal valued at $12.5 billion. This acquisition is expected to accelerate Qualtrics’ growth in CXM technology and expand its presence across industries.
• Medallia acquired by Thoma Bravo: In mid-2023, Medallia, another major player in the CXM market, was acquired by private equity firm Thoma Bravo for $6.4 billion. The acquisition is aimed at leveraging Thoma Bravo’s resources to strengthen Medallia’s AI-powered customer experience platform.

New Product Launches:

• Salesforce’s Service Cloud Voice: In 2024, Salesforce launched Service Cloud Voice, an AI-powered customer experience tool that integrates voice calls with customer service workflows. This product uses natural language processing to analyze conversations and offer real-time recommendations to agents, enhancing customer experience through more personalized service.
• Zendesk’s CXM Platform Updates: In late 2023, Zendesk introduced new features to its CXM platform. Including enhanced omnichannel support and AI-driven customer insights. These updates aim to improve customer engagement across various touchpoints, providing businesses with deeper insights into customer behavior.

Funding:

• Sprinklr raises $150 million for CXM expansion: Sprinklr, a cloud-based CXM provider, secured $150 million in a funding round in 2023 to expand its AI and automation capabilities. The company plans to use the funds to scale its operations and enhance its customer experience solutions, focusing on AI-driven insights.
• Khoros raises $75 million: In early 2024, Khoros, a CXM platform specializing in customer engagement and digital care, raised $75 million in new funding. The investment will be used to further develop its AI-powered platform and expand its market share in customer experience analytics.

Technological Advancements:

• AI-Powered CXM: AI and machine learning are becoming essential in customer experience management. Helping companies predict customer behavior and provide personalized interactions. By 2025, over 50% of companies are expected to use AI-driven CXM platforms to enhance customer engagement and improve service efficiency.
• Omnichannel Integration: The shift towards omnichannel CXM is gaining momentum, allowing businesses to seamlessly manage customer interactions across multiple channels—such as email, social media, and voice. Omnichannel CXM is projected to grow by 15% annually. Customers increasingly expect consistent service across all platforms.

Market Dynamics:

• Growth in the CXM Market: The rapid growth is fueled by increasing demand for personalized customer interactions and the adoption of AI-driven insights in CXM platforms.
• Rising Demand in Retail and E-Commerce: Retail and e-commerce sectors are leading the adoption of CXM solutions. To improve customer loyalty and drive personalized shopping experiences. By 2025, retail and e-commerce are expected to account for over 30% of the CXM market. Reflecting the need for enhanced digital customer engagement in these industries.

Conclusion

Customer Experience Management Statistics – Customer experience management (CEM) is a critical aspect of modern business strategy, profoundly impacting a company’s success and profitability.

The statistics and insights presented underscore the significance of prioritizing customer satisfaction and delivering exceptional experiences.

Companies that focus on making customers happy not only see revenue growth but also outperform their competitors in terms of revenue generation.

Positive experiences are pivotal in building brand loyalty, and inefficient customer experiences can adversely affect consumers’ overall quality of life.

Customer-centric companies enjoy higher profitability, and loyal customers are likelier to repeat purchases and recommend the company to others.

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