Customer Engagement Solutions Market Size

Customer Engagement Solutions Market Analysis

The Customer Engagement Solutions Market size is estimated at USD 21.84 billion in 2024, and is expected to reach USD 36.74 billion by 2029, growing at a CAGR of 10.97% during the forecast period (2024-2029).

• Due to the internet's and smartphones ' rapidly growing popularity, customers may quickly obtain information about various products and services through various channels, including online, social media, and other applications. With the average time spent on a mobile device exceeding five hours per day and the availability of numerous customer touchpoints, including social media, websites, live chats, and phone calls, in addition to in-person assistance, brands are discovering several opportunities to engage consumers with their brand and increase revenues.
• To automate their processes, businesses are using a variety of engagement platforms to respond to this shift in client behavior. Solutions with centralized customer service, multi-channel communication, and customer insights with analytics support are becoming more popular.
• Additionally, vendors in the market are providing separate solutions for each of the features above and a combined solution that can handle an enterprise's customer engagement requirements. For instance, Calabrio, a US-based provider of consumer engagement platforms, offers Calabrio ONE, a unified suite for employee engagement and workforce optimization (WFO). The suite provides comprehensive reporting tools, quality and workforce management, call recording functionality, and analytics based on customers' voices.
• The adoption of AI by large businesses as part of their digital transformation is already widespread. For instance, financial service providers like JP Morgan Chase, Bank of America, and Capital One have previously adopted chatbots as virtual assistants and successfully optimized their back-end operations, such as labor management, to cut costs. According to IBM, which provides AI solutions for call centers, bot interactions in the banking sector are anticipated to reach 90% by the end of the next three years.
• The retention of customers is becoming challenging for organizations, such as credit card companies, credit unions, banks, and insurance agencies that cannot offer fixed contracts. In the banking industry, there are multiple options for customers no longer limited by location. They can shop online and choose whichever bank or organization attracts their attention.
• One of the most significant global issues was COVID-19; though it had receeded, it left an impact. Customer behavior shifted quickly, made digital adoption crucial to longevity. Sales and service industries kept adjusting to the new attitudes and practices after the pandemic passed. To meet customer expectations in the post-crisis era, businesses acted swiftly. The rules of contact changed because of the epidemic's greater use of digital media and customers' changing expectations of what qualifies as fundamental digital skills. Organizations are increasingly making plans for a future-focused digital engagement that drives the growth of client relationships rather than only digital transactions.