The growing market for customer experience analytics.

The Customer Experience (CX) field is gaining interest and predicted to grow 13.3% in the next five years. An increasing number of Canadian companies recognize the importance of using data analytics tools to provide personalized customer experiences.

The overall business landscape in the global market is evolving and changing rapidly and the customer’s level of expectation/needs is also changing – customers continuously expecting more from the companies with whom they do business. Customer experience (CX) is an integral part of doing business throughout all business channels, and has become a top priority for many companies who recognize how important CX is to business success.  CX can come from any touch point, be it online interactions through the web, social media, in-person interactions, surveys, call centres, etc.

The CX market is projected to grow from $7.8 billion USD in 2019 to $14.5 billion USD by 2024, at a compound annual growth rate (CAGR) of 13.3% from 2019 to 2024. The expected growth is due to several reasons – the need to improve customer engagement and retention, technology and the rising use of smartphones, growing use of cloud-based solutions, and rising demand for big data analytics. Other areas supporting the market growth include implementation of advanced technologies such as artificial intelligence (AI), predictive data analytics, and cloud computing. North America is predicted to account for the largest market size during this period.

Companies that invest in advanced analytics tools can improve CX, increasing customer engagement and retention, and gain a competitive edge. Companies are increasingly realizing that the tie between customer experience and revenue is positive with customers highly valuing great customer experiences. In the Walker study, data shows that customers (86%) are willing to pay more for a better experience and predict that by 2020, customer experience will overtake price and product as the key brand differentiator.

Canadian consumers want convenience, choice, and control when they shop. A recent Canadian Consumer Insights study stated that 28% of Canadian consumers expect retailers to have up-to-date information on how they like to interact with them, and 32% are comfortable with retailers monitoring their shopping pattern to tailor offers specifically for them.

As the needs of the customer evolves and changes – and customers wanting more personalized experiences – companies must learn more about the customer, what’s important to them, and what motivates them, and integrate this knowledge into the business/services they offer to effectively plan and anticipate current and future needs. By leveraging the use of CX advanced analytics, the data gained will aid in predicting customer needs, provide real time feedback, tailor experiences, identify customers at risk of leaving, anticipate call volumes, and aid the ability to provide better pricing structures.

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