The development of mobile technology in social media has forever changed the interaction between businesses and their customers. With these technologies businesses now treat customer relationships as assets that have to be nurtured and transformed into loyal brand advocates for the products and services they offer. The goal is to eventually obtain the highest customer lifetime value (CVL) possible through these interactions. A new report by MarketsandMarkets looks at the Service Quality Management (SQM) and Telco Customer Experience Management (CEM) market with a global forecast and analysis through 2019 to determine how companies are addressing their relationships with their customers.
The report looked at the SQM and Telco CEM market by product type (EFM, web analytics, text analytics, and speech analytics) and provider type (ISP, TSP, and MSP) to outline the global advancement, worldwide forecast and analysis from 2014 to 2019.
The SQM and Telco CEM were segmented on the basis of product, channels, end-users, providers, and regions to see how companies have been addressing innovations in customer relationship technology. This includes the deployment of Customer Relationship Management (CRM) to focus on sales operation, sales force automation, customer analysis, and campaign management by effectively using the information a company knows about its customers.
MarketsandMarkets expects the Telco Customer Experience Management Market to grow from $1.6 billion in 2014 to $2.3 billion by 2019, and the SQM market to grow from $1.5 billion in 2014 to $2.1 billion by 2019, at a Compound Annual Growth Rate (CAGR) of 7.41 percent and 6.69 percent, respectively, during the forecast period.
Three of the many companies the report looked at include Adobe Systems, Amdoc, and Cisco (News - Alert), with each company investing in CEM with R&D and acquisitions to give them a strong presence in what many see as an essential tool to keep increasing customer satisfaction and enhancing customer experience based on real-time analytics.
According to MarketsandMarkets, "Nowadays, social media and mobile phones have become effective channels to gain competitive differentiation. Thus, companies must focus on these media sources."
While the current technology used by CEM addresses analytical tools such as Web analytics, text analytics, and sentiment analytics to analyze the Voice of Customer (VOC) from different channels, the report said the next evolution after CEM can be referred to as Customer Experience Analytics (CEA). With CEA, businesses use software to identify and analyze customer behavior patterns within and across multiple access points.