Customer Success Software Market

The market size of global customer success platforms is projected to increase from USD 1.0 billion in 2020 to USD 2.5 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 20.4% during the forecast period. The growth of the customer success platforms market is driven by the rising demand for advanced analytical solutions to monitor customer scores and reduce churn rates, as well as the adoption of cloud computing in customer success.

However, challenges such as data security and privacy concerns, and difficulties in synchronizing customer experience (CX) data from various touchpoints and domains pose significant obstacles in the market. Another restraining factor is the aggregation and synchronization of data from multiple silos.

Impact of COVID-19
The COVID-19 pandemic has had a substantial impact on the technology sector, with global ICT spending expected to decline by 4%-5% by the end of 2020. The hardware business has been particularly affected due to supply chain disruptions and reduced manufacturing capacity. However, the adoption of collaborative applications, analytics, security solutions, and AI is anticipated to increase in the later part of the year. The pandemic has brought significant changes to markets, customer behavior, economies, and societies.

Businesses are seeking technological solutions to navigate through these challenging times, with a focus on remote working, digital acceleration, and cloud-based technologies. Customer success platforms are being increasingly adopted by businesses in industries such as eCommerce, logistics, online learning, food delivery, and online collaboration to manage customer data and meet customer expectations. The demand for customer success platforms has surged during the COVID-19 crisis, as businesses strive to gain a unified view of their customers and reduce churn rates.

Market Dynamics
Driver: Adoption of cloud computing in customer success
The demand for cloud-based solutions is on the rise due to their reliable, scalable, flexible, and efficient nature. Small enterprises are particularly interested in leveraging advanced solutions that combine real-time self-service analytics with cloud-based platforms to accelerate market growth with minimal capital investments. Cloud-based customer success platforms offer highly scalable tools that enable easy data storage and access. The introduction of cloud-based solutions has driven automation, enhancing the predictive accuracy of customer success.

This addresses challenges such as data collection, reporting, decision-making, and optimization, providing valuable insights to companies and Customer Success Managers (CSMs). The adoption of cloud-based customer success platforms has gained momentum among small enterprises and is expected to grow further due to ongoing Research and Development (R&D) investments by vendors. By deploying suitable cloud-based solutions, organizations proactively address real-time optimization concerns and make faster decisions, leading to improved operational efficiency.

Restraint: Data aggregation and synchronization from multiple silos
The aggregation of data across channels managed by different departments can pose challenges for distributed companies. Businesses accumulate substantial amounts of customer-related data to enhance the feedback process. Interactions between companies and customers generate data, and when this data is not synchronized with other technologies, organizations face difficulties in harmonizing a large volume of information in a structured format.

According to Acxiom's statistics from 2017, 70% of marketers admit to having suboptimal or no ability to integrate customer data between online and offline sources. Data is collected from various silos such as company websites, web platforms, mobile apps, social media, and emails, requiring businesses to categorize it based on customer needs and expectations.

This data varies in structure, making it challenging for organizations to merge it cohesively, thereby hindering customer success. Analyzing a large amount of structured and unstructured data requires significant resources in terms of finances, time, and expertise. Consequently, synchronizing customer data in a standardized format from each touchpoint becomes a complex task.

Opportunity: Rise of AI and ML for enhanced customer journey monitoring
To stay ahead in a competitive landscape, organizations are embracing advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML). These technologies find extensive applications in customer success, including churn prediction, customer behavior analysis, and customer journey monitoring. AI empowers CRM systems and customer success applications by leveraging advanced algorithms to generate automated insights on customer issues and behaviors, aiding companies in understanding their customers better.

Furthermore, AI-powered chatbots enhance customer experience and satisfaction, leading to increased revenue and profits. ML-enabled customer success platforms utilize data to generate accurate insights without explicit programming. These systems identify customer preferences and suggest appropriate solutions to influence their behavior. ML-enabled customer success systems also streamline workflows by initiating personalized customer interactions. These cutting-edge technologies offer numerous opportunities to intensify customer success efforts.

Challenge: Difficulty in synchronizing customer experience (CX) data from various touchpoints and domains
Efficient data exchange across multiple sources and domains is crucial for organizations. Failure to correlate customer needs with manufacturing and research domains can lead to customer disinterest in the product. Due to continuous growth and the complexity of touchpoints in the customer feedback process, businesses accumulate substantial amounts of data related to customer behavior and expectations. Customer interactions generate data, and when this data is not synchronized with other technologies, organizations face challenges in harmonizing this vast amount of information in a structured format.

Data collected from different touchpoints, such as company websites, web platforms, mobile apps, social media, and emails, differ in structure, making it difficult for organizations to combine them effectively since they need to be structured differently. Analyzing a large volume of structured and unstructured data demands significant resources, including finances, time, and expertise. Consequently, synchronizing customer data in a standardized format from each touchpoint becomes a formidable task.

By component, the services segment is expected to record the higher market growth rate during the forecast period
In terms of components, the customer success platforms market is divided into platforms and services. The services segment is projected to experience a higher growth rate during the forecast period. As the volume of customer data continues to increase, enterprises recognize the importance of adopting customer success services to address marketing requirements in the constantly evolving global demand landscape. The services segment can be further classified into professional services and managed services, which assist organizations in streamlining their marketing operations.

By application, the sales and marketing optimization segment to account for the highest market share during the forecast period
Within the customer success platforms market, the sales and marketing segment is anticipated to dominate and hold the largest market share during the forecast period. Customer success platforms have become essential tools for sales and marketing optimization, enabling marketers and sales executives to engage directly with their target audience based on insights derived from data. These platforms provide visibility into customer activities, including onboarding status, adoption trends, and health scores, empowering them to deliver personalized experiences while interacting with customers.

North America to account for the largest market size during the forecast period
North America is projected to hold the largest market size in the global customer success platforms market during the forecast period. The increasing demand for advanced analytical-based solutions to monitor the customer journey and reduce churn rates is driving the demand for customer success platforms in North America. The emergence of cloud computing in customer success and the growing volume of data due to digitalization are among the factors propelling market growth in Europe.

The Asia-Pacific (APAC) region is expected to witness the fastest growth rate during the forecast period. The adoption of customer success technology by various sectors such as BFSI (Banking, Financial Services, and Insurance) and IT and telecom is expected to contribute to the market's growth in the APAC region. Additionally, the increasing number of players across different regions is anticipated to drive the customer success platforms market.

Key Market Players
Salesforce (US), Cisco (US), HubSpot (US), Gainsight (US), Freshworks (US), Totango (US), Amity (Canada), Strikedeck (US), ChurnZero (US), SmartKarrot (US), ClientSuccess (US), Bolstra (US), UserIQ (US), Planhat (Sweden), Salesmachine (US), Catalyst (US), AppsForOps (Australia), Armatic (US), CustomerSuccessBox (US), Clientshare (UK), Wootric (US), ZoomInfo (US), Akita (Ireland), Intercom (US), WalkMe (US), and Custify (Romania).

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The research report categorizes the customer success platforms market to forecast the revenues and analyze trends in each of the following subsegments:

By Component

• Platforms
• Services
  • Professional Services
    • Consulting
    • System Integration and Implementation
    • Support and Maintenance
  • Managed Services

By Application

• Sales and Marketing Optimization
• Reporting and Analytics
• Customer Segmentation
• Risk and Compliance Management
• Customer Service
• Customer Onboarding
• Others (revenue management, customer engagement, workflow management, and project administration)

By Deployment Mode

• Cloud
• On-premises

By Organization Size

• SMEs
• Large Enterprises

By Vertical

• BFSI
• Retail and eCommerce
• Healthcare and Life Sciences
• Transportation and Logistics
• Government and Public Sector
• Energy and Utilities
• IT and Telecom
• Manufacturing
• Others (education, Media and Entertainment, and Travel and Hosptality)

By Region

• North America
• Europe
• APAC
• MEA
• Latin America

Recent Developments

• In May 2020, Gainsight, the Customer Success company announced the first complete customer success ecosystem—Gainsight Sightline, the only community-enhanced customer success technology exchange in the market.
• In April 2020, HubSpot, launched CMS Hub — a content management system that offers speed, security, and scalability to rapidly growing businesses. CMS Hub comprises two tiers, Enterprise and Professional, giving companies the freedom to choose a CMS offering best suited to their stage of growth.