by Customer success management (CSM) is an approach that helps companies drive better business outcomes by ensuring the success of their customers’ experience with products or services through the entire lifecycle, ranging from pre-sales to onboarding to renewal and expansion. CSM solutions are aimed at maximizing customer lifetime value through implementation of systematic processes and strategies to help customers extract maximum value and achieve their goals from a company’s product or service offering. This includes features like usage monitoring, renewal management, customer health monitoring, and identifying expansion opportunities for upsells and cross-sells. With growing adoption of subscription-based business models, CSM has become an essential component of the customer experience strategy for many companies to retain existing customers.
The global Customer Success Management Market is estimated to be valued at US$ 1891.81 Mn in 2023 and is expected to exhibit a CAGR of 26.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving growth in the customer success management market is the increasing need among organizations to retain and maximize lifetime value of existing customers. According to research, retaining an existing customer is 5 times more economical than acquiring a new one. CSM solutions help companies monitor usage trends and identify potential cancellation or non-renewal risks to focus retention efforts. With data and analytics capabilities, CSM solutions also enable companies to cross-sell and upsell additional products or services based on individual customer needs and buying patterns. This is expected to further fuel demand from industries like IT, telecom and SaaS over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the customer success management market is moderate due to the presence of major established vendors. However, startups can disrupt the market with new technologies and solutions.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of various customer success management solution providers. Buyers can negotiate on price and demand additional features.
Bargaining power of suppliers: The bargaining power of suppliers is low since there are numerous solution providers for customer success management software and services.
Threat of new substitutes: The threat of new substitutes is moderate as alternative solutions like customer experience management and customer relationship management can be adopted.
Competitive rivalry: The competitive rivalry in the market is high owing to the presence of numerous international and regional vendors offering innovative customer success management solutions.
Key Takeaways
The Global Customer Success Management Market Size is expected to witness high growth during the forecast period of 2023 to 2030. The global Customer Success Management Market is estimated to be valued at US$ 1891.81 Mn in 2023 and is expected to exhibit a CAGR of 26.3% over the forecast period 2023 to 2030.
Regional analysis: North America is expected to hold the largest share of the overall customer success management market during the forecast period. This is attributed to factors such as presence of major vendors and rapid digitalization across industries in the US and Canada. Europe and Asia Pacific regions are also anticipated to register significant growth in the market over the next seven years.
Key players: Key players operating in the customer success management market are BASF S.E., Suez S.A., Kemira OYJ, BWA Water Additives, Ecolab Inc., Cortec Corporation, DowDuPont Inc., Baker Huges Incorporated, Akzo Nobel N.V., and Solenis LLC. BASF SE provides customer success management solutions and services to help organizations achieve business outcomes and maximize value from their customer relationships.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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