July 13, 2024

Growing Need For Customer Retention Strategies Opens New Avenues For Customer Success Management

The 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.% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Customer success management (CSM) refers to a business strategy focused on maximizing customer lifetime value and optimizing customer retention through ongoing support and guidance. CSM solutions help companies develop better relationships with customers by understanding their needs, addressing issues quickly, and recommending additional products and services. Key aspects of CSM include onboarding assistance, usage monitoring, renewals management, and customer advocacy. Large enterprises across industries rely on CSM to drive better customer experiences, increase subscription renewal rates, and reduce churn.

Market Dynamics:

Rising focus on customer retention: Retaining existing customers has become crucial for businesses due to high customer acquisition costs. CSM plays a pivotal role in identifying at-risk customers and implementing targeted retention strategies. This is expected to drive increased adoption of CSM solutions over the forecast period.

Growing product & service subscriptions: The subscription economy has surged in recent years across software, media, and other industries. CSM platforms help companies to optimally manage complex customer relationships associated with multi-product subscriptions. This growing subscriptions model is expected to boost the CSM market.

Personalized engagement & support: CSM solutions utilize customer data insights to provide highly personalized engagement, onboarding support, issue resolution, and recommendations. This level of customized customer experience and support acts as a major driver for the market.

Segment Analysis

The global customer success management market is dominated by the large enterprise segment. Large enterprises have more customer data to analyze and a dedicated customer success team to ensure high customer retention and maximization of lifetime customer value. They are able to invest heavily in customer success solutions and services.

PEST Analysis

Political: Favorable regulations around data privacy and data security are pushing organizations to adopt customer success solutions to be compliant.

Economic: Growing need to optimize customer lifetime value is driving demand as customer acquisition cost increases.

Social: Rising consumer expectation of personalized experiences throughout the customer journey is a key factor.

Technological: Advancements in AI, machine learning and analytics are making customer success platforms more effective in mapping customer journeys and predicting needs.

Key Takeaways

The Global Customer Success Management Market Size is expected to witness high growth, exhibiting CAGR of 26.% over the forecast period, due to increasing need to maximize customer lifetime value and optimize acquisition cost. North America is expected to dominate the market during the forecast period owing to early adoption of new technologies and presence of key players in the region.

The global customer success management market size was valued at US$ 1891.81 Mn in 2023 and is anticipated to reach US$ 15,691.28 Mn by 2030, expanding at a CAGR of 26.4%. Growing traction of software as a service model and rising demand from large enterprises are fueling the market growth.

The Asia Pacific region is expected to exhibit the fastest growth during the forecast period. Countries such as China, India, Japan and Australia are presenting significant growth opportunities for market players. This can be attributed to growing digitalization, increasing adoption of cloud technologies and rising need to improve customer retention.

Key players operating in the customer success management market are Gainsight Inc., Open Text Corporation, Salesforce.com Inc., SAP SE, Verint Systems Inc., Medallia Inc., IBM Corporation, Oracle Corporation, Avaya Inc., Tech Mahindra, Totango, UserIQ Inc., ClientSuccess Inc., Natero Inc. (Freshworks), Planhat, CustomerSuccessBox, Armatic Technologies Inc. (BlueSnap)and Sitecore. Major players are focusing on enhancing their product capabilities and expanding their geographic presence through mergers and acquisitions.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it