The Contact Center Software Market was valued at USD 20.18 billion in 2019?and is expected to reach USD 44.30?billion by 2025, at a CAGR of 14% over the forecast period 2020?- 2025. The contact center software market is primarily driven by the increasing need to enhance customer experience, at relatively lower costs. This helps in catering to the intensified competition and increased customer expectations stemming from the advancements in technology. These advancements have considerably increased the barraging power of customers in the supply chain, thus reducing the hidden cost of switching vendors in most of the services, as the demand for hardware component is reducing in the businesses.
- The cost of retaining a customer is 70% less than the amount expended to acquire a new one; 67% of customers are lost due to bad experiences. Thus, customer experience is one of the factors expected to aid the increasing use of contact center software, as businesses try to retain their existing customers.
- One of the features that could increase the demand for contact center solutions is integrated workforce management. Teams that have a high employee engagement are found to be 21% more productive, which in turn, reduces internal theft by 28%. Employees are the most valuable assets for the company. In order to leverage maximum productivity from these assets, scheduling of their work is vital. Contact center solutions are very helpful for such purposes.
- Another factor that could further increase the demand in the contact center software market is the surging need for personalized services. According to Accenture, a prominent software vendor in the global market, over 75% of the customers are more likely to purchase from a vendor that recognizes them by name or from a vendor recommended on the basis of a previous purchase.
Scope of the Report
Contact center software helps in increasing the efficiency and effectiveness of a contact center, with a specific focus on interactions between customers and contact center agents. The main function of the software is to route customer contacts to agents and track and report critical metrics regarding those interactions.
Key Market Trends
Retail is Expected to Hold a Significant Share
- Retail sector no longer has single channel contact centers. The increase in e-commerce penetration has redefined the sector in several aspects. The increasing volume of omnichannel sales has made it difficult to manage the post sales services offered to the clients and presenting a broad opportunity for the contact center software market.
- Omnichannel sales have gained wide acceptance among consumers as well. Over 70% of the customers are open to online shopping among, which some shop regularly from online channels, whereas a few others are willing to switch if the experience and value for money are enhanced.
- The market in the retail sector seems to have an immense prospect in countries such as the United Kingdom as the Omni-channel sales in the country is expected to witness rapid growth. According to a survey conducted by Manhattan Associates, single view of consumers and personalized experience were the top aspects prioritized by retailers in the country. Owing to such market scenario, contact centers are expected to benefit omnichannel retailers when compared to traditional call center approach.
North America is Expected to Lead the Market
- The rising omnichannel approach to sales, coupled with the expanding e-commerce industry in North America, is driving the demand for contact center software. Companies are trying to expand their business portfolio in the region, due to the huge potential it offers.
- For instance, the omnichannel, cloud-based contact center software provider, ZaiLab, announced its plans to expand its product offerings in North America.
- Notably, the organizations are shifting their focus towards cloud-based solutions to enhance efficiencies and scalabilities. For instance, in October 2018, one of the largest sub-servicers of residential mortgages in the United States, PHH Mortgage moved its contact center to cloud-based architecture in alliance with Serenova.
- The shift was primarily to enhance its customer experience. As a result, it is expected to compel other companies to move their software over cloud; thus creating an ample amount of opportunity for the industry players thereby having a positive impact on the market growth in the region over the forecast period.
The Contact Center Software market is highly competitive and consists of several major players. Many companies are increasing their market presence by investing to introduce new or improved solutions or by entering into strategic mergers and acquisitions.
- October 2018 - Talkdesk Inc. raised USD 100 million, which will be invested in the company’s intelligent contact center software suite.
- September 2018 - Twilio acquired Ytica, a contact center company specializing in workforce optimization software, speech analytics, and contact center reporting. This will not only expand the company’s product portfolio and consumer reach in the contact center industry.
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