Market Overview:
Customer Success Management (CSM) is an approach focussed on helping customers achieve success with products and services after making a purchase. CSM solutions help companies to optimize customer retention, maximize lifetime value, and increase product usage by providing them continuous support and feedback. CSM tools provide personalized onboarding, usage insights, in-product guidance, renewal and expansion insights. It offers transparent reporting on key metrics like churn reduction, adoption rate, customer satisfaction (CSAT) scores etc. This helps companies to understand customer pain points and continuously improve product experience.
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 26.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising adoption of cloud based solutions: Majority of the CSM solution providers are offering cloud based subscription models to enable flexibility of deployment and reduce upfront costs. Cloud based CSM solutions provide scalability, convenient access from remote locations and reduce IT management overhead. This has boosted the adoption of cloud based CSM solutions.
Increased focus on customer retention: Companies are focusing more on customer retention and lifetime value optimization as acquiring new customers is significantly more expensive than retaining the existing ones. CSM helps companies to proactively identify at-risk customers and take timely actions to retain them. This drives increased adoption of CSM solutions.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the customer success management market is low due to high initial capital requirements and presence of established industry players. However, growth opportunities exist for specialized customer success management solutions.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of multiple solution providers offering similar customer success management solutions. Buyers can negotiate on price and functionality.
Bargaining power of suppliers: Since customer success management solutions mainly rely on software and services, the bargaining power of suppliers is moderate. Suppliers have low switching costs.
Threat of new substitutes: Threat of new substitutes is low as there are limited substitutes that can provide integrated customer success management features.
Competitive rivalry: The competitive rivalry in the market is high due to presence of established global players providing customer success tools and services.
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.
North America is expected to dominate the global customer success management market during the forecast period. High adoption of customer success management solutions among organizations to increase customer retention and satisfaction is driving the regional market.
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. Gainsight Inc. is one of the leading providers of customer success management solutions globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it