The State of CX Vendors

We recently published a report looking at the state of CX management from the practitioner’s stand point. But what about the vendors in the market? To find out, we surveyed 98 CX vendors about their businesses (see graphics below). Here’s some of what we found:

  • Prices are on the rise. About one-quarter of CX vendors say that their average selling price is increasing, which is more than three times the number that see prices dropping.
  • Field and product marketing are key weaknesses. Only 20% of CX vendors think they are strong at field marketing and 24% feel that way about product marketing. Almost all CX vendors are growing, with 31% expecting to expand by more than 50% this year.
  • Sales is key areas of focus. Over half of CX vendors see sales as a key area for improvement, next on the list is corporate marketing at 32%.
  • Innovation is the path to success. Seventy-eight percent of CX vendors think that the innovation in their offerings will impact their business over the next two years. At the other end of the spectrum, they aren’t very worried about new entrants or pricing pressure.
  • M&A is in the air. More than one-third of the companies that gave us an answer expect to make an acquisition or be acquired over the next 18 months.
  • There’s a lot of growth. Nearly all respondents expect to increase their revenues this year and 31% expect to expand by at least 50%.
  • Telecom and retail are hot markets. When we asked where they see growth, the two industries with the most momentum are telecom/media services and retail.
  • U.S. is largest CX market. Nearly nine out of 10 CX vendors sell in the U.S. and 78% expect their sales to grow this year. Next on the list of growing markets are Asia, Canada, and Western Europe.

StateofCXVendorsP1_v1StateofCXVendorsP2_v1

The bottom line: Companies are spending money on CX vendors

Written by 

I am an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

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