June 12, 2024
Customer Success Management Market

Increasing adoption of customer success management to enhance customer retention for the Customer Success Management Market

Market Overview:

Customer success management (CSM) is a comprehensive approach used by companies to drive product adoption, retention, and customer lifetime value through people, processes and systems. It helps companies focus on customer success initiatives like onboarding, health checks, renewals, expansion and advocacy to ensure customer satisfaction and long term engagement throughout the customer lifecycle. CSM solutions help companies track key metrics like renewal rates, expansion rates, product usage insights and sentiment analysis to optimize customer success strategies.

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 Dynamics:

The growing demand for solutions that help improve customer retention and loyalty is a key driver for the customer success management market. In today’s highly competitive business environment, customer retention has become as important as new customer acquisition. CSM solutions equip companies with tools and capabilities to understand customer needs, address issues proactively and ensure high satisfaction levels.

Another factor fueling the market growth is the increasing emphasis on recurring revenue business models. Many SaaS and subscription-based companies are actively adopting CSM strategies and platforms to maintain long term engagement with existing customers, maximize renewals and drive expansion. Detailed usage insights and health checks enabled by CSM solutions help identify upsell/cross-sell opportunities with existing accounts in a structured manner.

Segment Analysis

The global customer success management market is segmented into platforms, services and applications. The platform segment dominates the market due to increasing adoption of customer success management platforms by organizations across industries for customer management and retention. Customer success management platform offers features such as onboarding, user management, product adoption and change management to ensure high customer satisfaction.

PEST Analysis

Political: The customer success management market is positively impacted by supportive government policies and funding towards adoption of advanced customer management solutions.
Economic: Rising economic growth, increasing digitization and focus of organizations towards retaining and engaging customers is boosting market growth.
Social: Growing need amongst organizations to understand customer behaviour and expectations is driving adoption of customer success solutions.
Technological: Advancements in technologies such as big data analytics, artificial intelligence and machine learning is enabling organizations to gain valuable customer insights for enhancing customer experience.

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 amongst organizations to optimize customer retention and lifetime value. The market size for customer success management was valued at US$ 1891.81 Mn in 2023.
North America dominates the customer success management market attributable to rapid technology adoption and presence of major players in the region. Asia Pacific is expected to grow at fastest pace during the forecast period driven by increasing demand from small and medium enterprises in countries such as China and India.
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. These players are focusing on developing innovative customer success solutions and services to cater to diverse customer needs.

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