Region/Countries: Canada, North America Industry: Multiple Sectors Date: June 2019

Why this is important to Wisconsin businesses: Businesses across all sectors are focusing on the customer experience as a way to differentiate themselves from competitors.

Customer experience (CX) is an integral part of doing business in almost every industry, across all channels. CX has become a top priority for companies as they have realized how important it is to the overall success of their business. In ever-changing global market where customer expectations seem to be continuously rising, CX is one way companies can set themselves apart.

CX encompasses many touchpoints, including website interactions, social media, in-person interactions, surveys, call centers and more. The CX market is projected to grow from $7.8 billion in 2019 to $14.5 billion by 2024, at a compound annualized growth rate (CAGR) of 13.3% from 2019 to 2024. This rapid projected growth is due to the need to improve customer engagement and retention, technology and the rising use of smartphones, growing use of cloud-based solutions and rising demand for big data analytics. Other areas supporting the market’s growth include implementation of advanced technologies such as artificial intelligence, predictive data analytics and cloud computing. North America is predicted to account for the largest market size during this period.

Companies that invest in advanced analytics tools can improve CX, increase customer engagement and retention, and gain a competitive edge. Companies are increasingly realizing that CX and revenue are positively correlated. In the Walker study, data shows that the vast majority of customers (86%) are willing to pay more for a better experience. The study predicts that by 2020, CX will overtake price and product as the key brand differentiator.

Canadian consumers want convenience, choice and control when they shop. In a recent Canadian Consumer Insights study, it stated that 28% of Canadian consumers expect retailers to have up-to-date information on how they like to interact with them and 32% are comfortable with retailers monitoring their shopping patterns to tailor offers specifically for them.

As customer preferences evolve to favor more personalized experiences, companies must learn more about their customers, what’s important to them and what motivates them, and integrate this knowledge into the products and services they offer. With advanced CX analytics, companies can predict customer needs, provide real-time feedback, tailor experiences, identify customers at risk of leaving, anticipate call volumes, provide better pricing structures and more.

With growing interest in the field of CX and the need to improve and customize customer experiences utilizing data analytics, the Canadian market presents opportunities for companies that can provide these tools and services.