CXM

CXM

September 18, 2024in Salesforce

XM Software Providers Set to Replace Point Solutions with Multifunction Suites

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By 2028, Enterprises Will Transition to Comprehensive CXM Solutions, According to New ISG Research

According to new research from Information Services Group (ISG) (Nasdaq: III), companies are expected to shift from various customer experience (CX) point solutions to comprehensive, cross-functional suites by 2028. This transition aims to manage CX at the enterprise level more effectively.

Keith Dawson, Director of Customer Experience Research at ISG, explains, “Enterprises recognize the need for platforms that manage the entire customer lifecycle. We are witnessing the rise of tools that integrate communication components with analytic assessments of customer value, loyalty, and intent, marking a significant shift in the marketplace.”

The ISG Buyers Guide™ for Customer Experience Management (CXM) defines CXM as a suite of applications on a unified platform that provides a comprehensive view of customer activity and enables management of that activity across departments. The report notes that the mix of applications in a software provider’s suite often reflects their historical expertise and origins.

CXM addresses the limitations of traditional Customer Resource Management (CRM) software, which has been more departmental and application-centric. In contrast, CXM focuses on the customer journey and interactions across all channels.

The report highlights challenges in comparing similar offerings from different providers due to their varied origins and expertise. The range of functionality across CXM products often reflects their diverse components, users, and use cases.

ISG identifies five core areas of platform functionality in CXM software: knowledge management, resource management, automation, analytics, and customer journey management. However, CXM software is still developing, and it is uncommon to find a single solution that excels in all five areas. Many providers start with their core strengths and expand their capabilities over time.

The ISG Buyers Guide evaluates CXM software providers based on support for analytics, customer journey management, knowledge management, CRM platform support, operational resource management, and process control and optimization. To be included in the CXM Buyers Guide, products must cover at least three of the four areas: resource management, automation, analytics, and customer journey management. Separate guides on Customer Journey Management (CJM) and Knowledge Management (KM) are available for more specific analysis.

For its 2024 Buyers Guides, ISG assessed 19 providers, including Adobe, eGain, Emplifi, Freshworks, Genesys, HubSpot, Microsoft, Nextiva, NICE, Oracle, Qualtrics, Salesforce, SAP, ServiceNow, Sprinklr, SugarCRM, Verint, Zendesk, and Zoho.

The top three software providers in each category are:

Customer Experience Management: Oracle, Salesforce, and Verint
Customer Journey Management: Salesforce, Verint, and NICE
Knowledge Management: Salesforce, Verint, and NICE

Mark Smith, Partner at ISG Software Research, notes, “Managing customer experience is crucial for every organization, yet many lack the technology to orchestrate the customer journey across channels. The Buyers Guide for CXM offers insights to help businesses understand, optimize, and select software providers that move beyond the limitations of traditional CRM systems.”

The ISG Buyers Guides for CXM, CJM, and KM are based on over a year of market research. The research is independent and not influenced by software providers, aiming to help enterprises optimize their software investments.

For more details, visit the ISG Buyers Guides to read executive summaries and request full reports.

About ISG Software Research

ISG Software Research, formerly Ventana Research, delivers expert market research and analysis on business and IT software. The firm provides consulting, advisory, research, and education services for enterprises, software and service providers, and investment firms. For more information and to join the community, visit Ventana Research.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a global technology research and advisory firm specializing in digital transformation services. With a client base of over 900 organizations, ISG helps clients achieve operational excellence and growth. The firm’s expertise spans AI and automation, cloud and data analytics, sourcing advisory, and more. Founded in 2006 and based in Stamford, Conn., ISG employs 1,600 professionals in over 20 countries. For more information, visit ISG.