Social Customer Service Software Market Size, Share, Growth, and Industry Analysis by Type (On-Premises and Cloud Based) By Applications (Large Enterprise and SMEs), Regional Forecast To 2031

Updated On: 08 April 2024

Social Customer Service Software Market REPORT OVERVIEW

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The global social customer service software market size was USD 14772.28 million in 2022 and to touch USD 33128.11 million by 2031, exhibiting CAGR of 9.39% during the forecast period.

Customer service software is a collection of tools for gathering, organizing, responding to, and reporting on customer care requests. Customer service software is often used by businesses to offer faster, more effective customer service delivery by several customer service agents working in the same tool. Social customer care software enables businesses to communicate with customers and users through social media platforms. Social customer service systems collect and aggregate mentions on social media platforms like Twitter and Facebook, and produce tickets for support agents to reply to mentions and provide appropriate service.

This industry is being pushed by a growing focus on customer interaction, burgeoning SMEs, social platforms, and the awareness of exchanging ideas in real time. These solutions are used not only by customer care departments, but also by marketing departments to raise brand recognition and turn consumer complaints into good advertising for a huge audience of social media users. Businesses are developing solutions for social monitoring, social listening, social middleware, social management, and social evaluation in order to give the best-in-class customer experience.

COVID-19 Impact: Cumulative Impact of Pandemic on Market Growth

The software industry is being harmed by COVID-19. Because of the shifting span, government, and business reactions, there is a tremendous degree of ambiguity. Market expansion is expected to be hampered by reliance on supply fluctuations and the availability of certain components. The massive amounts of data generated by social media platforms, the development in cloud usage habits, and the widespread acceptance of social media management solutions among small and medium-sized organizations all give significant opportunities for social media management providers. The lack of standard procedures for social media management platforms, as well as a single solution to address the expanding unstructured data concerns, could stifle the market's expansion.

LATEST TRENDS

"Technological Advancement to Facilitate Industry Growth"

The introduction of technology has resulted in the digitalization of every industry and a significant growth in digital customer connection. Rapid technological advancement has resulted in the development of more intuitive and user-friendly interactions. Customers want the same level of service from established firms that they have come to expect from user-friendly and personalized digital natives like Google and Amazon. To stay one step ahead of competition, brands are becoming increasingly reliant on customer experience management technologies to assess client wants and ensure that customer needs and corporate offerings are on par. To reduce churn, companies use cloud-based technology, advanced analytics, and automation to deliver highly individualized customer experiences and develop brand loyalty.

Social Customer Service Software Market Segmentation

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• By Type Analysis

As per type, the market is classified into On-Premises and Cloud Based

The cloud segment dominated the market, accounting for a significant portion of the total. Companies are focusing on modernizing their customer engagement operations by implementing cloud-based architectures that make data exchange across several functions easier. These factors are likely to facilitate industry growth. 

• By Application Analysis

The market is categorized into Large Enterprise and SMEs based on application.

The SMEs surgery segment is expected to lead due to a significant market share. While there are no signs of a slowdown in the number of fintech businesses, clients are gradually adopting a digital mindset, which is helping to modernize banking institutions around the world.

DRIVING FACTORS

"Increasing Adoption Over Tradition CRM System to Facilitate Market Development"

Social customer service software advancements have made it faster, more accessible, and have also brought in crucial data on business analytics. It is being adopted by businesses as an additional channel in their social customer service software systems. It refers to the addition of a social layer to traditional CRM software systems. These solutions provide businesses various benefits, including more transparency, improved exchange of business ideas and information, flexibility, and performance. Companies can use social customer service software to develop consumer engagement and boost their brand's visibility among customers. In a transparent corporate environment, the social customer service software market focuses on identifying the customer's demand and delivering value for them.

"Rising Demand for Cloud Based Solutions to Foster Industry Progress"

Enterprise adoption of the cloud is prompting social customer service software Market solution suppliers to use hosted deployments for software in a variety of sectors. While the current rush was concentrated in sectors such as financial services, insurance, telecommunications, and retail, the future seems bright for other industries. The rise in social customer service software market growth can be attributed to its improved value proposition. The increased focus on customer involvement, emerging SMEs, social platforms, and the awareness of exchanging ideas in real time are all major aspects pushing this market. To provide the best-in-class customer experience, businesses are developing solutions for social monitoring, social listening, social middleware, social management, and social measurement.

RESTRAINING FACTORS

"Government Legislation to Hinder Market Progress "

Data privacy issues have received widespread attention in recent years, and the enactment of data protection and privacy laws and regulations has had a considerable impact on the social media arena. According to the regulation, if a company compromises the privacy of its customers or employees through social media platforms, or if a company employee exposes confidential information about the company's stakeholders or customers, the company will face hefty fines and legal action will be taken against the concerned individuals or corporate entities.

Social Customer Service Software Market REGIONAL INSIGHTS

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"Technical Advancement to Propel Market Progress in North America"

North America is projected to dominate the social customer service software market share because it is a well-established market with a good risk appetite and a desire for technical advancements, providing a multitude of chances for social customer service software vendors and service providers. The region is known for its large number of social media users and the importance of social media management solutions. The use of social media networks as a significant marketing and customer engagement tool for industrial verticals is expected to boost market revenue creation in the region.

Asia Pacific is expected to hold the second-largest market share. The rising urbanization and digitalization of developing countries, and increased use of digital transactions in developing countries such as India, China, and Singapore, will propel Asia-Pacific to new heights. Digital transformation has opened up a slew of new possibilities for contact centers, and the region is seeing widespread adoption of customer experience platforms across a variety of businesses. Asia has the greatest number of small and medium-sized firms (SMEs) that demand technology to better and smartly service their customers.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnership to Strengthen their Market Position"

Customer experience management is a highly competitive and fragmented market. These businesses are taking use of strategic collaboration initiatives to grow their market share and profits. Mid-size and smaller businesses are expanding their market presence by gaining new contracts and entering new markets, due to technical developments and product innovations.

INDUSTRY DEVELOPMENT

HCL Technologies and Google Cloud announced the expansion of their strategic collaboration in March 2021, bringing HCL Software's cloud-native platforms Digital Experience (DX) and Unica Marketing to Google Cloud.

List of Market Players Profiled

• Zendesk
• Brand Embassy (Prague)
• Sprinklr (U.S.)
• Freshworks (U.S.)
• Lithium Technologies (U.S.)
• CX Social (U.S.)
• Sprout Social (U.S.)
• Cisco (U.S.)
• Salesforce (U.S.)
• Sparkcentral (U.S.)
• Zoho (India)
• HelpSocial (U.S.)
• Conversocial (U.K.)
• Oracle (U.S.)

REPORT COVERAGE

The research for the social customer service software market also includes a comprehensive examination of emerging trends and novel creative solutions. A detailed methodological approach is used in the paper, which includes primary interviews and secondary research, and a thorough analysis of R&D activities and recent developments. Emerging trends, market drivers, development opportunities, and market restraints that may affect the industry's market conditions are all covered in depth in this report. New product development, market innovation, regional development, and industrial development are all included in the research.