Report:
Magic Quadrant for the CRM Customer Engagement Center
How does Gartner define the CRM Customer Engagement Center market in 2023?
The CRM customer engagement center (CEC) is a cohesive set of software built around core case management tools, used to provide customer service and support by engaging with customers, while intelligently orchestrating the processes, data, systems, and resources of an organization. CEC applications offer workflow management capabilities and may be used as a system of record for customer interactions. The orchestration of customer service and support processes through a CEC application involves both assisted and self-service moments within customer journeys. It is built around case management records and processes. Workflow is an important CEC component, in terms of an organization being able to orchestrate the processing of customer engagements for the best outcomes in an effortless, effective and timely way. In addition to case, workflow, and knowledge management, personalization and enrichment of customer engagements are crucial.
Key Facts for Magic Quadrant for the CRM Customer Engagement Center in 2023
- Publication Date: 01-Nov-2023
- Document ID: G00777346
- Coverage: Global
- Authors: Pri Rathnayake, Wynn White
- Core Purpose: The CRM customer engagement center (CEC) is a cohesive set of software built around core case management tools, used to provide customer service and support by engaging with customers, while intelligently orchestrating the processes, data, systems, and resources of an organization.
Strategic Planning Assumptions
No strategic planning assumptions provided.
How was the CRM Customer Engagement Center market evolved in 2023?
- The $28.9 billion customer service and support software market grew at 17% year-over-year
- CEC represents approximately 44.6% of the customer service and support market
- The CEC market is fragmented but highly competitive
- Top 10 vendors command 51% of market share, while the next 20 contribute only 10%
- Leading CEC vendors by revenue are Salesforce, Oracle, Zendesk and Microsoft
- 12 vendors evaluated in this Magic Quadrant
- Substantial changes made to market definition, critical capabilities, and scoring criteria from 2021 publication
- Market experiencing rapid evolution with convergence of capabilities across customer service technology platforms
- Generative AI innovations presenting market-altering implications for CEC
- Growing emphasis on composable business capabilities over monolithic integrated suites
- Customers expect CEC functionality as composable business capabilities for easy consumption
- Emerging capabilities include conversation-based engagement, unified employee workspace, and seamless multiexperience touchpoints
What product features are required to be included in this year's evaluation?
- Scalable cloud-based systems
- Digital engagement channels
- Unification of digital and voice touchpoints
- Use of contextual knowledge management
- Automation of engagements
- Proactive messaging to customers
- Workforce engagement management (WEM) components
- An ecosystem for functional enrichment
- Low-code development
What are the common features of top products in the CRM Customer Engagement Center space?
- Collaboration tools
- Proactive digital engagement through continuous intelligence, including prescriptive or guided engagements
- Predictive customer service analytics
- Adaptive business rule engines
- Internet of Things (IoT) connections
- Integration with robotic process automation (RPA) tools
- Intelligent business process management (BPM) capabilities
- Voice-of-the-customer functionality
- Customer success functionality
- Conversation-based customer engagement
- A unified employee workspace/unified desktop
- Seamless multiexperience touchpoints for customers
Scope Exclusions
- Software applications developed, marketed, and implemented primarily for IT service management (ITSM) use cases
- Software applications developed, marketed, and implemented primarily for field service management (FSM) use cases
Inclusion Criteria
Vendors must, among other requirements:
- Minimum of $40 million in total CEC software license revenue
- At least $12 million in CEC software license revenue from net new clients
- Minimum of 10% year-over-year growth in total CEC software license revenue
- Support for large or midsize businesses (average deal size above 100 customer service representatives)
- Presence in at least three out of five major geographical markets (North America, Europe, Asia/Pacific, Middle East/Africa, Latin America), with each contributing a minimum of 10% of total CEC software license revenue
- Presence in at least three industries
- Provide case management and at least five of eight categories of functionality (knowledge management, workflow/BPM, digital engagement channels, real-time continuous intelligence, mobile-enabled support, automation of engagements, collaboration tools, low-code development)
- Market awareness evidenced by regular appearances on client shortlists
- Provide thought leadership through webinars, white papers, blog articles and user communities
- Platform technology to support cross-channel customer service without new development environment coding
- Sufficient cash to fund 12 months of operations
- Sufficient professional services capacity for 12 months
- Adequate third-party consulting and integration partner ecosystem
- Sufficient support and engineering capacity to maintain product for 12 months after each release
- Demonstrated pipeline and adequate sales team
- Revenue forecast showing growth for upcoming four quarters
Ability to Execute — Relative Weighting
- Product or Service - High
- Overall Viability - Medium
- Sales Execution/Pricing - High
- Market Responsiveness/Record - High
- Marketing Execution - Medium
- Customer Experience - High
- Operations - Medium
Completeness of Vision — Relative Weighting
- Market Understanding - High
- Marketing Strategy - Medium
- Sales Strategy - High
- Offering (Product) Strategy - High
- Business Model - High
- Vertical/Industry Strategy - High
- Innovation - Medium
- Geographic Strategy - Medium
FAQs
Q: What does this research cover?
A: This research evaluates twelve vendors in the CRM Customer Engagement Center market based on their ability to execute and completeness of vision. It covers vendors offering cohesive software built around core case management tools for customer service and support, with capabilities including workflow management, knowledge management, digital engagement channels, automation, and low-code development. The evaluation focuses on vendors that meet specific inclusion criteria including minimum revenue thresholds ($40 million total CEC software license revenue, $12 million from new clients), year-over-year growth (minimum 10%), presence in multiple regions (at least 3 of 5 major geographical markets), and support for multiple industries.
Q: Who should use this research?
A: Customer service and support technology leaders should use this research to identify and evaluate CEC vendors that best meet their current and long-term needs. It is particularly valuable for organizations looking to: select a strategic CEC provider for global or multiregional needs; understand vendor positioning in terms of product capabilities, innovation, and market presence; evaluate vendors based on their ability to support complex customer service process orchestration; assess vendors' readiness for emerging technologies like generative AI and composable applications; compare vendors across criteria including pricing models, implementation complexity, vertical market focus, and geographic coverage. The research helps technology leaders make informed decisions by providing detailed vendor strengths, cautions, and positioning within the Leaders, Challengers, Visionaries, and Niche Players quadrants.
Q: What are the mandatory features of vendors included in this market?
A: Vendors must provide case management as a core capability, plus at least five of the following eight categories of functionality: knowledge management, workflow or business process management capabilities, digital engagement support channels, real-time continuous intelligence, mobile-enabled support, automation of engagements, collaboration tools, and low-code development capabilities. Additionally, vendors must provide integration, analytics, and extensibility capabilities. A CEC application is also expected to control customer master data during customer interactions.
Q: What are some reasons for not being included in this report?
A:
- Does not pursue the CRM customer engagement center market
- Did not meet updated inclusion criteria for market presence in three regions
- Did not meet updated inclusion criteria for financial achievement (minimum revenue thresholds)
- Primary focus on IT service management (ITSM) use cases rather than customer engagement
- Primary focus on field service management (FSM) use cases rather than customer engagement
- Insufficient revenue from core customer service and support
- Lack of presence in required number of geographical markets
- Lack of presence in required number of industries
- Insufficient growth rate in CEC software license revenue
- Does not meet minimum deal size requirements for large or midsize businesses
Q: What differentiates Ability to Execute vs. Completeness of Vision?
A: Ability to Execute evaluates a vendor's current capability to deliver products and services, including product quality, sales effectiveness, market responsiveness, customer experience, and operational capability. It focuses on present performance and execution in the market. Completeness of Vision evaluates a vendor's understanding of market direction and their strategy for the future, including market understanding, product strategy, business model, innovation, and geographic/industry strategies. It focuses on strategic direction and long-term market positioning rather than current operational performance.
Reference
- Gartner, Magic Quadrant for the CRM Customer Engagement Center, 01-Nov-2023, ID G00777346
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