Software Suites, AI Reshaping Customer Experience, ISG Says

The increasing integration of applications for managing customer experience (CX) is changing how enterprises monitor, understand and improve interactions and relationships with their customers, according to new research from global AI-centered technology research and advisory firm Information Services Group (ISG) (Nasdaq: III).

The ISG Buyers Guides for Customer Experience Management, produced by ISG Software Research, provide rankings and ratings of 29 software providers and their products for governing and optimizing customer experience across all channels. The research finds that most companies view CX as essential, but they use a wide range of different strategies and tools to operate, analyze and improve it. Traditionally, customer relationship management (CRM) and contact center processes have been dispersed across organizations.

In recent years, enterprises are starting to take a more centralized approach to CX using customer experience management (CXM) software, which combines applications on a common platform so organizations can view and control customer activity across departments, the reports say. Software providers are making this possible by synthesizing functions, packaging together previously separate systems for managing interactions and influencing customer behavior.

A key benefit of combining CX software into a single platform is consistency and continuity around data collection and metrics, ISG says. This allows enterprises to transcend the separate metrics used by each department, achieving a more holistic view.

“By 2027, we expect most CXM suites, by default, will include components that combine analytics, AI and customer data integration,“ said Keith Dawson, director of research, customer experience, ISG Software Research. “This will make them increasingly essential to providing great customer experience.”

CXM software is evolving rapidly, so each suite has different strengths depending on its components and on the traditional expertise of the provider, the reports say. Providers of contact center, CRM and marketing software have been assembling CXM suites. The platforms include tools for functions that may include customer data, contact center interaction handling, knowledge management and customer journey management (CJM).

ISG expects providers to fill out their suites over time, converging on five core functional areas that every CXM suite should include: interaction handling, resource management, workflow automation, insights and analysis and CJM. Interaction handling includes both traditional call-center voice interactions and digital customer contact channels.