Madison Advisors—Madison Advisors announced today the release of a new research study, “Customer Communications Management Hosted Managed Services Market Update 2nd Edition.” This report provides an update on the latest trends in customer communications management (CCM) hosted managed services (HMS) and how initial research participants have developed or enhanced their ability to help enterprises solve challenges with customer communications and compliance, resulting in an enhanced customer experience.
Some key observations in the study include:
• Data aggregation concerns: Data security issues, complexity of legacy applications, the size of the hosted managed services provider and internal IT were highlighted as the primary barriers to adoption of a CCM hosted managed services solution. Lack of executive-level support or internal sponsorship were also noted as barriers.
• Organizations need to integrate their CCM and CX strategies: The convergence of customer experience (CX) with CCM is becoming more prominent as noted by the newly featured capabilities offered, such as payment integration.
• Digital engagement is slowly increasing: All participants support delivery channels, such as social media and personalized video; however, adoption rates are still low.
• The pricing models for CCM hosted managed services will typically include: Fees associated with implementation and onboarding, production support services and labor-based fees for post-implementation change requests.
• More organizations are beginning to focus on the customer experience: The prioritization of customer experience has some enterprises thinking about creating a CCM Center of Excellence; however, this remains a slow-moving trend with minimal adoption.
“The market opportunity for CCM hosted managed services is substantial. Since our last report in October 2015, Madison Advisors has an optimistic, yet still conservative, view of this market, and estimates it to be greater than $5 billion in the United States alone,” said study author, Gina Ferrara, senior analyst at Madison Advisors.
For enterprises in need of a technology update, the research evaluates if the CCM necessary technology should be developed internally, purchased and integrated with existing technology infrastructure or outsourced to a hosted managed services provider. Despite some early adopters, significant opportunity remains in verticals such as financial services, insurance and others that generate large volumes of transactional communications, such as utilities and telecommunication companies. Smaller organizations such as credit unions and savings banks that may typically lack the resources and/or expertise in CCM technology present additional opportunity for this market to grow.