CSPs’ spending on customer engagement is growing due to a focus on customer experience and retention

The customer engagement (CE) market grew by 6.8% between 2022 and 2023 to reach USD16.5 billion. 39% of this revenue came from products, while the remaining 61% came from professional services. Product revenue grew by 9.1% to reach USD 6.46 billion; within this category, SaaS revenue increased by 10%. Professional services revenue grew by 5.4% year-on-year in 2023, compared to 7% in 2022.

Revenue grew year-on-year for five of the top six CE vendors. Salesforce remained the largest vendor and accounted for 13.6% of the total CE revenue. Its revenue grew by 11.2% between 2022 and 2023. It is also the main SaaS vendor in the CE space.

In this article, we give a broad overview of the CE market drivers and related vendor activity, and we examine the market dynamics to help to inform players’ strategies.