By
Jarrod Davis
|
Date Published: October 11, 2024 - Last Updated October 11, 2024
|
Comments
In recent years, major vendors have been aggressively expanding into each other's territory, reshaping the landscape of customer experience (CX) software and confusing the heck out of buyers.
Companies like Salesforce, Google and Microsoft now offer CCaaS solutions, while live chat providers are adding AI capabilities. Meanwhile, communications platforms players are moving into productized software for CX.
No matter what category or vendor you look at, they all seem about 80% the same. Here’s why and what it means for those looking for new solutions or wanting to replace existing ones.
A CX software brief history lesson
Consider the humble word processing software. From the 1980s to early 2000s, we thought of it as a standalone solution. We’d compare WordPerfect to WordPad, Microsoft Word or even Open Office Writer. Today, whether you use Word or Google Docs, they are simply seen as components of a larger business or office suite along with email, spreadsheets and presentations. While each component is vital, they are inseparable parts of a larger solution; no longer standalone categories.
Every CX vendor seems to be gravitating toward the same core features, markets and messaging. The solutions they offer are evolving into all-in-one suites that deliver consistent, personalized communication across both voice and digital channels. Vendors are racing to acquire new capabilities in AI, knowledge management, workforce management and social messaging to stay competitive.
What does this tell us about the customer experience software market?
A few takeaways:
- Users want seamless, personalized experiences across all touchpoints.
- Customers expect freedom to choose and switch between communication channels effortlessly.
- The market is overwhelmingly aligned — from customers to vendors — on the need for unified CX solutions.
- Vendors are actively working to deliver these holistic solutions.
- It's becoming increasingly difficult to differentiate between vendors, even across categories.
- The market will continue to converge, blending traditionally distinct software categories.
Say goodbye to outdated contact center technology solutions
Just as physical documents have been replaced by digital ones, the core technologies in contact centers — CRM, CCaaS, case management, and knowledge management — are now cloud-based and digital. With AI driving the next wave of innovation, we're seeing the rise of a unified CX system, something you might think of as a “CX Voltron” — a powerful combination of integrated technologies.
CCaaS moves to the passenger seat
CCaaS can no longer be the central pillar of the contact center. It reflects an era where human agents and phone-centric solutions dominated, but that era is fading. While CCaaS still has a role, it's now just one part of a larger CX ecosystem. This shift is evidenced by the surge of acquisitions and feature expansions by CCaaS vendors, who are adding solutions like knowledge management, workforce management, conversational AI and CRM.
However, this expansion presents challenges. Vendors that have specialized in one area for years may struggle to offer best-in-class solutions across multiple categories. While they stretch their R&D budgets across legacy CX systems and emerging technologies, they may fail to lead in any one category.
On the other hand, vendors that have focused exclusively on AI for years can offer superior capabilities in that area, but don’t claim expertise in CRM or case management. This divergence makes it clear: no single vendor can provide the best solution in every category.
The key is to recognize each technology's strengths and integrate them as part of a larger, coordinated CX strategy — an orchestra of solutions, conducted by AI.