MUMBAI: India’s e-commerce market is driven by Tier II and III cities. 72% of Indian customers share data with trusted brands, making personalized CX critical. CXaaS boosts BFSI fraud detection by 20%, retail conversions by 40%, and e-commerce satisfaction by 18%. Virtual agents handle 60% of interactions, cutting costs by 35% and scaling 24/7 support. 70% of consumers demand transparent data practices, enabled by privacy-preserving AI.
Poor CX drives 61% of customers to abandon brands, making seamless engagement essential. CXaaS is key to unlocking growth in India’s $1 trillion digital economy.
Exotel, which works in the area of customer engagement solutions, in partnership with Grant Thornton Bharat and the Internet and Mobile Association of India (IAMAI), has released a whitepaper titled AI-Driven Customer Experience: Balancing Personalisation, Privacy, and Automation. This whitepaper, unveiled at the Indian Digital Summit 2025 in New Delhi, highlights how Customer Experience as a Service (CXaaS) is becoming a game-changer for India’s digital economy.
The whitepaper underscores how businesses can leverage CXaaS to enhance customer engagement, streamline operations, and unlock value in sectors like BFSI, retail, and e-commerce. With the CPaaS market anticipated to reach $35 billion by 2026, the findings are a timely resource for organizations aiming to stay competitive in a rapidly evolving landscape.
Highlights from the Whitepaper
E-Commerce Growth at the Forefront: India’s e-commerce market is growing at a CAGR of 30.11%, driven by increasing internet penetration and demand from Tier II and III cities.
Customers in these markets, which now account for 65% of e-commerce growth, are seeking better omnichannel and personalised experiences.
Rising Expectations of Personalisation: Globally, 82% of consumers value personalized interactions despite concerns about data privacy.
In India, 72% of customers are willing to share their data with brands they trust, presenting opportunities for businesses to build deeper connections.
Key Drivers for CXaaS Adoption: Rising operational costs, customer attrition, and the push for automation are compelling businesses to rethink their customer engagement strategies.
61% of global consumers abandon brands after poor experiences, emphasizing the need for seamless customer journeys.
Sector-Specific Insights: BFSI: Fraud detection improved by 20% through AI-powered CX solutions.
E-Commerce: Enhanced CX increased customer satisfaction scores by 18% and reduced cart abandonment rates by 12%.
Retail: Integrated CX strategies drove a 40% rise in conversion rates.
The Role of AI in Scaling CX: Virtual agents now handle 60% of customer interactions, providing 24/7 support and cutting costs by up to 35%.
AI-powered tools are transforming customer service by improving self-service resolution rates, enhancing personalisation, and enabling businesses to manage peak demand efficiently.
Balancing Personalisation and Privacy: Privacy-preserving AI technologies, such as federated learning, are critical to building trust while enabling data-driven insights.
Consumers increasingly expect transparency in data usage, with 70% of customers requiring clarity on how their data is handled.
“Customer expectations are changing faster than ever, with people seeking more personalised, transparent, and seamless experiences. Delivering exceptional customer engagement is no longer optional—it’s a key driver of growth and loyalty. This whitepaper offers practical insights and a clear roadmap for businesses to reimagine customer journeys, adopt innovative approaches, and build trust while creating meaningful value,” said Shivakumar Ganesan, CEO and Co-Founder of Exotel.
Dharmender Jhamb, Partner and Industry Leader FS Consulting, Grant Thornton Bharat, said, “The whitepaper emphasises the importance of ethical AI deployment, transparent data usage, and seamless integration across touchpoints to meet the rising expectations of digitally empowered consumers. Sector-specific insights demonstrate how leading organisations have successfully leveraged CXaaS to deliver exceptional results, including improved retention rates, measurable ROI, and operational scalability.”
A Roadmap for India’s Digital Economy: As India’s digital economy continues its exponential rise, surpassing $1 trillion by 2030, CXaaS will be a cornerstone for business competitiveness. By aligning cutting-edge technologies with the needs of a digital-first consumer base, businesses can unlock growth opportunities across Tier I, II, and III cities.
