Digital Experience Platforms (DXP) Definition and Meaning
Abbreviated as DXP, a digital experience platform is an integrated software framework meant to engage a broad array of players in the broad array of digital touchpoints. Most organizations deploy DXPs to improve their websites, portals, mobile applications, and other digital experiences. From this definition, DXPs may not be as clear as you may want to understand them. However, organizations need one central platform responsible for controlling the wide span of its touchpoints. This central platform for the expanded experience for an organization is the so-called digital experience platform.
Background of Digital Experience Platforms
The technology behind digital experience platforms has evolved over the years due to the increased venture of the digital space by both customers and workers. The predecessor platforms that were DXP equivalents included CMS. A content management system is a basic system that was used to organize content, data, and images for enterprises. Digital experience platforms soon took over due to the various challenges that CMS introduced, such as the introduction of silos in organizations.
WEM (Web Experience Management) came soon after. These were platforms that helped leverage the web technologies and also integrate them with the existing enterprise systems. WEM brought about centralization, providing a better way of doing content management. These two early technologies gave rise to digital experience platforms, which combined the power of WEM and the benefits of other open platforms to reduce the complexity of IT.
Why Does an Enterprise Need a DXP?
Enterprises will often come across customers’ need to have a single platform between their various platforms such as websites, apps, and even social media platforms. They want content that is unified for both the internal and external experiences. Digital experience platforms are crucial in the ongoing transition from the Web-oriented platforms to the digital platforms. Digital experience platforms offer comprehensive capabilities as they move from the Web-only platforms to the digital experiences. The digital experience is critical to growing customer satisfaction and loyalty. Driven by the natural evolution of technology, a DXP can offer customers the relevance that fulfils a specific need in a fully connected, digital experience. If your business is considering DXP, ask yourself these questions:
1. Is the majority of my business online?
Whether you offer in-store or online experiences, DXPs enable customers to enjoy a fully connected experience with your business by leveraging any type of asset, or group of assets, across any digital touchpoint such as online, in-store, billboards, kiosks, customer portals, ecommerce systems, and more. The integrated software network engages disparate audiences across multiple, varying digital touchpoints and organizes omnichannel experiences.
2. What is the current state of my working environment?
If your organization has several “siloed” back-end systems that operate separately from one another with little to no connectivity, an agile DXP can improve the interaction between your customers and your brand.3. How many touchpoints do I have with my customers?
Implementing a DXP is an extremely effective and efficient tool when you have a number of both in-store and digital touchpoints and a need to integrate backend and frontend systems to meet customer demand.4. Is my target audience diverse?
A DXP is equipped to handle content and asset management on a large scale. This is an effective tool to segment your customer base and reach them exactly where and how they want to be reached.5. Do I want to deliver my clients a highly differentiated customer experience?
The digital journey has evolved and is critical to customer retention. Sending the same message to every user does not equate to an exceptional, personalized user experience. With a DXP, your business can collect customer data, define personas, serve custom content to specific audiences, and connect with other channels such as social media or mobile applications. It integrates with other systems and departments to enable a highly personalized experience for customers.
3 Digital Experience Platform Types
A DXP helps you build a meaningful relationship with all of your customers throughout the customer lifecycle. There are three distinct DXP options on the market today:
1. CMS DXPMost marketing and advertising agencies that support B2C initiatives are unable to accelerate sales because they are limited by their current Content Management Systems (CMS). The CMS DXP offers a wide variety of functions based on several customer-facing experiences to accelerate moving leads down the funnel in support of sales.
- Demand generation
- Customer acquisition
- Personalized content delivery
2. Portal DXPPortal DXPs are specifically designed to work with B2B and B2C financial technology and manufacturing-based companies for the purposes of customer support initiatives and customer relationship management, focused on activities such as customer renewal, loyalty and/or retention. Portal DXP functionality works seamlessly with corporate intranet portals to engage both partners and suppliers.
- Workflow automation
- Front-end presentation
- Mobile support
3. Commercial DXPCommercial DXPs are primarily used to push promotional content to company websites.
- Shopping cart management
- Inventory management
- Product returns
- Payment management
Starting Your Own DXP-oriented Strategy: Where to Begin?
At this point in the digital transformation of your business, you should create your eCommerce website and implement a DXP. The website is the foundation of your future DXP system and one of its most active touchpoints. Next, determine the type of DXP that is right for you—CMS, Portal or Commercial—based on the size and scope of your business and its touchpoints.
Choosing a DXP: Considerations
The critical question to ask yourself when selecting a digital experience platform is: Will the DXP put me on the path to better customer experience? The first consideration you have to make is your enterprise’s technology stack or architecture. What technologies are you using to reach your customers? If these questions are not clear to you, it is essential that you create a defined customer journey map. Doing this will help you know how to deliver digital experiences to your customers best.
After deciding on using a DXP, it is important that you measure its integrity. Let’s go through the integration standards of a digital experience platform briefly:
- Check whether the DXP is rationalized and integrated
- Check whether it overlaps another product
- Check its analytics and web content management to verify its integration
Benefits of Digital Experience Platforms to Enterprises
As evaluated, digital experience platforms go a step further than content management systems. Well, they do more than just creating an omnichannel customer experience for an enterprise. But how exactly do they help in the growth of enterprises?
The most effective digital experience platforms are engineered with the chief objective of building meaningful relationships with customers in their entire lifecycle.
Organizing Omnichannel Experiences
Another crucial goal for any digital experience platform is to deliver content to various devices such as mobile phones, IoT devices, desktops, social media platforms, emails, and more.
As earlier mentioned, it is important that these platforms integrate with existing and new systems and data. Through this integration, content can be optimized to suit the specific customer needs.
These platforms also help enterprises grow by helping address customer needs at the various points of their customer journey, from awareness to the long-term customer.
A Single Data Centralization Point
In addition to delivering various content through certain touchpoints, a Digital Experience Platform creates a singular point of view through the collection, unification and analysis of customer interaction data. Data unification leads to more effective decision-making as single workers or departments are able to share data. This overcomes the challenges of legacy Content Management Systems that are unable to interact with and transmit data to other siloed systems.
Increases in Internal Performance
A DXP can also streamline employee performance by allowing everyone access to required information anytime they need it. This is especially useful by organizations that work with multiple languages or require their own created content to be translated into multiple languages.
Uptime Cost Effectiveness
At first glance, businesses may experience “sticker shock” over DXP’s initial price tag; however, the overall technology structure makes it a less expensive solution to maintain over time. The possibility to spread content to almost any IoT device that is able to receive it coupled with a headless CMS or an API-first CMS as a basis for a DXP makes it a lot easier to integrate into existing systems, manage updates or implement future systems.
Trends indicate personalized content is not going away. Improvements in Machine Learning and Artificial Intelligence fuel a desire for even more personalized user experiences as businesses broaden their reach in addition to meeting ongoing customer demand.
1. Digital integration is good for business
A modular approach with multiple connections among your workflow is not only easier to manage but also more flexible and adaptable to change. Shifting to a digital approach allows businesses to see how departments interact with one another and has an impact on the overall customer experience. Marketing automation also optimizes the marketing process and eliminates the need for a person to constantly monitor and analyze the data related to the customer journey.
2. We should trust AI more
Today, AI offers useful insights and predictions based on the analysis of data, but it can do so much more. From assisting with general processes of identifying the most logical action based on the current data and circumstances to generating precise individual insights, as is seen in Search Engine Optimization (SEO), AI can be useful in many situations. Investing in AI isn’t cheap, but brands can reap benefits in predictions that indicate the precise moment a customer is ready to buy or how to immediately meet a customer need.
3. Flexibility is the key to the future
The faster businesses can adapt to changes in the market, the better off they are. Recent examples of changes in market dynamics include microservices adoption and the shift to move (almost) everything to the cloud. Both of those market shifts offer much greater agility and scalability not only for individual processes but also for systems in general. These advances allow for improved integration with AI, voice and data analytics as well.
4. The evolution of voice interaction isn’t over
The market of “smart speakers” is quite far from reaching its peak. The first business to master voice recognition would receive a major advantage over others. Developers are constantly working to create content that would recognize human speech patterns, which would bring voice assistance to a whole new level (especially if integrated in mobile apps), and move beyond simple voice commands for search.
5. Maintaining customer privacy is an enormous competitive advantage
Customers trust brands to both protect and respect their privacy. The GDPR (General Data Protection Regulation) changed the way companies interact with customer-related information and had an impact on the privacy of data. Departments beyond marketing are affected by these data safety protocols. Maintaining a high level of privacy protection of customer data is key to future success.
Digital innovations are connecting brands with consumers better than ever before. Businesses gain access to customer information about trends, wants and needs and, in turn, customers make faster, more informed buying decisions with optimal customer experiences. For enterprises that are seeking to meet the ever-changing customer needs, digital experience platforms will soon be necessities. The bright part is that a digital experience will create a customer experience that is united across various devices and platforms. What’s more, all this will be achieved without the confusion of a complex management process.