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Digital Experience Platforms Decoded: Capabilities, Trends and Future Outlook
trantorindia | Updated: October 3, 2023
A digital experience platform (DXP) is an integrated software solution designed to manage and optimize customer experiences across multiple digital touchpoints. This comprehensive guide will explore what DXPs are, their key capabilities, real-world examples, implementation challenges, emerging technologies, and the future of these powerful platforms.
Defining Digital Experience Platforms
A digital experience platform brings together various technologies for creating cohesive customer journeys across the web, mobile apps, online communities, and emerging channels. As per research by Gartner, over 50% of large enterprises will have invested in a DXP by 2025.
Core capabilities include:
- Content Management: Authoring, optimizing, personalizing, and delivering omnichannel content experiences
- Customer Data Management: Collecting, unifying, analyzing, and activating customer data from all interactions
- Personalization: Leveraging data and analytics to tailor experiences for individual users
- Commerce: Enabling seamless shopping experiences across digital touchpoints
- Customer Service: Managing customer support across channels
- Advertising: Serving targeted digital ads
- Integration: Connecting disparate systems into a unified technology stack
Additional DXP capabilities:
- Journey Orchestration: Creating seamless customer journeys across channels and touchpoints
- Campaign Management: Planning, executing, and optimizing digital campaigns
- Testing and Optimization: A/B testing and experimentation to continuously improve experiences
- Collaboration Tools: Enabling teams to coordinate and share information
- Analytics and Reporting: Providing data-driven insights into engagement, conversions, campaign ROI, and more
- Security: Safeguarding customer data and providing robust access control
Leading DXP vendors include Adobe, Salesforce, SAP, Sitecore, and Liferay. Let’s explore some real-world DXP use cases from major brands.
Real-World Digital Experience Platforms in Action
Sephora: Unified Beauty Shopping Experiences
Sephora, the leading beauty retailer, leveraged DXP solutions to enhance its e-commerce site, mobile app, in-store tech, and social media channels. By integrating content, data, and shopping across touchpoints, Sephora created seamless customer journeys.
Results:
- 20% increase in mobile conversions
- 60% higher email clickthrough rates
- 75% greater efficiency in creating personalized campaigns
Mazda: Digital Transformation via DXP
Mazda implemented a DXP to consolidate global websites and assets. By unifying content, commerce, and customer data, Mazda improved efficiency while delivering localized experiences.
Results:
- 8X faster time-to-market for global campaigns
- 60% reduction in IT costs
- Doubled website conversions
Verizon: Optimizing Customer Lifetime Value
Verizon Media adopted a DXP to deepen customer relationships across advertising and content properties like Yahoo and AOL. Real-time data feeds into personalized experiences aimed at driving engagement.
Results:
- 15% lift in customer lifetime value
- 25% increase in click-through rates
- 60% higher conversion rates for targeted audiences
Adobe: The DXP Pioneer
As a DXP leader, Adobe transformed its digital ecosystem. By connecting data, content, commerce, and marketing, Adobe provides relevant experiences on sites, apps, email, social media, and more.
Results:
- 40% increase in YoY website traffic
- 3X higher mobile conversion rates
- 60% of traffic driven by personalized content
Singapore Airlines: High-Flying Digital Experiences
By implementing a DXP, Singapore Airlines streamlined content creation and delivery across global touchpoints. The airline also integrated backend systems for inventory, booking, and customer data to enable omnichannel experiences.
Results:
- 4X faster time to market for new digital initiatives
- 20% increase in online booking conversion rates
- 360-degree customer profiles for personalized engagement
DBS Bank: Banking on Digital Transformation
DBS Bank adopted a cloud-based DXP to transform digital banking experiences. The platform unified content, data, and journeys across mobile, web, and in-person channels.
Results:
- 70% increase in digital channel customers
- 25% lift in online loan applications
- 5X more website visitors
- 90% faster deployment of new campaigns
L’Oréal: Boosting Beauty Commerce Experiences
L’Oréal implemented a headless commerce DXP to deliver consistent brand experiences globally. By centralizing content, commerce, and customer data, L’Oréal improved omnichannel shopping journeys.
Results:
- 3X increase in conversion rates
- 60% higher online revenue
- 15% growth in mobile traffic
- 40% optimization in time-to-market
Samsung: DXP Powers Digital Innovation
Samsung adopted a cloud-based DXP to transform fragmented websites into a unified digital ecosystem. The platform delivers localized experiences across markets while enabling experimentation.
Results:
- 4X faster launch of global campaigns
- 25% increase in search traffic
- 15% lift in loyalty program sign-ups
- 10% boost in online sales
DXP Implementation Challenges
While delivering immense value, implementing a DXP poses notable challenges, including:
- Integrating disparate legacy systems into a unified data and content ecosystem
- Moving from fragmented single-channel approaches to omnichannel orchestration
- Blending digital touchpoints with in-person interactions
- Achieving organization-wide alignment on DXP strategy and adoption.
- Selecting the right software combination from diverse vendor solutions
- Generating quality data and analytics capabilities to maximize personalization
- Ongoing optimization, maintenance, and governance of the DXP lifecycle
Research by Accenture indicates that 87% of businesses face difficulties integrating DXP technologies. However, organizations able to overcome these hurdles reap substantial benefits.
DXP Industry Trends and the Future
DXPs have become pivotal in delivering relevant, frictionless customer experiences. Emerging trends include:
- Expanding the use of AI and ML for predictive insights and analytics-driven personalization. Adobe’s 2022 Digital Trends Report found that 71% of marketers are using AI and machine learning in their DXPs.
- Integration of Augmented Reality (AR) and Virtual Reality (VR) to create immersive shopping experiences. 30% of retailers plan to adopt AR/VR-enhanced DXPs by 2025, per research by Gartner.
- Focus on composable architectures and headless content management for greater flexibility. 65% of marketers prioritize these capabilities, according to research by Contentstack.
- Increased adoption across industries beyond retail and media into healthcare, finance, travel, and hospitality.
- Convergence of DXPs, CRMs, and CDPs into unified Customer Experience Platforms (CXPs). 78% of brands see integrating these technologies as critical, according to research by Sitecore.
- Expansion into B2B scenarios like partner portals, account management, and sales enablement. 59% of B2B companies are investing in DXPs to support digital transformation initiatives, as per Juniper Research.
- Leveraging 5G and edge computing to enable fast, iterative experiences 74% of IT leaders see 5G and Edge as DXP game-changers.
The future points towards DXPs becoming demand centers, driving digital transformation across organizations. As customer expectations evolve, DXPs will enable brands to continually adapt and innovate while providing personalized omnichannel experiences.
DXP Capabilities in Action
To fully leverage DXP’s potential, let’s explore some leading capabilities and use cases:
Journey Orchestration
Journey orchestration tools combine insights and automation to guide users through self-service pathways. Key benefits include:
- Increased conversions by fostering engagement
- Reduced customer service costs by lowering repetitive inquiries
- Improved optimization as analytics reveal pinch points
Example: ANZ Bank implemented journey orchestration to double online loan applications by guiding customers through the application process.
Experimentation and Testing
DXPs like Sitecore Content Hub allow extensive A/B testing and controlled experimentation to refine experiences.
Benefits include:
- Data-driven design improvements
- Faster time-to-value for new initiatives
- Eliminating guesswork around performance optimization
Example: T-Mobile uses Adobe Target to test thousands of website variations annually, increasing online conversions by over 20%.
Customer Intelligence Engine
By unifying data from all sources, DXPs enable a single customer view and lay the foundation for personalized engagement.
Benefits include:
- 360-degree understanding of preferences and behaviors
- Segmentation for finely targeted experiences
- More relevant communications drive higher engagement
Example: MetLife leverages Acquia Lift to build unified customer profiles across channels, improving campaign performance by over 40%.
Commerce Capabilities
DXP commerce tools allow for seamless shopping experiences across touchpoints.
Benefits include:
- Consistent customer journeys spanning online, in-store, etc.
- Omnichannel order management and fulfillment
- Flexible APIs easily connect commerce to content, data, and third-party apps
Example: Under Armour implemented Salesforce Commerce Cloud to deliver over $1 billion in online revenue, seamlessly blending digital and physical.
Progressive Web Apps
DXPs like Bloomreach help quickly build progressive web apps offering app-like experiences on the web.
Key benefits include:
- Faster performance with limited connectivity needs
- Streamlined accessibility across devices
- Simplified deployment leveraging web development skills
Example: Lancôme launched a progressive web app that increased conversions by 17% by enabling smoother mobile shopping.
DXP Evaluation Criteria
When assessing DXP solutions, key criteria include:
- Unified Data and Insights: Look for 360-degree customer data intake, analytics, and activation capabilities.
- Flexible Deployment Options: Seek breadth like SaaS, on-prem, hybrid, headless, and progressive web.
- API Ecosystem: Review the availability of APIs and pre-built integrations to connect systems.
- Cloud and Mobility: Ensure the platform leverages the latest cloud, 5G, and mobile advancements.
- Partners and Marketplace: Look for an extensive partner and integration ecosystem.
- Robust Security: Security and compliance should be baked into the platform.
- Personalization: Check how AI/ML is leveraged to drive personalization and optimize experiences.
- Innovation Roadmap: Seek rapid adoption of innovations like AR/VR and voice assistants.
- Scalability: The platform should flexibly scale from thousands to millions of users.
- Vendor Stability: Choose mature vendors with extensive expertise and customer references.
By thoroughly evaluating DXPs against these criteria, organizations can select solutions positioned to drive long-term success.
DXP Implementation Best Practices
Once a Digital Experience Platforms is selected, best practices for implementation include:
- Phase in capabilities, starting with foundational elements first. Don’t boil the ocean.
- Foster executive alignment and cross-team collaboration.
- Set clear success metrics tailored to business goals.
- Plan for integration with existing martech and back-end systems. APIs and microservices help.
- Perform extensive testing before launch. Leverage A/B testing post-launch to keep optimizing.
- Provide adequate training and knowledge transfer to build expertise.
- Develop robust governance procedures for platform maintenance and enhancements.
- Keep enhancing data flows and analytics for greater personalization maturity.
- Maintain platform flexibility to adopt emerging innovations and trends.
Research shows that 52% of digital experience platforms projects fail due to poor planning and a lack of alignment, according to CMSWire. Following proven best practices helps set initiatives up for success.
Conclusion
DXPs empower businesses to deeply understand customers, foster engagement across channels, and optimize experiences in real-time. With capabilities ranging from content to commerce, data unification to personalization, leading brands rely on DXPs as the foundation of modern digital ecosystems.
As digital maturity grows across industries, companies will continue prioritizing these platforms to adapt at the pace of innovation. While implementing digital experience platforms poses challenges, for organizations able to capitalize on their potential, the rewards can be transformative, both now and in the future.
