What Is a Digital Experience Platform and Why Should You Care?
For centuries organizations have attempted to differentiate their companies by creating amazing products, establishing creative offers, using effective distribution channels, and/or going to market with competitively priced products. Many companies have succeeded in one or more of these strategies to drive business growth. However, over time competitive forces commoditize these opportunities for differentiation, leaving organizations searching for new ways to out maneuver their competition.
At the same time, the power of buyers has greatly increased with the advent of the internet, providing direct access to product insight, competitive information and buyer reviews. (e.g., analyst research continues to indicate that more than 60 to 70 percent of the buying decision is made before a buyer even speaks with a salesperson, if they even speak with a salesperson at all during the buying process). The best and most innovative companies have discovered a significant opportunity in this new environment to differentiate their products and services: customer experience.
"By the year 2020 it’s expected that customer experience will overtake price and product as the key brand differentiator."
However, in order for companies to tap into the power of experience as a differentiator, they will need to meet very demanding customer expectations. For example, providing customers with instant access to information in a personalized manner, and providing this information to any channel in a synchronized manner. Jake Sorofman of Gartner correctly indicates in a recent report that customer experience is the new competitive battlefield.
Wikipedia provides a simple, yet effective description of this term:
“Customer experience (CX) is the product of an interaction between an organization and a customer over the duration of their relationship... All of the events experienced by customers before and after a purchase are part of the customer experience.”
Delivering this experience involves participation by all functions organization-wide, such as marketing, sales, customer success, engineering and operations.
Delivering an exceptional customer experience starts with the critical first step of interacting with and acquiring a new customer and/or upselling an existing customer. This step is ultimately responsible for driving new revenue for companies. The digital interaction of companies with their buyers, partners and influencers prior to and during the buying process, specifically including the roles of marketing and sales along with associated support by IT, is defined as the Digital Experience. This experience includes the interaction of companies with buyers, partners and influencers across any and all touchpoints to generate awareness, demand and revenue.
What is a Digital Experience Platform?
Delivering this digital experience requires the complex interaction of people, processes and technologies across an organization, working in complete harmony to capture the attention of buyers, build trust and compel them to action. The explosive growth of innovative marketing technologies has put this vision in the grasp of organizations both large and small: There has been an over 95 percent compound annual growth rate (CAGR) in marketing technologies over the past 6 years with over 5,000+ vendors today. (Figure 1)
This growth of innovative technologies coupled with the increasing digital experience demands of buyers has created both challenges and opportunities for marketing and IT teams who must:
- Harness the force of innovation to delight customers and differentiate a company’s products and services
- Deliver an individualized experience for each and every buyer in real-time
- Deliver this experience across any channel in a synchronized manner
Even more challenging, is accomplishing all of this in a scalable manner for enterprises to support thousands or millions of buyers and touch points across multiple countries, websites, languages and business units, all while maintaining the flexibility to adapt to changing customer needs and advances in technology. This is the ultimate mission and objective of a digital experience platform (DXP).
More specifically, e-Spirit defines a Digital Experience Platform as follows:
- Digital Experience Platform: A core set of software technologies that orchestrates the creation, delivery and optimization of personalized, content-rich digital experiences anytime, anywhere to delight customers, compel them to action, and enable a company to outperform its competition.
Other industry definitions of a DXP include:
Core Components of a Digital Experience Platform
Since a digital experience includes the interaction of companies with buyers, partners and influencers across any and all touchpoints, this experience would not be possible without the creation and delivery of personalized content to any and all channels. Therefore, core components of a DX platform include content management, personalization, and the ability to deliver this content to any channel in a synchronous manner at scale.
In addition to these core components, there are a vast array of technologies needed to support a comprehensive digital experience which a DX platform must be capable of operating with. These technologies, coupled with the above-mentioned core components, make up a company’s “digital experience ecosystem.” Examples of just a few areas in this ecosystem include:
- Core components:
- Content management
- Omnichannel marketing (e.g., Content-as-a-Service or CaaS - see this video to learn about CaaS)
- Additional components:
- Digital asset management
- Customer relationship management
- Marketing automation
- Social media
- Data management platforms
- Video management
The “glue” holding all of these components together and enabling them to interact in a real-time manner is enabled by a layer of interoperability. Key success factors in a DXP that enable this interoperability include:
- Extensive, stable and comprehensive APIs: APIs provide the foundation to "play nice with others," be it the latest and greatest marketing software applications or legacy IT solutions.
- Business level enablement: API level interoperability alone is not enough: A DXP needs to enable business users to interact with and benefit from third-party tools through seamless integration. That is, interoperability from a business user perspective with minimal to no IT involvement for example.
- Microservices-based architecture: This architecture must support scaling and extension when needed, forming the building blocks of an agile digital marketing technology ecosystem. Read more about microservices-based architecture here.
A Digital Experience Ecosystem and the Role of a DXP
There are three main vendor strategies for building a DX ecosystem, including advantages and disadvantages for each:
|All-in-One, single vendor DX platform that provides every software capability|
(questionable as to whether this even exists today)
|DX Platform with core, best-in-class components and integration capabilities|
(60% of companies prefer this option)
|Build Your Own DX ecosystem (an aggregate of point solutions vendors)||
What is the Reward for Deploying a Digital Experience Platform?
As presented earlier, delivering a compelling digital experience offers companies the opportunity to differentiate from their competition and drive more engagement and revenue. Consideration of ROI for technology purchases to enable these digital experiences is no doubt still important, however, it is not a matter of ‘if’ you need to create these compelling digital experiences for your customers, but how soon you can deliver them. What’s at risk here? Survival. For example, the risk of losing your customers:
Salesforce.com researched customer behavior on websites recently and found that 52 percent of consumers indicated that they are likely to switch brands if a company doesn’t personalize communications to them.
Some benefits of deploying a DX platform to deliver digital experiences are as follows:
|DX Platform Benefits||Examples|
|Retain and upsell customers||
|Help customers “shop” and not just “buy”||
|Compel customers to make their first purchase or increase average order value (AOV)||
|Increase brand value||
|Improve internal productivity and reduce time-to-market to meet/exceed customer expectations||
|Reduce technology costs||
The digital experience movement will no doubt continue to evolve with the changing needs of buyers, and companies will need to get more efficient and effective at meeting and exceeding those needs. The most successful organizations will:
- Rapidly identify the explicit and latent needs of their buyers
- Develop the culture and processes to harness the innovation and passion within their own employees and external teams
- Tap into the power of new and innovative technologies
To learn more about digital experience best practices and related technology insights: or schedule a demo to see how e-Spirit’s Digital Experience Platform is helping companies such as Bosch, L’Oréal and many others:
- View The Ultimate List of Digital Experience Conferences to plan your digital education journey
- Take this short, five minute DX Ecosystem Self-Assessment and measure the health of your DX ecosystem vs. over 200 other companies
|Want to learn how a Digital Experience Platform is the best solution for your business?|
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