Introduction to Types of Digital Experience Platform Solution

Customers want personalized experiences every time they use a digital platform. Nobody wants to be spammed with unsolicited, bulk emails that don’t provide any value. Digital experience platform solutions have changed the way companies target customers. Gone are the days of shooting in the dark and hoping to hit the bullseye.

DXP platforms obtain explicit consent from users and provide personalized, valuable content that resonates with them. Depending on the jurisdiction, these DXP platforms adhere to anti-spam regulations like CAN-SPAM, GPPR, PECR, PIPL, and others.

A report states that companies can generate 40% more revenue from personalization and that 89% of marketers experience positive ROI in their marketing campaigns. Personalization is no longer an option for companies.

Increased competition, fluctuating market trends, and rising customer expectations compel customers to prioritize personalization. Digital experience solution platforms (DXP platforms) are the key to personalization.

With that being said, DXPs are not that simple. They can be standalone digital products or a comprehensive suite of products with various functionalities. Moreover, DXPs can be different for each sector. Some DXPs have functionalities that meet the requirements of a specific niche business. This blog will discuss the most common types of DXP platforms and more. Keep reading.

Table of Contents

• Introduction
• What is a Digital Experience Platform Solution?
• 8 Core Components of a DXP Platform
• 5 Types of Digital Experience Platform Solutions
• Final Thoughts

What is a Digital Experience Platform Solution?

A digital experience solution or a DXP platform is software that manages digital experiences for companies across multiple digital touchpoints. These channels can be online, offline, and emerging technologies.

Online Channels
Online channels include websites, mobile applications, social media, emails, E-Commerce platforms and search engines.

Offline Channels
Offline channels include physical stores, call centers and IoT devices.

Emerging Technologies
Emerging channels include VR and AR experiences, voice assistance, chatbots, and live chat interactions.

Regardless of the channel, a DXP platform enables companies to create, manage, deliver, and optimize customer experiences. The most common features of a digital experience platform solution are content management, E-Commerce, personalization, and experimentation.

In simple terms, digital experience platform solutions are an upgrade from conventional content management solutions. A DXP platform outlines the entire digital customer lifecycle, from content creation to implementation, setting KPIs, measuring the results, and adapting if necessary.

Digital experience platform solutions handle the bulk of data management and UI-related tasks, allowing companies to focus on developing innovative products and exceeding customer expectations. DXPs may not be a quick fix or a magic wand that improves things overnight. No wonder the DXP platform market is expected to be $11.73 billion in 2023 to $13.01 billion by 2024 (10.8% CAGR) and $20.42 billion by 2028 (11.9% CAGR)

However, they have a valuable set of tools and technologies, such as AI and ML, personalization engines, marketing automation, CRM, search and navigation, and others, to optimize performance and deliver personalized experiences.

8 Core Components of a Digital Experience Solution Platform

The eight core components of a digital experience solution platform are as follows:

1. Content Management
Most DXP platforms have an in-built content management system. This system is a central repository that stores content related to the organization. Companies can add, remove, and edit content and share it on multiple platforms.

2. Asset Management
A DXP platform stores digital assets like images, videos, audio files, cryptocurrencies, intellectual property, and more as a central information repository. Companies can use these digital assets to achieve a particular goal or convey important messages.

3. E-Commerce
A DXP platform’s E-Commerce functionality enables companies to conduct online transactions. The platform handles the backend tasks of operating a digital store, such as checking out, tracking orders, setting up payments, and more.

4. Customer Relationship Management
Companies can leverage the DXP platform’s built-in CRM capabilities to store customer information, build and nurture long-term relationships, and deliver personalized experiences.

5. Data Analytics
Digital experience platforms use robust technologies, such as big data analytics and content intelligence, to understand user behavior and recommend products and services based on their preferences.

6. Personalization
Being a central repository of information, the DXP also stores vast amounts of customer data. After a detailed analysis of customer information, DXP platforms can deliver automated and tailored customer experiences.

7. Experimentation
The experimentation functionality in a digital experience solution platform allows companies to conduct A/B tests on the content. These tests facilitate enhanced customer experiences and reduce post-implementation risks.

8. API and Integrations
Owing to the DXP platform’s flexible APIs and open architecture, companies can integrate them with existing and emerging technologies. Such integrations can further enhance the DXP platform’s capabilities to suit specific business requirements.

5 Types of Digital Experience Platform Solutions (Functionality-Based)

Every organization is different and has unique needs. Hence, there are no cookie-cutter DXP platform solutions. This section will delve into the 6 types of digital experience platform solutions and what they bring to the table.

1. CMS-Centric DXP
A CMS-centric DXP is a platform whose core element is a content management system. Its primary purpose is to create, manage, and publish content across multiple platforms. It also has other functionalities like personalization, E-Commerce, and data analytics. However, companies use a CMS-centric DXP for their content management capabilities. The other features are a bonus.

Features of a CMS-Centric DXP

• Content Management – Enables companies to perform complex tasks like content modeling, version control, workflow management, and multi-platform publishing.
• Authoring and Editing Tools – Provides a simple and intuitive interface for effective content management.
• Digital Asset Management (DAM) – Ensures robust integration with a DAM system for secure storage and management of digital assets.
• Template Management – Allows users to create and manage reusable templates and design elements.
• Multilingual Support – Helps publish and manage content in multiple languages, resulting in increased reach.
• Personalization – Provides limited personalization features like A/B testing and content targeting.
• Integration Capabilities – This feature helps the DXP platform integrate with CRM, data analytics, marketing automation, and other systems.

Who can Benefit the Most from CMS-Centric DXPs?
Companies that can benefit the most from CMS-centric DXPs include the following:

• Companies handle vast content volumes like media outlets, publishing houses, and educational institutions.
• E-commerce companies, B2B companies, and non-profit organizations that depend heavily on their websites for customer engagement can greatly benefit from CMS-centric DXPs.
• Startups and small businesses with limited IT infrastructure and resources can benefit from CMS-centric DXPs, which prioritize content management.

Limitations of CMS-Centric DXPs
The limitations of CMS-centric DXPs are as follows:

• CMS-centric DXPs have limited personalization capabilities compared to full-featured DXPs.
• Companies may find it challenging to handle real-time interactions and dynamic content with CMS-centric DXPs.
• Managing complex customer journeys on multiple platforms can be challenging.

2. E-Commerce-Centric DXPs
An E-Commerce-centric DXP is designed to boost sales and enhance customer shopping experiences. Its core features and functionalities prioritize E-Commerce activities. This DXP provides companies the tools to manage the entire customer journey, from product creation to customer experience. Companies can integrate E-Commerce functionalities with numerous digital touchpoints, including multiple devices like smartphones, tablets, social media, and websites.

Features of a E-Commerce-Centric DXP

The salient features of an E-commerce-centric DXP are as follows:

• Product Information Management – Manage product data, including attributes, images, descriptions, and variants.
• Catalog Management – Organize and present product catalogs across multiple channels.
• Order Management System – Enables streamlined order processing, fulfillment, and inventory management.
• Customer Data Platform – Centralized storage and customer data management to create personalized experiences.
• Marketing Automation – Integrates marketing campaigns related to sales and customer journeys.
• Analytics and Reporting – Provide detailed insights into customer behavior, sales performance, changing market trends, and marketing efficiency.

Who can Benefit the Most from E-Commerce-Centric DXPs?
E-Commerce-centric DXPs are ideal for companies that thrive on customer experience and E-Commerce performance. The companies that can benefit the most from E-Commerce-centric DXPs are as follows:

• D2C – Companies that sell products directly to consumers without any middlemen.
• Retailers – Online and physical retailers wanting to make a mark in digital commerce can invest in such DXPs.
• Wholesale and Distribution companies are E-Commerce businesses with complex and extensive product catalogs and order management needs.
• Subscription-Based Businesses – Companies that offer subscription services require robust customer management. E-commerce-centric DXPs are ideal for such businesses.

Limitations of E-Commerce-Centric DXPs

• Limited content management and reduced flexibility
• Higher upfront investments and ongoing costs.
• Steeper learning curve and integration complexities.
• Vendor-lock ins that limits flexibility and options for future upgrades
• May struggle to handle sudden traffic spikes or increased order volumes.

3. Portal-Centric DXPs
A portal-centric DXP is a digital experience platform solution ideal for portal creation and management. Companies often opt for tailored portal-centric solutions that cater to a particular audience or serve a specific business goal. A portal-centric DXP provides a central repository for users who want to access specific data, use certain apps, or collaborate.

Features of a Portal-Centric DXP

The salient features of a portal-centric DXP are as follows:

• Portal-centric Architecture— Specifically designed to build portals. It offers the tools and capabilities to create, customize, and manage diverse portals.
• Content Management—Content management capabilities to publish content on multiple platforms. Features include content authoring, edging, publishing, and version control.
• Personalization – Customizes content and layout based on user preferences, roles, and behavior, enhancing user experience and engagement.
• Integration—Seamless integration with backend systems like CRM and ERP is crucial for providing a 360-degree view of data and processes.
• Security – Stringent security measures to protect sensitive data and ensure regulatory compliance.
• Analytics—Advanced analytics tools track user behavior, measure portal performance, and identify weak links, opportunities, and areas for improvement.
• Mobile Optimization – Supports responsive design and mobile-specific features to ensure optimal user experience for mobile device users.

Who can Benefit the Most from a Portal-Centric DXP?

Portal-centric DXPs are perfect for the following organizations:

• Corporations and large enterprises with established processes and a strong focus on internal collaboration can benefit from the structure and control that portal-centric DXPs offer.
• Companies and industries subject to stringent compliance requirements can benefit from portal-centric DXPs. They can use these DXPs to manage controlled information.
• Companies lacking a mature digital strategy or the necessary resources can opt for portal-central DXPs to kickstart their digital journey.

Limitations of a Portal-Centric DXP

The limitations of portal-centric DXP are as follows:

• Rigid structure limits personalization and engagement.
• Managing content across multiple portals is complex.
• Personalization is often restricted within portal boundaries
• Implementing changes in portal-centric systems is slow.
• User experience is often compromised in favor of information architecture.
• Integrating with external systems is challenging.

4. Composable DXPs
Modular architecture lays the foundation for a composable DXP. Smaller and independent software components called packaged business capabilities (PBCs) form a composable DXP. These PBCs are programmed to perform specific tasks like content management, personalization, and E-Commerce.

The best part about these PBCs is that they are independent software components. However, users can combine them with other PBCs to create personalized user experiences.

Features of a Composable DXP

The key features of a composable DXP are as follows:

• Modular architecture and built with interchangeable components.
• Composable DXPs can quickly adapt to changing business needs.
• Companies can scale composable DXPs to meet business demands.
• Composable DXP components communicate using APIs, enabling smooth integration.
• Facilitates the selection of the best components for specific needs.

Who can Benefit the Most from a Composable DXP?

The following organizations can benefit from a composable DXP:

• High Customization Needs – Composable DXPs can benefit dynamic industries with fluctuating customer needs, such as retail and finance.
• Complex Digital Systems – Enterprises with multiple channels, touchpoints, and systems can benefit from composable DXPs.
• Agility and Speed – Companies that require solutions to adapt to sudden market changes should opt for composable DXPs.
• Best-of-Breed Technologies – Organizations that want to optimize their tech stack and embrace emerging technologies can invest in composable DXPs.

Limitations of a Composable DXP

The following are the limitations of a composable DXP:

• Companies may find managing multiple components and their integrations complex and cumbersome.
• Ensuring consistency and security across various components demands extensive planning and execution.
• Teaming up with multiple vendors may require extended lock-in periods.
• Composable DXPs may require high upfront investment costs.

5. Hybrid DXPs
Hybrid DXPs are a relatively new entrant in the digital experience platform solution landscape. They offer extensive features like pre-built integrations, composable architecture, analytical tools, and more. These hybrid DXPs provide a balanced approach with greater flexibility and less development time.

Also, they are cost-effective while ensuring faster time-to-market compared to compostable and traditional DXPs. Overall, a hybrid DXP is an excellent platform to meet the diverse needs of organizations.

Features of a Hybrid DXP

The key features of a hybrid DXP are as follows:

• Composable architecture that allows businesses to select and integrate specific components to suit bespoke company requirements.
• Pre-built integrations with CRM, E-Commerce platforms, and analytical tools to accelerate development and reduce complexity.
• Offers the necessary flexibility to meet changing business requirements through pre-built components.
• Combining personalization, content management, and analytics capabilities helps companies deliver tailored and engaging customer experiences.
• Allows companies to manage digital experiences across various channels and devices effectively.
• Robust analytics and business insights to facilitate informed decision-making and optimized digital experiences.

Who can Benefit the Most from a Hybrid DXP?

The following companies/sectors can benefit the most from a hybrid DXP:

• Businesses that want to launch digital experiences quickly while ensuring flexibility (adapting to fluctuating customer preferences and market conditions).
• Organizations using a mix of legacy systems and cutting-edge technologies can benefit from hybrid DXP’s integration capabilities.
• Companies can opt for hybrid DXPs to prepare for future challenges and evolving business needs and avoid vendor lock-ins.
• Organizations that need to manage customer experiences across multiple channels, such as websites, social media accounts, mobile devices, and web applications, can opt for hybrid DXPs.

Limitations of Hybrid DXPs
Hybrid DXPs are advantageous, but they also have their limitations. The following are the limitations of hybrid DXPs.

• Juggling the pre-built components with the composable architecture can result in complexities related to management and maintenance.
• Suppose the integrations provided by the DXP vendor are customized or deeply entrenched within the platform. In that case, companies may have to depend on them for updates and maintenance.
• Extensive customization can lead to future migration issues (different platforms).
• Hybrid DXPs can be expensive because of pre-built components and extensive customization requirements.

Final Thoughts

As seen above, many types of digital experience platform solutions are available in the market. Each of them has its pros and cons. Besides the industry and sector, companies catering to a specific niche may require heavily customized DXPs. Hence, they must prioritize current needs, future challenges, and long-term objectives while choosing a DXP. Understand that cost matters, but not at the cost of functionality and features.

If a company lacks the expertise or knowledge to develop a tailored DXP solution, consulting an experienced digital experiences services provider would make sense. Tridhya Tech has been a renewed development company for over a decade. With a robust presence in over eight countries, we have over 500 satisfied clients. Stay ahead of the competition and take innovation to the next level with our guidance. Call us at +1 386 597 1231 or email us at [email protected].