Learn More About Digital Experience Platforms (DXP)
What Does DXP Stand For?
DXP stands for digital experience platform. DXPs are truly an all-encompassing software system that connects data and content with customers to create a seamless personalized digital customer experience. DXPs have tools that interact with all customer touchpoints, so they have components such as content hubs, CRM, UX and UI design tools, DevOps, digital asset management, data security, and more.
The development of DXPs arose out of a disconnect between customer data and how it can be leveraged in marketing channels such as websites, social media platforms, advertisements, and customer touchpoints such as customer service, e-commerce platforms, and so on.
DXPs cover a lot of ground in terms of the functionality they provide, and each of the component pieces of a DXP are often full-fledged software themselves. These pieces include, but aren’t limited to, hybrid or headless CMS software, personalization software, marketing automation software, CRM software, data management platforms (DMP), digital analytics software, various translation and localization tools, and other assorted content management systems.
DXPs are relatively new, and most major competitors in the market arose in the past decade. There is room for fluctuation as the market settles, and market experts are watching the space closely as DXP vendors prioritize specific features, acquire other software solutions to fold into their product, and settle on definitions of the category.
What Types of Digital Experience Platforms (DXP) Exist?
DXPs must provide extensive feature coverage to achieve the cross-channel customer experience optimization they are intended for. As a result, vendors leverage one of two models to include all the necessary features in their solution. Both models have advantages and disadvantages depending on what software the business is already using, so buyers need to ensure their desired DXP fits with their existing software stack.
Open DXPs
Open DXPs may be thought of as connective tissue that integrates multiple best-of-breed solutions, allowing users to orchestrate their marketing strategy with the best available point solutions. Leveraging an open DXP is especially attractive to businesses that are already using some of the software components integrated into a given offering. The main appeal of an open DXP is the ability to use the best-of-breed solutions for the individual components needed for a DXP.
However, that strength can also be a drawback for some companies. Since open DXPs consist of multiple, integrated point solutions, users must have a strong understanding of each to get the most out of the larger DXP ecosystem. If a business hasn’t leveraged many marketing tools or content management systems in the past, jumping right into an open DXP may be challenging. Businesses considering an open DXP should ensure their workforce is either already familiar with the individual component pieces of software, or be prepared to offer comprehensive training on each solution.
Closed DXPs
Closed DXPs are all-in-one platforms that include all the individual pieces of a DXP in a single, unified system offered by one provider. While open DXPs integrate multiple solutions to achieve all the functionality needed for a full DXP, closed DXP providers offer a one-stop shop where buyers find all the features they need in one platform. Since all-in-one DXPs are a closed ecosystem, these types of solutions are helpful to companies that thus far haven’t invested much in their marketing stack or those looking to consolidate their stack.
As is the case with open DXPs, all-in-one solutions aren’t without potential issues. Since all the components of a closed DXP are developed and maintained by one provider, there isn’t a guarantee that the individual pieces are of best-in-class quality. Closed DXPs also host far fewer integrations with other software (ultimately, to incentivize users to utilize as much of the platform as possible). This is particularly disruptive for companies with an established marketing software stack.
Professional & Industry Cases
The solutions offered by DXPs are particularly pertinent to two departments within a business: product or development teams and marketing teams. The components in a DXP may be separated into those that create and maintain websites, apps, portals, etc., and those that create, house, deliver and analyze marketing materials. There is a significant overlap between these pieces in terms of relevancy to specific teams. While other departments like sales or customer service leverage parts of a DXP (e.g., a CRM component), developers and marketing professionals are the most likely users to leverage a DXP with a major hands-on approach.
Developers: One of the core components of a DXP is the hybrid or headless CMS which allows developers to create and maintain digital experiences that are device agnostic. Headless CMS are called such because they don’t provide a static front-end delivery, allowing the delivery of content to websites, desktop apps, mobile apps, and more without requiring the development of unique front ends for each. Within a DXP, developers are often tasked with creating the channels through which content will be delivered, and since DXPs utilize headless CMS, they don’t have to worry about tailor-making front-end outputs for each.
Marketers: The majority of components inside DXPs are primarily used by marketing professionals. Key pieces include marketing automation, digital asset management software, and personalization and segmentation. While developers handle creating marketing channels like websites and apps, marketers are tasked with creating and delivering a steady stream of personalized content through those channels. DXPs offer marketers a full suite of tools for the endeavor, including a centralized hub for customer and user data, repositories for content and assets, and myriad tools to ensure experiences are timely and personalized.
Alternatives
Alternatives to DXPs can replace this type of software, either partially or completely:
WebOps platforms: WebOps platforms hone in on the rapid development capabilities found in DXPs, but remove some of the bulkier aspects of DXPs. Development-focused businesses are more likely to leverage WebOps platforms over DXPs since the former provides all of the comprehensive web and application development tools without the marketing-focused solutions in the latter.
Web content management systems (WCMS): DXPs were born out of the limitations posed by traditional web content management systems (WCMS). A WCMS is used to create and manage content and uses API-first architecture to deploy content through multiple channels. A DXP does everything a WCMS does, just on a larger scale. With a DXP, businesses can sync, manage and push content across channels, such as web, mobile, customer portals, IoT devices, billboards, and more. Further, a DXP can establish intranets and manage microsites.
How to Buy
Requirements Gathering (RFI/RFP) for Digital Experience Platforms (DXP)
Purchasing a DXP is a significant decision that needs to be made carefully as the chosen product is likely to be a costly investment and a long-term decision. Once it is decided that an organization needs a DXP, here are additional areas to evaluate:
Business goals to be achieved: A DXP shouldn’t be leading the conversation. A DXP should underpin the business objectives, with specific attention to marketing goals, and should aid in executing the strategies put in place by the business. Businesses should think about the foundational capabilities needed to meet their specific goals, which will help when searching for a DXP.
Understanding marketing needs: Each business has their unique way of curating digital experiences for their customers—types of marketing campaigns, content creation, publishing environment, etc. Understanding the nuances of the business’s workflows will help in choosing a DXP that integrates well with the existing ways of working.
Current marketing technology stack: Doing a thorough audit of the business’s current martech stack is integral before purchasing a digital experience platform as a DXP will come integrated with a lot of martech functionality. It’s important to make note of what software is in the stack, who uses various parts of the stack, and existing integrations within the stack. Having this holistic view of the current martech situation will also help with the deployment and adoption of the DXP.
Compare Digital Experience Platforms (DXP) Products (Long List vs. Short List)
Create a long list
There is a good amount of options when it comes to digital experience platform software. Once buyers understand the requirements, they should search for DXP vendors by browsing the internet. Most product websites will have a ‘Features’ page that will provide a high-level picture of what the software encompasses. G2.com is a good place to start.
Create a shortlist
Next, buyers should research further into the long list of solutions to create a shortlist. There is lots of research (articles and videos) that explain and review different products from different perspectives. Buyers should find research that caters to their industry. G2.com’s ‘Compare’ feature will help to stack software up side by side to compare specific features and learn how real users rate them.
Conduct demos
Demos are a great way to get a first-hand look at potential solutions and ask the right questions to determine which product is right for the organization. Demos are a great opportunity to ask the vendor to do a walkthrough of how the product addresses different use cases—how would a marketer get used out of the product versus a developer? Buyers should prepare for each demo by having a standard list of questions and clarifications to ask each vendor.
Selection of Digital Experience Platforms (DXP)
Choose a selection team
Members of both the development team and the marketing team should be part of the selection process since these teams will be interacting with the DXP the most.
Negotiation
At this stage, it is important to discuss pricing and ask if any discounts are available, whether it be for purchasing a larger number of licenses or for a longer duration. Buyers should explore payment options and implementation and onboarding services at this time as well.
Final decision
Now that buyers know which DXP solution they want to purchase, they should ask for a trial run of the product to test how it will be implemented and adopted by their teams. If it can be well integrated with existing technology and the teams receive it well, the buyer can be confident that the purchase will be successful.
