Digital experience platforms stop customers from abandoning brands after a bad experience

We live in the experience era – a world where a brand’s success depends on the experience it delivers to its customers.

Imagine this: Just one bad experience is enough for about 32 percent of customers to stop doing business with a brand they loved (PwC study).

Across industries, firms are therefore redirecting their efforts in effectively providing the most relevant experiences to customers across the value chain. A large part of this ‘experience’ approach today is unsurprisingly digital-driven.

Digital adoption witnessed a giant leap in the last two years, influenced largely by the global pandemic and changes in customer behavior. Enterprises were too quick to invest on building their digital capabilities to shift to new models to survive when the pandemic hit, recover faster and grow in the post-pandemic economy.

Statistics indicate that India’s consumer digital economy is expected to be a US$800 billion market in 2030, with a predicted 10X growth from 2020. And quite clearly, brands understand the necessity to engage their customers through the right digital experiences. The way they interact and involve the customers is evolving in unprecedented ways.

Why Digital Experience Platforms?

As brands transition to providing more consistent and comprehensive multi-channel experiences to customers across touch points, Digital Experience Platforms are fast emerging as preferred alternatives. So, what exactly is DXP?

Here’s the popular definition coined by Gartner - “A digital experience platform (DXP) is a well-integrated and cohesive set of technologies designed to enable the composition, management, delivery and optimization of contextualized digital experiences across multi experience customer journeys.” What really stands out in this definition is how disparate pieces promise to come together to serve a common goal – keeping the customer happy!

In the digital era, customers expect personalized and always connected experience in real-time. Traditional siloed approaches often come with significant constraints in providing this cohesive experience across channels –web, mobile app, social and even physical touchpoints. That’s exactly why DXP is gaining momentum. It allows for optimum usage and continuous improvement of these various digital channels while providing centralized control over multiple assets.

Bridging the gap between multiple technology layers and business functions is the biggest challenge that today’s technology and marketing leaders face. The shift from information silos to a more unified approach makes DXP a compelling proposition for leaders.

The key building blocks of DXP include content management, analytics, personalization, digital asset management, and customer data management aligned to meet business goals and innovation. Until now, businesses rely on different digital technologies to meet different goals in this journey. For example, portals for content aggregation, the good-old CMS for content management, analytics for behavioral tracking and so on. With DXP, these technologies meet to provide an integrated and seamless experience to customers across touchpoints while the brand can centrally control these elements.

Redefining ‘Xperiences’

Brands are rethinking the whole concept of digital experience in today’s market. Their strategies no more revolve around getting more people to buy your products and services through digital channels. Businesses are aiming to be more collaborative and are in the process of shaping a consistent and positive relationship with customers.

In the increasingly competitive market with innovative models, there is absolutely no room for error. As brands build products for the Next Billion Users in markets like India, customer engagement is critical. DXP can form the foundation of this engagement model by helping brands to ‘listen’ to their customers, act upon the data more spontaneously and create an experience that every customer can relate to.

Quite interestingly, DXP cuts across an organization’s multi-layered experience value chain, addressing customers, employees and partners all at once. Employees especially are key stakeholders in drawing up compelling customer journeys. Employee experience almost always directly influences customer experience. Combining these often-disconnected pieces could potentially transform digital experiences for the better.

The way forward

The global digital experience platform market size is estimated to reach USD 30.41 billion by 2030, registering a CAGR of 13.3% over the forecast period, according to a recent report by Grand View Research, Inc.

Further, the explosion of data, integration of advanced technologies like AI (artificial intelligence), ML (machine learning) and advanced analytics have led to the availability of increasingly sophisticated DXP product offerings in the market. The cloud segment of DXP is expected to grow at higher rates in the coming days.

As brands buckle down on deciphering customer needs and fine-tuning customer journeys, DXP is predicted to play a central role.

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