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The Business Research Company has published a market report on the global digital experience platform (DXP) market. The market was valued at $9.69 billion in 2021 and experts estimate it to reach $10.91 billion in 2022. The market will further expand to reach $17.58 billion in 2026 at a CAGR of 12.67%.
Businesses adopting cloud-based services is the main factor driving the market growth. Businesses are turning to cloud solutions such as SaaS apps as part of their digital transformation. Lessons from the COVID-19 pandemic convinced companies small and large to shift their operations online.
Others also use the cloud as part of their redundancy strategy. Redundancy is important in case of natural calamities or even another global health crisis. Since cloud solutions are scalable, easy to deploy, accessible online, and less costly than on-premise IT systems, they make more sense as a long-term investment for businesses, especially when it comes to data processing and management.
Digital Complexity and Customer Experiences
Focusing on customer experience is a winning strategy for businesses. But businesses might find that easier said than done, especially in a world flooded by digital devices. Based on the latest available forecast, the average number of networked devices per person globally will be 3.6 devices in 2023. In North America, that number will increase to 13.4 devices per person, while in Western Europe, it will be 9.4 per person. Taking the global average, that means there could be more than 27 billion connected devices by 2023. Even the most highly skilled marketer or salesperson will not be able to effectively manage the data from these devices.
From the 1980s to the early 1990s, businesses used content management systems (CMS) to produce and manage marketing content. The technology served mostly static, brochure-like content online. As internet usage expanded to user-generated content and mobile devices, businesses also needed a way to gather this data and offer more personalized customer experiences. This need gave birth to web experience management (WEM) solutions.
There was just one major challenge to WEMs. They were designed specifically for marketers, which made them cumbersome to connect to other enterprise apps like cloud ERP software and CRMs.
DXP as a Centralized Platform to Optimize Customer Journeys
A digital experience platform (DXP) enables businesses to integrate their digital customer touchpoints and have a centralized way to manage customer journeys. Businesses can get rid of silos and collect data from every channel. As a result, relevant personnel can see a customer’s interactions with the company. They can make appropriate next steps throughout the entire customer journey. Additionally, managers or team leaders can easily track their KPIs. So, it’s easier to know if the team is on track to achieving its team goals and what adjustments team members need to make along the way.
DXP is still a nascent field and essential features may vary depending on the vendor. A few important features to look for include content management, ecommerce capabilities, insights, analytics, and intelligence, and personalization and automation. Some advanced platforms incorporate digital experimentation capabilities. These tools allow users to conduct A/B testing to optimize content and customer experiences using statistical analysis.
Whether a business needs a DXP or not will depend on where it is in its business growth. Some organizations might only need a CMS to handle their current content and customer load. On the other hand, businesses that are targeting better customer engagement or those looking to simplify a disjointed, Frankenstein-like tech stack, can find DXPs as the next, most sensible IT investment.
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