The ROI of Digital Experience Platforms (DXP)
Customer Experience (CX), the backbone of every business matters more in a digital business than in a traditional business. Since by definition “digital” is remote and inhuman, a human touch is required which is a challenge in a digital business.
Forrester reports that prioritizing CX helps 66% of businesses see increased retention, and 60% of businesses see increased customer lifetime value. Hence, CX or Digital Experience (DX) makes all the difference between a business that succeeds and one that doesn’t.
Evolving technologies have enabled businesses to enhance CX and deliver it via multiple touchpoints. In the ever-augmenting MarTech suite, Digital Experience Platforms (DXPs) play a central and significant role. A recent CX survey by Emplifi states that brand CX and speed of delivery/availability are the top two criteria of modern customers.
A DXP empowers businesses to achieve those criteria. DXPs combine personalization, integration, content management, navigation, collaboration, analytics, workflow, and omnichannel support capabilities to deliver enhanced digital experiences effortlessly.
Let’s consider some game-changing benefits of DXPs.
Transformative advantages of DXPs
An Open DXP utilizes microservices and Application Program Interfaces (APIs) to connect with internal and external systems. Businesses can easily make changes in the front-end and back-end simultaneously, improving administrative efficiency and enabling continuous app development.
Modern hybrid DXPs use Headless CMS with advanced AI and ML capabilities to optimize and deliver content across multiple channels. Businesses can create personalized content for each channel and track what works for whom to optimize content further.
Pre-built APIs of a modern DXP connect with all existing systems, platforms, and third-party databases for seamless integration. Businesses can connect and manage all their apps, channels, and services on one platform.
As DXPs integrate with other software and platforms in the ecosystem, they enable a 360-degree view of each customer. Businesses can easily access all information about a customer, their buying history, preferences, and behavior on a single dashboard.
DXPs combine advanced analytics, customer data, and content management to generate actionable and predictive insights. Businesses can work on these insights to deliver personalized recommendations and experiences.
DXPs enable businesses to deliver personalized digital experiences and content over the web, mobile, eCommerce, voice, social, portals, and chatbots. Brands can custom-create experiences for each customer via their preferred device at any time.
DXP ROI - Factors that contribute
The exact Return on Investment (ROI) for DXP will vary for each business based on several factors, such as business requirements, investments, integration, implementation, and progress. But in general, when businesses adopt a DXP, they can expect quantitative benefits in five major areas.
Businesses see an increase in revenue when they deliver personalized digital experiences via a DXP.
Forbes states that businesses that offer enhanced and personalized CX outperform their competitors by 80%. According to a Deloitte survey, consumer spending increases up to 140% with a positive experience. Also, 80% of customers are more likely to purchase when offered or recommended personalized experiences.
DXPs help businesses to reduce operational costs by automating processes and workflows.
Businesses can access and manage core business components on one platform via a DXP. They can reduce misplaced assets, remove MarTech redundancies, and efficiently incorporate changes and advanced capabilities that reduce development and integration costs. Deloitte reports that enhanced CX lowers business costs by 33%.
DXPs accelerate time-to-market by distributing content seamlessly across multiple channels and streamlining business processes.
PwC states that 80% of customers expect speed, convenience, and knowledge from businesses. A DXP empowers businesses to deliver personalized content, products, and services at the right time via the right channel for each customer.
DXPs enable cross-functional collaboration across an entire business to accelerate innovation and digital transformation.
Accenture reports that companies prioritizing cross-functional collaboration with digital platforms saw a 4X increase in revenue gains. DXP enables businesses to reduce siloed solutions and drive IT-OT (Information and Operating Technology) collaboration with ML-driven insights, KPIs, and intuitive dashboards.
Loyalty and lifetime customer value
Businesses that deliver personalized experiences via a DXP transform average customers and prospects into loyal brand ambassadors.
Forbes states that 74% of customers are likely to become long-term customers or return to a brand for purchasing based on excellent CX. Gartner reports that 66% of customer loyalty comes from outstanding CX.
DXPs - Vital for current and future growth
Businesses that do not deliver personalized CX cannot remain competitive in the digital business landscape. Though some companies have adopted a CMS, it is not an adequate digital tool in this dynamic environment. As technologies and customer expectations evolve, a DXP is an ideal tool to deliver enhanced CX.
Businesses that may not require a DXP right now would definitely need it sometime sooner than expected. DXPs accelerate the pace of digital transformation in organizations by giving complete control over its implementation. Businesses can adopt a methodical approach via a DXP to shift to agile workflows, upgrade the MarTech stack, connect silos, and evaluate customer data.
Businesses can future-proof themselves with an Open DXP as the platform evolves and integrates with advancing technology. It becomes convenient and effortless to upgrade tools via a DXP to adapt to the ever-changing demands of the target audience. A DXP is essential for the current and future growth of any business across any industry.
DXPs - To lead in the CX Era
In the CX era, only businesses that adopt a DXP to deliver personalized digital experiences will lead the way and thrive in the competitive landscape. The advantages and ROI of DXPs make a compelling foundation to adopt one and reap quantitative benefits.
QED42 has empowered many companies to create and deliver outstanding CX via an Open DXP. We recently empowered a multinational pharmacy to launch 2000+ websites via a composable DXP. Chat with us if you are looking to deliver personalization across all digital touchpoints and curate an optimized customer journey. We will help you devise a digital strategy that will enable your business to meet your customer expectations.