Crafting personalized customer journeys with a composable DXP

Highlights

You’ll learn how a composable DXP supports personalized customer journeys.

• Data unification: Integrates tools like CDPs, CRM and headless CMS
• AI-driven personalization: Analyzes insights to anticipate needs and deliver tailored content
• Seamless omnichannel consistency: Ensures connected experiences across channels

Connect with your audiences and drive lasting engagements. Opt for a composable DXP today.

Today’s customers want brands to recognize, understand and cater to their unique needs. A composable DXP makes this possible. It allows you to integrate the right tools and unify data to create and deliver tailored experiences. 

As potential customers interact with your brand, this makes a difference, as you can serve them with content that addresses their most important needs.

What is a Composable DXP?

A composable DXP is a modular platform that allows you to select the best-of-breed tools to manage and optimize customer journeys.

Rather than being stuck with a platform that is large, rigid and difficult to customize, a composable DXP allows you to select only the tools that fit your business needs. It gives you more control, allowing you to:

• Customize setups with tools like headless CMS, CDPs, etc.
• Integrate new tools without replacing your entire system.
• Adapt to changing customer needs and market trends. 

The role of API integrations

APIs allow you to connect different tools to manage content, customer data, e-commerce, etc. They also facilitate data sharing among integrated tools. 

With APIs, you do not have to spend long hours writing code to integrate new systems. Instead, you can do that with API calls. This DXP flexibility allows you to adapt to new channels without tedious reconfigurations and overhauls.

Key benefits of using a composable DXP

A composable digital experience platform (DXP) allows you to integrate the best tools to manage and optimize customer journeys. Here are its benefits.

• Ease of use: You can make changes and updates using its drag-and-drop interface rather than spending long hours writing code. This makes it easy for non-technical users.
• Omnichannel engagement: A composable DXP enables you to deliver consistent and seamless experiences no matter where your customers engage. Statistics show that this leads to an 89% increase in customer retention.
• Greater flexibility: Composable DXPs allow businesses to add or swap tools based on their needs. This makes it easy to integrate new tools to optimize the customer journey.
• Optimized marketing campaigns: You can test different versions of marketing content to determine which resonates the most with your audience.

How the customer journey works

The modern customer journey includes all interactions a customer has with a brand. It describes the steps a user takes from the time they discover a product to when they become a customer. It consists of four key stages:

• Awareness: This is a consumer’s first contact with a brand. It can happen through Initial ads, social media posts, content or organic searches.
• Consideration: At this point, a consumer starts to evaluate options. They compare products, read reviews or even apply for product demos to see how products work.
• Decision: This is where they purchase a product based on how well they believe it addresses their pain points.
• Retention: After using the product or service, the customer continues to engage with the brand. This could then lead to them becoming loyal customers or brand advocates.

Touchpoints, such as websites, emails and social media, are crucial at each stage. Now, the customer journey is not always linear.

But here's the thing: at any point, customers want to feel that your offer is specific to their needs. This is why personalized interactions make a difference. 

Benefits of personalized customer journeys 

Personalized experiences are key to driving engagement, loyalty and revenue. In fact, 76% of customers prefer brands that offer personalized experiences. Here is why: 

• Higher ROI: Personalized customer journeys increase customer engagement. This has a positive impact on acquisition and retention and leads to higher revenues.
• Enhanced customer engagement: Personalized content and offers resonate more with customers. For example, Netflix uses AI to recommend content, which drives 80% of viewer activity.
• Higher conversion rates: Personalized experiences remove friction, making it easier for customers to interact on all channels.
• Customer loyalty: Customers stay loyal to brands that understand them. Studies show that 60% of customers become repeat buyers after personalized interactions.

How to personalize customer journeys in a composable DXP

A brand needs to understand its audience, as that is the basis that enables it to deliver tailored interactions that keep potential customers engaged.

1. Collect and unify customer data: Use a customer data platform (CDP) to collect and unify customer data from multiple sources. This enables you to segment and create the right customer profiles to target with marketing content.
2. Segment and profile customers: Segment your audience based on their shared behavior, browsing history, location or other demographics. For example, you can group all customers who leave products in their shopping carts to target them with a discount offer. You also want to create clear customer profiles at the granular level.
3. Deploy AI to personalize content: After creating the relevant customer segments, use AI tools to analyze behavioral data, anticipate their needs and tailor content and offers. Statistics show that 89% of businesses recognize that it is critical to growth.
4. Optimize omnichannel journeys: Map touchpoints like email, SMS and apps to ensure consistency and seamless interaction and content on these channels. Collect performance data and integrate the feedback to improve the experience.

How to implement personalization in a composable DXP

To personalize customer experiences with a composable DXP, follow these steps:

1. Segment your audience: Use a CDP for customer data collection, then segment your customers based on shared characteristics. For example, you may target past winter apparel buyers with early-season discounts.
2. Optimize through APIs: Use RESTful APIs to integrate and feed data insights into personalization tools. With that, such tools can then tailor content based on the data they receive and based on your campaign needs.
3. Adjust strategies in real time: Use AI tools to update content based on the latest customer data. Real-time personalization increases conversion rates by up to 35%.
4. Test, learn, improve: Run A/B tests with tools to compare how different strategies perform. Also, track other customer interaction data, such as churn rate. You may then use the data to improve the customer experience.

Leveraging composable DXP for omnichannel success

Think about any channel you would need to manage and optimize the customer journey. It could be social media, a blog, a mobile app or an AR/VR device. A composable DXP offers a platform that allows you to integrate them all in one cohesive ecosystem.

The customer journey can start on one platform and end on a different one. However, you do not want a potential customer to lose context or start all over when they switch devices or channels.

By unifying all your channels, you deliver a consistent experience no matter where or how your customers interact.

Case studies

GetYourGuide

With over 500,000 daily visitors to cater to, the GetYourGuide website struggled due to limited bandwidth. The bottleneck impacted its ability to adapt to new travel trends.

Opting for Contentstack enhanced their tech stack, enabling them to personalize customers’ journeys and improve the experience for their travel audience.

Pedro Torres, the product manager, explained the changes. "With Contentstack, we can deliver on -- and exceed -- what customers are expecting, regardless of device, and consistently deliver those experiences as soon as new travel opportunities become available."

Read more about how GetYourGuide enhanced customer experience via Contentstack. 

Leesa

Leesa struggled with brand alignment across its many products, leading to a subpar customer experience.

Switching to Contentstack DXP enabled them to track customer interactions, including those of users who bought similar products. That enabled them to deliver personalized product pages to its customers. 

Richard Bilton, the Director of Technology, said. “Thanks to Contentstack’s Modular Blocks, we’ve really upped our game when it comes to personalization.” 

Keep reading to see how Leesa delivered tailored and seamless customer journeys.

Enhancing marketing campaigns with personalization

When you have the right data, you can tailor your marketing strategy and campaign to suit customers' needs. Whether via personalized content delivery, ads or email campaigns, you deliver content and offers that show the customer that you care about their needs. 

Personalization can enhance marketing campaigns in many specific ways, such as:

• Deliver targeted content and offers to segmented audiences.
• Automate customer journeys. For instance, creating triggers for personalized workflows, such as post-purchase offers or “we miss you” messages for dormant users.
• A/B testing is used to compare elements like subject lines, images, or offers to determine what resonates best with your target audience.
• Use AI to predict when customers are most likely to engage and send offers around such times.

Measuring success with key metrics

Brands that serve personalized user experiences can expect positive results in customer acquisition, retention and satisfaction. However, it is essential to track relevant metrics to be sure of its actual impact.

• Engagement rates: How well do customers respond to personalized content? Check to see if you are getting lower churn rates, more active users and new engagements.
• Conversion rates: You can also check if conversions have increased. For instance, are there more demos booked, more purchases, etc.? 
• Return on investment (ROI): Is the revenue gain worth the investment?

Use customer behavior, preferences and feedback to optimize campaigns and improve user experiences. Analyze which products or content customers engage with to deliver more relevant messaging.

FAQs

How can a composable DXP transform customer journeys?

A composable DXP unifies data across touchpoints and enables personalized interactions at scale. By doing so, you can understand the emotions, actions and pain points of customers at every point of their journey, and that allows you to tailor interactions to their needs. 

What tools are essential for achieving real-time personalization?

Tools include CDPs to unify customer data, AI analytics to predict preferences, a headless CMS to deliver content across channels and a composable DXP to organize the entire ecosystem of tools to optimize customer experiences.

Why is omnichannel engagement important for businesses?

Omnichannel engagement delivers a consistent and personalized experience to customers across all customer touchpoints. It simplifies the customer journey and ensures customers can interact on any channel without losing any context.

What are the key benefits of personalized customer experiences?

Personalization increases engagement, conversion rates and customer loyalty. Also, it provides valuable insights for ongoing improvements. 

Learn more

Here is the takeaway. Both the business and its customers benefit from a personalized customer journey. The customer gets a seamless experience and exact solutions to their problems. In turn, the business gets a more engaged customer, improving its acquisition and retention and, by extension, its revenue.

A composable DXP offers the platform to combine all the tools needed to make it happen. With its advanced security, MACH support, personalization and automation solution, Contentstack stands out as the platform of choice. Talk to us today to get started.