Exploring DXP trends: The role and impact of composable platforms

Highlights

You’ll learn about the trends in DXP technology and the role of composable platforms.

• Composable architectures: Offers flexibility, scalability and agility in DXPs
• AI Integration: Enhances automation, personalization and user engagement
• Customer data platforms (CDPs): Centralizing data for better insights

Role of composable platforms:

• Scalability: Easily adapt to changing business needs and market shifts
• Customization: Tailor digital experiences to specific user segments
• Speed: Implement updates and features faster than ever
  

Stay informed and key into DXP trends. Go composable to reignite your digital strategy and future-proof your tech stack. Request a free demo today. 

Keep reading to learn more!

The main trend in DXP technology is the upward trajectory of its adoption. A recent report states that the global DXP market will reach $27.2 billion by 2028 from $12.2 billion in 2022. 

Composable models are also making a wave while SaaS and customer data platforms (CDPs) maintain a strong presence. These trends bode well for businesses, as these technologies will turn DXPs into more powerful and highly efficient platforms. 

Here is a look at the major trends in DXP technology and the impact of composable platforms.

Six key trends in DXP technology

AI and composable platforms are major DXP trends, while digital experience composition (DXC), frontend as a service, and customer data platforms (CDPs) remain in the mix. Here are current DXP technology trends and their impact.

1. Composable platforms

Composable DXPs are scalable, flexible, and agile. They are modular and API-first, built on microservices architecture, with a headless approach. They offer technology freedom, as businesses can integrate digital solutions from multiple vendors.

Through headless systems, a composable DXP allows you to adapt digital content across multiple platforms. The adoption of composable DXPs is also making the SaaS model more prominent. That means businesses can leverage cloud resources to manage cost, innovate and deal with spikes in traffic.

2. AI integration

AI technology will help to model customer data, and with that, businesses will deliver more personalized experiences. AI exists in various forms, such as:

• Chatbots 
• AI assistants 
• Automation platforms 

These AI-driven tools recognize patterns based on data, and with that, they predict user behavior and suggest ways to optimize the digital experience platform in composable settings.

3. DXPs replace cookies 

Google and Apple have also removed the ability for businesses to track customer data across websites using third-party cookies. Also, GDPR, CCPA and other data privacy laws have taken a tough stance on cookies.

However, businesses need to track customer data to enable them to deliver tailored digital experiences. A composable DXP collects data from multiple touchpoints and unifies it using CPDs. So, composable platforms have replaced third-party cookies for data tracking in DXPs.

4. Customer data platforms

CDPs give businesses a unified view of the customer journey, which leads to better insights. They need that to create personalized content and digital experiences. So, more businesses are pushing to integrate CDPs into digital experience platforms.

With CDPs in DXPs, it is easier to identify the needs of customers and what brands can do to improve their offerings. Integrating customer data platforms will also help you manage customer data in more responsible ways. 

5. Low-code and no-code solutions

No/low-code solutions introduce a simplicity that is sometimes lacking in digital experience platforms. They enable non-technical users and digital marketers to create digital experiences without coding knowledge.

No/low-code solutions come with built-in modules and templates that brands can customize. Thus, it saves time and cost for businesses. 

6. FEaaS for composable commerce

With front-end as a service (FEaaS), businesses can outsource the responsibility of building and maintaining front-end components. You get a third-party service to manage user interface design and other client-side features. That way, you can focus on the internal aspects of your digital strategy.

FEaaS comes with pre-installed packaged business capabilities (PBCs) and integrations for building e-commerce frontends. So you will not need to build from scratch. A headless CMS also enhances FEaaS, resulting in greater flexibility and customization options for you.

The role of composable models in DXP tech

A typical DXP is large and integrated, with tightly coupled back and front ends. Everything comes in one package. So, you could face problems with vendor dependency and its inability to personalize digital solutions.

A composable model acts as an antidote to the problems of monolithic DXPs. They allow you to integrate any technology stack of choice from any vendor. 

They come with a headless CMS that allows you to customize and personalize digital experiences across multiple channels, like social media, mobile apps, AR/VR, Etc. They also support omnichannel experiences.

Benefits of adopting composable DXP 

Organizations that adopt a composable DXP enjoy many benefits, such as:

• Operational efficiency: A composable DXP’s API-first, microservices and headless approach eliminate vendor dependency. That allows you to streamline your operations, which leads to faster updates and product releases.
• Reduced technical debt: The API-first and modular approach of composable DXPs allows you to replace or update tools and features without overhauling the entire system. That helps you reduce technical debt.
• Personalized customer experiences: A recent Infosys report states that 86% of customers consider personalization a key factor in whether they buy a product or service. Composable tech stacks help you deliver personalized experiences at scale.

Implementing a composable DXP strategy

The transition from monolithic to composable DXPs requires careful planning. Here are the key steps.

• Assess current technology: Know the strengths and weaknesses of the current system. Find the gaps and outline relevant IT needs and areas that need an upgrade.
• Identify essential features and integrations: Come back to your business objectives to know what features you need. Outline and consider how to integrate them into the composable DXP.
• Choose the right tech stack: The right technology helps you achieve your strategic goals. Consider third-party integration, pricing, technical support, and security and compliance.

Best practices

Follow best practices to ensure that you migrate to a composable DXP without issues, now and in the future.

• Factor in the scalability of the platform
• Implement future-proof solutions
• Prioritize security and regulatory compliance
• Use compatible solutions for seamless integration

Challenges in implementing composable DXPs

It is not unusual to encounter problems when switching to a composable DXP. Here are some of the most common ones.

• The high initial cost of setting up the platform
• Incompatible systems that create integration problems
• Problems arising from technical debt
• Knowledge gaps within your team

Any or all of these may stop you in your tracks if you have not made adequate preparations. 

Hence, you must understand them and create a robust strategy to deal with them. Organize adequate training for your team and ensure you have the right DXP partners who can provide technical support at each stage of your digital transformation.

Future trends for DXP technology

DXPs are here to stay as the global market continues to grow. As new technologies emerge, customers will pivot or add them to their existing touchpoints, and brands must keep up with that.

So, customer data platforms will likely increase, and so too will AI integration for automation. Analysts expect the cost of cybercrime damages to grow by 15% over the next two years, so there will be a greater focus on DXP security and data privacy. 

Another future DXP trend to watch is the growth of microservices. Although already a mainstay in composable DXPs, event-driven design patterns will improve them further.

Edge computing will reduce latency and improve how businesses process data in real-time. Here are other future trends for DXP technology.

• Increased integration of machine customers
• Enhanced cybersecurity measures
• Generative AI for customer experience (CX) 
• Microservices and Kubernetes integration 
• Blockchain for data management
• Voice and visual search in DXPs

Many of these trends and emerging technologies are already in play in minor ways and will become prominent in the future. However, composable architecture provides the foundation for most of them to thrive.

Case studies

Richie Bros

Richie Bros needed IT and business alignment to help them keep up with increased demands and required development work.

Contentstack's composable DXP enabled them to align their developers and digital marketing team.

Hear from Michael Harker, the Director of Product, "It's now extremely easy for the marketing team to go and change content, and that immediately flows to the website without needing any technical assistance."

Read more about how Ritchie Bros freed up developers with a composable DXP.

Emma

When Emma entered a rapid growth phase, their legacy system lacked the right integrations to cope.

Contentstack’s composable DXP and headless CMS provided relief. With Contentstack, they could integrate multiple tech stacks to create a synergy between their online stores and over 3500 physical stores.

Andreas Westendörpf said this about the digital transformation. "The beauty of headless commerce is that it not only delivers short-term results but also that it opens an elegant, logical long-term set of options for the future. This is what we have found with Contentstack and MACH-based technologies."

Read the details of Emma's omnichannel success.

FAQ section

What distinguishes a composable DXP from traditional DXPs?

While traditional DXPs are usually large and integrated, with tightly coupled frontends and backends, a composable DXP is modular. It allows you to integrate services from multiple vendors. So, it is more flexible and scaler than traditional DXPs.

How does composable DXP technology contribute to digital transformation?

A composable digital experience platform is easy to pivot. You can fix or swap out modules without affecting the entire platform. You can plug and play new technologies, which enables you to adapt to market and tech shifts, as well as dynamic customer needs.

Can composable DXPs improve operational efficiency?

Yes. With its microservice approach and modular design, teams can work on different parts at the same time. It also removes vendor dependencies, and these factors contribute to faster work and more streamlined operations. These are key factors for operational efficiency.

Are there specific sectors or industries where composable DXPs are more beneficial?

Composable DXPs can benefit any type of business in any sector or industry, especially those that are deep in customer interaction. That includes retail, e-commerce, and banking. These sectors mainly stand to gain more from the dynamic nature and personalization capabilities of composable DXPs.

Learn more

There is so much going on with DXP trends. The rise of composable platforms will shape the future of DXPs for good reasons. Monolithic DXPs already struggle with the demand for more personalization, changing customer needs, and the speed of emerging technologies.

A composable DXP solves those problems. It offers you true flexibility, scalability, agility, and omnichannel delivery. It is also future-proof technology, which positions you to benefit from all the emerging trends that will impact DXP technology.

Key into an innovative future. Start your composable DXP today with Contentstack. Request a free demo now.