Customer expectations never stop evolving, and businesses have to stay one step ahead: speed and flexibility are key to success. Composable commerce makes this possible, letting you choose the best tools to build a tech stack that adapts as your needs change.

But as we embrace composable commerce, a new challenge arises: how do we manage and integrate data from so many different systems efficiently? Integration platforms as a service (iPaaS) help connect these systems and keep data flowing smoothly. Still, to truly harness your data and deliver seamless customer experiences, you may need an Experience Data Platform (XDP). Working alongside your iPaaS, an XDP unifies your data and provides real-time insights across all your customer touchpoints.

What is an XDP, and why does it matter?

An experience data platform (XDP) is a powerful tool designed to unify and optimize data from various sources like product information management (PIM) systems, customer relationship management (CRM) systems, enterprise resource planning (ERP) tools, and more. In the context of composable commerce, where agility and adaptability are key, an XDP enables your digital team to access, manage, and utilize data in real-time, without getting bogged down by backend complexities.

Imagine having a single API that pulls together all the information you need—from product details and pricing to customer preferences and stock levels—and delivers it to any front-end application instantly. That’s the magic of an XDP, and it’s transforming how businesses approach digital experiences.

How does an XDP work?

An XDP acts as a centralized layer that connects and harmonizes data from multiple sources, making it available in real-time for any customer-facing application. Here’s how it works:

1. Data ingestion (sources): the first step involves connecting various data sources, such as PIM, CRM, ERP, and third-party systems, into the XDP. This data is ingested in its raw form, allowing the XDP to create a comprehensive, unified view of all relevant information.
2. Data unification (cards): once the data is ingested, the XDP normalizes and unifies it across different sources. This includes combining product data with customer information, stock levels, pricing, and other contextual data. The unified data is then organized into “cards,” which represent a complete view of an entity, such as a product or customer.
3. Segmentation and personalization (segments): with unified data in place, the XDP allows for dynamic segmentation based on various criteria. For example, you can create segments based on customer behavior, geographic location, or product preferences. This enables highly personalized customer experiences, as the data is tailored to specific needs and contexts.
4. Data delivery (destinations): finally, the XDP delivers the unified, segmented data to any front-end application through a single API. This could include ecommerce websites, mobile apps, in-store displays, or even partner portals. The XDP ensures that the right data is delivered to the right place at the right time, making it easy to create seamless, responsive digital experiences.

The role of XDP in composable commerce

In composable commerce, the ability to quickly integrate and adapt new digital solutions is crucial. An XDP plays a key role in making this possible by simplifying data integration and enhancing front-end flexibility. Instead of struggling to connect data from multiple systems, an XDP centralizes everything. Whether your data is locked in a PIM, ERP, or CRM, an XDP pulls it all together, making it easily accessible through a single API. This centralized approach allows developers to focus on creating seamless, responsive customer experiences without worrying about backend systems or data silos. The XDP handles the heavy lifting by delivering the right data to the right place, whenever it’s needed, enabling businesses to move faster and more efficiently in a constantly evolving digital landscape.

Key benefits of XDP: why it’s a game-changer

So, what makes an XDP so valuable? Here are some key benefits:

• Accelerated time to market: speed is everything in the digital world. With an XDP, you can deliver new customer experiences up to 4x faster by accessing all the data you need instantly.
• Cost efficiency and resource optimization: by reducing the need for custom integrations and minimizing dependency on IT, an XDP allows your team to focus on what really matters—delivering great customer experiences.
• Scalability and reliability: an XDP ensures that your data is always available and scalable. This reliability is essential for maintaining consistent customer experiences across all touchpoints, even as your business grows.

How XDP enhances PIM: a perfect partnership

A PIM system is an invaluable tool for managing and enriching your product information. It centralizes data, making it easier to ensure accuracy, consistency, and completeness across all channels. Whether you’re updating product descriptions, managing multilingual content, or ensuring compliance with marketplace requirements, a PIM system is the backbone that supports these vital processes.

However, as the demand for more dynamic and personalized customer experiences grows, there’s a need to complement PIM systems with additional capabilities. This is where an Experience Data Platform (XDP) can make a significant difference.

While your PIM centralizes product information, an XDP takes it a step further by bringing in data from other systems like customer behavior, inventory levels, and contextual information. This approach ensures that all relevant data is easily accessible in real-time, enabling more responsive and personalized customer interactions.

[Users] can get even more value out of their product data and activate it in more channels. In addition they can easily combine it with additional data sources to increase relevance for customers, which means increased conversion and sales in all their digital sales channels.
Niclas Mollin | CEO at Occtoo

‍With an XDP, your product data can be delivered instantly to any digital touchpoint, enhancing the speed and relevance of customer experiences. Whether it’s on your website, mobile app, or in-store displays, the combination of PIM and XDP ensures that customers receive accurate and timely information tailored to their needs: imagine being able to recommend products based on a customer’s previous purchases, location, or even the weather—this is the power of combining PIM and XDP.

The future of digital commerce

As we move further into the era of composable commerce, the ability to manage and utilize data effectively will define the success of digital strategies. An experience data platform (XDP) is the tool that empowers your team to deliver faster, more personalized, and more reliable customer experiences. By integrating an XDP with your PIM, you can extend the power of your product data strategy, ensuring that every detail is accurate and ready for distribution across all channels. If you’re looking to elevate your customer experiences and drive digital innovation, it’s time to explore how XDP and PIM can work together to unlock new opportunities for your business. Want to learn more? Let’s chat!