Customer Data Platforms (CDPs) are widely recognized as comprehensive marketing tools, and have become indispensable to companies in various industries seeking to capitalize on their own customer data.
If you work in sales, marketing, finance, or product management, you are probably aware of the significant challenge of constructing and implementing a unified view of customer data. Fortunately, CDPs address this issue by providing non-technical teams with the ability to efficiently capture, model, and implement customer data on a large scale.
Despite the rapid rise in popularity of all-in-one CDP solutions, the advent of cloud data warehouses has given way to more adaptable and high-performing CDP alternatives. With a Composable CDP, companies can seamlessly leverage their existing data investments by activating data directly from the cloud data warehouse, which empowers marketing teams to effectively maximize the value of their first-party data.
A Quick Primer on Composable CDPs
Composable CDPs differ from traditional CDPs by providing greater control and customization over data management and integration with other business systems and tools. This approach allows businesses to better meet their unique customer data needs, without the limitations of a one-size-fits-all solution.
A Composable CDP provides businesses with the ability to build, test, and refine a personalized solution that fits their specific data needs, while also providing more agility to adjust to new challenges or changes in business needs. This can lead to more effective customer insights and a more seamless experience for customers across all touchpoints.
How does a composable CDP work?
Although a composable architecture may appear complex, it is quite easy to comprehend when viewed within the context of a modern data stack. The concept can be broken down into three pillars: data integration, data modeling/analysis, and business intelligence.
Data integration involves moving data from the source to the destination. Data modeling/analysis entails transforming data and developing consumable data models for analysis purposes. Finally, business intelligence involves visualizing data models in dashboards or reports.
Benefits of a Composable CDP
The benefits of Composable CDP architecture can be broadly categorized into customization, security, flexibility, and cost-effectiveness. Together, these advantages offer a more robust and powerful platform than what can be achieved with any pre-built CDP offering.
Customization: Composable CDPs provide businesses with a modular approach to data management, enabling them to create customized data solutions that meet their unique needs.
Flexibility: With a Composable CDP, businesses can easily swap, replace or add components as needed, giving them greater flexibility to adapt to changes and respond to evolving business needs.
Scalability: Composable CDPs are built on cloud data warehouses, which can handle large amounts of data and scale with the business as it grows.
Cost-effectiveness: Composable CDPs can be more cost-effective than traditional, pre-built CDPs, as businesses only pay for the components they need, and can easily swap or replace them if they become too expensive.
Speed: With a Composable CDP, businesses can get their data solutions up and running faster, as they can build their solutions from pre-built components, rather than starting from scratch.
Security and governance: Composable CDPs offer greater control over data security and governance, as businesses can select only the components that align with their specific requirements.
Integration: Composable CDPs can integrate with a wide range of marketing tools and platforms, enabling businesses to easily connect their data with the tools they use for marketing and analytics.
Use cases for a composable CDP
A Composable CDP not only tackles the typical use cases of a traditional CDP but also enables a broader and more adaptable range of use cases with a highly scalable and flexible approach.
Custom Audiences
While audience building is a typical use case for traditional CDPs, a Composable CDP enables businesses to extend their audience building capabilities by leveraging existing data models, such as shopping cart abandoners, LTV, and recent purchasers, to create more advanced audience cohorts.
By integrating with a Data Activation tool like Journify, businesses can seamlessly sync this data directly to their marketing tools, enabling them to optimize their marketing campaigns and improve their return on ad spend (ROAS).
Personalization
A composable CDP can help you create personalized experiences for your customers. By integrating data from various sources, you can create a unified view of your customer and use that information to deliver personalized content and recommendations.
Data Synchronization
Object syncing refers to the transfer of data from one table to another. This is often used to share product usage information (such as new signups, active users, and the date of the last login) from warehouse tables to various business applications like Hubspot, Klaviyo, Mailchimp, or Salesforce. By utilizing a Composable CDP, there is no limitation to the specific objects that can be synced, including users and events, allowing for maximum flexibility in transferring any and all data directly to desired end tools.
Event syncing involves synchronizing event data with various destinations. For instance, in order to enable your marketing team to create personalized campaigns, it is necessary to provide them with access to important event data such as pages viewed, orders, purchases, shopping carts, and so on. By doing so, you can develop personalized experiences for your users in almost real-time.
A Composable CDP is particularly well-suited for use cases that require real-time data access since it enables the retrieval of data directly from Journify. As a result, your business teams can create and customize customer experiences in real-time.
How to implement a composable CDP
To set up a composable CDP quickly and easily, you can take advantage of a Data Activation tool like Journify. Unlike other data activation platforms, Journify doesn’t require a data warehouse. We provide a fully managed data warehouse that synchronizes data with any destination of your choosing. Additionally, Journify offers a no-code audience builder for your marketing team, allowing non-technical team members to easily create and manage audiences without relying on engineering favors.
