đ A Quick Look at Composable CDPs | XSâ Issue #61
Composable MarTech: from traditional to composable
Why Composable CDPs Are Getting More Attention?
A composable customer data platform (CDP) is a set of integrated tools that are assembled using open-source or proprietary software to perform customer data management tasks. It functions as an external layer to an organization's data warehouse to leverage the existing customer data and emphasizes flexibility, adaptability, and scalability.
The concept of composable CDPs is based on an architecture anchored on a cloud data store for customer data. Instead of buying an all-in-one CDP solution from a vendor, companies can build around their data warehouse with the help of several disparate vendors integrated into the data warehouse but not each other. This approach allows companies to maintain security and privacy while still being able to leverage the latest technologies available in the market.
Composable CDP vs. (Traditional) CDP
Composable CDPs are a new type of Customer Data Platform (CDP) that offer an alternative approach to building a customer data platform. Unlike traditional CDPs, composable CDPs are built on a âwarehouse-firstâ architecture, which allows organizations to leverage all of their data in their warehouse regardless of how it is collected. This enables marketing, sales, and operations teams to improve operational performance and gain more insights into customer behavior.
In addition, composable CDPs allow organizations to select the components they need for their specific use case and integrate them into the data warehouse. This allows for greater flexibility and customization when it comes to collecting, storing, modeling, and activating data. Furthermore, composable CDPs can help reduce operational effort and costs as well as increase productivity.
Overall, composable CDPs provide organizations with more control over their data infrastructure by allowing them to select the components they need for their specific use case while still leveraging all of their data in the warehouse.
Key Benefits of Composable CDPs
Composable Customer Data Platforms (CDPs) offer a range of benefits and advantages over traditional, integrated CDPs. The most notable advantage of composable CDPs is the ability to select and integrate components from different vendors into a single platform. This allows organizations to tailor their CDP to their specific needs, while still taking advantage of the latest technologies and data sources.
Another key benefit of composable CDPs is that they can reduce operational effort and costs by allowing IT teams to select only the components they need for their particular use case. Additionally, composable CDPs are more agile than integrated CDPs, meaning teams can quickly add new components or update existing ones as needed. Finally, composable CDPs allow organizations to leverage richly contextual, connected behavioral data in order to power personalization at scale.
Is Composable CDP the Next Big Thing in Digital Experiences?
The world of digital experiences is constantly evolving, with new technologies and strategies emerging at a rapid pace. One concept that has been gaining traction recently is the idea of a composable CDP.
But is it really the next big thing?
In a way, yes and no.
The true 'next big thing' in digital experiences isn't necessarily composable CDPs alone. Instead, it's the broader concept of composability and connectivity.
Composability refers to the ability to quickly and easily assemble, disassemble, and reassemble individual components in various configurations to meet specific needs. In the context of digital experiences, this could mean anything from personalizing user experiences, to optimizing marketing strategies, to improving customer service processes.
Connectivity, on the other hand, refers to the capacity to seamlessly integrate and coordinate different systems, technologies, and data sources. For digital experiences, this could mean integrating a company's CRM system with its marketing automation platform, or combining customer data from multiple channels to create a unified customer view.
So, while Composable CDPs themselves might not be the 'next big thing', they are certainly a crucial part of the larger trend towards composability and connectivity in digital experiences. And as businesses continue to seek out ways to better understand and engage their customers, the value of these composable MarTech solutions is only likely to grow.
Rounding Up the Stack
Each and every week, hundreds of blog posts, guides, and playbooks are written, tens of podcast episodes are recorded, and tens of videos and webinars are produced in the digital experience space.
These are the most exciting content from last week that caught our attention, and we enjoyed reading, listening, and watching:
Blog Posts
By harnessing the power of firmographic segmentation in ABM, marketers can unlock higher ROI, foster stronger customer relationships, and ultimately, drive continuous profitable business growth.
By leveraging composable MarTech solutions, organizations can rapidly realize the benefits of their investments and derive value from them. Due to the modular nature of composable solutions, time-intensive integrations between disparate systems are now easier and more efficient than ever before. This results in significantly less development time, rapid implementation and team agility with a higher ROI.
As your organizationâs data operations mature, you will need to upgrade your infrastructure to fulfill new needs and requirements
Composable content is a new approach to managing digital content in todayâs world, where digital channels are ever present in our professional and personal lives. This concept addresses the challenges that arise from the overwhelming noise and blurred boundaries between digital and in-person experiences.
âWhile copying data from one system to another violates the principles of data normalization in some way, it fully embraces the principles of composability. The data is managed and delivered by two separate components that are highly optimized for different types of users.â
Podcast Episodes
The Strategy Behind Your CDP: How CDPs Can Transform Your Business
In this weekâs episode of Data Unlocked, Jason sits down with Aric Zion, CEO of Zion & Zion. In this episode, Aric and Jason discuss Zion & Zionâs work, how CDPs can transform businesses, how to build an effective CDP strategy, what an efficient CDP deployment looks like, the importance of using the right key dimensions to build your CDP strategy, and more.
Videos and Webinars
Master Composable Commerce: 9 Must-Know Steps To Ensure Success Using Incremental Development
Discover the secrets to unlocking success in the world of e-commerce with a transformative approach to Composable Commerce. Learn how incremental development empowers businesses to build agile and flexible platforms while driving faster time to market, reducing risks, and continuously innovating. Join us on this journey as we delve into the power of iteration and share 9 important practical steps for achieving composable success.
Guides, Case Studies, and Reports
This use case offers a comprehensive showcase of the myriad of ways in which personalization can increase website conversion rates, enhances digital customer experiences, and engenders customer loyalty for Gymshark
Thatâs it from our side.
Hope youâll enjoy the content presented above.
Please let us know if you have any questions, comments, or feedback. Donât hesitate to reach out to us by replying to one of the emails or emailing directly to me via esat@experiencestack.co
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