Ditch data silos and fragmented landscapes! Composable CDPs empower marketers with self-serve data and AI tools, boosting campaign velocity and customer insights.
Data has always been the currency that drives marketing success. However, it’s more important than ever with an ever-fragmented advertising landscape, added privacy regulations, and the rise of artificial intelligence (AI). Composable customer data platforms (CDPs) give marketers access to and control their first-party customer data to quickly deploy campaigns and drive growth. Let’s explore the benefits of composable CDPs, plus how they play into an organization’s broader data strategy.
Composable CDP 101 – the essentials
A composable CDP is a modular platform designed to help manage customer data efficiently across marketing channels. Unlike traditional CDPs, which create yet another data copy and silo within your company, composable CDPs follow a “zero data copy” architecture. This technology sits on top of a cloud data warehouse, ensuring that teams can use data from one secure source of truth. Ultimately, this allows marketers to build, manage, and deploy data-driven marketing strategies at speed and scale without the hassles and headaches of copying your data to yet another system.
Why marketers love composable CDPs
Now that we’ve established what a composable CDP is let’s look at why it’s such a powerful technology for marketing teams. First and foremost, implementing a composable CDP helps save marketing teams a ton of time. If you’re a marketer reading this, you probably know your company’s data is siloed and inaccessible. You likely have to reach out to your data team for an audience list every time you want to launch a new campaign, adding weeks or months onto your cycle.
Also Read: Cloud Data Warehouses: Rethinking the Martech Stack for the Future
A composable CDP helps break those silos down by giving marketers a self-serve interface they can use to create audiences from their data warehouse, ultimately providing more flexibility and autonomy.
With a composable CDP, marketers are not locked into the ad platforms or email tools prescribed by a traditional CDP. Instead, they can mix and match or add new marketing platforms as their audience or market needs shift.
Using a composable CDP on top of a cloud data warehouse also gives marketing teams data confidence, which leads to higher campaign velocity. By operating on a unified view of customer data that is consistently updated, marketers can quickly respond to customer needs in any channel, making their campaigns more effective.
Lastly, composable CDPs eliminate the need for redundant data storage and reduce the dependency on marketing software vendors, significantly lowering operational costs while ensuring stronger data security.
The dynamic duo of Snowflake and GrowthLoop
GrowthLoop was founded by marketers, for marketers. We’ve all seen firsthand how powerful AI and data are when combined, and we’re working on solutions that marry these technologies. That’s how our most recent partnership with Snowflake – a cloud data warehouse trusted by thousands of companies – was born. We partnered with them to launch our AI-powered audience segmentation and discovery tool as a Native App on its platform. Here’s what that means in practice:
- Enhanced AI capabilities – This integration directly brings powerful generative AI-powered tools to the marketer’s data environment. The AI engine runs locally, providing smarter and more impactful suggestions based on each user company’s data.
- Improved performance and efficiency – The ability to quickly segment and activate customer data directly within Snowflake accelerates experimentation and facilitates the delivery of personalized cross-channel content. This streamlined process significantly enhances marketing efficiency and efficacy.
- Secure and local data processing – The native app’s local nature minimizes the risk associated with data transfer. It provides marketers with robust and reliable generative AI insights, leading to more data-driven marketing strategies.
Also Read: 9 Powerful B2B Demand Generation Tools to Supercharge Your Marketing Efforts
Data-driven marketing – the dos and don’ts
We’ve covered a lot of ground here, and I wanted to end with some practical advice on using composable CDPs across marketing functions.
Do:
- Start small and find value – As with implementing any new tool, marketing teams should choose a single use case to deploy their new composable CDP to test and understand the technology. The good news? It only takes days (not months like with a traditional CDP) to activate a composable CDP, so marketers can quickly understand how to utilize it at scale.
- Build zero data copy architecture – Leveraging a composable CDP and a cloud data warehouse helps ensure your data is accessible and centralized. This is the best way to ensure data security and reduce costs across marketing functions. It also helps streamline workflows for the marketing team, simplifying historically complex processes.
- Select best-of-breed solutions: Composable CDPs allow marketing teams to build the best tech stack for their needs. Instead of being locked in with a single company and the tools it offers, marketers can pick and choose their providers for their data cloud, push notification, email platforms, content management tools, and much more.
Don’t:
- Sync data everywhere – To use various marketing technologies, marketers might be tempted to copy data into many systems. This contributes to creating data silos and leads to compromised data security.
- Treat any one tool like a database – On the flip side, avoid housing all of your data in a single marketing tool. This can become expensive quickly, and it’s also impossible to scale. A tool like an email platform was never built to be a database and shouldn’t be used as one.
- Accept being locked out of data – Marketing teams should advocate for access and contribution to a company’s data sets. At GrowthLoop, we work with Fortune 500 companies that have successfully democratized their data, and when done properly, it accelerates growth.
Also Read: Crafting Memorable CX: Data-driven Strategies in a Privacy-first World
Composable CDPs are flexible, scalable, and cost-efficient. They offer a robust solution for modern marketing challenges. As we navigate the data-driven future of marketing, embracing composable CDPs will be essential for staying competitive.
