Today's companies accumulate customer data from everywhere: sales, social networks, digital interactions... but they don't always know how to use it. The real problem isn't lack of information, but disorder. Disorganized data means slower decisions, missed opportunities, and customers who feel unknown. This is where a Customer Data Platform (CDP) get in on the action.

There are different approaches to implementing a CDP. Two of the most relevant are the Classic CDP And the Composable CDP. Each offers specific advantages and disadvantages that can influence the choice of the right solution for a business.

In this article, we'll explore in detail the differences between the two options. Our goal is to provide you with clear and practical information to help you choose the CDP solution that best suits your company's goals.

What is a Customer Data Platform (CDP)

Una Customer Data Platform (CDP) is an essential tool for managing customer data. It allows you to collect, store and unify data from multiple sources to optimize the user experience and The effectiveness of marketing.

There are two main types of CDP, classic and composable.

CDP Classic: It offers a comprehensive solution with pre-defined components. You need to store a copy of the collected data to resolve identities and create unified user profiles.

CDP Composable: This one has a modular and flexible approach to managing customer data. In addition, it allows the integration of existing services and components to meet the unique needs of an organization.

A well-implemented CDP improves accuracy in customization and allows decisions based on reliable data. It is essential to choose the right approach to align with the technological needs and capabilities of each company.

What is a classic CDP

Un Classic CDP is an “all-in-one” solution that offers pre-configured functionality ready to use. This type of CDP is beneficial for companies looking for a more comprehensive implementation quick and simplified.

Its key features include fast integration and vendor-managed maintenance. User interfaces tend to be intuitive, allowing teams to focus on marketing strategies without worrying too much about data infrastructure.

Essential components of classic CDP

1. Fast integration: The pre-configured infrastructure allows for quick start-up, essential for companies that want to accelerate data processing capacity.
2. Closed infrastructure: All functionality is managed within a single proprietary environment.
3. Monolithic design: Integration and customization capabilities are often more limited compared to newer alternatives.
4. Focus on more general customers: It is designed for companies that are looking for an “all-in-one” solution and do not want to dedicate resources to technical development or customization.

Traditional CDP offers a comprehensive solution that can greatly simplify the lives of users, although some flexibility is sacrificed compared to the composable approach that allows for deeper customization of data models. The Right Strategy depends on the specific needs and technological structure of each company.

What is a composable CDP

Un Composable CDP is a cloud platform that organizes customer data using modular components. This approach allows companies to build a highly personalized data platform.

The flexibility of composable CDP is one of its greatest advantages. It allows you to integrate tools from specific governance and compliance adapted to the particular needs of each organization.

However, the implementation of a composable CDP requires a team of mature data engineering. This equipment translates the company's requirements into components that support their needs. The ability to fully customize at each level of the data architecture is essential to maximize the benefits of the data architecture.

Essential components of classic CDP

1. Modular flexibility: The composable approach allows companies to choose and combine individual components, such as ETL tools, data lakes and analysis platforms, to create a solution perfectly adapted to their specific needs.
2. Integration with existing technology: A composable CDP integrates natively with already implemented systems, such as CRM, ERP and marketing platforms, allowing the use of current technological infrastructure to be maximized.
3. Custom scalability: Thanks to its open architecture, a composable CDP grows with the business. Companies can add new components or adjust existing ones as their data and user needs evolve.
4. Full control over data: Composable design gives companies absolute control over their data architecture, including where it's stored, how it's processed, and what tools are used to analyze it. This is key for companies that prioritize security and regulatory compliance.
5. Long-term cost optimization: Although the initial investment may be greater, the ability to choose specific components and adjust their scale can result in a lower total cost of ownership over time, avoiding the payment of unused functionality.
6. Support for technological innovations: A composable CDP allows the integration of the latest technologies, such as artificial intelligence and machine learning, offering advanced segmentation, prediction and personalization capabilities.

Comparison between classic and composable CDP

Classic and composable CDPs have fundamental differences that influence the customer data managements.

Composable CDPs stand out for their flexibility, allowing detailed control over consent and data residency, making them ideal for companies with complex legal requirements.

On the other hand, classic CDPs offer a simpler and faster solution to implement, suitable for organizations that are looking for a practical tool without great technical demands. The decision must align with internal capabilities and business objectives.

The importance of data quality

La data quality is essential when powering a Customer Data Platform (CDP). The data must be valid and accurate for personalization and analysis in marketing. Having tools that ensure the accuracy, consistency, timeliness and integrity of information ensures that decisions are correct and effective.

Un Classic CDP offers data quality features, allowing tests to be carried out on behavioral data collected. This ensures that the information is valid and up to date, while maintaining its usefulness. Behavioral data is essential, as it helps to understand customer needs and preferences.

Implementing efficient tools improves data management, strengthening the data structure and facilitating the use of important data for decision-making based on concrete facts.

Data collection methods in both approaches

El Classic CDP offers data collection methods that simplify the process. Companies are able to create unified user profiles immediately thanks to built-in identity resolution capabilities.

Intuitive interfaces make it easy to combine data from multiple sources, allowing for quick integration and analysis of customer data. On the other hand, the approach composable provides more flexibility. Companies manage identity resolution in their own data warehouse.

Both options allow you to synchronize unified profiles with other systems using APIs. Classic CDPs include ready-to-use data science tools, while composable ones allow you to integrate customized solutions. This is ideal for companies with specific needs in artificial intelligence and advanced analytics.

Which option is best for your business

Choosing the right type of CDP is crucial to effectively manage customer data. Consider the following factors before deciding:

1. Company size: These platforms come ready to use, simplifying implementation. If you want to prepare to scale quickly, a Composable CDP is a must for a startup
2. Available budget: Companies with limited resources may prefer a classic solution because of its lower initial cost.
3. Technical skills of the team: A composable approach requires equipment with advanced technical skills. It allows you to customize the platform to your exact needs.
4. Speed of deployment: Traditional CDPs offer faster implementation. Composable solutions may take longer to configure due to their customization.

For large and complex companies, a composable approach offers greater flexibility. It's an ideal option if you have a team of architects and system administrators trained to manage the platform.

Consider your resources and needs to select the CDP that will boost your data storage and improve the decisions based on data.

We're here to help

The choice of a CDP is not only technical, It is a strategic investment.

The world of modern marketing revolves around customer data. A CDP organizes and centers these important data, allowing for deep customization and accurate analysis. Choosing between a classic and a composable CDP is crucial.

In Novicell, we understand the importance of an appropriate solution that maximizes your results. If you don't know what type of CDP you need, we're ready to analyze your needs and design a tailor-made solution.

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