Customer Data Platform
May 1, 2024
In the world of Customer Data Platforms (CDPs), the concept of a composable CDP has gained significant attention. A composable CDP can be defined as a “build it yourself” component-based modular architecture that promises flexibility and customization. However, the reality of composable CDPs can create a hassle rather than an asset. This blog, 6 Reasons Why Composable CDPs Miss The Mark For Enterprise Businesses, explores the complexities of composable CDPs and why they may not be the solution you are searching for.
Composing a CDP from various components sounds flexible, but it can quickly become a nightmare to manage. Plus, this can become a compounding issue as you add more tools. Each module might have differing (or conflicting) interfaces, protocols, and updates. This makes integration and maintenance a huge task, eating up resources and bandwidth. The complexity is compounded downstream when managing vendors, APIs, and compatibility issues.
A composable CDP promises endless integration, but the reality is that systems often don’t integrate with one another as well as promised. Integrations are often designed with a singular purpose and often don’t offer much flexibility. As a result of these limitations, data silos can emerge, hindering the flow of information across the system. Compatibility issues between modules can create bottlenecks, impacting the efficiency and accuracy of data processing.
On the other hand, a purpose-built CDP like Tealium is designed with integrations in mind. Tealium provides over 1,300 turnkey solutions, giving you increased flexibility and control. Our integrations allow you to flex as your business grows, optimizing the tools you already rely on (or might adopt in the future) to drive better CX.
Many composable CDPs often neglect data privacy conversations since they assume data privacy is managed externally. This assumption becomes unwieldy (and dangerous) as the business grows, and multiple-point solutions have various security protocols and compliance standards. Each component of a composable CDP brings its own set of vulnerabilities, governance rules, and configurations increasing the overall risk exposure. Individually managing each vendor increases the risk of exposing sensitive customer data to breaches or non-compliance issues.
However, at Tealium, we believe that data privacy should be at the heart of your business. Our philosophy is that because we’re at the center of your customer data delivery, your compliance rules should live in the CDP. Therefore, they should be enforced by the CDP. Keeping your data privacy in-house with a CDP allows you to stay compliant as your business grows.
Composable CDPs work well at low volumes, but the problem begins when you scale. A composable CDP might struggle to scale effectively. Adding new modules or accommodating increased data volumes can strain the system, leading to performance issues.
Additionally, the composable infrastructure is in its infancy, it’s not proven. At the enterprise level, it is much safer to use a time-tested CDP like Tealium. Take our customer, TUI, the largest global travel brand that helps more than 21 million customers worldwide with their holiday arrangements – both online and via brick-and-mortar travel agencies. Using Tealium, TUI handles large volumes with ease, all while improving conversion rates.
While a composable CDP might appear cost-effective initially, there are additional costs to consider. Hidden costs come into play when factoring in the costs of software and people can soar over time. Plus, licensing fees, integration costs, and ongoing maintenance expenses can accumulate rapidly.
Additionally, adding more tools has multiple downstream effects since you assume all responsibility for maintaining tools. If the tools go down, you’d need a backup plan. Tealium spends time and energy maintaining our tool, which is something our customers can take advantage of!
A composable CDP often lacks a unified vision or direction because it is cobbled together. This means that when coalescing multiple vendors, there might be conflicting roadmaps or priorities that don’t align with your business’s goals. As a result, this lack of cohesion can negatively impact long-term support, upgrades, or the development of new features that align with the evolving needs of the business.
In conclusion, a composable CDP isn’t a great solution for enterprise companies. Though it is touted as a customizable solution with flexibility, the practical challenges far outweigh the benefits. Businesses seeking a reliable, scalable, and efficient solution for managing customer data will likely find more success with a CDP like Tealium. Opting for a more integrated and streamlined CDP that prioritizes interoperability and simplicity will prove to be a wiser investment in the long run. For more resources, explore our blog, An Architectural Discussion for Customer Data Management.
