CDP vs. Composable CDP: Why build your own Customer Data Platform

Over the past decade, Customer Data Platforms (CDPs) have experienced significant growth, but emerging trends such as open-source tooling, cloud data solutions, and increased data privacy scrutiny have challenged traditional CDPs. These legacy systems often suffer from use case gaps, vendor lock-in, and insufficient data privacy compliance, limiting their ability to meet evolving customer and regulatory demands. In contrast, the Composable CDP offers a more modular and flexible approach, allowing businesses to tailor their data infrastructure to specific needs and easily adapt to new technologies and regulations. This approach mitigates risks associated with traditional CDPs, such as use case limitations and vendor dependency, by enabling businesses to retain control over their customer data and integrate diverse data sources to build a comprehensive Customer 360 profile. As a result, a Composable CDP not only addresses current challenges but also provides a future-proof data strategy that can evolve with changing business needs.