Customer engagement is seeing a major transformation, and the concept of composability is at the center of this change. The traditional Customer Data Platform (CDP) model, where customer data is ingested and stored in a centralized platform, is being challenged by a more flexible approach.
Composability in this context means activating and using data directly from a customer’s data warehouse or lakehouse, such as Snowflake, Databricks, Google BigQuery, or Amazon Redshift.
Instead of locking data into a single platform, composable systems give businesses the flexibility they need to access and leverage data from wherever it resides—aligning with the growing need for businesses to become more data-driven and agile in their customer engagement efforts.
As organizations store increasingly large volumes of data across multiple locations, the ability to access and activate this data without migrating it into a dedicated platform becomes a valuable asset.
Composability is the key to next-level customer engagement
Composability centers around the direct use of data from decentralized data sources. Traditionally, CDPs functioned as repositories that ingested, stored, and managed customer data in one place, creating a persistent database of customer profiles—requiring constant data updates and synchronization, often leading to delays and inefficiencies in activating customer data in real time.
The composable model changes this by letting platforms pull data directly from a customer’s data warehouse in near real time.
Instead of duplicating data storage, composable platforms dynamically access the data where it already exists, reducing latency and making data activation faster and more efficient.
For example, platforms like Braze and Iterable connect directly to data repositories, bypassing the need for multiple data movements—reducing costs, streamlining operations, and accelerating the delivery of personalized customer experiences.
Why data warehousing is winning customer engagement
Data warehousing is becoming a go-to strategy for customer engagement. Companies are increasingly using data from centralized storage solutions such as Snowflake, Databricks, Google BigQuery, and Amazon Redshift. These warehouses are designed to handle massive volumes of data, making them well-suited for storing customer and business data together.
Centralization provides a single source of truth for all data, which can be easily accessed by different applications and platforms.
Platforms like Braze and Iterable are adopting this approach to meet the demands of data-driven customer engagement. Through integrating directly with data warehouses, these platforms can pull in customer data on demand, letting them deliver personalized messaging across multiple channels in real time.
Despite this shift, some data still needs to be temporarily housed within these platforms for specific activation purposes, such as rapid decision-making and campaign orchestration.
Case study: Braze, a leader in real-time data activation
Braze is at the leading edge of leveraging data warehouses for real-time data activation. The Braze Data Platform allows automated and smooth transfers of data from warehouses, letting businesses create highly personalized customer journeys.
Syncing data at high frequency—often in minutes—Braze makes sure customer profiles are constantly updated for real-time engagement based on the most current data.
Braze’s methodology involves a combination of data warehouse integration and in-platform data synchronization—letting brands respond immediately to customer actions, such as purchases or interactions.
For instance, an eCommerce site using Braze can trigger a personalized email or push notification within seconds of a customer’s action, maximizing engagement opportunities and improving the customer experience.
Meeting the demand for instant customer responses
Customer engagement today requires different response times depending on the context. Some businesses need to react instantly to customer actions, while others can afford a more measured approach.
For example, eCommerce sites and dating apps often require immediate responses to transactions or interactions to maintain user engagement and satisfaction. In these cases, data flows directly from the source to Braze, where the platform quickly determines the best response.
Contrastingly, scenarios like newsletters or weekly recommendations involve larger datasets but do not require instantaneous action. Here, data can be processed at a slower pace, balancing the need for thorough data analysis with the timing of delivery.
How Braze balances long-term data storage and archiving
Braze’s platform supports extended data storage to facilitate retargeting and ongoing customer engagement. Data relevant to active customer profiles is kept accessible for a considerable time, letting brands refine their targeting and messaging strategies based on recent interactions.
Over time, some data is archived to optimize storage costs and maintain system efficiency—helping businesses retain valuable data insights while managing storage and performance constraints effectively.
Why traditional CDPs are struggling to stay relevant
Traditional CDPs are finding it increasingly difficult to show clear value in a world where data warehouses are becoming the preferred data storage option. These CDPs were initially designed to collect, store, and activate customer data within a single platform.
As companies accumulate vast amounts of data—customer data and broader business information—the centralized model of CDPs becomes less practical.
Modern players, like Hightouch, have recognized this shift and are advocating for a “composable CDP” approach, focusing on facilitating data movement between platforms without the need to duplicate storage. Through letting data be accessed directly from warehouses, these new solutions provide businesses with greater flexibility and cost efficiency.
The battle Between Traditional CDPs and modern data warehouses
Traditional CDPs are being challenged by data warehouses that offer the ability to store both customer and business data without redundant duplication. In contrast to CDPs, which often require complex data synchronization processes, data warehouses provide a more streamlined approach to data storage and access.
Modern solutions like Hightouch provide a bridge through smooth integration between these storage systems and customer engagement platforms, removing the need for a separate CDP layer.
Case study: Iterable is closing the gap in data activation
Iterable is addressing the “activation gap” by integrating directly with data warehouses and CDPs—letting businesses avoid using multiple applications for data activation.
Instead, Iterable connects directly to data repositories via reverse ETL (Extract, Transform, Load), which lets data flow smoothly from storage to activation points.
Acting as a single platform for messaging, decisioning, and engagement across multiple channels, Iterable simplifies the process for businesses. This then reduces complexity, speeds up campaign execution, and makes sure customer engagement is based on the most current and relevant data.
Why copying data isn’t a bad thing
The idea that data should never be copied is a misconception in the context of customer engagement. Platforms like Braze, Iterable, and MessageGears often import or copy data to make sure they have the most current information readily available for real-time use.
Customer engagement platforms rely on smart data copying
Customer engagement platforms use data copying strategically to keep their systems responsive and efficient. Creating temporary data copies, these platforms make sure they can access and activate data without delays.
It’s particularly valuable for businesses that require immediate responses to customer actions, such as eCommerce platforms that need to send order confirmations or promotional offers in real time.
What the CDP Institute thinks about data copying practices
David Raab, CEO of the CDP Institute, argues that data copying is not inherently negative. He emphasizes that data copying is necessary to make sure platforms function properly and deliver timely responses. The key here is to use data copying judiciously, understanding that it’s a practical solution to achieve real-time engagement and operational efficiency.
Final thoughts
As the composability revolution continues to disrupt customer engagement, consider this: Are you ready to move beyond outdated, siloed data models and fully harness the power of real-time insights?
To stay competitive, rethink how your brand accesses, activates, and leverages customer data.
How will you embrace composability to create deeper, more meaningful connections with your audience and drive growth in an ever-evolving market? The choices you make today will determine your relevance tomorrow.
