{"id":21045,"date":"2022-12-05T17:37:06","date_gmt":"2022-12-05T17:37:06","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/05\/where-should-a-cdp-fit-in-your-martech-stack\/"},"modified":"2022-12-05T17:37:06","modified_gmt":"2022-12-05T17:37:06","slug":"where-should-a-cdp-fit-in-your-martech-stack","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/05\/where-should-a-cdp-fit-in-your-martech-stack\/","title":{"rendered":"Where should a CDP fit in your martech stack?"},"content":{"rendered":"<p> <a href=\"https:\/\/go.fiverr.com\/visit\/?bta=1052423&nci=17043\" Target=\"_Top\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/fiverr.ck-cdn.com\/tn\/serve\/?cid=40081059\"  width=\"601\" height=\"201\"><\/a>\n<\/p>\n<div itemprop=\"articleBody\">\n<p>Any <a href=\"https:\/\/martech.org\/martech-landscape-customer-data-platform\/\" target=\"_blank\" rel=\"noreferrer noopener\">customer data platform<\/a> (CDP) must nestle nicely into your martech stack, including your customer data ecosystem. Like many architectural choices, you face few absolute rights and wrongs here, but you have options worth considering.\u00a0<\/p>\n<p>At Real Story Group, we\u2019ve seen three broad approaches, including variants of each:<\/p>\n<ul>\n<li>Licensing a CDP from your anchor martech suite.<\/li>\n<li>Deploying a best-of-breed CDP.<\/li>\n<li>Using components to build requisite CDP functionality. (I explored the third approach in an <a href=\"https:\/\/martech.org\/the-real-story-on-martech-should-you-build-or-buy-a-customer-data-platform\/\">earlier article<\/a>, but I\u2019ll expand further here.)\u00a0<\/li>\n<\/ul>\n<p>Of course, these are not mutually exclusive. In some cases, an enterprise will want to take a hybrid approach. Nevertheless, they provide a useful contrast, so let\u2019s dig deeper.<\/p>\n<h2 id=\"h-approach-1-cdp-from-an-anchor-suite\">Approach 1: CDP from an anchor suite<\/h2>\n<p>Many suite vendors \u2014 SAP, Adobe, Oracle, Salesforce and Microsoft \u2014 sell broad marketing suites supported (to varying degrees) by an optional CDP they fervently wish you to license.\u00a0<\/p>\n<p>On the buyer\u2019s side, I understand the temptation. Why not try to simplify the choice? Some consultants and analysts push this approach, too. <\/p>\n<p>Our research suggests otherwise, and we have seen many poor-fitting solutions based on a casual CDP selection. Here are a few possible reasons.<\/p>\n<p>There\u2019s no harm in considering a suite vendor\u2019s CDP add-on. But make sure you select it on its merit and not because it comes from an incumbent supplier.\u00a0<\/p>\n<p><strong><em>Dig deeper: <a href=\"https:\/\/martech.org\/topic\/martech-special-reports\/customer-data-platform-cdp-buyers-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">Customer data platform (CDP) buyer\u2019s guide<\/a><\/em><\/strong><\/p>\n<h2 id=\"h-approach-2-deploy-a-best-of-breed-cdp\">Approach 2: Deploy a best-of-breed CDP<\/h2>\n<p>There are dozens of specialized CDPs in the marketplace. CDPs can provide a wide range of functionality, and consequently, the market is wide, fragmented, and characterized by many different approaches to feature sets and architectures.\u00a0<\/p>\n<p>So there\u2019s a good chance you can find the right-fit packaged solution, which is always a boon. Do remember, though, that even with a best-of-breed CDP, someone will likely have to perform a lot of <a href=\"https:\/\/martech.org\/4-tips-for-a-great-cdp-implementation\/\" target=\"_blank\" rel=\"noreferrer noopener\">development and integration work<\/a>.\u00a0<\/p>\n<hr class=\"wp-block-separator has-text-color has-background has-cyan-bluish-gray-background-color has-cyan-bluish-gray-color\"\/>\n<p><!-- START INLINE FORM --><\/p>\n<div class=\"nl-inline-form border py-2 px-1 my-2\">\n<div class=\"row align-items-center justify-content-center\">\n<div class=\"col-12 col-lg-3 col-xl-auto pb-2 pb-lg-0\">\n<p class=\"inline-form-text text-center mb-0\">Get MarTech! Daily. Free. In your inbox.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p><!-- END INLINE FORM --><\/p>\n<hr class=\"wp-block-separator has-text-color has-background has-cyan-bluish-gray-background-color has-cyan-bluish-gray-color\"\/>\n<h2 id=\"h-approach-3-assemble-components\">Approach 3: Assemble components<\/h2>\n<p>Instead of using a packaged CDP, you \u201ccompose\u201d your CDP using other components. Most enterprises already have some sort of <a href=\"https:\/\/martech.org\/martech-landscape-whats-the-difference-between-a-data-warehouse-and-a-data-lake\/\">data warehouse (DWH) and\/or data lake<\/a>. So instead of copying that data over from a DWH into a CDP, why not use your DWH as your CDP? <\/p>\n<p>Of course, a DWH is not a CDP, so this approach requires other components to build a CDP-like layer.\u00a0At the very minimum, you\u2019d need a <a href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:6994276441802575873\/\" target=\"_blank\" rel=\"noreferrer noopener\">reverse-ETL tool<\/a> to pull data out of your DWH and then push it to activation channels. <\/p>\n<p>But that\u2019s not sufficient. You\u2019d also need components for other capabilities that a CDP provides:\u00a0<\/p>\n<p>Now, you may not need all these, so you can pick and choose to build exactly what you need. Remember that, to some degree, you are building software here. What\u2019s interesting for the developer may prove sub-optimal for the business stakeholder.<\/p>\n<p>Some proponents of this CDP-by-assembly have gone to the extent of claiming that CDPs are dead and that this approach is all you need. I disagree. There is a time and place for all three approaches.<\/p>\n<h2 id=\"h-composability-as-a-spectrum\">Composability as a spectrum<\/h2>\n<p>By nature, modern martech stacks are \u201ccomposable.\u201d I believe that the three approaches above really represent a spectrum of composability. As you move from \u201csuite bolt-ons\u201d to \u201cpackaged best-of-breed\u201d to \u201ccomponentized\u201d (and maybe even beyond to <a href=\"https:\/\/martech.org\/4-reasons-to-consider-implementing-a-custom-cdp\/\" target=\"_blank\" rel=\"noreferrer noopener\">complete DIY<\/a>), the granularity of composability increases.<\/p>\n<p>Initially, as the granularity increases, you get more in terms of functionality and capabilities. But a further increase in composability only brings diminishing returns in terms of out-of-the-box functionality, albeit with a more purpose-built solution.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"445\" alt=\"CDP alternatives - Composability vs. Funcitionality\" class=\"wp-image-356620\" data-srcset=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-800x445.png.webp 800w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-600x334.png.webp 600w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-200x111.png.webp 200w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-768x427.png.webp 768w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-1536x854.png 1536w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-150x83.png.webp 150w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality.png.webp 1600w\" data-lazy-data-sizes=\"(max-width: 800px) 100vw, 800px\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-800x445.png.webp\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"445\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-800x445.png.webp\" alt=\"CDP alternatives - Composability vs. Funcitionality\" class=\"wp-image-356620\" data-srcset=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-800x445.png.webp 800w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-600x334.png.webp 600w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-200x111.png.webp 200w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-768x427.png.webp 768w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-1536x854.png 1536w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality-150x83.png.webp 150w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDP-alternatives-Composability-vs.-Funcitionality.png.webp 1600w\" data-sizes=\"auto, (max-width: 800px) 100vw, 800px\"\/><\/noscript><\/figure>\n<\/div>\n<h2 id=\"h-what-are-the-trade-offs\">What are the trade-offs?<\/h2>\n<p>There is no \u201cone size fits all\u201d in this marketplace, and there are always trade-offs.\u00a0<\/p>\n<p>Componentization allows you to build a more purpose-built solution that may better fit your current needs while potentially quicker to get started. <\/p>\n<p>That said, as your needs evolve or new requirements are added, you will likely need additional components and invest more time and resources to build something that is probably available as out-of-the-box in a best-of-breed tool. Consequently, as your requirements and components expand, the complexity of the stack will also increase.\u00a0<\/p>\n<h2 id=\"h-how-should-you-decide\">How should you decide?<\/h2>\n<p>The figure below provides a framework for deciding which approach is more suitable for you. It describes various trade-offs and how each of these approaches can impact your stack complexity, fit to purpose, range of functionality, total cost of ownership and ease of implementation.\u00a0<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"446\" alt=\"CDPs - Suites vs B-o-B vs Componentized\" class=\"wp-image-356621\" data-srcset=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-800x446.png.webp 800w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-600x335.png.webp 600w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-200x113.png.webp 200w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-768x429.png.webp 768w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-150x84.png.webp 150w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized.png.webp 957w\" data-lazy-data-sizes=\"(max-width: 800px) 100vw, 800px\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-800x446.png.webp\"\/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"446\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-800x446.png.webp\" alt=\"CDPs - Suites vs B-o-B vs Componentized\" class=\"wp-image-356621\" data-srcset=\"https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-800x446.png.webp 800w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-600x335.png.webp 600w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-200x113.png.webp 200w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-768x429.png.webp 768w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized-150x84.png.webp 150w,https:\/\/martech.org\/wp-content\/uploads\/2022\/12\/CDPs-Suites-vs-B-o-B-vs-Componentized.png.webp 957w\" data-sizes=\"auto, (max-width: 800px) 100vw, 800px\"\/><\/noscript><\/figure>\n<\/div>\n<p>You can see each of the approaches has its pros and cons. A best-of-breed CDP provides support for a broad range of use cases and allows you to scale up to add support for additional use cases gradually.\u00a0<\/p>\n<p>The \u201ccomponentized\u201d approach allows you to build something specific to your current requirement. It may be easy to start with (\u201cWe can get your data from Snowflake and send it to your email platform in 5 minutes\u201d). But as your requirements become more sophisticated, you need more piece parts, making your stack even more complex. <\/p>\n<p>So again, there are no pat answers here.<\/p>\n<hr\/>\n<p><em>Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed <a href=\"https:\/\/martech.org\/staff\">here<\/a>.<\/em><\/p>\n<hr\/>\n<div class=\"google-news-link text-center\">\n\t\t\t\t\t\t\t<em><a class=\"\" href=\"https:\/\/news.google.com\/publications\/CAAqBggKMJeAJDCAwQQ?hl=en-US&amp;gl=US&amp;ceid=US%3Aen\" target=\"_blank\" rel=\"nofollow noopener\">Add MarTech to your Google News feed.<\/a><\/em>\u00a0\u00a0\u00a0\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"img-fluid\" alt=\"Google News\" width=\"140\" height=\"38\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/themes\/tdm-editorial\/img\/icons\/google_news.png\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"img-fluid\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/themes\/tdm-editorial\/img\/icons\/google_news.png\" alt=\"Google News\" width=\"140\" height=\"38\"\/><\/noscript><\/p>\n<hr\/><\/div>\n<p><!-- START EOS SPACE --><\/p>\n<p><!-- END EOS SPACE -->\t\t\t\t\t<\/p>\n<div class=\"about-author\">\n<p>About The Author<\/p>\n<div class=\"information\">\n<div class=\"author-module\">\n<div class=\"row\">\n<div class=\"col-12 col-lg-3\">\n<div class=\"avatar\" style=\"min-width:140px;min-height:140px;\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" class=\"img-fluid\" alt=\"Apoorv Durga\" width=\"140\" height=\"140\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/uploads\/2021\/08\/Apoorv-Durga.jpg.webp\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"img-fluid\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/martech.org\/wp-content\/uploads\/2021\/08\/Apoorv-Durga.jpg.webp\" alt=\"Apoorv Durga\" width=\"140\" height=\"140\"\/><\/noscript>\t\t\t\t\t<\/div>\n<\/p><\/div>\n<div class=\"col-12 col-lg-9\">\n<div class=\"about\">\n<p>\t\t\t\t\t\tApoorv Durga is Vice-President, Research &amp; Advisory at analyst firm <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/www.realstorygroup.com\">Real Story Group<\/a>, where he covers CDPs, e-commerce, Web CMS, and technologies.  He is a two-decade veteran in the marketing technology space.\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>\n\t\t\t\t\t<\/div>\n<iframe data-lazy=\"true\" data-src=\"https:\/\/www.fiverr.com\/gig_widgets?id=U2FsdGVkX18x7XQvttUTrv1oEqmGNGTgvvCUiUoJ\/AP4z\/UyMz8lXGOLpu15jIMxBbTR0gmD5uBoFvhC4KWeALQRp3h\/X\/AwcVD0K8Wj9H\/ZzYKzcCNHosB9oS4SCJJFWiN85P9ICAc4OgCoE\/wHKIY7CDkf2\/DQ1vqGvk4smVe5cRDEmrLPCWi4FC8p40VUhSmWQ5udCm0zoJtorgWv3vbDQw0kKYkwn39ozAnQXDe+YvWMxkLFWA+O3TFwkJvdkIK+\/AUSnRssPKt5WHY0FhNOxnSPcLslEL4G4\/RfP95ve99U+kRnDy3X+KtzdQLY+u935ghON\/o3UE4IMv9oN6JX9RnxzL\/LRcOgnHigxStSGPKsZYtnz8RWNVT\/rOLAibqiWJadC5MYHRbekF3eg6FOGrQGkXYbsn0+a5aovnlLCbLwIqY9fcS17UX8J235iQ6cdmHNbrPeS84CMm34RA==&affiliate_id=1052423&strip_google_tagmanager=true\" loading=\"lazy\" data-with-title=\"true\" class=\"fiverr_nga_frame\" frameborder=\"0\" height=\"350\" width=\"100%\" referrerpolicy=\"no-referrer-when-downgrade\" data-mode=\"random_gigs\" onload=\" var frame = this; var script = document.createElement('script'); script.addEventListener('load', function() { window.FW_SDK.register(frame); }); script.setAttribute('src', 'https:\/\/www.fiverr.com\/gig_widgets\/sdk'); document.body.appendChild(script); \" ><\/iframe>\n<br \/><a href=\"https:\/\/martech.org\/where-should-a-cdp-fit-in-your-martech-stack\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any customer data platform (CDP) must nestle nicely into your martech stack, including your customer data ecosystem. Like many architectural choices, you face few absolute&#8230;<\/p>\n","protected":false},"author":1,"featured_media":21046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-21045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-universe"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Where should a CDP fit in your martech stack? - mailinvest.blog<\/title>\n<meta name=\"description\" content=\"Technology is forever changing, and there are always new pieces of technology to replace obsolete ones. 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