Andy Kaiser is CEO & cofounder of Ninetailed, with a background in psychology, marketing, data and entrepreneurship.
Personalization has emerged as the holy grail for marketers in the digital age, yet achieving this at scale with legacy tools has been like finding a needle in a haystack.
Traditional marketing technologies often fall short, unable to bridge the gap between vast amounts of customer data and the actionable insights needed to deliver personalized experiences. For many companies, however, composable martech has changed the personalization landscape, creating new possibilities for marketers.
Composable martech is the next wave in marketing technology based on modularity. Think of it as a customizable Lego set for your tech stack, letting digital teams deconstruct their tools into smaller, interchangeable parts that can be reassembled or altered as required.
Understanding The Benefits Of Composable MarTech
By enhancing data activation thanks to modularity, these technologies are helping marketers unlock the full potential of customer data, transforming it into personalized experiences that resonate with each individual’s unique needs and preferences.
However, while there are several benefits detailed below, there are challenges for companies considering composable martech as well. By having a holistic understanding of the benefits and challenges to look out for, the journey toward an effective composable martech strategy can be smooth and successful.
Composable martech can help swiftly address prolonged time-to-value. Employing connected marketing technologies, it flexibly addresses specific business needs, ensuring seamless integration with content and data sources. It fosters a unified customer view, delivering personalized experiences at scale, and enables diverse systems to share information, offering a comprehensive understanding of the customer journey.
Once integrated, these solutions can better empower marketers with tools and data, accelerating processes and reducing the need for technical skills. This enables teams to optimize strategies, enhance efficiency and achieve improved results at scale.
Enhanced Data Activation
Composable martech has transformed how we activate data for personalization at scale. It is all about seamlessly integrating different marketing technologies. This integration extends to customer data sources as well. Whether your data comes from CRM systems or CDPs, composable martech can integrate these diverse data points into a cohesive whole. This helps eliminate the challenges of managing disparate data sources and enables more effective data activation by facilitating a unified customer view—breaking down the data silos that often exist in traditional technologies.
Composable martech’s integration benefits make activating data for personalization easier, allowing for better audience segmentation and targeting of specific segments.
AI can play a significant role in analyzing unified data and segmenting customers into distinct audiences. The algorithms can identify patterns and trends in customer behavior that humans might overlook, enabling more precise and meaningful audience segmentation. This ensures that personalization efforts are targeted effectively. Once the audiences are defined, marketers can tailor experiences for each segment. This could involve personalized messaging, product recommendations, content curation and more.
Based on past data, AI can also predict what type of personalization will resonate most with each audience. By creating personalized experiences, businesses can better ensure their marketing efforts are relevant to each customer. AI can also be used to A/B test different personalization strategies, measure their effectiveness and automatically optimize them based on the results. The system constantly learns and improves, helping personalization efforts remain effective despite changing customer preferences.
Challenges To Consider With Composable MarTech
Complexities During Integration
While integrating various software providers can be a hurdle due to differences in data formats, APIs or system architectures, it doesn’t have to be an insurmountable challenge. The key lies in understanding these complexities and strategizing effectively.
Firstly, leverage your existing resources. Your team’s knowledge and experience can help navigate through these discrepancies. If you’ve faced issues during past integrations, use those lessons to anticipate potential problems and create a robust integration plan. Secondly, understanding common discrepancies is crucial. For instance, different providers might use different data formatting. This difference can cause integration issues if not addressed properly. Lastly, remember that a well-thought-out strategy is vital. Plan for potential hiccups by having a contingency plan.
Disconnect Between Teams
Successful implementation of composable martech hinges on strong collaboration between business and development teams. A lack of cooperation can indeed stall progress.
However, there are actionable steps your company can take to foster this essential collaboration:
1. Foster open communication through regular meetings for teams to prevent misunderstandings and promote a shared vision.
2. Implement cross-functional training to help business and development teams understand each other’s roles.
3. Appoint a “bridge” person who understands business and technical aspects to facilitate effective team communication.
Developing A Thorough Financial Plan
While composable martech can be cost-effective, the costs of components, licenses and integration efforts can add up. To tackle this, draft a comprehensive budget including all potential expenses. Opt for phased implementation, introducing essential components first and gradually integrating others to spread out costs. Always ensure there’s a contingency plan in place to tackle any unforeseen obstacles. With strategic financial planning and organizational preparedness, the cost-related challenges of composable martech can be successfully navigated.
Start Customer Centric And Start Scaling
While composable martech holds potential with its flexibility, scalability and integration capabilities, it’s important to weigh its implications carefully. It’s not a magic bullet solution but a tool that requires thoughtful consideration and application.
Composable martech can indeed integrate and leverage AI to accumulate and analyze customer data from various sources, offering a comprehensive customer view. This can enable precise audience segmentation and personalization. However, the challenges lie in ensuring data accuracy and requiring skilled personnel to handle such complex systems.
Moreover, continuous optimization facilitated by composable martech through AI-powered testing and learning demands an ongoing commitment. It requires businesses to continuously assess their personalization strategies, adapting to evolving customer preferences and market trends.
While strides have been made in the industry, there’s still a way to go before composable martech can be a universally viable solution for all companies. Evaluating your business needs, resources and readiness is important before embracing this approach. Therefore, it’s all about starting customer-centric, scaling responsibly and understanding that with a successful composable martech strategy, the possibilities are exciting.
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