Hightouch and Segment both are tools that allow you to sync data to downstream marketing destinations like CRM tools, email tools, and advertising platforms. Both platforms have the functionality to collect events via an SDK, resolve identities, and sync data to 200+ tools.
However, the devil is in the details. The architecture of each are vastly different. Segment is a “traditional CDP” while Hightouch is a warehouse-centric, “composable CDP”.
This architectural difference leads to massive differences in cost, implementation time, and usability despite the fact both platforms allow you to do a similar thing at a high-level.
Compare Hightouch and Segment
| Functionality | Hightouch | Segment |
|---|---|---|
| Data Collection | Client-side, server-side, & other 3rd-party sources | Client-side, server-side, & other 3rd-party sources |
| Data Storage | Your existing data infrastructure (data warehouse, data lake, or database) | Segment's managed infrastructure (less mature data warehouse option available) |
| Data Retention | Unlimited lookback & history | 1-3 years |
| Data Schema | Controlled by you (supports any custom entity or object) | Controlled by Segment (supports users, events & limited support of linked entities) |
| Audience Management | No-code audience builder (supports any online or offline data stored in your data warehouse) | No-code audience builder (supports some backward compatibility with data warehouses)
|
| Journey Orchestration | Yes | Yes |
| Identity Resolution | No-code tool to define exact or fuzzy-match rules to build owned identity graphs within your data warehouse | Deterministic IDR managed in Segment's infrastructure |
| Identity Graph Storage Location | Lives in your warehouse | Owned by Segment |
| Reverse ETL | Core sync engine that integrates with existing toolsets & workflows | Basic add-on feature, with limited features & destinations (not a core sync engine) |
| Real-Time Audience Computation | Dependent upon data landing in the warehouse | Yes (limited to clickstream/behavioral data with no time-based lookbacks) |
| Real-Time Streaming (Event Forwarding) | Yes | Yes |
| Low-Latency Profile API | Yes | Yes |
| Streaming Reverse ETL | Yes | No |
| Data Activation Flow | Warehouse to destination (no data is stored in Hightouch) | Segment to destination |
| Activation Destinations | 250+ | 400+ |
| Source of Truth | Single: Your owned data warehouse | Multiple: Segment & your owned data warehouse |
| Security & Compliance | Data lives in your infrastructure (can be configured to be GDPR, CCPA, & HIPAA compliant) | Data lives outside of your cloud infrastructure (can be configured to be GDPR, CCPA, & HIPAA compliant) |
| Pricing | Unbundled: individually priced features with no MTU billing | Bundled pricing: dependent on monthly tracked users (MTUs) & feature add-ons |
| Proof of Concept (POC) | Less than 1 month | 1-3 months |
Pros and Cons of Hightouch
Pros
- Most powerful point & click audience builder (supports any offline & online customer data)
- Warehouse-native campaign analytics to experiment, measure & analyze audiences
- Publicly available customer support metrics (99% CSAT Score)
Cons
- Newer vendor in the CDP market
- Must have actionable data available in a data platform
Pros and Cons of Segment
Pros
- Mature event collection infrastructure
- Strong product documentation
- Easy to scale & add additional event streaming destinations
Cons
- Inflexible data data model/schema (cannot support custom objects & entities)
- Identity graph is owned by Segment
- Long implementation & difficult setup process
- Data is stored outside of your cloud infrastructure
Should I Buy Hightouch or Segment?
When deciding whether to invest in a Hightouch (a Composable CDP) or Segment (a Traditional CDP), it's important to consider the unique needs of your business. Although a packaged Traditional CDP might appear simpler, Composable CDPs are more flexible and scalable.
The main areas Hightouch wins against Segment are:
- Implementation Time: With Hightouch you are live at the time of contract signature. With Segment, there is typically a 6-12 month implementation process after contract signature
- Flexibility: With Hightouch, you can use any data in your data warehouse vs Segment where you can only use data that has been collected into your CDP
- Source of Truth: With Hightouch, your retain a single source of truth in your cloud data warehouse.
While Segment can be a decent option for companies looking to implement a more legacy solution, most data-focused companies are now adopting Composable CDPs, such as Hightouch, because they offer greater flexibility, security, time-to-value, and interoperability at a far lower cost. If you’re interested in learning more about the Composable CDP, book a demo with one of our solution architects today to see how we can help.
