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Why Data Teams Choose RudderStack Over Segment

Written by
Mackenzie Hastings

Mackenzie Hastings

Customer Success Manager
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RudderStack isn't just an alternative to Segment, but a fundamentally different approach for businesses who want to turn their customer data into a competitive advantage.

While there are critical underlying architectural differences between the platforms, the choice between RudderStack and Segment goes beyond technology—it is about your long-term approach to becoming a data-driven business. If your company is investing in their warehouse as their source of truth for customer data, customer 360, and AI/ML, selecting a platform that easily integrates with your existing infrastructure, adapts with growth, and supports specific use cases is crucial.

This post outlines the core differences between the platforms and shares what our customers have told us about why data teams choose RudderStack as the foundation of their warehouse native CDP.

The Power of Being Warehouse-Native: RudderStack’s Foundation

Segment is a powerful tool, but was built before the mass adoption of the modern cloud data warehouse. Modern businesses want control and ownership of their customer data, along with the unified view a single source of truth can offer your entire company (not just marketing).

RudderStack was purpose-built and designed from the ground up as a Warehouse Native CDP, allowing data teams to create their CDP within their existing data warehouse. This approach optimizes infrastructure investments, removes data silos, and eases compliance burdens.

These engineering-driven features and a robust integration library allow data teams to create foundational efficiencies so they can focus on helping every business function drive growth. By architecting our platform to be warehouse native, we've unlocked a level of integration, efficiency, and scalability that isn't achievable with traditional CDP models. Our warehouse-centric approach means that RudderStack is not only adept at handling the complex data workflows required to optimize the entire customer journey, but also to empower every team with the data they need to deliver powerful customer experiences—from data science to marketing. A warehouse native architecture isn’t a CDP feature, it is a fundamental data strategy.

Advanced Tools for Data Teams & Actionable Insights for Every Team

Unlike Segment’s more pre-defined approach, RudderStack offers you unmatched control, scalability, and freedom to fully customize their data pipelines and customer 360, providing a flexible environment that adapts to your changing business and tech stack needs.

Even though customer data serves the entire company, one of the difficult CDP questions is determining the jurisdiction between data and marketing teams. Data teams working to build complex customer data use cases at scale know that solving mass event ingestion and modeling of complete customer profiles is a fundamental technical challenge that no marketing interface can solve. Marketers already have robust tools for delivering powerful customer experiences, however, the tools are not backed by comprehensive data. Addressing these challenges head-on, RudderStack harmonizes the efforts of data and marketing teams. Here’s how:

  • RudderStack helps data teams solve data challenges at the root and provide marketers with access to comprehensive and actionable data in their existing tools
  • With RudderStack, marketing strategies can be deeply personalized, based on a complete and accurate view of the customer built in the warehouse
  • RudderStack ensures that all data practices meet compliance standards, providing peace of mind for both data and marketing teams, no matter the use case

Why data teams choose RudderStack

Flexibility & Integration that Eliminates Data Wrangling

As data is perpetually evolving, businesses demand a tool that not only keeps pace but adapts to change. RudderStack liberates data teams from the constraints seen with Segment, offering flexible, painless, customizable data integration, a point substantiated by hundreds of Segment migrations to RudderStack.

Transparent Identity Resolution and Customer 360 Inside Your Warehouse

Customers transitioning to RudderStack are motivated by the challenge and impracticality of achieving a complete view of their customer within Segment - their platform simply can’t ingest all of the customer data needed to build a true customer 360. RudderStack makes it straight-forward to construct detailed customer profiles within your own data warehouse, with fully transparent and portable code.

Warehouse Native ML and Predictive Insights

Unlike Segment, which operates as a black box, RudderStack empowers businesses with open, customizable ML models that automatically leverage their customer 360 data and run on the ML infrastructure in their data cloud, significantly speeding up projects like churn and LTV prediction.

Uncompromising Compliance and Privacy

RudderStack does not store your data, reinforcing your data’s security and your control over it. Beyond storage, though, we offer first-class integrations with vendors like OneTrust, integration with custom consent management tools, and a fully-featured User Deletion API.

We’re a cryptocurrency company, and data security is important to us. Segment stored our customer data in their database, whereas RudderStack allows us to encrypt and route it directly to our data lake and other downstream tools.

Hayden Ng

Head of Analytics, Magic Eden

The Bottom Line: RudderStack Is a Game-Changer

Teams face challenges when confined by the limitations of traditional CDPs. In contrast, RudderStack's warehouse native foundation, flexibility, streamlined compliance, and robust governance capabilities equip you to navigate the complexities of use cases like real-time personalization and other critical projects.

Through RudderStack’s limitless integration capabilities, identity resolution, predictive analytics, and compliance and privacy, we provide more than a data platform. We offer a foundation for transformative insights, free from the limitations and constraints that business may encounter with Segment.

Ready to take the next step? Here are a few ways to engage:

March 7, 2024