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 (e.g., warehouse, data lake, or database) | Segment-managed infrastructure |
| Data Retention | Unlimited lookback & history | 1-3 years |
| Data Schema Flexibility | Controlled by you (supports any custom entity or object) | Controlled by Segment (6 available structures) |
| Audience Management | No-code audience builder that supports experimentation, journeys, analytics, etc. using any data point in your warehouse | No-code audience builder that supports journeys & campaign orchestration |
| Identity Resolution | No-code tool to define exact or fuzzy-match rules to build owned identity graphs in your data warehouse | Out of the box model managed in Segment’s infrastructure |
| Identity Graph Ownership | Lives in your owned data warehouse | Owned by Segment |
| Real-Time | Event forwarding, Streaming Reverse ETL, & low-latency API | Event forwarding & low-latency API |
| Data Activation | Warehouse to destination (no data is stored in HT) | Segment data store to destination. Supports zero-copy architecture but not a core competency |
| Data Activation Destinations | 200+ | 400+ |
| Custom Destinations | Yes | Yes |
| Reverse ETL | Core sync engine that integrates with existing toolsets & workflows | Recently supported add-on feature, with limited features & destinations (not a core sync engine) |
| Source of Truth | Your owned data warehouse | Multiple: Segment & your owned data warehouse |
| Security & Compliance | Immediately GDPR & CCPA compliant. Able to sign BAA to be HIPAA compliant | Not immediately GDPR, CCPA, & HIPAA compliant |
| Pricing | Unbundled: individually priced features with no MTU billing | Dependent on monthly tracked users (MTUs) & feature add-ons |
| Implementation | 100% of customers are live with a production use case at the time of contract signature | Average 6-9 month implementation after contract signature |
| Proof of Concept | 2-3 for SMB, 4-6 weeks for enterprise | NA |
Pros and Cons of Hightouch
Pros
- 10X faster implementation time
- No duplicative data storage
- Can sync events directly to downstream destinations
- Runs on your own existing data infrastructure
Cons
- Newer player in the CDP market
- Fewer customers
- Must have existing data store
Pros and Cons of Segment
Pros
- Simple & easy to use
- Supports both client-side & server tracking
- Many SDK options
- Can sync events directly to downstream destinations
- Supports testing & production environments
Cons
- Long implementation
- Expensive
- Inflexible schema
- Data is stored outside of your cloud infrastructure
- You don’t own the identity graph
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.
