In the ever-changing business world, combining customer data platforms (CDPs) with AI and analytics is becoming crucial for personalized customer experiences and successful business outcomes. Twilio Segment's fifth annual Customer Data Platform Report uses data from its extensive customer base to highlight the importance of data quality for effective AI use and quick responses to customer insights.
As AI becomes more widespread, companies are dealing with a huge increase in data. Twilio Segment processed a record-breaking 12.1 trillion API calls in 2023, signaling a shift towards more advanced, data-focused operations. Real-time data processing and seamless integration of AI technology are essential. Businesses are recognizing the strategic value of open and interoperable CDPs that can quickly collect, unify, and activate data across various platforms.
“Our report showcases the essential role customer data plays in maximizing AI’s effectiveness. With data warehouses, and data lakehouses like Databricks becoming central to customers’ data strategies, it's crucial for CDPs to support seamless integration with these data warehouses. At Twilio, we're seeing a significant trend towards leveraging the interconnectedness of AI, data warehouses, and digital communication channels. The ability to interoperate with data warehouses is essential, ensuring that CDPs act as a pivotal technology for brands eager to leverage AI and data to forge even stronger relationships with their customers,” said Kathryn Murphy, SVP of Product and Design at Twilio.
Speaking of CDPs, it was announced last year that Twilio customers could use OpenAI's GPT-4 model to leverage new generative capabilities in Twilio Segment - Twilio's Customer Data Platform.
The importance of data quality for AI
The report stresses that the success of AI depends on the quality of the data it's trained on. As many as 60% of businesses agree that high-quality, accurate data is crucial for growth. Maintaining data integrity is essential for gaining meaningful customer insights and staying competitive with AI.
The rise of data warehouses
Data warehouses are now popular for storing customer data, reflecting a broader trend toward data centralization and quality. CDPs act as a backbone for storing and analyzing large datasets, enabling real-time data integration, identity resolution, and activation of customer insights across different touchpoints.
Predictive AI
More businesses are adopting predictive AI, with over 426 Predictive Traits created on the Twilio Segment platform. Features like CustomerAI Predictions help companies engage with customers proactively, targeting users who are more likely to perform specific events based on their data. This optimizes campaigns, improves customer retention, and creates revenue opportunities.
In other news, Twilio has joined forces with Jack Henry to enable banks and credit unions to enhance communication and engagement with their customers through various digital channels.
