Twilio Report Reveals Customer Data Platforms are a Critical Foundation for AI-Driven Customer Insights
February 20 2024 - 9:00AM
Business Wire
Fifth annual Customer Data Platform Report
shows embracing CDPs that are interoperable with data warehouses is
key to capitalizing on AI
Businesses are integrating customer data platforms with AI and
analytics to personalize customer experiences and drive business
success, according to a new report from Twilio Segment (NYSE:
TWLO). The fifth annual Customer Data Platform Report, which
reflects the findings of anonymized usage data from Twilio
Segment’s 25,000+ customers, finds that businesses are prioritizing
data quality to harness the power of AI and quickly act on nuanced
customer insights.
Amidst the widespread adoption of AI, businesses are grappling
with an exponential increase in data volume. Twilio Segment
processed a record high 12.1 trillion API calls in 2023—increasing
by hundreds of billions from 2022. This increase is indicative of a
larger trend towards more sophisticated, data-centric operations,
emphasizing the essential role of real-time data processing and
seamless AI technology integration. The ability to quickly harness
data insights through CDPs that are open and interoperable with
data warehouses is a critical competitive edge, enabling businesses
to efficiently collect, unify, and activate data across various
platforms.
“In 2024, more and more brands will turn to AI to deliver
better, more personalized experiences for their customers. Our
report showcases the essential role customer data plays in
maximizing AI’s effectiveness,” said Kathryn Murphy, SVP of Product
and Design at Twilio. “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.”
"As businesses look to break down data silos and rely on a
unified data platform to power their analytics and AI initiatives,
the importance of data sharing and data quality has never been more
apparent," said Chris Hecht, SVP, Corporate Development and Product
Partnerships, at Databricks. "Our collaboration with Twilio Segment
signals our dedication to ensuring that organizations leverage the
full potential of their data – no matter where it lives – and can
effectively bridge the gap from data to insights using cleaned and
verified event profile data."
Key findings of the 2024 Twilio Segment CDP Report include:
- Data quality is the bedrock of AI success: The
effectiveness of AI hinges on the data it’s trained on,
highlighting the importance of quality data as organizations work
to process explosive growth in data volume. With 60% of businesses
recognizing high-quality, accurate data as a key ingredient for
growth, emphasizing data integrity is essential for deriving
meaningful customer insights and leveraging AI competitively.
- The ascendance of data warehouses: Data warehouses
continued to spike in popularity as one of the most popular
destination categories for customer data in 2023, as businesses
pave the way for deeper analytics and AI-driven insights. This
reflects a broader shift towards data centralization and quality as
businesses outgrow the constraints of traditional CRMs. With data
warehouses and lakehouses as the backbone for storing and analyzing
vast data sets, CDPs facilitate real-time data integration,
identity resolution, and activation of customer insights across
different touchpoints. This interoperability is essential, allowing
organizations to not only store and analyze data at scale, but also
to activate these insights in real time, ensuring a flexible and
effective data strategy that leverages the strengths of both CDPs
and data warehouses.
- Predictive AI is now a core strategy: Businesses are
continuing to realize the potential for predictive AI to help them
glean deeper customer insights and anticipate customer needs and
behavior. Predictive AI is quickly growing in adoption on the
Twilio Segment platform, with over 426 Predictive Traits created so
far. With CustomerAI Predictions—Twilio Segment’s latest
feature—companies are empowered to adopt a proactive customer
engagement strategy where they can target users with an increased
likelihood of performing an event based on their customer data.
Brands like Box are using Predictions to optimize campaign
performance, improve customer retention, and unlock revenue
opportunities.
- Enterprise solutions continue to show growth: The Twilio
Segment platform helps customers activate their data by connecting
to 450+ out-of-the-box integrations. Google Universal Analytics was
the most popular app (used by 55% of Twilio Segment customers),
followed by Mixpanel (44%) and Facebook Pixel (37%). Companies that
are tasked with collecting data from all digital touchpoints and
preparing that data for analyses are turning to CDPs to help solve
for fragmentation and with tools like Functions, enabling seamless
integration with nearly any app available offers unmatched
adaptability. This move towards greater flexibility and the ability
to avoid vendor lock-in reflects a growing market preference for
systems that are not only modular but also highly interoperable.
With a CDP, businesses benefit from smarter, data-driven strategies
that can enhance the customer journey.
The full Customer Data Platform Report 2024 is available
here.
CDP Report Methodology: The report is based on anonymized,
aggregated usage behavior of Twilio Segment's 25,000+ customers,
during the period of 11/01/2022 to 11/01/2023.
Join Twilio Segment on February 29 for CDP Live, a virtual
summit featuring experts from PwC, Hubspot, and Trade Me, for a
discussion on how harnessing clean, flexible data can build
smarter, more engaging customer experiences.
About Twilio Segment
Twilio Segment’s Customer Data Platform (CDP) provides companies
with the data foundation that they need to put their customers at
the heart of every decision. Per IDC, it’s the #1 CDP in worldwide
market share four years in a row (2019-2022). Using Twilio Segment,
a real-time customer data platform, enables companies to capture
and send customer data from any source, including the data
warehouse, unify user profiles, and activate engagement Over 25,000
companies use Twilio Segment to make real-time decisions,
accelerate growth and deliver world-class customer experiences. For
more information, visit https://segment.com.
About Twilio
Today's leading companies trust Twilio's Customer Engagement
Platform (CEP) to build direct, personalized relationships with
their customers everywhere in the world. Twilio enables companies
to use communications and data to add intelligence and security to
every step of the customer journey, from sales to marketing to
growth, customer service and many more engagement use cases in a
flexible, programmatic way. Across 180 countries, millions of
developers and hundreds of thousands of businesses use Twilio to
create magical experiences for their customers. For more
information about Twilio (NYSE: TWLO), visit: www.twilio.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240220512565/en/
Oscar Murillo Press@twilio.com
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