Twilio Segment, the customer data platform, has released its fifth annual Customer Data Platform Report revealing a trend towards businesses integrating customer data platforms (CDPs) with AI and analytics to personalise customer experiences and drive business success.

The report is based on anonymised usage data from over 25,000 customers. In 2023, Twilio Segment processed a record high 12.1 trillion API calls, indicating a shift towards more sophisticated, data-centric operations. The report emphasises the importance of data quality and the interoperability of CDPs with data warehouses for harnessing the power of AI and acting on nuanced customer insights.

Data warehouses and lakehouses are becoming central to customers' data strategies, with their popularity continuing to spike as one of the most popular destination categories for customer data in 2023. Predictive AI is also growing in adoption on the Twilio Segment platform, with over 426 Predictive Traits created so far.

Another key findings of the 2024 Twilio Segment CDP Report was that predictive AI is now a core strategy. According to the report, businesses are continuing to realise the potential for predictive AI to help them glean deeper customer insights and anticipate customer needs and behaviour. Predictive AI is quickly growing in adoption on the Twilio Segment platform, with over 426 Predictive Traits created so far. The vendor noted brands like Box are using Predictions to optimise campaign performance, improve customer retention, and unlock revenue opportunities.

Enterprise solutions also continue to show growth. Google Universal Analytics was the most popular app, used by 55% of Twilio Segment customers, followed by Mixpanel (44%) and Facebook Pixel (37%). The vendor added companies 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, the report claimed.

"In 2024, more and more brands will turn to AI to deliver better, more personalised experiences for their customers. Our report showcases the essential role customer data plays in maximising AI's effectiveness," said Kathryn Murphy, SVP of Product and Design at Twilio.

The integration of AI and analytics with customer data platforms is a growing trend in the marketing and tech sectors. As businesses strive to deliver personalised customer experiences, the role of data quality and interoperability of platforms becomes increasingly critical, the report concluded.

"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 SVP, Corporate Development and Product Partnerships, at Databricks, Chris Hecht.