Announcing The State of Customer Data Architecture 2024

Drawing insights gathered from hundreds of data experts at conferences hosted by two leading Data Warehouse vendors we offer a comprehensive look at how businesses are navigating the state of customer data architecture in 2024.

By Steven Schuler

We are proud to announce the launch of Twilio Segment’s first ever State of Customer Data Architecture report. In it, we explore a critical conversation shaping modern data strategy: the role of Customer Data Platforms (CDPs) versus Data Warehouses. 

Often positioned as competitors, the narrative typically suggests that businesses must choose between these two approaches. However, as our latest report reveals, this framing is misleading. Instead of being an either-or decision, the most forward-thinking organizations are discovering that CDPs and Data Warehouses are complementary. Together, they unlock unparalleled opportunities for growth, efficiency, and deeper customer insights.

At Twilio Segment, our mission is to enable businesses to make smarter, faster decisions with their customer data, and the State of Customer Data Architecture report embodies this commitment. The report, based on survey data collected from ~500 businesses across industries, investigates the evolving relationship between CDPs and Data Warehouses. It addresses a critical shift we are seeing: the growing need to unify data systems and break down silos to enable real-time personalization, improve customer experiences, and support data-driven decision-making.

So why did we write this report? We’re at a pivotal moment in the world of customer data. As businesses scale, the volume and complexity of data continue to rise. From transactional records stored in data warehouses to real-time behavioral data captured by CDPs, organizations are overwhelmed with information but often struggle to use it efficiently. This is where the CDP-Warehouse integration comes into play. We wanted to highlight the growing trend of companies recognizing that combining these two technologies allows them to access the best of both worlds: the scalability and reliability of the warehouse, and the real-time activation power of the CDP.

Key findings 

One of the key findings in the report is that a majority of businesses (62%) see their data warehouse as a reliable source of truth. Centralizing data in a single repository is essential for ensuring accuracy, consistency, and accessibility across teams. However, this reliance on the warehouse can sometimes lead to a misconception that CDPs are redundant. In fact, the opposite is true. When connected to a warehouse, a CDP can enhance that data by making it actionable, enabling businesses to deliver more personalized, meaningful, and relevant customer experiences across both real time and batch activation requirements.

The report also found that nearly 1 in 4 (23.6%) respondents are spending over 20 hours a week managing customer profiles within their data warehouse. This time-intensive process highlights a significant operational challenge: profiles in the warehouse require constant updates and maintenance to remain relevant. For many businesses, this ongoing manual effort drains resources and limits the ability to focus on more strategic initiatives.

However, integrating a CDP with the data warehouse can help alleviate this burden. By using tools like Twilio Segment’s Profiles Sync, businesses can automate much of the profile management process. For example, Profiles Sync allows for dynamic enrichment of profiles by attaching additional data, such as traits derived from machine learning models run in the data warehouse. This reduces the need for manual intervention, reduces data warehouse compute costs, and ensures that profiles remain up-to-date with minimal engineering effort.

Emerging trends 

The report also uncovers emerging trends that point to the future of customer data. The rise of AI and machine learning is pushing businesses toward predictive analytics. Nearly half of respondents (44.2%) in our survey are already using their data warehouses to build predictive models, but those without CDP integrations are missing the real-time signals needed to optimize these models for maximum impact. With a CDP + Warehouse, businesses can unlock new opportunities for automation, personalization, and advanced data strategies that will define the next generation of customer engagement.

As we look toward the future, it’s clear that businesses need to move beyond the traditional siloed approach to data. The narrative of CDP versus Data Warehouse is becoming outdated. The real power lies in integrating the two, enabling businesses to harness both real-time and historical data to make smarter decisions, faster. The State of Customer Data Architecture 2024 offers a roadmap for how businesses can embrace this integrated approach, providing both a strategic framework and actionable insights to stay competitive.

We invite you to download the full report to explore these findings in detail and to see how your business can leverage the power of the CDP-warehouse integration to stay ahead of the curve. The future of customer data is here—and it’s better together.

Dive into the report here: https://segment.com/state-of-customer-data-architecture/

 


The State of Customer Data Architecture 2024

Drawing insights gathered from hundreds of data experts at conferences hosted by two leading Data Warehouse vendors we offer a comprehensive look at how businesses are navigating the state of customer data architecture in 2024.

Recommended articles

Loading

Want to keep updated on Segment launches, events, and updates?