Building a Strong Customer Data Foundation

The rise of generative AI has created a shift in consumer expectations. Now, there’s a massive demand for brands to offer personalised, engaging experiences. 

“76% of businesses said delivering personalised customer engagements is a ‘high’ or ‘critical’ priority for them this year,” reports Thomas Wyatt in VentureBeat

While the potential of AI is promising, too many companies are falling short due to a lack of actionable customer data. With only 16% of businesses confident in their customer understanding, Wyatt emphasises that implementing AI without a strong data foundation is futile.

Building Direct Digital Relationships

Wyatt urges companies to forge direct, digital relationships with customers. Which includes bypassing third-party advertisers to uncover genuine customer needs and preferences. 

According to Wyatt, leading brands that effectively model customer engagement succeed by harnessing AI to “deliver unique experiences for individual customers.” 

The payoff? Higher customer retention, improved conversion rates, and increased ROI.

Creating Unified Customer Profiles

To offer a seamless, personalised experience, businesses must consolidate siloed customer data to construct comprehensive profiles. 

A unified profile encapsulates the entire customer journey, helping companies adapt to their changing needs. By integrating multiple data sources, standardising formats, and removing inconsistencies, businesses can anticipate customer behaviours and deliver the right message at the right moment. 

For instance, Universidad UK used Twilio’s Unified Profiles to achieve remarkable results, reducing query handling time by 30% and deflecting 70% of support cases with an AI bot.

Leveraging Stuck Data

Siloed data remains a persistent challenge. “Siloed data equals static customer relationships,” Wyatt warns, preventing companies from tapping into real-time data and thus limiting AI’s potential. 

Poor-quality data can impair AI models and generate erroneous outputs that misrepresent customer preferences. 

But accessing “stuck” data does not necessitate an IT overhaul. By leveraging customer data platforms (CDPs) and customer engagement platforms (CEPs), businesses can create seamless interoperability through AI integration.

Which is what CraftJack did by connecting its engagement channels with a CDP to fuel its campaigns with reliable data and deliver personalised communications.

Conclusion

In an era where personalised interactions are more vital than ever, unlocking and activating customer data is foundational. Not only to meeting the surging demands of the generative AI landscape, but to excel in an increasingly competitive and tech-driven world.

Businesses that build direct relationships, unify customer profiles, and activate siloed data will be well-positioned to capitalise on the transformative potential of AI and exceed customer expectations. 

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