Twilio has obtained consumer information system vendor Segment for $three.two billion in inventory in a move that lets the unified communications as a support (UCaaS) vendor to compete in the consumer engagement know-how market place.
The acquisition is expected to near in the fourth quarter. The offer will unify consumer information profiles for Twillio end users by connecting information the firm collects by means of channels this kind of as movie, electronic mail and messaging, to Segment’s CDP. The blended Twilio-Segment entity will help end users to make consumer engagement “a lot more customized, timely and impactful,” stated Twilio CEO Jeff Lawson in a blog site submit.
“Twilio has a sizeable existence in cloud communications. Segment helps companies handle consumer information,” stated Brad Cleveland, co-founder and earlier president of the International Shopper Management Institute (ICMI) make contact with center association. “To deliver a wonderful consumer experience, you need to have equally. I see this as indicative of a more substantial trend—bringing all elements necessary to deliver and handle wonderful consumer experiences into toolsets that get the job done with each other.”
A consumer support CDP
In modern several years, CDPs have emerged as instruments for promoting groups to collect consumer intelligence to make a lot more powerful and customized campaigns. Twilio’s Segment acquisition moves the CDP absent from the promoting application stack and into the consumer support cloud.
The acquisition will enable Twilio to grow further roots in its users’ know-how mix, stated CDP Institute founder David Raab. He predicts Twilio will extend its reach into promoting know-how by getting promoting instruments for web sites, e-commerce apps and social media channels, which will deliver customized advertisements targeted from information Twilio collects on the support facet.
“Staying a unified communications firm isn’t a feasible long-expression place, for the reason that unified communications are just apps that sit on a system and can so be easily replaced,” Raab stated. “Owning the system is the only way to continue to be really embedded with the client.”
Twilio challenges Microsoft, Oracle, Saleforce
Microsoft, Oracle, Adobe and Salesforce have all lately released CDPs. SAP has one particular on the cusp of release. A Twilio-Segment consumer engagement system constructed on the nicely-revered Segment CDP, which has been all around for significantly more time, and is a lot more subtle than these more recent entrants, stated Constellation Analysis analyst Nicole France. So, a Twilio-Segment combo should not be underestimated it could be a sizeable competitor to all those tech giants.
One more intriguing element of a Twilio-Segment consumer engagement system is the heritage of the two providers. Both of those Twilio CEO Lawson and Segment CEO Peter Reinhardt started as developers themselves, which can make their strategy to solving the dilemma of unifying consumer information a lot more “useful” than massive vendors this kind of as Microsoft, she stated.
While the major program providers prioritize challenges of integrating their current apps and ingesting 3rd-occasion information sources with their CDPs, a more compact, developer-centric firm can get on greater-photograph problems.
“They are striving to resolve the dilemma of ‘What does superior consumer engagement look like, what defines superior consumer experiences?'” France stated. “The mix of two technologist CEOs [may perhaps] assistance bridge that gap. They equally come to this without having the baggage that will come with major, founded program providers, and they have the chance to resolve these issues in another way.”