Twilio’s acquisition of Segment will support the collection of digital data

But it probably doesn’t provide a full set of CDP tools.

In a press release released Friday and confirmed this morning, Twilio, a communications API entrepreneur signs an agreement to acquire Segment for a $ 3.2 billion deal. The segment is a customer data infrastructure provider, albeit described as CDP.

Twilio is a provider of cloud-based developer tools that allow you to record telephone channels and messaging applications. For example, Uber and Lyft used Twilio to create communication channels in their applications. Last year, Twilio completed the acquisition of SendGrid, which provided similar email technology.

The segment offers the ability to capture customer data through these channels and move pipelines to third-party systems such as analytics or CRM platforms. It has limited orchestration resources.

“Datasilos is destroying great customer experiences,” said Jeff Lawson, co-founder, and CEO of Twilio, in a statement. The segment allows developers and companies to overcome these silos and create a complete picture of their customers. Combined with Twilio’s customer engagement platform, we can create more personalized, timely, and effective engagement through customer service. Sales, analysis, products, and services.

A market perspective. We spoke to Tasso Argyros, founder, and CEO of independent CDP ActionIQ, to hear his first reaction to the news. “Twilio’s first job was to write code to make calls or send text messages,” he said. Sendgrid also allows you to write code to send emails. Text is more of a customer channel, but an isolated channel. Email is an isolated channel. I think this is why CDP has become so exciting “because it’s connected. Somehow you have to put all this data in one place and they orchestrate the information.”

The acquisition is strongly positioned as a way to build customer engagement. The reality, “Argyros said, is that Segment didn’t prioritize orchestration.” The segment is very good at capturing events from a website or mobile application and communicating them to third parties, including analytics systems or CDPs like us. They collect data, but it is mostly digital data – still very valuable and useful – but they are not a CDP from the point of view that they would not store the history of all these events and would be connected to an unused data warehouse. Out of the way. To wash. Look.

It made sense to position the infrastructure for customer data, Argyros said. “They are essentially data from digital events: they have the perimeter, they get the data and send it to other channels.” Because Twilio’s core customer base is medium-sized, Argyros says, much of the data will come from digital sources, making the segment a useful addition to Twilio. “Twilio can run usage scenarios, such as when someone visits a website, sends a text message or an email.”

If Twilio plans to enter the corporate market – “it’s omnichannel,” Segment can’t help them, Argyros said. “But for middle-class companies, where 90% of the data comes from the site, that’s good enough.”

Because we care. The definition of CDP remains controversial, but everyone wants one. In addition to the acquisition of SendGrid last year, the change indicates Twilio’s ambition to go beyond communications services.

Accelerate our vision of customer engagement

Our Twilio team has spent the past decade on the leading cloud communications platform. However, our vision goes beyond communication – it’s about end-to-end customer engagement, which is ultimately the holy grail for businesses – a unique perspective on the customer journey.

The segment provides the data platform to add intelligence to Twilio’s digital engagement channels, which currently enable 1 trillion interactions per year. Using a database approach commonly used in functional and marketing areas such as analytics, products, and customer service Twilio improves the end-to-end customer experience at every touchpoint.

As a leading customer data platform, segment developers can combine customer data with every touch and provide marketing, sales, and customer service leaders with the information they need to design and build databases and communicate. customers. customers. A combination of Twilio and Segment means that Twilio can help all businesses make customer engagement in each channel more personal, timely, and effective.

The addition of the segment allows Twilio to integrate data intelligence with Twilio Flex and all of our offerings over time to provide highly personalized touchpoints for customers.

Mission, vision, and shared values

Segment and Twilio have a lot in common, including vision, model, and similar values. Our shared vision is to achieve meaningful customer engagement through intuitive technology across all channels. Our model allows developers to use a strategic business model with little friction. And as always, developers are where it all starts – it’s an important part of our collective DNA – as developers are the builders who create the next generation of customer engagement.

Like me, Peter Reinhardt, CEO of Segment, is a longtime developer turned CEO. Peter’s meticulous approach to building powerful development tools will add tremendous value to the Twilio management team.

Join me and welcome our good colleagues in the segment to the Twilio team. Welcome to the first day of the new customer experience standard.

Forward-Looking Statements

These assessments are subject to risks and uncertainties that could lead to actual results that differ materially from such assessments, such as the failure of the expected benefits in acquiring the industry; fails to achieve synergies and operational efficiencies after acquisition; Twilio’s ability to successfully integrate technology, products, personnel, and operations into the segment; failure to develop combined Twilio and Segment platforms and immediate market adoption; the loss of customers in the segment; and Twilio’s ability to retain and motivate employees in the key segment.

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