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Tuesday, 03 November 2020 10:56

Twilio completes US$3.2 billion acquisition of Segment


Cloud communications company Twilio has completed its acquisition of customer data platform provider Segment, in a transaction valued at US$3.2 billion.

Completion of the deal - originally announced by the two companies last month - sees Segment become a division of Twilio.

"Nearly every company is focused on acquiring, retaining and growing their customer relationships through digital engagement," said Jeff Lawson, Co-Founder and CEO of Twilio.

"However, the biggest impediment to great digital engagement are the data silos that prevent companies from truly understanding their customers.

“With the addition of Segment, Twilio's Customer Engagement Platform now enables companies to both understand their customer, and engage with them digitally — the combination is key to building great digital experiences."

Twilio will continue to be led by Jeff Lawson with Segment CEO Peter Reinhardt reporting to Lawson.

“Exceptional customer engagement requires not only high-quality data, but the infrastructure to activate those insights across every channel and customer interaction,” said Peter Reinhardt, Co-Founder and CEO of Segment.

“By bringing Twilio and Segment together, we will help businesses build a foundation of actionable insights critical to engaging with customers based on their needs and preferences to deliver a positive, seamless and effective customer experience.”

The two companies say that together the acquisition will provide developers and companies with:

  • Unparalleled insight into the way customers interact across channels to create a single, unified view of the customer journey.
  • The ability to break down data silos to help businesses make their customer engagement more personalised, timely and impactful across channels.
  • Access to the world’s leading cloud communications platform to more effectively manage customer communications including SMS, Messaging, Voice, Video, Email, Internet of Things (IoT) and more.
  • A flexible API that allows developers to connect sources of customer data, such as web or mobile apps, with analytics tools, without having to write new code.A steady supply of quality, high velocity first-party data that easily integrates into existing systems.
  • A single platform with views for the marketer, the contact center agent, the product teams and the developers that reveal data-driven insights to serve their individual needs.

“Customer engagement doesn’t begin or end at the arbitrary lines between internal departments,” said Nicole France, Vice President and Principal Analyst at Constellation Research.

“Companies that recognise the central role of customer experience to their success are striving to unify customer engagement regardless of communication channel or the parts of the organisation involved.

“They need better platforms to help them do so. That’s why the combination of Twilio and Segment holds so much promise. The two companies have complementary capabilities and comparable technical depth to support personalised, tailored customer experiences.

“While many customer data platforms primarily serve marketers, a Twilio-Segment platform that begins with a customer service perspective and incorporates both data and communications has the potential to unify capabilities far beyond marketing.”

“Twilio’s acquisition of Segment will help customers better address the increasingly digital-first nature of customer engagement, and help deliver digital journey information to agents when live interactions are required,” said Sheila McGee-Smith, President & Principal Analyst, McGee-Smith Analytics.

“This is especially important for B2C customers who need a single view of their customer to make customer engagement across every channel more personalised, timely, and impactful.”

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