Twilio Expands Into Marketing With First New Product Born Of $3.2 Billion Acquisition Of Segment

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It's the first step in CEO Jeff Lawson's 10-year plan to challenge traditional customer management software from Salesforce and Adobe.

Twilio CEO Jeff Lawson unveiled on Wednesday a new marketing automation product called Twilio Engage.From the patio of his house on a hill in San Francisco’s Noe Valley, Twilio CEO Jeff Lawson gestures toward the massive Salesforce Tower that dominates the downtown skyline. He is differentiating Twilio from the industry giants in customer relationship management software that he soon plans to challenge.

Preparations began in early 2019, when Lawson approached Segment, a startup which clobbers together and analyzes data about a business’s customers, to consider an acquisition. The badgering went on for a year before Segment came to the table. “I started to notice customers using the same words that Jeff had been using,” says Segment cofounder and then-CEO Peter Reinhardt.

Twilio Engage, which is currently in pilot and slated to launch early next year, is designed to help marketers personalize the experiences of their consumers. The new tools are built on top of Segment and will allow consumer-facing companies to create personalization akin to Netflix’s algorithm for entertainment recommendations or the curated shopping suggestions that users see on Amazon, Lawson says.

The new product will continue Lawson’s longstanding vision of providing building blocks—now, developers will be able to build software for their marketing colleagues’ need. It proved to be a seamless fit with Segment, which has also focused on an API model. But this building block approach has rapidly become the norm in the industry; for example, Salesforceto acquire Mulesoft's app-connecting software in 2018.

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