Twilio’s CEO Jeff Lawson has hailed two-way communication as “the future of how businesses will build relationships with their customers”.
On an earnings call with investors, Lawson said that two-way messaging adds huge value for customers.
He was speaking as Twilio revealed first-quarter revenues of $875.4 million, up 48% year-over-year.
Jeff Lawson, CEO at Twilio, said: “[Customers] actually just care, number one, if they try to talk to you, are you there listening?
“And number two, is it a coherent conversation? Or is it completely destroyed across a bunch of different phone numbers and shortcodes, all sorts of software, or does it make sense?
“And that is the really big opportunity, and we’ve been investing in that for a while.”
Lawson gave other reasons to incorporate two-way communications, pointing out that companies are essentially ignoring customers by using one-way communications.
He tells us it doesn’t make sense when you think of all the money companies spend on advertising, trying to get customers to speak to them.
This technology area has gained a lot of attention since a prominent bank received a fine for non-compliant two-way communication.
Lawson also explains: “We’ve got a lot of customers, whether it’s companies like Nike who use Flex to allow their salespeople.
“They will talk to customers who are in the app or on the website, saying, hey, I want expert advice.
“And you see a lot of opportunities there. And that’s why we’re investing in the product roadmap that we are because we are hearing from companies that like engaging in that two-way conversation.
“It is really the future of how they’re going to build a real relationship with their customers.”
“I think the two-way messaging is fantastic, whether you’re buying a mortgage, a banking product, a musical instrument or a snorkel.”
Two-way communications are an aspect of digital transformation, which the Chief Operating Officer at Twilio believes is an important trend.
Khozema Shipchandler, Chief Operating Officer at Twilio, said: “Digital transformation remains a top boardroom priority.
“That obviously benefits Twilio as a variety of companies are looking to invest in their engagement strategies going forward.
“And it’s not like we don’t see the macro environment, whether it’s economic or geopolitical, but we just think this business is extremely well-positioned to capitalize on ongoing company’s digital transformation efforts.”
Some of the key figures to come out of the earnings call include the company’s growth target is 30% on an annual basis, which the company feels confident it can achieve going forward and into 2024.
The company believes it will be profitable from 2023 when its investments start paying off.
The CPaaS market saw revenue growth of 40 per cent year on year in Q2 2021, with Twilio accumulating over a third of sales.
Elena Donio, a former board member at Twilio, is now taking on the role of President of Revenue at the company.
Segment and Flex were both referenced throughout the call as promising ongoing projects. Twilio acquired Segment in 2020 for $3.2 bn.
