Twilio's Alphanumeric Sender ID allows businesses to send branded SMS messages that use a name instead of a phone number, providing immediate recognition and increased engagement. To use this feature, a Twilio account with a paid plan is required, as well as Python 3.7 or newer. A Messaging Service must be created in the Twilio account, which involves navigating through a four-step wizard to set up the Alphanumeric Sender ID. The sender name can be customized, and pre-registration may be required for certain countries. To send an SMS using this feature, a Python application is needed, which requires setting up a virtual environment, installing the Twilio Helper Library, defining Twilio credentials as environment variables, and sending the message using the `twilio.rest.Client` class.