Facebook acquires Kustomer | The motley fool
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It’s the first thing you learn in public relations school – don’t let two headlines like this surface on the same day:
“Facebook, Google to face new US antitrust lawsuits”
- “Facebook Confirms Acquiring Kustomer, Sources Say For $ 1 Billion”
But, such is life for Zuckerberg’s outfit.
Dig into the details
Created in 2015, Kustomer is a customer relationship management platform specializing in “omni-channel” relationships and chatbots.
Simply put, Kustomer compiles customer communications from many disparate sources (social media, chatbots, email) in one central location. As the name suggests, it focuses on improving customer engagement by providing a holistic view of data and inquiries.
Facebook’s acquisition of Kustomer is in effect an extension of an existing relationship. Kustomer users can already respond to customer inquiries through Facebook Messenger, and the company has also recently started integrating with Facebook’s Instagram messaging.
The big picture: In the acquisition press release, Facebook said discussions with customers were skyrocketing and every day more than 175 million people contacted businesses using its WhatsApp messaging service.
Why is this important:
For Facebook: The deal is one of the largest initiatives ever to deliver solutions to businesses that use Facebook as the “face” of their business. This is a deeper push into the world of “social commerce” where users make purchasing decisions directly on the social media platform.
- In May, the company launched Facebook Shops, which allows businesses to set up online stores through Facebook and Instagram.
Tools like Kustomer will further empower business Facebook users and allow Facebook to diversify away from ad revenue, currently the lion’s share of its financial profile.
For regulators: The case is sure to raise eyebrows. The last billion dollar acquisition Facebook made was its purchase of Instagram. Within Facebook, Instagram is reportedly worth more than $ 100 billion, and many regulators say the company should be forced to divest the app.
Bottom Line: Earlier this month, rival Snap acquired Voca.ai, which makes voice bots for customer support. Great minds meet, or something.