Facebook buys omnichannel customer service startup Kustomer for reported $1B


  • Facebook has reached an agreement to buy Kustomer, a start-up focused on customer support technology and chatbots, the social media giant said in a Monday statement. Regards to the takeover weren’t divulged, though individuals familiar with the deal stated it valued Kustomer at $1 billion, The Wall Street Journal reported.
  • Kustomer’s platform offers a single-screen view of discussions between services and consumers among different channels– including phone, email, web chat, and messaging– to help client service agents minimize recurring tasks. Facebook plans to support Kustomer’s development while also giving businesses a way to incorporate their favored customer relationship management (CRM) platform with Facebook’s messaging services.
  • The offer supports Facebook’s focus on supporting businesses getting in touch with consumers through its apps and comes as the company reports that more than 175 million people a day contact companies through WhatsApp. Kustomer’s co-founders Brad Birnbaum and Jeremy Suriel, who sold a previous startup to Salesforce, will sign up with Facebook when the deal closes after receiving regulatory approvals.


The deal for Kustomer is the most current play by Facebook too much better integrate messaging across its platforms and may assist online marketers– particularly smaller businesses with less financial resources and technological know-how– to handle online discussions and improve their communications with customers. With countless individuals using messaging apps to chat with businesses, as Facebook has observed on WhatsApp, businesses need more ways to manage those discussions and automate them with chatbots whenever possible.

Kustomer’s own research found that 79% of customers get irritated when they can’t call consumer service on their favored medium or platform, however, only 25% of customer support organizations presently utilize chat, and 18% use chatbots. Companies aren’t adopting chat since they do not understand where to begin, have the staffing or monetary constraints, or believe consumers do not wish to utilize the services.

If Facebook can make chat services as available to companies as it has its self-service advertising platform, more companies are most likely to adopt the technology, including retailers significantly aiming to reach shoppers online.

“As Facebook extends its efforts to bring commerce to its messaging channels like WhatsApp and Messenger, it requires to conform to the reality that discussions with the modern consumer take place across devices, channels, and platforms,” Kerel Cooper, senior vice president of international marketing at LiveIntent, stated in a statement shared with Mobile Marketer.

Facebook already dealt with Kustomer, providing organizations a method to collect and react to consumer questions sent out through Facebook Messenger. Kustomer announced in October that it incorporated its platform with Instagram Messaging, the chat service that’s become a more popular part of the Facebook-owned photo-sharing app. That same month, Facebook presented a brand-new application programming interface (API) for Messenger to assist services to manage communications through Instagram at scale.

The upgrade to Messenger’s API likewise lets businesses that sell through Facebook Shops incorporate Instagram messaging with their social network shops. Facebook in May presented Facebook Shops to offer small companies a method to have online conversations with their customers through WhatsApp, Messenger, and Instagram Direct messaging platforms in the middle of early pandemic disturbances. The ongoing combination of Facebook’s messaging apps comes as the company increases its push into e-commerce. Previously in October, Instagram included shopping capabilities to Reels and IGTV, and in July debuted Instagram Shop as a center for customized recommendations, exclusive items, and collections of items from brands and creators.

Facebook’s organized acquisition comes as the company deals with antitrust examination for potentially anticompetitive service practices that have resulted in the idea that the business is forced to divest Instagram and WhatsApp. Facebook has refuted a possible separation, pleading that such an action would break established law, damage customers, and expense billions of dollars, The Wall Street Journal reported in October. There have been clashing press reports on the timeline for the Federal Trade Commission to sue Facebook for alleged antitrust offenses as authorities also investigate Apple, Amazon, and Google. Facebook’s proposed $400 million acquisition of Giphy, a platform for sharing video files referred to as GIFs, likewise dealt with evaluation from antitrust authorities worldwide.

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