The Real Reason Why Facebook Acquired Kustomer

Facebook acquired Kustomer. It admittedly has a lot of people scratching their heads.

Let's first say what it's not. It's not about Social Commerce. So let's stop talking about that.

I think it's about ads and building better customer models. And the future of consumer to business and business to business interactions, period. I think Facebook sees a future where people are just not willing to call a company again. Ever.

John Battelle coined the term "database of intentions" about Google because people type their hopes, dreams, and aspirations to the company, which attempts to spit out results.

I think one way Facebook feels it can leapfrog Amazon and Google is to have more deeper, conversational access to members of its platform. It creates opportunities.

I don't think Facebook is interested in selling business software in the traditional way. Each conversation is a consumer with needs, that likely Facebook already knows about. Each customer support conversation and interaction is a new surface for ads and improving consumer models.

Let's see what happens here, but I think this is Facebook creating the next generation of the telephone company, but with global scale. The service backplane of the world.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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