Instant Alert: How companies are luring in customers with Facebook Live

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How companies are luring in customers with Facebook Live

by Salvador Rodriguez on Jul 28, 2016, 2:55 PM

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"Is it 3, 2, 1? Happy Slow Cooker Sunday!" yells T-Mobile CEO John Legere in one of his recent Facebook Live posts where he talks about the latest happening at his company while taking viewers through a crock-pot recipe.

"I made the mistake of doing a poll, and when mac and cheese is on a poll, you know it always wins," Legere says to the camera as he begins to cook in a black and magenta T-Mobile apron, shirt and chef hat. "So we're making old fashion mac and cheese!"

Legere is among dozens of business executives Facebook has been actively recruiting since last year to use the social network as a means to connect with their customers, employees and shareholders. The company "activated" 20 business influencers in the final six months of 2015, and through the first six months of 2016, Facebook has ramped up its efforts, signing up 80 business leaders, the social media giant told Inc.

"Facebook in many ways is the new town hall for business leaders," said John Cantarella, the social network's head of global influencer partnerships. "It really allows business leaders to engage in an authentic way with their key audiences, whether its employees, customers or even shareholders."

This initiative is part of Facebook's greater effort to promote Facebook Live, which is the company's most notable new feature in the past year and a half. Facebook has been paying numerous news outlets and celebrities to use live streaming feature as a way to inspire everyday Facebook users to do the same.

"Everybody on the planet now has a television station in their pockets," said Ryan Holmes, CEO of Hootsuite and one of the many business executives Facebook has recruited onto its service. "It's a really great opportunity to connect better with customers and get it right from the horse's mouth."

Increasing user activity has become particularly important for the social network as recent reports have said that original user content has been on a decline. That poses an existential threat for the social network, so encouraging original posts by individuals such as business leaders is a top priority. By activating business leaders and prodding them to be active on the social network, Facebook is hoping other entrepreneurs and businesspeople will be inspired to follow suit and post content of their own.

"Facebook is just constantly looking for ways to keep all users active, and that includes their forays into live streaming," said Jessica Liu, a senior analyst for Forrester Research. "It's all in service of trying to increase user engagement and activity on the platform."

The challenge for Facebook lies in challenging LinkedIn and Twitter, the social networks that have traditionally been used by business professionals. For years, LinkedIn has been the go-to hub for those in the business world to connect with their peers and share their thoughts. Twitter, meanwhile, has served as the main service for public figures to connect with their followers, especially in real-time.

Loosening Twitter and LinkedIn's grip on these social business interactions is no small task, but at the moment, Facebook has a big opening. After its recent $26.2 billion acquisition by Microsoft, it's unclear what direction LinkedIn will be taking. Twitter, meanwhile, has much bigger fish to fry than worrying about business individuals. The micro-blogging social network is fighting for its survival, and has turned its attention to live streaming big events, such as NFL games.

Facebook recognizes that it has an opportunity to offer executives another way to connect that will offer better engagement with their followers.

"Facebook knows it has the scale, it has the users, it's the largest social network," Liu said. "They feel that given the sheer volume of people on their network they can build out this business offering, and it will compete with Twitter and LinkedIn."

Already, Facebook has managed to nab a who's who of business leaders. Wal-Mart CEO Doug McMillon used Facebook Live at his company's shareholders meeting in June to connect with his millions of employees around the world. Sophia Amoruso, founder of fashion company Nasty Gal, has used Facebook Live to broadcast her Girlboss Radio show in real time. Uber CEO Travis Kalanick used Facebook in July to announce his company's 2 billionth ride, along with a video that shows each ride dating back to 2010.

But while Facebook now has more than 100 active executives, the use of Facebook Live for business purposes remains in its early days, and many of these executives, including Legere, are still figuring out the best way to use the service. During one of his broadcasts, Legere's notes flashed in front of the camera, giving away his topics of discussion to his viewers.

"It's like you got scooped. They'll go 'I saw your sheet! I saw the sheet!'" said Legere recounting the minor live hiccup. Facebook Live "strips you down naked, but it really works, especially in a consumer business."

Facebook works with its executives to ensure they're familiar with all of the tools at their disposal. The social network encourages businesspeople to be themselves on the service and simply share their everyday experiences. Facebook also says users should keep their posts focused on a few themes, such as themselves, their companies and their industries. Additionally, it is important for users to post on a consistent basis and to engage with their audience as a way to let their followers know that they're listening.

"This is really about business leaders going beyond the corporate bio," Facebook's Cantarella said. "When you do that you create and generate a greater amount of trust with customers and with your employees."

Business leaders have good reason for approaching social media in this manner. A 2014 survey by BrandFog found that companies whose CEOs use social media are seen as more trustworthy by 71 percent of Americans. Meanwhile, 76 percent of business executives say they believe it is a good idea for CEOs to be on social media, according to a 2013 report by Weber Shandwick. Social CEOs are the future, Holmes said.

Social media "is a skill that they need to have and that they'll actually start to become more sought after for," Holmes said. "It is something that you have to have in your arsenal."

Among the most active business users on Facebook is Legere, who has made a name for himself as one of the most social media-savvy CEOs. Legere said he tries to do at least one live stream per week.

"You got immediate access to people ... and the knowledge, the reach and the value is just incredible and viral," said Legere, who often gets more than 200,000 views per video. "It's not a game for me. It's a very serious, highly leveraged part of the way I run my company."

SEE ALSO: Apple's priority is now self-driving car software rather than building a car


 
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