Here’s the CRM news that your peers are reading, curated by GetApp Analyst Chris Warnock.

HubSpot doubles down on free services with email marketing, Etsy faces seller opposition to free shipping, and other news

HubSpot CRM’s free tier now includes email marketing

HubSpot CRM users leveraging the company’s free tier will now have access to free email marketing services. They will also be able to manage up to $1,000 per month in campaign spending on Facebook, Google, and LinkedIn. According to the company, many users already use email marketing tools on other platforms, so by offering them alongside Hubspot CRM, the platform can become a more integral part of user workflows.

Software vendors repositioning themselves as one-stop shops for marketing software is part of a larger, industry-wide trend. Earlier this year Mailchimp, a popular tool for managing customer-facing email outreach, expanded its product offerings to include ad re-tartgeting, social media management, and other marketing tools. [Read more]

Backlash from Etsy users is a reminder that shipping has never been free

Etsy recently announced it will begin prioritizing goods and vendors that offer free shipping on orders of $35 or more, in an effort to match delivery speeds offered by big-box sites such as Amazon and Walmart.

But free delivery has always been an illusion—Amazon loses billions of dollars every year on shipping in order to provide a good customer experience. Etsy can’t afford to subsidize shipping, instead advising sellers to include delivery costs in item pricing. Some vendors feel the move to prioritize free shipping on Etsy doesn’t sit well with the site’s reputation as a marketplace for unique, handmade products created by individual artists. [Read more]

Understanding the psychology behind deals and discounts

Prime Day—Amazon’s annual members-only mega sale—was expanded to two days this year, had over one million deals, and generated billions in revenue. While consumers may feel like they’re getting great deals, examining the psychology behind sales sheds some light on who really comes out ahead.

Whether you’re buying something you don’t need because it’s available at a cheaper than normal price, or feeling pressure to make a purchase quickly because of a limited-time sale—deals and discounts are designed to make people think they’re getting something so they will open up their wallets. [Read more]

3% digital sales tax in France represents shifting tides for big tech across Europe

A 3% digital tax on local revenues—or total sales rather than profits—has been approved by the French government. The bill attempts to end a common tax avoidance tactic used by large multinational companies where revenue earned in high-tax EU countries is booked in low-tax countries. The legislation is meant to be temporary, serving as a stopgap until global legislation on digital taxation is established.

The tax targets business activity that drives revenue for large U.S. companies such as Google, Facebook, and Airbnb, including digital advertising and data sales. Amazon faces a similar controversy in the U.S., where it only recently started collecting sales tax in all states that have one. Similar tax measures may appear throughout Europe as governments increasingly scrutinize where digital revenues are earned versus where corporations pay taxes on them. An investigation into the French tax plan has been launched by the Trump administration. [Read more]

Juul CEO to parents of children addicted to e-cigarettes: ‘I’m sorry’

It isn’t every day the CEO of a large company apologizes to parents for hooking their children on its product—but that is exactly what Kevin Burns, CEO of Juul Labs, said in an interview on Monday. Burns’ company dominates the e-cigarette market with roughly 40% market share, and has gained popularity among teenagers.

In September 2018 the Food and Drug Administration (FDA) declared “youth e-cigarette use an epidemic,” and took “an historic action against more than 1,300 retailers and 5 major manufacturers for their roles perpetuating youth access.” Despite shutting down its social media accounts and pulling fruity flavors from store shelves, efforts from Juul to curb youth appeal appear ineffective. [Read more]

E-scooter injuries in Texas may have to be litigated in California

E-scooters are dangerous and the terms companies such as Bird, Lyft, and Jump have users agree to when signing up to use them almost always leave riders liable in the event of an accident. Beyond that, all three companies state any disputes or lawsuits will be handled under the laws of California.

Jim Freeman, a lawyer in Austin, Texas, has selected seven cases—with injuries including facial disfigurement and shoulder dislocation—and sued each of the companies mentioned above for negligence. Freeman claims the user agreements companies put to riders are overly complicated with legalese, lengthy, and intended to provide immunity to scooter companies no matter how a rider is injured. [Read more]

Week of July 1, 2019

Websites use tricks and FOMO to boost sales and trap customers, pending data privacy laws have far reaching implications, and other sales, marketing, and customer relations trends.

Tricks and FOMO used to boost sales and trap customers

Websites and apps exploit FOMO—fear of missing out—as well as basic human desires and instincts to convince users to do specific things. These methods, coined as “dark patterns” in 2010, walk a fine line between manipulation and persuasion. Dark patterns describe a variety of techniques used to encourage desired behavior, such as purchasing a product, and discourage unwanted behaviors, such as unsubscribing from something.

Some examples of this could be intentionally hard to spot unsubscribe links buried in a wall of text at the bottom of an email, or “this hotel was just booked” notifications plastered across online travel agency websites that create a sense of urgency around booking a room. [Read more]

Data privacy regulation casts wide net in tech

California legislation (CCPA) going into effect Jan. 1, 2020, marks the beginning of data privacy reform in the United States. Though pending privacy regulations have obvious implications for large consumer-facing companies such as Facebook and Google, smaller businesses remain most vulnerable to privacy legislation. Larger companies with more resources are better equipped to respond to new laws, to withstand revenue loss from enhanced privacy protections, and to absorb fines from policy violations.

This legislation has far-reaching implications across the tech industry, impacting all data-centric companies. Salesforce CEO Marc Benioff fielded questions about GDPR, CCPA, and the future of federal privacy regulations in a recent earnings call. Expressing support for a national privacy law Benioff stated, “I think that’s just an awesome vision.” [Read more]

Facebook, Amazon, Netflix, and Google double down on ad spending

With regulation and uncertainty in the foreground, big tech companies are ratcheting up ad spending to build and safeguard their brand reputations. For the first time, Facebook, Amazon, Netflix and Google (FANG) were all among the top 100 spenders in Ad Age’s Leading National Advertisers report.

FANG drove industry growth, accounting for just 7% of collective ad spending for the top 100 spenders, while representing 30% of overall spending growth last year. Facebook led the pack, spending 236% more on advertising in 2018 than it did the year before. Netflix followed with a 70% increase in the same period, trailed by Amazon (+32% YoY), and then Google’s parent company Alphabet (+23% YoY). [Read more]

San Francisco is banning e-cigarette sales

Government seems to be catching up with innovation as a recently approved San Francisco city ordinance outlawed the sale of nicotine vaporizers. The legislation will allow e-cigarette sales in the city once companies put their products through a pre-market FDA approval process that was previously not required for doing business. E-cigarettes pose challenges for regulators attempting to reduce risks for minors while avoiding an outright ban on technology that may help people reduce or quit smoking. [Read more]

Papa John’s invests $80M to offset corporate mistakes

Papa John’s has announced an $80 million dollar investment in itself—allocating funds for assisting domestic franchisees and marketing efforts. The company’s planned financial assistance expenditures represent an 80% increase compared with last year and will be distributed on a schedule ending in 2020. The pizza chain has struggled since controversy arose nearly a year ago after the company’s founder, John Schnatter, used a racial slur on a conference call.

According to a company press release, franchisee assistance will include reduced royalties, royalty-based service incentives and targeted relief. Marketing dollars will be put toward brand differentiation and promoting Papa John’s new brand ambassador— Shaquille O’Neal. [Read more]

For a list of archived news items, click here.

Share This