illustration of the number five, representing the five subscription business topics for this column, Five-on-Friday

Five on Friday: Gaming, FTC Injunctions and Virtual Credit Cards

Featuring DoNotPay, Coca-Cola, Apple Arcade, and Facebook

Five on Friday: Gaming

Source: Bigstock Photo

We are less than a week away from the Christmas holiday, and the subscription news keeps coming. In today’s edition of Five on Friday, DoNotPay raises $4.6 million in funding and launches a virtual credit card that cancels free subscription trials. Also this week, Coca-Cola launches a beverage subscription to a limited number of subscribers, the FTC considers an injunction against Facebook’s app integrations, Apple Arcade adds an annual subscription payment option, and we share stats to help you achieve top notch customer service in  2020.

 

 

 

DoNotPay Raises $4.6M in Funding, Launches Virtual Credit Card that Cancels Free Trials 

 FTC Injunctions and Virtual Credit Cards

Source: DoNotPay

A 22-year-old entrepreneur has launched a virtual credit card that claims to automatically cancel free trials to subscriptions. Remember that free trial for Apple Arcade that you signed up for, and then forgot to cancel, so you kept getting billed? DoNotPay hopes to help with that.

Investors are on board to support the concept. In fact, DoNotPay raised $4.6 million in its first funding round, and includes funds from Peter Thiel’s Founders Fund, Business Insider reports. Other investors participating include Index Ventures, Highland Capital, Tuesday and Coatue Management.

Josh Browder, the mind behind DoNotPay, came up with the idea when he realized he had been charged for a gym membership he wasn’t using after the free trial was over. DoNotPay’s aim is to help consumers sign up for free trials with the virtual credit card, and when the trials are over, the card will cease payment, so the consumers aren’t charged for services they don’t want. The service also allows users to sign up for alerts to remind them when the free trials end, in case they want to remain subscribed. To sign up for the service, consumers can use their real names or an alias, but they will have to provide their real email address to receive alerts about the free trial end dates.

However, there may be a catch. Mic reports that DoNotPay has a relationship with community banks that have allowed the app permission to act as a paying agent, but the banks don’t know that the app is creating virtual credit cards. Browder has not named the banks and is making sure that the cards only work if a transaction involves actual money that has been exchanged. The legality of this is muddy, and the service would likely have to overcome some regulatory or compliance hurdles.

FTC considers Injunction Against Facebook to Stop Integration of Messaging Apps 

The Federal Trade Commission is considering a preliminary injunction against Facebook to keep the social media platform from integrating its messaging apps – WhatsApp, Instagram and Facebook Messenger, reports The New York Times. Facebook purchased Instagram in 2012 for $1 billion and WhatsApp in 2014 for $22 billion in deals approved by the FTC.

Five on Friday: Gaming

Source: FTC

One of the concerns is privacy, because Facebook has already sold user data and, despite its promises to protect user privacy, there is a lot of doubt they can hold true to this promise. Another concern is that integration of the three apps would put Facebook in a much stronger position and make it more difficult for competitors to enter the messaging space and for regulators to break up the company if needed.

According to The Times, an integration would combine Facebook’s 2.7 billion-plus users with users of WhatsApp and Instagram. While there is some overlap among the audiences, there would be significant audience growth, further strengthening Facebook’s stronghold. In March, Zuckerberg talked about connecting the apps.

“We’re building a foundation for social communication aligned with the direction people increasingly care about: messaging each other privately,” said Zuckerberg. “I believe a privacy-focused communications platform will become even more important than today’s open platforms.”

Apple Arcade Adds New Annual Subscription Option 

Apple is adding a new option to hopefully entice new Apple Arcade users: an annual option. For just $49.99 a year, you can access the new Apple Arcade gaming subscription, instead of paying $4.99 a month, giving subscribers two free months of the service per year. Apple also does this with Apple Music, as well as Apple TV plus, so this new option isn’t surprising.

Apple Arcade is one of Apple’s newest subscription options, and it allows users access to exclusive games with no ads or additional purchases. The service also allows ubscribers to download these games to their phones to play online or off, on any Apple devices Access to the subscription allows you and five family members to join. There are over 100 games on the platform so far, and developers can submit their games for consideration to Apple.

So far, there are plenty of people that love Apple Arcade, but it has also been met with criticism. Cult of Mac reports that the service has helped solve one problem in the mobile gaming world, and that is ads throughout apps. For $5 a month, you can access many games without having to worry about ads, where some apps charge $5 and up to get rid of ads, just for that app itself. Apple Arcade gets rid of in-app purchases as well. Subscribers don’t have to spend a dollar here and there to get extra lives, more turns in the game, or access special features. It’s all readily available for one low monthly price.

However, some media outlets claim Apple Arcade is not special. There are plenty of games users can play that may not come with ads, though they are few and far between. We see fewer people playing games on their phone, and opting for more console-based games, and the subscription services that come with it. PlayStation’s subscription service, for example, costs about $10 a month for access to at least two free games a month.

Overall, the Apple Arcade service seems very specific to those who like to mobile game, and also have an Apple device. Google’s mobile gaming subscription at least allows gamers to try different kinds of apps, instead of just gaming.

 FTC Injunctions and Virtual Credit CardsFive on Friday: Gaming

Source: Apple

Coca-Cola Launches a Subscription Service for New Flavors 

Remember “Coke and a Smile”? How about “Coke and a Subscription” instead? Some die-hard Coke fans are eager to try the new beverage subscription service, recently launched by Coca-Cola to a limited number of subscribers. The company itself reports these Coke fans will be able to taste more than 10 new drinks that will be launching in the new year.

The Coca-Cola Co.’s Insiders Club will offer two subscription options for the six-month subscription. Subscribers can pay $10 a month for six months, or prepay for six months at $50, getting a month free. They will receive three beverages a month from different categories, as well as some surprises and Coca Cola merchandise.

At first, the drink company launched 1,000 memberships, but there is a waitlist for spots that may open up. The initial 1,000 spots sold out in three hours. With the recent launch of Coke Cinnamon, the company was able to see just how excited people were for new flavors and launches from the brand. Beverages mentioned for the new subscription option ranged from AHA flavored sparkling water, and Coke Energy, however, it could be anything.

Remember, Coke has a large umbrella of companies under its belt, ranging from fruit punch, to lemonade, to cream soda. It could be anything. Fox Business reports that the company was inspired by the recent growth of the e-commerce subscription market. This market has doubled annually over the last five years, and Coke is excited to tap into this market, and deliver product straight to people’s door.

 FTC Injunctions and Virtual Credit Cards

Source: Coca-Cola

5 Stats to Help You Achieve Top Notch Customer Service in 2020

Five on Friday: Gaming

Source: Bigstock Photo

The changing relationship between companies and consumers is always evolving. While price and product selection and quality are still important, consumers are looking for more personalized customer service and continual value from brands they choose to support, says Hubspot. To ensure you meet your clients’ needs and are ready to step up your game in the New Year, check out some of these key customer service stats, provided by Swetha Amaresan for Hubspot.

  1. According to American Express, 90% of Americans consider customer service as a key factor when choosing whether or not to do business with a brand.
  2. The #1 reason customers switch brands is because they didn’t feel their business was appreciated, says NewVoiceMedia. #2 is customers felt staff were unhelpful or rude.
  3. A brand needs 12 positive experiences to overcome one, unresolved, negative experience, says Mathew Sweezey.
  4. What frustrates customers the most? 33% of customers are frustrated by having to be put on hold and having to repeat themselves to more than one customer service rep.
  5. Happy American customers tell 11 people about their positive experiences, while angry American customers tell 15 people, according to American Express.

Get more customer service stats on Hubspot, and take your service to the next level in 2020!

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