Five on Friday: Subscription Jobs, Copyright and Cancellations
Featuring Amazon, Walmart, LinkedIn, Media Post, the EU and Forbes
Source: Bigstock Photo
In this week’s Five on Friday, a new California law makes it easier for subscribers to cancel their subscriptions online (it could help subscribers in other states too), we look at the battle between retail giants Amazon and Walmart, the EU rejects the Copyright Directive aimed at big tech platforms, Forbes shares business metrics every company needs to know to be successful, and LinkedIn posts top subscription jobs.
New California Law Makes Canceling Subscriptions Easier for Consumers
Source: Bigstock Photo
On July 1, a new California law went into effect that will make it easier for subscribers to cancel subscription services online, especially if they subscribed online. California Senate Bill No. 313 applies to any business that makes an automatic renewal or continuous service offer to a consumer in the state, including streaming services like Netflix and Spotify, newspapers and magazines, subscription boxes and other subscription services.
Consumers who subscribed online must be allowed to cancel online instead of having to call a customer service number to cancel their subscription. While the law was passed in California, consumers in other states will benefit as well because it applies to all services that have customers in California, reports TechCrunch.
Another stipulation in the law is that subscription companies must clearly and conspicuously explain promotional offers such as introductory pricing, free trials or gifts. The company must tell consumers how much they will be charged at the end of the trial, and it must advise subscribers how they can cancel before they are charged. The bill prohibits businesses from charging a consumer’s credit or debit card for an automatic renewal or continuous service without getting the consumer’s affirmative consent. Businesses that do not comply with the new law will be subject to ‘any available civil remedies.’
Amazon vs. Walmart
In 2017, Amazon.com was the largest e-tailer in the Unites States, ranked by e-commerce sales with $54.47 billion in total sales. Walmart was the next largest with $14.01 billion in sales. By comparison, Amazon had nearly four times the total sales volume of Walmart last year. Despite the difference in sheer volume, Walmart keeps trying to compete with Amazon. For example, in 2016 Walmart acquired Jet.com to try to reduce Amazon’s market share.
Source: Statista
Now the two companies are competing in the physical realm as well. In January, Amazon launched its first checkout-free store, Amazon Go, on Seventh Avenue in Seattle. It is opening a second store on Fifth Avenue in downtown Seattle this fall, reports Geek Wire. The new store will be approximately 3,000 square feet, compared to the original store’s 1,800 square feet. And then, of course, there’s Amazon’s acquisition of Whole Foods in 2017. Using the Amazon Go app, available for iOS and Android, shoppers visit the store, take an item and are charged for items in their virtual cart. No checkout necessary.
Amazon also has a physical presence with a couple of bookstores, and Bloomberg reports that Amazon has considered buying some of the former Toys “R” Us stores, not to get into the toy business, but for its own purposes.
Who will win the battle? We aren’t comparing apples to apples here, so it would be unfair to say Amazon is the clear winner, but Amazon does seem to be succeeding in many areas that Walmart isn’t. For example, Amazon is tailoring its shopping experiences for today’s shopper, creating digital shopping opportunities and a superior membership program. Which do you prefer – Amazon or Walmart? Who do you think will put up the biggest numbers this year?
Big Tech Companies Fight – and Win – Against Copyright Legislation in the EU
Source: Bigstock Photo
Last week we wrote about Paul McCartney’s participation in the fight for copyright reform, but the EU didn’t buy it. The New York Times characterizes the battle as an age-old fight between two sides: news organizations, broadcasters and music artists on one side and technology companies like Facebook and Google on the other. The draft law, called the Copyright Directive, went to a vote before European Parliament last Thursday, and it failed 318 to 278.
According to The New York Times, a faction of tech companies including Facebook, Google, Reddit and Wikipedia lobbied against the copyright law. The law, if passed, would have returned some power to media organizations, musical artists and other content creators in how their content is distributed, but opponents said it put an undue burden on technology companies who would have to filter content and screen it for copyright violations before it could be posted.
What’s next? Legislators can reconsider the bill for another vote in September. With the backing of big tech companies, it seems unlikely to pass without some major rewrites.
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As Director Partner Engagement, Member Acquisition, you’ll lead a strategically critical team enabling partners globally to help make subscribing and paying for Netflix easy and convenient. That includes being a thought leader on continuing innovation to improve the customer journey while efficiently scaling programs such as payment integration, bundles, and promotions. Read more…
Responsible for renewing, up-selling, and closing of maintenance/service/license contracts for assigned accounts and increases renewal sales. Demonstrates knowledge of the organization’s various products and maintenance contracts. Educates customers on business practices and associated contractual implications. Ensures customer awareness and understanding of applicable product elements. Must meet sales objectives such as quota and productivity requirements. Maintain account team relationships and transfers leads as appropriate. Responsible for implementing and managing contract renewal initiatives. Maintains contract revenue base at highest possible retention rate and protects contract revenue stream. Ensures timely contract renewal and promotes awareness of upgrade and add-on opportunities to customers. Ensures competitiveness of company’s maintenance contracts. Works towards assigned contract revenue goals. Read more…
We are looking for an experienced business strategist with expertise in growth and conversion to define our global always-on, trial offer strategy and seasonal promotions to expand our rapidly growing subscriber base of over 71 million paid users. The role is based out of our NYC office with occasional travel to our Stockholm and other company locations. You report to the Director of Premium Upsell. Read more…
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Subscription Analytics: Every Business Metric You Must Know to be Successful
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Whether you are a seasoned subscription company or a subscription box start-up, knowing key performance indicators can help you measure your success. In a recent article for Forbes, Michael Loban, CMO of InfoTrust, shared subscription analytics that every business needs to know to succeed. Here are three metrics you need to know:
Annual or monthly recurring revenue. Loban says this is the most important metric to know – how much recurring revenue a subscription company can depend every month or every year.
Customer lifetime value: This is the value each customer is worth to you over the life of your relationship with them.
Customer acquisition cost: This figure will tell you how much it costs you to acquire each customer. You calculate this number by dividing your marketing and sales spending by the number of new customers acquired. You’ll quickly learn that retaining a customer costs much less than attracting them in the first place.
Dana Neuts is Subscription Insider's Editorial Director, covering our daily subscription news as well as member features, case studies, premium content, and reports. Dana is also a writer, editor, marketer and communications professional. Her work has appeared in AARP Bulletin, The Seattle Times, Seattle Business, 425 Business, 425 Magazine, South Sound Magazine, Northwest Travel and more. Her specialties include business writing, community news, senior issues, travel and, of course, subscriptions!
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