Alphabet Drops HubSpot Deal, Ex-HubSpot-Ers Launch New CRM

This week on Funnel Frontier: Alphabet decided not to buy HubSpot. Ex-Hubspot executives decided to launch their own AI-powered CRM.

This week:

• Alphabet won’t buy HubSpot

• Ex-HubSpot execs launch a new CRM

• Clearing up journeys for better CX (via Forrester)

• Podio vs ClickUp

• Boosting QA automation with AI (via Zendesk)

Stat of the Week 

The financial advisor CRM market is dominated by Redtail, who held a 49% share last year. But that’s slipping, with 2nd place Wealthbox now at 14%, up from 6.96% in 2021. (Statista)

Alphabet drops interest in buying HubSpot

Looks like Google’s pumped the brakes on its acquisitions speedrun. 

As we reported a few weeks back, sources indicated Alphabet was flirting with buying HubSpot. Now they’ve backed off faster than you can say "antitrust regulations."

The dalliance didn't even make it to the due diligence stage before fizzling, causing HubSpot shares to nosedive by 12%, while Alphabet posted smug, mini-mirror gains of 1.2%. 

Some suggested the deal would be of dubious value to Alphabet, given the cost of acquiring a company with such a huge market cap. Meanwhile, HubSpot's CEO noted small businesses are jittery over high-interest rates, which has dampened demand for the platform.

So, for now, HubSpot remains solo, dodging what could have been Alphabet’s biggest and most scrutinized acquisition ever. 

But every cloud has a silver lining. As TechCrunch notes, Boston VCs are pleased to keep the MIT-born HubSpot as one of their very own. 

As the CRM stalwart remains independent, it can continue being a heavy anchor for Boston's startup scene. “Retaining an independent [$25 billion to $30 billion] market cap company has many advantages for the Boston ecosystem,” said Greg Dracon, partner at .406 Ventures. 

In short, HubSpot stays put, Google looks elsewhere, and Boston's tech scene keeps buzzing.

The Week @ CRM.org

Free CRM (July 2024 update). Our refreshed list covers 17 solid freebies. Dig through, and you might find a gem.

Small Business CRM. Only 25% of small businesses use CRM so far, so why not “get in early” and realize an advantage? Our updated Top 10 options.

Weekly Bloom

Alex Honnold on Overcoming Fear. Visualize and rehearse. With enough preparation, you too can live in a van and climb deadly rocks.

Ex-HubSpot-ers create Day.ai, an AI CRM 

If a CRM receives millions in funding from Sequoia in the woods, and nobody is around to hear it… 

$4 million bucks in Sequoia-led seed capital later, ex-HubSpot exec Christopher O'Donnell has launched an AI-powered CRM. It’s designed to auto-learn from interactions and public records, eliminating manual updates. The app mind-melds Meeting Assistant, classic CRM features, and Knowledge Base.

Giving monday.com a run for its money in the “domain name in the product name” category, it’s called Day.ai.

O'Donnell and his HubSpot alumni co-founder, Michael Pici (previously HubSpot’s VP of Sales & Product), envisioned the anti-legacy CRM product after the launch of ChatGPT.

Day.ai makes a big bet that traditional CRMs will be obsolete in the face of AI-enabled instant answers from an auto-generated database. 

Hewing to that idea, it automates meeting notes, follow-ups, and reminders. CRM pipeline updates automatically, and a customer-centric knowledge base helps prioritize tasks and communicate trends. It’s also designed to simplify documentation to keep everyone who is human aligned and focused.

At present, the minimalist app retains an aura of mystery, remaining in the invite-only beta phase. 

Stellar Strategies: Tips & Tricks for Sales, Marketing & Service

Clearer customer journey maps = better CX (via Forrester)

Journey maps are the multi-tools of customer experience, capable of transforming CX and company culture if used correctly. 

However, CX teams often bungle them by not tailoring the maps to their audience or purpose. 

Remember, a journey map isn’t for hanging at the art institute. It’s a hyper-pragmatic decision-making tool. 

Before crafting a journey map, ask who it's for and how it will be used. Tailor the map accordingly, considering different needs like executive reporting or employee training. 

Joana de Quintanilha, VP and Principal Analyst at Forrester, says that there are seven strategic steps to think through: 

1. Form a purpose-driven coalition
2. Create a sense of urgency
3. Prepare and plan
4. Map the journey
5. Validate and socialize maps
6. Demonstrate short-term wins
7. Consolidate improvements

It’s all about making real stuff happen. More from the source here.

Podio vs ClickUp

Looking to organize your chaos, eh? Podio vs ClickUp is a choice of drag-and-drop flair or pixel-by-pixel customization.

Podio's like a Lego set—flexible, adaptable, but perhaps slightly less “contemporary” aesthetics-wise, while ClickUp is the Jack-of-all-Trades of project management with a more au courant interface. 

If you’re into playing digital Tetris with your tasks, go for Podio. Podio takes the cake in customization too.

But if you just want everything like clockwork, ClickUp is your jam. ClickUp edges with more robust automation, integrations, and a lower price. 

Either way, you’re winning at project management. We’ve got more robust this-versus-that here.

Boosting QA automation with AI (via Zendesk)

AI quality assurance (QA)—not an oxymoron. Oh, far from it. 

Turns out QA automation can add some zip to customer service. By augmenting your overworked team with a shiny AI, you might streamline your processes, boost agent performance, and keep your customers from running to the competition. 

Manual QA’s bias and inefficiency? It’s on the wrong side of history! AI-powered QA gives better coverage, spotting issues faster than an eagle after a Red Bull bath. Say what? Yes, impartial reviews too.

Of course, it’s not a one-or-the-other thing. While AI can handle large volumes of data, human reviewers should frolic deep in the weeds, adding necessary context and nuance. Now that’s a balanced QA strategy. 

Embrace QA automation, elevate your customer service game and stay market-wise. Why not? Zendesk has some more ideas over here.

Galactic Gourmet

CRM blips from around the web

Nucleus Research drops 2024 Customer Support Technology Value Matrix. CRM has matured. Now it’s maturing even more. Senior Analyst Cameron Marsh says key trends include “advanced ticket routing, predictive analytics, and proactive engagement.”

Phenom wins at 2024 HR Tech Awards by Lighthouse Research & Advisory. The HR/talent experience platform won for “Best Innovative or Emerging Tech Solution” and “Talent Acquisition and Talent Management.”

2024 CRM Global Strategic Business Report released. The report estimates the US Market size at $40.6 billion, and a global market CAGR of 10.4% from 2023 to 2030.

Astronomical Assets

Significant Stock Moves from Last Week

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