{"id":64925,"date":"2024-11-04T18:07:35","date_gmt":"2024-11-04T18:07:35","guid":{"rendered":"https:\/\/www.cxtoday.com\/?p=64925"},"modified":"2024-11-07T10:41:33","modified_gmt":"2024-11-07T10:41:33","slug":"shopify-brags-about-poaching-hundreds-of-salesforce-customers-salesforce-claps-back","status":"publish","type":"post","link":"https:\/\/www.cxtoday.com\/crm\/shopify-brags-about-poaching-hundreds-of-salesforce-customers-salesforce-claps-back\/","title":{"rendered":"Shopify Brags About Poaching \u201cHundreds\u201d of Salesforce Customers, Salesforce Claps Back"},"content":{"rendered":"<p>Shopify has claimed that it has taken &#8220;hundreds&#8221; of Salesforce\u2019s customers.<\/p>\n<p>The eCommerce giant has long been associated with providing smaller, mom-and-pop businesses with an easy-to-use online shopping platform &#8230; until now.<\/p>\n<p>Recently, the company has been making a concerted effort to target large-scale businesses and is now boasting about poaching the likes of Toys R Us and Casper (mattress seller) from Salesforce.<\/p>\n<p>As part of what Shopify is calling &#8220;the mass migration&#8221; the company is attempting to lure businesses away from its more established enterprise rivals through its lower prices.<\/p>\n<p>Indeed, during an interview with Bloomberg, <strong>Shopify\u2019s Chief Operating Officer<\/strong>, <strong>Kaz Nejatian<\/strong>, took a shot at Salesforce\u2019s costly business practices:<\/p>\n<blockquote><p>The reason most enterprise software is so expensive is because it takes so many steak dinners to put it in your hand.<\/p><\/blockquote>\n<p>Aside from the first-hand brags and digs at Salesforce\u2019s expense, others have jumped to support Shopify\u2019s claims.<\/p>\n<p>Speaking to <a href=\"https:\/\/www.bnnbloomberg.ca\/business\/2024\/10\/29\/shopify-is-winning-salesforce-clients-stoking-e-commerce-rivalry\/#:~:text=Now%2C%20in%20a%20dramatic%20shift%2C%20the%20Canadian%20company,encouraging%20other%20companies%20to%20%E2%80%9Cjoin%20the%20mass%20migration.%E2%80%9D\">BNN Bloomberg<\/a>, <strong>Scott Lux,<\/strong>\u00a0<strong>EVP of Global Commerce and Technology at Esprit<\/strong>, suggested that Shopify\u2019s lower fees mean that customers could save up to 50 percent over three years by making the switch from Salesforce.<\/p>\n<p>Another way in which the e-commerce specialist is appealing to businesses is through its flexible pricing model, which was key to Mattel Inc.\u2019s recent decision to become a Shopify customer.<\/p>\n<p><strong>Subramanian Kovilmadam<\/strong>, <strong>Mattel&#8217;s VP of Technology<\/strong>, explained that Shopify\u2019s traffic-based fees model allowed the toymaker to handle demand spikes for new products, without paying for constant high capacity.<\/p>\n<p>&#8220;Shopify has been extremely responsive to the complexities of Mattel\u2019s needs,&#8221; he noted.<\/p>\n<p>&#8220;By moving from a large, annual licensing fee model to a more flexible and transactional cost model, transitioning to Shopify has also resulted in cost savings for us.&#8221;<\/p>\n<p>Unsurprisingly, Salesforce had something to say about Shopify\u2019s claims.<\/p>\n<h2>Salesforce Claps Back<\/h2>\n<p>While e-commerce is far from Salesforce\u2019s primary offering, the company was still quick to clap back at Shopify, with <strong>Luke Ball<\/strong>, <strong>Salesforce\u2019s Senior VP of Product Management<\/strong>, stating:<\/p>\n<blockquote><p>Anything\u2019s cheaper if you narrow the use case to one thing and say, \u2018Oh, we\u2019re cheaper for this one thing.&#8217;<\/p><\/blockquote>\n<p>&#8220;We\u2019re still the incumbent reigning champion in the space other companies are trying to break into.&#8221;<\/p>\n<p>The CRM specialist also claimed that it had taken hundreds of customers from Shopify, including brands like Black Rifle Coffee Co., ReserveBar, and Hasbro Inc \u2013 a point that Shopify refuted.<\/p>\n<p>Ball did, however, concede that Shopify was &#8220;a noticeable competitor in the space,&#8221; commenting that one would have to have their &#8220;head in the sand to not see it.&#8221;<\/p>\n<p>Ball\u2019s concession is also supported by the figures.<\/p>\n<p>While, as expected, Salesforce\u2019s most recently reported overall revenue of $36.47BN far eclipses Shopify\u2019s $7.76BN, the latter is experiencing surging revenue growth.<\/p>\n<p>As seen in the graph below, Shopify has increased by almost 500 percent.<\/p>\n<p><em>Please note that in the graph, \u2018CRM\u2019 refers to Salesforce, and \u2018SHOP\u2019 refers to Shopify.<\/em><\/p>\n<figure id=\"attachment_64926\" aria-describedby=\"caption-attachment-64926\" style=\"width: 1204px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-64926\" src=\"https:\/\/www.cxtoday.com\/wp-content\/uploads\/2024\/11\/Shopify-v-Salesforce-Revenue-Growth-Comparison-.png\" alt=\"Shopify v Salesforce Revenue Growth Comparison\" width=\"1204\" height=\"800\" srcset=\"https:\/\/www.cxtoday.com\/wp-content\/uploads\/2024\/11\/Shopify-v-Salesforce-Revenue-Growth-Comparison-.png 1204w, https:\/\/www.cxtoday.com\/wp-content\/uploads\/2024\/11\/Shopify-v-Salesforce-Revenue-Growth-Comparison--300x199.png 300w, https:\/\/www.cxtoday.com\/wp-content\/uploads\/2024\/11\/Shopify-v-Salesforce-Revenue-Growth-Comparison--1024x680.png 1024w, https:\/\/www.cxtoday.com\/wp-content\/uploads\/2024\/11\/Shopify-v-Salesforce-Revenue-Growth-Comparison--768x510.png 768w\" sizes=\"auto, (max-width: 1204px) 100vw, 1204px\" \/><figcaption id=\"caption-attachment-64926\" class=\"wp-caption-text\">Source: stockanalysis.com<\/figcaption><\/figure>\n<p>Moreover, Salesforce\u2019s commerce and marketing business is currently its slowest growing segment, making it an opportune time for Shopify to attempt to poach more of its customers.<\/p>\n<p>This point was discussed by <strong>D.A. Davidson Analyst Gil Luria<\/strong>, who commented:<\/p>\n<p>&#8220;Shopify has added enough capabilities over the last few years that have made it a viable option for even the biggest e-commerce merchants.<\/p>\n<blockquote><p>At the same time, Salesforce is deemphasizing its Marketing Cloud and focusing more on the Data Cloud, which leaves them vulnerable to losing e-commerce customers.<\/p><\/blockquote>\n<h2>A Taste of its Own Medicine<\/h2>\n<p>Ironically, Shopify\u2019s remarks are right out of Salesforce\u2019s playbook.<\/p>\n<p>In recent months, the company\u2019s <strong>CEO<\/strong>, <strong>Marc Benioff<\/strong>, has <a href=\"https:\/\/www.cxtoday.com\/crm\/salesforce-ceo-keeps-taking-potshots-at-microsoft-copilot-why\/\" target=\"_blank\" rel=\"noopener\">taken a number of shots at Microsoft<\/a>, with his most recent X attack describing Microsoft\u2019s Copilot as &#8220;Clippy 2.0,&#8221; referring to the company&#8217;s 1990s Office assistant, which was often seen as more distracting than helpful.<\/p>\n<p>Prior to this, Benioff claimed that &#8220;many customers&#8221; felt &#8220;disappointed&#8221; with Microsoft Copilot.<\/p>\n<p>While the CEO is the only person who knows precisely why he has been so critical of Microsoft Copilot, it likely stems from Salesforce&#8217;s recent launch of Agentforce, its autonomous AI Agent platform.<\/p>\n<p>Elsewhere, Benioff swiped at ServiceNow earlier this year, comparing its CRM rivalry with the vendor to McDonald&#8217;s vs. Weinerschnitzel.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shopify has claimed that it has taken &#8220;hundreds&#8221; of Salesforce\u2019s customers. The eCommerce giant has long been associated with providing smaller, mom-and-pop businesses with an easy-to-use online shopping platform &#8230; until now. Recently, the company has been making a concerted effort to target large-scale businesses and is now boasting about poaching the likes of Toys [&hellip;]<\/p>\n","protected":false},"author":4983,"featured_media":64927,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[61014],"class_list":["post-64925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crm","tag-crm","tag-ecommerce","brands_to_track-salesforce","brands_to_track-shopify","editorial_type-news","intent-loyalty"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3.1 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Shopify Brags About Poaching \u201cHundreds\u201d of Salesforce Customers, Salesforce Claps Back - CX Today<\/title>\n<meta name=\"description\" content=\"CX Today covers CRM &amp; 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