#Failsforce: The BOLD Brand Battle

Freshworks' audacity made strong headlines creating a new revolution

Feb 07, 2024

Hello Friends!

I’m back again with yet another interesting story!

Why do you think it is important to study marketing campaigns? As you all are aware, Marketing has been a big deal from times unknown, and campaigns are a huge part of it. Businesses all over the world are constantly launching marketing campaigns to attract customers and grow their brands. So, at Growthstore, we decided to talk about some interesting campaigns that created excitement, hype, commotion, and more!

But before moving on, we need to know that not every campaign is a success. Some fizzle out without making much of an impact, while others become famous.

That's where case studies come in. They're like roadmaps that show us the good and bad parts of real marketing campaigns. By looking at case studies, marketers can learn what works and what doesn't. And every campaign has something to teach us.

On these lines, our discussion today is about Freshworks’ Failsforce campaign. A bold campaign worth talking about. What made Freshworks take this unexpected route? What clever moves did they make? How did Failsforce turn out, and what did it teach the marketing world? Let’s jump in and find out the answers to these interesting questions.

Hit the Refresh button! 🔄

“We are on a mission to put easy-to-use business software in the hands of the people who need it. It’s time for a change. You don’t need expensive and bloated cloud software.” - Girish Mathrubootham, Founder and CEO of Freshworks.

Freshworks, a leading business automation software company, founded by Girish Mathrubootham and Shan Krishnasamy began its journey in 2010, in Chennai India, and is now headquartered in San Mateo, California, United States. In a mere 200 days, it amassed 200 customers, drawing the attention of major venture capital firms such as Sequoia Capital, Tiger Global, and Accel. By 2018, Freshworks had raised $100 million in Series G funding, achieving a valuation of $1.5 billion and becoming India’s premier enterprise tech unicorn. Today, it boasts over 58,100 customers across 120 countries, solidifying its reputation as an innovative leader in the SaaS industry. Notably, Freshworks holds the distinction of being the first Indian-founded SaaS company to be publicly listed on the Nasdaq exchange.

Now, when we talk about CRM software, Salesforce inevitably comes to our mind as the world's number one CRM platform. Challenging such a giant by gatecrashing their own conference - the biggest of events, Dreamforce, which draws over 200,000 attendees to the Bay Area - takes some serious guts, wouldn't you agree? That's precisely what Failsforce is all about.

So, what did Freshworks do? While Freshworks held great respect for Salesforce and its inspirational journey, there was a growing discontent among customers, especially small and medium-sized businesses (SMBs), who felt let down by the complexity and costliness of Salesforce's offerings.

Motivated by a dedication to simplicity and customer-centricity, Freshworks embarked on a mission to challenge the status quo. They commissioned a report from Forrester, revealing alarming statistics: 69% of SMBs expressed intentions to replace their CRM solutions, with 56% already formulating plans to do so within two years. It was evident that SMBs were yearning for a "fresh" alternative—software that was user-friendly, customizable, and devoid of unnecessary complexity.

Freshworks responded with Freshsales, a CRM product designed specifically for SMBs. But this was not it. They wanted to amplify the voice of SMBs and confront Salesforce directly. Thus, came Failsforce—a bold declaration urging companies to transition from cumbersome, outdated CRM solutions to Freshworks' refreshingly simple customer engagement cloud software.

In the heart of San Francisco, amidst the gleaming Salesforce Tower, Freshworks launched their revolt against bloated software. They flew a blimp bearing the hashtag #Failsforce on one side and ‘Hit Refresh’ on the other, inviting attendees of Dreamforce to join the movement and experience firsthand the simplicity and ease of their offerings. A pop-up space on Market Street provided a platform for dialogue, complemented by yoga classes, massages, and opportunities for partnership discussions. Additionally, Freshworks conducted a Facebook Live broadcast from the #Failsforce blimp, featuring interviews with ex-Salesforce customers who had switched to Freshworks. Executives were present to discuss the ambitious gate-crashing campaign and detail its purpose.

"Small businesses have been saddled with bloated and dysfunctional software for too long," - David Thompson, Former CMO of Freshworks.

(Image Courtesy: digitizingpolaris.com)

The message was clear: it's time to hit refresh on outdated CRM solutions and embrace a new era of customer engagement. With Failsforce, Freshworks sparked a conversation that resonated far beyond the confines of Dreamforce, igniting a movement toward simplicity, accessibility, and customer empowerment in the tech industry.

(Image Courtesy: freshworks.com)

In 2018, Salesforce boasted revenues exceeding $10 billion, while Freshworks had just surpassed the $100 million mark. This stark contrast in size clearly shows the confidence and utter fearlessness behind Freshworks' guerrilla marketing technique. "BOLD" is just the right word here, I must say.

The rise of the rival! 🚀

The result of this strategic marketing effort was Freshworks making headlines as a "Salesforce Rival."

When David Thompson joined Freshworks in 2018, the company was primarily known for its flagship product, Freshdesk. However, there was a lack of awareness about its other offerings like Freshservice and Freshsales, which competed with big players like ServiceNow and Salesforce.

Being a "Salesforce Rival" is just so much more delicious and valuable than being a smallish Zendesk competitor. - David Thompson, Former CMO of Freshworks

To establish Freshworks as a formidable competitor in the SaaS industry, they decided to position themselves against giants like Salesforce. With #Failsforce the aim was achieved, I would say.

Buzz was created on the ground and on social media. A roar precisely! Sharing just a tiny piece of the tweet tornado with you.

Additionally, Freshworks saw a surge in new customers and partners, increasing its market capitalization by more than 4X from $750 million in 2018 to $3.5 billion in 2019. Today, it is valued at $13 billion.

To Spoof or Not to Spoof!🤔

Spoofing has been practiced by companies for many years now. I will provide you with an interesting example of this marketing strategy before addressing the burning question: Is spoofing your competitor right or wrong?

Apple's "Mac vs. PC" advertising campaign, which ran from 2006 to 2009, generated ads where Apple directly compared its Mac computers to PCs running Microsoft Windows, portraying the Mac as cool and modern while depicting the PC as nerdy and outdated. The campaign featured actors portraying a Mac and a PC engaged in humorous conversations, often highlighting the perceived advantages of Mac computers over PCs. This campaign was a direct spoof of Microsoft's Windows operating system and the PC market, aiming to position Mac as a superior choice for consumers.

(Image Courtesy: sites.psu.edu)

Now, is spoofing your competitor a good idea?

Spoofing can be an effective strategy if executed thoughtfully. Here are some things to consider.

Your Spoof Campaign Checklist

#1 Creativity and Relevance: Ensure that your spoof is creative, funny, and relevant to your brand's message. It should resonate with your target audience and align with your brand's identity.

#2 Potential Backlash: Be prepared for potential backlash from your competitor and their supporters. Not everyone will appreciate the humor, so consider the potential risks before launching a spoof campaign.

#3 Long-Term Strategy: Have a clear plan for how you'll capitalize on the attention generated by the spoof. Use it as an opportunity to reinforce your brand's value proposition and drive engagement with your audience.

#4 Legal Considerations: Make sure your spoof complies with legal regulations and doesn't infringe on any trademarks or copyrights.

#5 Retaliation: Be ready for retaliation from your competitor. Just like Burger King spoofed McDonald's, expect that your competitor may respond in kind or take other actions to defend their brand.

Speaking of retaliation, let's talk about Salesforce and Siebel.

In the early 2000s, Salesforce positioned itself as the disruptor of the industry, challenging Siebel Systems' dominance with its innovative approach to CRM. Salesforce launched a bold marketing campaign called "The End of Software," positioning itself as the future of software delivery and contrasting its offerings with Siebel's traditional software model. This campaign included provocative advertisements and staged protests outside Siebel's headquarters.

(Image Courtesy: onelittleseed.com.au)

In 2018, Salesforce found itself on the receiving end of a similar tactic from Freshworks, which is the guerrilla marketing campaign we are discussing in this blog -"Failsforce."

Hence, spoofing your competitor can be a risky but potentially rewarding strategy if done right. It's all fair in love and advertising, after all!

Guerrilla Grooves🥁& Silent Signals📡!

Moving on to learning two crucial marketing concepts that emerge from our case study. These are strategies that savvy marketers can learn from and apply in their own campaigns. The first is guerrilla marketing, a dynamic approach that shakes up traditional advertising norms. The second is signaling, a subtle yet powerful method of communicating value to consumers.

Guerrilla marketing is a clever way for businesses to stand out and attract attention without spending a lot of money on traditional advertising. Instead of using typical methods like TV commercials or billboards, it relies on unique and unconventional tactics to catch people's eyes.

One key aspect of guerrilla marketing is its focus on personal interactions and social media to spread the message. This means that campaigns often involve things like street performances, flash mobs, or viral social media posts that grab people's attention and get them talking.

These guerrilla marketing efforts often take place in public spaces where there's a large audience, like streets, parks, or shopping centers. The goal is to reach as many people as possible while also choosing the right time and place to avoid legal issues.

One of the great things about guerrilla marketing is that it can be really creative and daring, which can attract some people who find traditional advertising boring. However, others might not like the ambush-style approach and could be turned off by it.

For businesses, this marketing strategy can be a cost-effective way to get their message out there and build brand awareness. By creating attention-grabbing campaigns that people want to share with their friends, companies can reach a wider audience without spending a fortune on advertising.

Like flying the Blimp, mocking your top giant competitor by gatecrashing in their own party is hard core guerilla marketing. You know the campaign that I am referring to here. Don’t you? 😉

While guerrilla marketing focuses on unconventional and attention-grabbing tactics to promote a brand or message, Signaling can be seen as a form of preparation to understand what kind of marketing strategies can be built around your product. It is about sending subtle but powerful messages to consumers that communicate the value and identity of your brand. It goes beyond words and relies on actions, interactions, and perceptions to shape how customers perceive your business.

Signaling can also involve showcasing unique traits or qualities that set your brand apart.By flying the blimp round Salesforce Towers during Dreamforce weekend, Freshworks signaled its audacity, its willingness to challenge established norms in the industry, take on industry giants, and carve out its own unique space in the market.

Ultimately, effective signaling in marketing requires a deep understanding of your brand's identity and the desires of your target audience. By aligning your actions and messaging with what customers want to see, you can create a powerful impression that sets your brand apart and resonates with consumers. So, the next time you're planning a marketing campaign, answer this fundamental question: What signals am I sending out? This simple question can lead to more impactful marketing strategies that capture the attention and loyalty of your audience.

Get your branding campaign right!

Now that we've talked about guerrilla marketing and signaling, it's time to put these ideas into action. Let's break down five simple steps to make your branding campaign really stand out. These steps, if executed right, can help you turn your ideas into reality, so your marketing can reach the right people and make a big impact. Here you go:

🎯 Find out where your target audience spends their time, both online and offline. Then, create a plan to be present and visible in these places.

🎯 Allocate a separate budget specifically for branding efforts. Make sure to spend this budget entirely without cutting corners or saving it for other purposes.

🎯 Define clear metrics to measure the success of your campaigns. Choose one or two key indicators, such as trending on social media, impressions, shares, or views, and focus on tracking those.

🎯 Plan a comprehensive campaign that includes multiple activities. Start with a buildup, create a big impact, and then wind down gradually. Coordinate all aspects of the campaign meticulously and aim for it to last at least a month, utilizing content, social media, and influencer marketing to maintain momentum.

🎯 Ensure that your campaign has a high recall factor. Include a clear call-to-action (CTA) or a way for people who encounter the campaign to easily return to your brand. Integrate this aspect into your planning right from the start.

Thus, as a two-line conclusion, I would like to say that the Failsforce campaign challenged Salesforce's dominance in the CRM market with the power of guerrilla marketing and strategic signaling. It has been five years since the campaign, and even today, when we read the story, all we can hear is Freshworks' loud and clear message - 'We're here too, and we're worth noticing!' That's the kind of impact this campaign has had :). That’s all for now. Have a great rest of the week! Ciao👋