Scribd Logo
Upload

Welcome to Scribd!

  • 155 views

    Hubspot: Inbound Marketing and Web 2.0

    Uploaded by

    Demendra Bhagat
    Hubspot offers inbound marketing tools and services. They have different customer segments - Marketing Mary values analytics and reporting for her complex inbound programs, while Owner Ollies wants quick simple solutions to generate leads. Owner Ollies have a low acquisition cost but high churn rate, while Mary has a longer customer lifetime due to ongoing usage. B2B customers value lead qualification analysis for complex sales, while B2C customers are sophisticated users who found Hubspot templates basic. The document recommends Hubspot address churn by charging higher upfront fees to segments like Ollies who derive quick value, while offering longer subscriptions at lower rates to lock in customers whose churn peaks in the second year. It also suggests Hubspot focus on select segments to

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Hubspot: Inbound Marketing and Web 2.0

    Uploaded by

    Demendra Bhagat
    155 views4 pages
    Hubspot offers inbound marketing tools and services. They have different customer segments - Marketing Mary values analytics and reporting for her complex inbound programs, while Owner Ollies wants quick simple solutions to generate leads. Owner Ollies have a low acquisition cost but high churn rate, while Mary has a longer customer lifetime due to ongoing usage. B2B customers value lead qualification analysis for complex sales, while B2C customers are sophisticated users who found Hubspot templates basic. The document recommends Hubspot address churn by charging higher upfront fees to segments like Ollies who derive quick value, while offering longer subscriptions at lower rates to lock in customers whose churn peaks in the second year. It also suggests Hubspot focus on select segments to

    Original Title

    HubSpot.pptx

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Hubspot offers inbound marketing tools and services. They have different customer segments - Marketing Mary values analytics and reporting for her complex inbound programs, while Owner Ollies wants quick simple solutions to generate leads. Owner Ollies have a low acquisition cost but high churn rate, while Mary has a longer customer lifetime due to ongoing usage. B2B customers value lead qualification analysis for complex sales, while B2C customers are sophisticated users who found Hubspot templates basic. The document recommends Hubspot address churn by charging higher upfront fees to segments like Ollies who derive quick value, while offering longer subscriptions at lower rates to lock in customers whose churn peaks in the second year. It also suggests Hubspot focus on select segments to

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    155 views4 pages

    Hubspot: Inbound Marketing and Web 2.0

    Uploaded by

    Demendra Bhagat
    Hubspot offers inbound marketing tools and services. They have different customer segments - Marketing Mary values analytics and reporting for her complex inbound programs, while Owner Ollies wants quick simple solutions to generate leads. Owner Ollies have a low acquisition cost but high churn rate, while Mary has a longer customer lifetime due to ongoing usage. B2B customers value lead qualification analysis for complex sales, while B2C customers are sophisticated users who found Hubspot templates basic. The document recommends Hubspot address churn by charging higher upfront fees to segments like Ollies who derive quick value, while offering longer subscriptions at lower rates to lock in customers whose churn peaks in the second year. It also suggests Hubspot focus on select segments to

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    Hubspot : Inbound

    Marketing and Web 2.0


    Value perception by OO, MM, B2B and
    B2C Segments
    Marketing Mary (MM) Owner Ollies (OO)

    • Interested in analytics and reports • Primary objective was to generate more


    • Ran many inbound marketing programs. leads for their businesses.
    Hence, needed robust and sophisticated • Needed quick simple solutions to feed the
    tools to design and measure results. top of their customer funnels.
    • Difficult to acquire these customers but • Cost to acquire was low but churn rate
    stayed longer. was higher. Can be mitigated by CMS.
    • Long customer life was due to usage of • Derived value in first few months through
    monthly analytics and reporting. optimising after which they left Hubspot.

    Business to Business (B2B) Business to Consumer (B2C)

    • Had little or no experience with Web 2.0 • These companies were sophisticated
    and required more attention in form of Web 2.0 users and found Hubspot
    customer service. content templates rudimentary.
    • Derived greater value from inbound • Already had high performing websites
    marketing to feed their customer funnel as and a strong social media presence.
    they sold complex products involving • As the value derived by these customers
    longer decision making cycles. is comparatively less than other
    • Therefore, these customers derived segments, the churn rate for these
    greater value from lead-qualification customers is highest.
    analysis that Hubspot provided.
    Addressing the problem of Churn
    from a pricing format 
    • Owner Ollie’s churn rate is higher as compared to Marketer Mary but start-up fee is the
    same for both in current pricing strategy. As Owner Ollie’s are easier to acquire and
    derive most of their value initially, they should be charged a higher up front fee. A higher
    up front fee and lower ongoing fee will reduce their churn rates. Also, higher ongoing fee
    can be charged to MM’s as their price sensitivity is low and their continuous engagement
    is high.

    • Profiling of customers should be done based on their expected lifetime with Hubspot and
    customers with lower lifetime values should be charge higher upfront fee and
    subscriptions for longer lock in periods at lower rates.

    • Exhibit 8 shows that higher rate of churn takes place in the second year after customer
    acquisition. Therefore, customers should be provided subscriptions of 2 years at
    significantly lower rates. An increase in engagement with Hubspot resources might lead
    to lower churn.

    • Due to lack of targeting, the customer set is very diverse which leads to difficulty in
    setting an optimal pricing strategy for every customer.

    • Hubspot should cater to limited customer segments only as requirements in terms of


    product features, customer service and pricing vary a lot. The saved effort can be
    invested into further developing offerings for selected customer segments which will
    reduce churn rates and allow Hubspot to charge higher premium for its offerings. CMS
    for Owner Ollies is one such example.
    Thank you

    You might also like