The document discusses HubSpot's inbound marketing strategies and outlines core competencies such as funnel optimization and customer service, along with goals like growth and profitability. It emphasizes adding limited outbound marketing techniques, implementing 'lukewarm calling' to engage with opted-out customers, and improving customer lifetime value through pricing segmentation and CMS integration. Key takeaways include the potential for significant revenue growth and improved customer retention through strategic changes and third-party integrations.

1. HubSpot
Inbound Marketing and Web 2.0
Orion
Evan Nicoll
Jessica Lange
Consulting, LLC
Connor Dismer
Lloyd Walker

2. Agenda
• Introduction
• Core Competencies
• Goals (General and Specific)
• Concluding Remarks and Questions
Nicoll Lange Dismer Walker

3. Core Competencies
• Funnel Optimization
• Customer Service
• Content Management
Nicoll Lange Dismer Walker

4. Goals
• General
• Growth
• Increase Profitability
• Exit Strategy
• Specific
• Outbound Marketing and Segmentation Decisions
• Increasing Customer Lifetime Value
• Organization Structure
Nicoll Lange Dismer Walker

5. Outbound Marketing and
Segmentation Decisions
• Outbound Marketing Decision
• Add Limited Outbound Technique
• Customer Segmentation
Nicoll Lange Dismer Walker

6. Outbound Marketing Decision
Increase Hurt
Growth Brand
Rate Image
Nicoll Lange Dismer Walker

7. Add Limited Outbound
Technique
• Continue with current inbound marketing strategy
• Introduce “lukewarm calling”
- Call those who have expressed interest but opted out
- Already have a relationship with them
- Permission to contact them
• Discover why companies opted out of HubSpot
• Should not hurt brand image since it is not true
outbound marketing
Nicoll Lange Dismer Walker

8. Customer Segmentation
• Growing faster and lower
Marketer churn rate
• Tailor product to pull more
Marys Marys in
• Focus on Ollies that sell
Owner high involvement products
• Offer slimmed down
Ollies product
Nicoll Lange Dismer Walker

9. Increasing Customer Lifetime
Value
• Current Customer Lifetime Value
• Pricing Segmentation
• CMS for Owner Ollies
• Third Party Integration
Nicoll Lange Dismer Walker

10. Current Customer Lifetime Value
Owner Ollies Marketer Marys
Monthly Fees $250 per month $500 per month
Acquisition Cost $1000 $5000
Break-even 3.5 months 9 months
Churn Rate 4.3% 3.2%
CLTV (3 year max) $3920 $5935
Two ways to improve these figures
• Increase price
• Reduce churn
Nicoll Lange Dismer Walker

11. Pricing Segmentation
Percent of 30% 40% 30% 10%
Customers
Owner Ollie $200 $300 $400 $500
Price Point
Original Price $250 Weighted $350
Average
Marketer $400 $600 $800 $1000
Mary Price
Original Price $500 Weighted $700
Average
• Raises average monthly revenue per customer by
$100 and $200
• Should not negatively affect churn rate
Nicoll Lange Dismer Walker

12. CMS and Owner Ollies
Non-CMS Ollies CMS Ollies Marketer Marys
Churn Rate 5.5% 2.1% 4.3%
Average Customer 14.9 months 24.9 months 20.9 months
Lifetime
CLTV (3 year max) $3235 $5726 $5934
Key Takeaways
• CMS increases CLTV by over $2000
• Website transfer costs $500
• Transfer makes sense to offer for free
New Tactics
• Limit options for non-CMS with new Owner Ollies
• Entice old customers to transfer
• Could earn up to $1.6 million in revenue over 3 years
if all existing Owner Ollies transfer
Nicoll Lange Dismer Walker

13. Third Party Integration -
Services
• Improve Convenience
• Valued Highly by Owner Ollies
• Less expertise
• Limited time
• Create a marketplace for Online Marketing Firms
• SEO management
• Content Production
• Added Bonus: We get a cut of the revenue
Nicoll Lange Dismer Walker

14. Third Party Integration -
Applications
• Offer more functions
• Valued by Marketer Marys
• Meets demand for more features
• Reduces churn
• Integrate with third party applications
• Reduces long-term costs
• Already the case with Salesforce.com
• Potential for affiliate revenue
• Added Bonuses
• More resources to focus on core offerings
• Positions HubSpot as central platform for inbound marketing
Nicoll Lange Dismer Walker

15. Organizational Structure
The Objectives
1. Operational efficiency and effectiveness
2. Financial Accountability
3. Legal compliance
Relevant Controls Over Financial Reporting
General Controls Access Controls
a) Hot Site Backup Facility a) Password Protection
b) Firewall b) Device Authorization
c) Audit Trail Table
(Reasonableness Check) c) Systems Access Log
d) Dispute Finder d) Callback
e) Trackback
Nicoll Lange Dismer Walker

16. Organizational Structure
Investment Center
(limited staff)
Database
Programming Administrator
Marketing Marketing
(Owner Ollies) (Marketing Marys)
CMS Consultants Consultants
24/7 Customer Help Desk
Support
Nicoll Lange Dismer Walker

17. Performance Analysis
Real EBITDA
$35,000,000.00
$30,000,000.00 $29.9 mill
$25,000,000.00
$23.4 mill
$20,000,000.00
$18.3 mill
$15,000,000.00 $14.3 mill Real EBITDA
$10,000,000.00 $11.2 mill
$8.8 mill
$6.9 mill
$5,000,000.00 $4.8 mill
$2.7 mill
$- $.4 mill
1 2 3 4 5 6 7 8 9 10
Annualized Growth
100
80 85.04
60
73.95
66.43
61.01 56.92
*IRR 74.29
53.72
40 Annualized Growth
20
0
1 2 3 4 5 6 7 8 9 10
Nicoll Lange Dismer Walker

18. Hedonic Pricing
Components Market Share Prime Premium
Network Externalities
Mindshare
Software Price
Benefits
Trialability
Percentage of Percentage of
Customers 0.3 0.4 0.3 0.1 Customers 0.3 0.4 0.3 0.1
Weighted Weighted
Price 200 300 400 500 Average Price Price 400 600 800 1000 Average Price
60 120 120 50 350 120 240 240 100 700
Nicoll Lange Dismer Walker

19. Concluding Remarks and
Questions
• Implement “Lukewarm” Calling to Revise the Funnel
• Third Party Integration to Increase CLTV
• Management Assertions for Exit
Nicoll Lange Dismer Walker