Hubspot Case Analysis

1. Inbound
Marketing
& Web 2.0
Case Study Analysis
Pooja Biswas I Srikrishna Bhat I Kapil Silliwal I Blasius D’souza I Vivek Venugopal I Milli I Siddhant
Apte
GROUP 1 - PARTICIPANTS

2. 2
SMMe1 - Group 1 Hubspot Case Study Presentation
Introduction
Case Facts
73.00%
27.00%
Owner Ollies
Marketer Marys
68.00%
32.00%
B2B B2C
2.00%
13.00%
85.00%
Total > 25 CMS Total < 25 CMS
Non-CMS
Halliga
n
CEO
Shah
Chief Software
Architect
Customer Portfolio
Need ? Market Gap Identified
Organizations unaware about how to harness the internet
to build a business
Hubspot Solution
Build software products that helped companies execute
inbound marketing programs to supplement or replace
traditional outbound programs
Content Design
Exposure
Optimizati
on
Lead Tracking + Intelligence
Looking Ahead (What Next ?)
• Reached benchmark of 1000
customers
• Sitting on Diverse Customer
segments
• How to retain customers and slow
down churn ?
• Should you perceive outbound ?

3. 3
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 1
Do you agree with HubSpot that the "rules of marketing" have changed? If so, how? Is inbound marketing the answer? Why or why not?
TV commercials, Digital Signage,
radio ads, print advertisements
(newspaper ads, magazine ads,
flyers, brochures, catalogs, etc.),
tradeshows
Social Networks
SEO, blogging, Email, Document
Sharing, Webinars, Podcasts, White
papers, Referrals, Forums, streaming
content, News/PR
MARKETER DRIVEN
“PUSH”
CONSUMER
DRIVEN
“PULL”
pulling people away
from their dinner, or
family, or TV and
interrupting their
lives
bombarded
by the daily
deluge of
commercial
messages
direct mail, trade
shows, and
telemarketing
were yielding
less new
business
Generating
new
business at
higher rates
Hear & See
when
interested
Pull prospects
towards
solution
Communicate
when most
engaged
Useful
Content
linked to
Relationship
Deal
Qualified
Customers
Low Cost &
Higher
Efficiency

4. 4
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 2
Is HubSpot finding and serving the right set of customers?
SEGMENTATION (S)
SEGMENTATION (S) TARGETTING (T) POSITIONING (P)
•1-25 Employees
•Manage all Dept.
•Scarce Time &
Resources
Demographic
s
Behaviors
Affiliations /
Occupation
• 26-100
Employees
• Dept. wise focus
• Marketing
Professionals
•Less Knowledge
on Web 2.0
•CMS – 13%
• Knowledgeable
Web 2.0
• Use Tools & New
Age practices
•CMS – 2%
•Generate Leads
•Focus on SEO
• Running
Programs
• Evaluating
Results
• ROI, Analytics
•Marketing Managed
Internally
•Buying Pattern is
Complex
• High Performing
Web Consultants
• Outsource
Marketing
• Strong media
presence
•Meagre experience
- Web 2.0.
•Need consulting &
integration
services
• Fully aware of
Web 2.0
• Content &
Templates -
Rudimentary
•Selling to other
Businesses
• Selling to
Individuals
• 3rd
Party Agencies
•Small Businesses
•No programming
skills
• Medium & Large
Businesses
• Have internal
competency
•Used predesigned
templates, blogs,
HTML.
• Have better
means of
generating
content.
• Or Unware
•Used for adding
interactivity to
brochureware
website
• Engage third
party for content
generation &
procurement
OWNER
OLLIES
MARKETER
MARY B2B B2C CMS NON - CMS
DIFFERENTIABL
E
YES YES YES YES YES YES
QUALITATI
VE
ANALYSIS

5. 5
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 2
Is HubSpot finding and serving the right set of customers?
SEGMENTATION (S) TARGETTING (T)
TARGETTING (T) POSITIONING (P)
OWNER
OLLIES
MARKETER
MARY B2B B2C CMS NON - CMS
CLV
$ 5,314 $ 11,125
73%
of total base
27%
of total base
$ 1,000
Acquisition Cost
$ 5,000
Acquisition Cost
$ 8,864 $ 3,750
68%
of total base
32%
of total base
Complex products
selling
$ 15,357 $ 5,000
15%
of total base
85%
of total base
NO.
4.3% churn
YES.
3.2% churn.
Longer relationship.
Spend higher value
YES.
3.3% churn rate.
Continuous support
needed. Derive
higher value.
Yes. Inbound.
Shorter sales cycle.
Easier to reach.
Higher selling
cycle. Harder to
reach.
•..
Relevant &
Effective
Measurabl
e
Sustainabl
e
Accessibilit
y
Actionable
CHURN &
GROWTH
POTENTIA
L
Had online
presence
Subset of Oo’s or
MM’s
Subset of Oo’s or
MM’s
NO.
6.0% churn rate.
Low utility for hubspot
products.
YES.
2.1% churn rate
NO.
5.5% churn rate
Subset of Oo’s or
MM’s
Subset of Oo’s or
MM’s
Subset of Oo’s or
MM’s

6. 6
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 2
Is HubSpot finding and serving the right set of customers?
Owner
Ollie
Owner
Ollie
(CMS)
Owner
Ollie (Non
CMS)
Marketer
Mary
B2B B2C CMS Non CMS
Consulting Fees $500 $500 $500 $500 $500 $500 $500 $500
Subscription Fees $250 $250 $250 $500 $375 $375 $375 $375
Cost of
Acquisition
$1,000 $1,000 $1,000 $5,000 $3,000 $3,000 $3,000 $3,000
Break Even
(months)
2 2 2 10 6 6 6 6
Churn Rate 4.30% 2.10% 5.50% 3.20% 3.30% 6.00% 2.10% 5.00%
Retention Rate 95.70% 97.90% 94.50% 96.80% 96.70% 94.00% 97.90% 95.00%
Lifetime 23.26 47.62 18.18 31.25 30.30 16.67 47.62 20.00
Total Revenue $ 3.6 Mn - - $2.8 Mn $8.7 Mn $1.1 Mn $2.2 Mn $4 Mn
AVG. CUSTOMER
LIFETIME VALUE $5,314 $11,405 $4,045 $11,125 $8,864 $3,750 $15,357 $5,000
SEGMENTATION (S) TARGETTING (T)
TARGETTING (T) POSITIONING (P)
COST
BENEFIT
PRICING
ANALYSIS
Note: Assumed B2B, B2C, CMS & Non CMS Avg. Acquisition cost $375 for explanation ONLY. Initial Cost has been included as revenue for calculating ACLV.

7. 7
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 2
Is HubSpot finding and serving the right set of customers?
SEGMENTATION (S) TARGETTING (T) POSITIONING (P)
POSITIONING (P)
Functional
Symbolic
Experimental
HIGH UTILITY
LOW UTILITY
HIGH
PRICE
LOW
PRICE
OWNER
OLLIES
MARKETER
MARY
B2B
B2C
CMS
NON - CMS
OWNER
OLLIES - CMS
PRODUCT
DESIGN
THINKING POSITION
MAP

8. 8
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 3
Overall what is the most important problem that hubspot is facing now? What could be the possible solution alternatives?
0 2 4 6 8 10 12
0%
5%
10%
15%
20%
25%
25%
30%
35%
40%
45%
50%
New Acquisition
LEAD TO CLOSURE RATE NEW ADDITIONS OPP TO CLOSURE RATE
Very Small Businesses
Small Businesses
0%
2%
4%
6%
8%
B2B
B2C
VSB v/s B2B v/s B2C Churn
B2B B2C
Owner Ollies Marketer Marys B2B B2C CMS Non-CMS
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
0%
1%
2%
3%
4%
5%
6%
7%
Churn Rate v/s Revenue
Total Revenue Average Churn Rate (PM)
86,538 526,355
632,682
1,043,448
Market Potential
Large Medium Small Very small
V SMALL &
SMALL (73%)
BUSINESS
HIGH
POTENTIAL
HIGH CURN
AVG
REVENUE
HIGH CURN
LOW
REVENUE
OO’s –
High
CHURN
Falling
CLOSURE
RATES
LOWER
CHURN
-VE NEW
ADDs
-VE NEW
ADDs
-VE NEW
ADDs
LOW CURN
HIGH
REVENUE
QUANTITATIVE
ANALYSIS
19 or less Employees
Higher Opportunity

9. 9
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 3
Overall what is the most important problem that hubspot is facing now? What could be the possible solution alternatives?
CUSTOMER
SEGMENTS
?
PRICING
STRATEGY ?
OUTBOUND
IN FUTURE ?
GROWTH
PROFITABILIT
Y
CHURN
• Growth Rate Diminishing
• Churn Rate Increasing
• New Acquisition Decreasing
• Need for outbound ?
RELATIONSHIP
BUILDING
PRODUCT DESIGN
THINKING
RETENTION PROGRAMS
CUSTOMIZABLE
MODULARIZED
SALES TRAINING
RELATIONSHIP
BUILDING
COST BENEFIT
ANALYSIS
TIERED PRICING
SEGMENT PRICING
HIGHER LOCK INs
CROSS SEGMENT SELL
PROMOTE CMS
BLENDED
DIGITAL
APPROACH
OUTBOUND
BASED CLOSURE
ONLY
1
2 3
1
2
1 2
1 2
GTM SELLING
PARTNERSHIPS
3
HIGHER LOCK IN
PERIODS
3
CANT HIT THE
BRAND & ITS VALUES
3
• Diverse Customers
• Difficult to customize
process to the segments
• Human & Financial strain
• Pricing Model to suitable to
all
• Entice New Customers
• Increase Profitability of
Existing

10. 10
SMMe1 - Group 1 Hubspot Case Study Presentation
PRODUCT
PLACE
PRICE
PROMOTIO
N
4 P’s
Question 4
Suggest a road map for Hubspot ?
• CUSTOM TO SEGMENTS
• ON-PREMISE
DEPLOYMENT
• PERPETUAL LICENSE
• ADD TEMPLATES
(website, blogs, SN)
• ADVANCE ANALYTICS
• CLOSURE CYCLE
• HIGHER WEB PRESENCE
• WEBSITE – PRIMARY
FOCUS
• OTHER TIERS:
• Social Media
• Media Streaming
• Third PARTY WEB
TIERED PRICING
• SEGMENT WISE PRICING
• Subscription $250 - $750
• Consulting 4 Hr – 7 Hrs
• Free Bies
• PRICING SUGGESTIONS
• OO’s – $250 with 6 months
lock in
• MM’s - $375 with annual
contract
• Non CMS – Convert to CMS
with 2 months free trial
• BRAND FOCUS
• Digital
• Inbound
• Video streaming based
campaigns
• Create presence over
conferences and host
online events

11. 1
1 2
2 3
3 4
4
7
7 6
6
5
5
8
8 9 10
5a
On-
boarding
Prospect – From
Inbound Funnel
Email
Sign Up
Search &
Find
Profiles
GEO
FENCING
Recurrin
g Job
Order
Closure
Profile
Building
11
SMMe1 - Group 1 Hubspot Case Study Presentation
Outbound 2.0
Marketing Isn’t a Zero-Sum Game
CONTENT
Creation
PROMOTE, Build
Relationship
Grow Traffic &
Lead Conversion
Scoring
Sales
Effort
Outbound
2.0
Email
Reminder
Follow up
Offers
ONLINE
ADVERTI
SEMENT
POSTS
ON
SOCIAL
MEDIA
LOGO on
OTHER
SITES
FEEDBAC
K &
RATING
OUTBOUND 2.0
Target
Interests
v/s
offerings

12. 12
SMMe1 - Group 1 Hubspot Case Study Presentation
Question 4
Suggest a road map for Hubspot ?
YEAR
‘03
Product Development
• Modularize
• Customize for segments
• Tiered Pricing
• Advanced Analytics
• CMS improvements
Blended Outbound Web
2.0
• Add Digital Channels
• Use outbound digital
blended for closure only
Next Generation Services
• Artificial Intelligence in
Algorithm
• Micro segmentation
• Next best Actions
Product Differentiation
• Acquisition of competition
• Integration 3rd
party Services
• Building Eco system / Network
effect
Market Development
• Relationship building
• Customer Focus / CX
• Retention programs
• Build SI Partners
YEAR
‘01
YEAR
‘01
YEAR
‘02
YEAR
‘02
YEAR
‘03

13. Thank You