HubSpot: Inbound Marketing

and Web 2.0

Abhijit Roy | Ajay Verma | Himanshu Jain | Nitish Mittal | Yogesh Gupta

© http://thesocialcanvas.blogspot.com
 Issues
» Developing market segmentation and targeting
strategies to decide which customer to serve and
which to turn away
» Come up with suitable Pricing Model
» Determining whether inbound marketing programs
can generate enough scale or whether traditional
outbound marketing methods need to be employed
to accelerate growth
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 HuBspot
» SaaS Inbound Marketing Application
» Pull rather Push

» Subscription Model of Revenue

» Customer Conversion Cost - Immediate
» Revenue over a period of Time
» Gap in Cash Flows – Bigger with growth
» Requires Large Capital
» Churn in the middle?

» Actual Marketing is NOT done by HubSpot – Marketplace

» Labor intensive , Lot to Learn , Time Consuming
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 HubSpot customer funnel
100%

45.81%

1.51%

0.1% => 0.4%

0.03%

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 HubSpot customer funnel

Nurturing

Not
Converted

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 Market Activities

Creating Traffic

HubSpot
Lead Qualification
Marketing (Profiling)

Sales
Conversion

Salesforce.com

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 SEGMENTS
» Total Number of Customers till December 2009
» (Total Customer Till December 2008 + Customer Acquired
in December 2008* (1+Customer Acquisition Growth rate)
) * (1-Churn rate)

» Owner Ollies : 1642

» Marketer Mary : 4407

» B2B : 6970

» B2C : 973
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 SEGMENTS CLV
» $500+Average Revenue Per Month*Average
Customer Life
» B2B , Churn = 3.3%
» Average Life = 15.37 Months
» CLV = $ 5371

» B2C , Churn 6%
» Average Life = 8.84 Months
» CLV = $ 3301
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 SEGMENTS – B2B
» OO Market : ~ 83K » MM Market : ~ 25K

» OO Life : 14.31 Months » MM Life: 21.25 Month

» CLV: $ 4077.5 » CLV: $ 11125

» Hubspot Owner » Hubspot Marketer

» Breakeven Month : 2 » Breakeven Month: 9

» Lower Churn rate for

CMS hosted sites
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 TARGET SEGMENTS
OO MM

B2C X X

B2B
 

But Marketing Rules are changing , Target ALL without any discrimination
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 Pricing Model
» Currently Monthly

» Exhibit 8 : Average Age of Customer ~ 12.7 months

» Shift to yearly Subscription
» Customer Acquisition Cost will be recovered sooner

» Customer Lock-in

» May Lose out OO Customers

» Option to Customer : Monthly or Yearly Subscription

» HubSpot Owner : $500 + ($250/Month or $2000/Year)
» HubSpot Marketer : $500 + ($500/Month or $5000/Year)
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inbound Vs outbound marketing
» “If we couldn’t make inbound marketing work for our own company, then
we shouldn’t be selling software that helps other companies do it.”

» Exhibit 8 : The Flat final conversion rate is misleading

» No STP being done during that time => Quality of leads

» Cost of Lead Generated using IM is 5-7 times less

than a lead generated by OM

» Go for Inbound

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 Food for thought
» Online-to-Online Closure

» Online-to-Offline Closure
» Manipal Universal Learning
» Online Lead Generation to Offline Final Closure

» 2nd Moment of Truth : When prospective students come to the

class for counseling

» Will Inbound strategy differ?

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THANK YOU