HubSpot: Inbound

Marketing and Web 2.0

Syndicate: B1
• Aayush Baid
• Arpit Sood
• Antara Sharma
• Jaimin Shah
• Sagar Raja
• Saket Verma
• Suneetha
• Vinimay Chauhan
Introduction
Current Marketing Strategy
• Inbound marketing is a strategy that focuses on attracting customers by creating
Company Background valuable and relevant content that aligns with their interests and needs.
• Founded in 2006 by Brian Halligan & Dharmesh Shah • “Smarketing” - sales team combined inbound marketing with marketing and sales
• Pioneer in Web 2.0 marketing • Helped businesses fill and manage their Customer Funnel consisting of:
• Coined the term “Inbound Marketing” • Visitors
• Reached milestone of 1,000 customers in 4 years • Prospects
• Niche product • Leads
• Goals: accelerate their growth rate and increase profitability • Opportunities
• Customers

Current Product Description

A complete inbound marketing system designed to generate more qualified leads
efficiently and convert them into sales consisting of the following features:
• Content Design: user-friendly content management system providing relevant Current Customer Type
templates & guidelines for content generation • Customer’s Industry spanned : Professional Services, Health Care, Software, Real Estate &
• Exposure Optimization: series of tools that increase content exposure Construction, including B2B and B2C
• Lead Tracking & Intelligence: marketing intelligence analytics tracking customer • Customers were categorized into:
engagement
• Owner Ollie: small business owners - looking to generate more leads

• Marketer Mary: marketing professionals – looking for analytics & reports

Problem Statement
• Is HubSpot serving the right set of customers?
• Should the founders stay with the present approach of inbound marketing or adopt outbound marketing?
Pricing & Customer retention strategy
1.Pricing Strategy: In order to reduce the churn rate and increase the customer lifetime. Adding to their
existing monthly plan they should come up with yearly and quarterly packages with price discount. Below is a
snapshot of the current v/s the new prices that Hubspot can keep for both the strategies:

Particulars Owner Olly Marketer Mary

Cost to Acquire $1000 $5000
Current Price $250 $500
New Price/Quarter Around $1000 Around $1900

2. Customer retention strategy: Currently, Hubspot’s customers end using their services once the
marketing activities are done. However, Hubspot should make its customers realize the importance of long-term
association, and how can it help them in increasing their topline.
SWOT Analysis of Hubspot
STRENGTHS
• Works across wide spectrum of customers (B2B, B2C etc)
• Hubspot practices inbound strategy in line with its vision
• First movers and thought leaders inbound marketing strategy
• Ease of use
OPPORTUNITIES
• Consulting service drives up long-term customer engagement
• Large market size (2.2 million potential customers)
• Market expansion to small startups: Hubspot enables small startups to
compete with larger firms
WEAKNESS
• Selectivity of leads i.e. 50% of the leads from the overall customer base
• Pricing strategy fails to retain customers
• Increased churn rates
• Learning curve is higher for certain service segments
THREATS
• Potential competitors (Eg: Salesforce)
• Internal pushback to utilise outbound marketing to grow
• Risk of becoming obsolete in the future

Is HubSpot serving the right set of customers?

Customer Type Pros Cons
Marketing Mary • Lower Churn Rate • Harder to reach
• Less Risky • Longer selling cycle
• Interested in Analytical reports offered by HubSpot • Higher acquiring cost $ 5000
• Have more money to spend on our product

Owner Ollies • Are a major part of our portfolio (73%) • Require more education
• Large market potential • Higher churn rate
• Low cost of acquisition ($1000) • Risky

Wide Net Focus • Large market potential, focus on one will decrease • Requires diverse product range and
earning potential employees
• Risk is averaged out
 PLAN OF ACTION
• Outbound marketing is a traditional marketing
strategy that involves interrupting potential
customers with unsolicited messages. This can be
done through methods such as advertising,
telemarketing, and direct mail.
• Outbound marketing can be effective in some
cases, but it can also be expensive and ineffective.
In addition, outbound marketing can be seen as
intrusive and annoying by potential customers.
• Inbound marketing is more effective than
outbound marketing because it is more relevant to
potential customers and it is less intrusive. In
addition, inbound marketing can be more cost-
effective than outbound marketing.
• If HubSpot goes for Outbound marketing, it might
lead to dilution of their brand. Furthermore, in this
strategy, HubSpot risks losing it’s “Claim to
Fame” i.e. “Inbound Marketing”
Consultation Service
Advancement
• Hire more product consultant
• Consultant training department
establishment
• Prompt education and support
for our customers
Grasp customer view
• Survey to trace customer usage experience
• Improve customer relationships
• Improve brand image
Keep growing
• Keep growing in terms of product development
and business model
• Increase threshold to create strong entry barriers
• Help ollies in creating long term plans
• Focus on larger MNCs as well