Hubspot Marketing Essay

372 Words2 Pages
Your goal for the Hubspot case is to recommend how Hubspot should go about moving from a mass marketing strategy to a more targeted one. First, see if you can put together a marketing funnel for Hubspot based on the data in Exhibit 1 in the case. What’s the conversion rate for each node in their marketing funnel? What does this funnel suggest about the relative effectiveness of inbound vs. outbound marketing? Should Hubspot add more outbound marketing despite their philosophical concerns? As of 2/8/2014 % Leakage Rate Visitors 135000 100 Prospects 9500 7.04 93% Leads 3100 2.30 67% Opps 170 0.13 95% Customers 46 0.03 73% There is a significant leakage in the marketing/sales pipeline and Hubspot needs to work closely with the leads to convert them into customers. As per Exhibit 8, the churn rates tend to increase where customer’s age>15 months. Hubspot needs to investigate the reason of this high churn rate. Since hubspot has essentially coined the concept of inbound marketing, any direct outbound marketing would have a determinable effect of the company’s image and value proposition. However, we would recommend that Hubspot engage in “Luke-warm” outbound communication, i.e., target their ex-customers, include referral programs where existing customers refer new customers for a monthly discount on customer conversion. Next, assume that B2B is the better target. So, the next job is to prioritize between Mary Marketers and Ollie Owners. So, evaluate the customer-perceived value of Hubspot to these segments. Segment Benefits Costs Ollie Owners Makes up 73% of the current Customer base Lower Acquisition cost ($1000) Easier to Reach Shorter Selling Cycle Basic and Simple Solutions Huge Market Less knowledgeable and sophisticated users Owners are likely to absorb a price increase Churn Rates decrease significantly for CMS

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