Hubspot Case Essay

665 Words3 Pages
PROBLEM STATEMENT Having proved successful, HubSpot has now reached crucial juncture, when in order to accelerate the growth rate and to increase their profitability, they need to decide: 1) which segment of their customers to target; 2) develop new pricing strategy; 3) determine whether they can still maintain their scale by using only inbound techniques or they will need to implement outbound techniques as well. SITUATION ANALYSIS Customers HubSpot’s customer base comprises of Owner Ollie (73%) and Marketer Mary (27%). | Pros | Cons | | Easy to sell to | Limited resources | Owner Ollie | Acquisition cost of 1000$ | High churn rate | | Simple sollutions | High macroeconomic risk | | Fast selling | Low revenue per customer | | Pros | Cons | | Higher revenue per customer | Harder to sell to | Marketer Mary | Lower churn rate | Acquisition cost of 5000$ | | More sophisticated analytics | Takes longer to sell to | | More resources | 2% CMS | For better understanding of the values that each of the segment represents, the Customer Lifetime Value (CLV) analysis is needed. | Owner Ollie | Marketer Mary | Acquisition Cost | 1000$ | 5000$ | Initial Fee | 500$ | 500$ | Current Revenue (per month) | 250$ | 500$ | Churn rate | 4,3% | 3,2% | Average lifetime(1/Churn rate) | 23,26 | 31,25 | CLV(Av. Lifetime x Cur. Rev – Acquis. Cost + Initial Fee) | 5315$ | 11125$ | Competition HubSpot is one of the leaders among companies that offer tools to businesses to facilitate “customer funnel” – 3-staged process, each of which represents 3 different activity areas, of attracting a customer. Most of competitors play in 1 or 2 areas, which is an obvious advantage for HubSpot, that has strong positions in all the 3. Though strong positions, still there are big competitors in each segment, like, for example, Salesforce.com,

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