HubSpot: Inbound Marketing and Web 2.

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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 2 .

Time Consuming 3 . Lot to Learn .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 .

03% 4 .4% 0.81% 1.1% => 0.HubSpot customer funnel 100% 45.51% 0.

HubSpot customer funnel Nurturing Not Converted 5 .

com 6 .Market Activities Creating Traffic HubSpot Lead Qualification Marketing (Profiling) Sales Conversion Salesforce.

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 7 .

84 Months » CLV = $ 3301 8 . Churn = 3.3% » Average Life = 15.37 Months » CLV = $ 5371 » B2C .SEGMENTS CLV » $500+Average Revenue Per Month*Average Customer Life » B2B . Churn 6% » Average Life = 8.

SEGMENTS – B2B » OO Market : ~ 83K » MM Market : ~ 25K » OO Life : 14.25 Month » CLV: $ 11125 » Hubspot Owner » Breakeven Month : 2 » Hubspot Marketer » Breakeven Month: 9 » Lower Churn rate for CMS hosted sites 9 .31 Months » CLV: $ 4077.5 » MM Life: 21.

TARGET SEGMENTS OO B2C MM X X B2B   But Marketing Rules are changing . Target ALL without any discrimination 10 .

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) 11 .

” » 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 12 . then we shouldn’t be selling software that helps other companies do it.inbound Vs outbound marketing » “If we couldn’t make inbound marketing work for our own company.

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? 13 .

THANK YOU .

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