case analysis - hubspot: inbound marketing and web 2.0
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Case Analysis - HubSpot: Inbound Marketing and Web 2.0TRANSCRIPT
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 2
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 3
HubSpot customer funnel
4
100%
45.81%
1.51%
0.1% => 0.4%
0.03%
HubSpot customer funnel
5
Nurturing
Not Converted
Market Activities
6
Creating Traffic
Lead Qualification
(Profiling)
Conversion
Marketing
Sales
HubSpot
Salesforce.com
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
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 = $ 33018
SEGMENTS – B2B
» OO Market : ~ 83K
» OO Life : 14.31 Months
» CLV: $ 4077.5
» Hubspot Owner
» Breakeven Month : 2
» Lower Churn rate for
CMS hosted sites9
» MM Market : ~ 25K
» MM Life: 21.25 Month
» CLV: $ 11125
» Hubspot Marketer
» Breakeven Month: 9
TARGET SEGMENTS
10
But Marketing Rules are changing , Target ALL without any discrimination
X X
B2B
B2C
OO MM
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
11
» Option to Customer : Monthly or Yearly Subscription
» HubSpot Owner : $500 + ($250/Month or $2000/Year)
» HubSpot Marketer : $500 + ($500/Month or $5000/Year)
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
12
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