Final hubspot presentation
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Transcript of Final hubspot presentation
Anusha.G Section A, Second Year
Department Of Management StudiesPondicherry University
Saranya.BSection A, Second Year
Department Of Management Studies
Pondicherry University
Type : PrivateIndustry : Internet Marketing Web Analytics Online MarketingFounded : June 2006Headquarters: Cambridge, MassachusettsKey people : Brian Halligan and Dharmesh Shah, CEO & Founder
3 skills for inbound marketing
• Compelling content• Content distribution• Engage Community
• Attaining Marketing Efficiencies• Sales + marketing = Smarketing• Building Relationships• B2B increased 37% inbound and 30% outbound
Benefits of Inbound Marketing
• Content Management System• Keyword Grader• Templates
• Exposure Optimization• SEO tools• Link Grader
• Lead Tracking and Intelligence• Marketing Intelligence analytics• Sales Funnel
What Hubspot provides?
Filling the customer funnel
COMPETITOR’S AREA & MARKETPLACE
• 2009-1000 diverse customer• Robust website -3,00,000
unique vistors in 2008• 8000- Linkedin- Promarketers• Hubspot TV• “Cold Calling is for Losers” –
35000 times• Salesforce called on all leads
Targeting Segments
Owner Ollie
s
Marketer
Mary
B2C
B2B
• Owners Ollie-68% 1-25 Employees• Objective:
Generate More leads (SEO)
•Marketer Mary-31%• 25-100 employees•Web consultants•Analytics and
reports
Business2
Business
Business 2
Customer
Complex Business
Model due to longer
decision cycle
Interested only in basic
template
Selective Sales Force
Derive greater value
from the lead
qualification
Sophisticated Web 2.0
users Highly performing websites
High social media
presence
Have web 2.0 consultants
B2B vs B2C
1. Target segments?2. Revised pricing ?3. Are we missing anything?
Hubspot – Problem Statement
B2B B2C
Marketer Mary Owners Ollies
Owner Ollies Marketer Mary
Pros Cons
Easier to Reach High churn rate-mainly concerned
about SEO
Low cost of acquisition - $1000
Revenue generated is less
Basic and simple solutions
Unstable business model
Shorter Selling Cycle
Pros Cons
Lower Churn rate Harder to reach
High Revenue per customers
Longer Selling Cycle
Longer relationship CMS usage is less than 2%
Usage of more inbound tools of
hubspot
Acquisition cost is high - $5000
OO MMChurn rate 4.3 3.2
Average customer life
23.36 31.25
Acquisition Cost $1000 $5000
Initial amount $500 $500Monthly Profit $250 $500
Customer Life Time Value (CLTV) 5340 11125
CUSTOMER LIFETIME VALUE
Average Customer Life=1/Churn Rate
CLTV=Initial value + (Average customer life*Monthly Profit)-
Acquisition Rate
Inference: Towards Marketer Mary
Business Type Sub-types Percentage of Customers (February 2008)
New Owner OlliesB2B>25 6%
B2B<25 56%
B2C>25 6%B2C<25 32%
Marketer Mary
B2B>25 41%
B2B<25 26%
B2C>25 18%
B2C<25 16%
Total B2B 65%
Total B2C 35%
New Customer Acquisition
BUSINESS TYPE AVERAGE CHURN RATE (Cancellations per
month) in %
Owner Ollies 4.3
Marketer Marys 3.2
Total B2B 3.3
Total B2C 6.0
CMS 2.1
Non-CMS 5.5
Total 4.1
CHURN RATE
Higher Churn Rate Towards CMS
In 2009, 13% of Owner Ollies went for CMS and Owner Ollies form 73% of the
Customers as of December 2008
Only, 2% of Marketer Mary chose CMS
B2B segment is found to have the least churn rate
CMS Non-CMSChurn rate 2.1 5.5
Average customer life
47.6 18.18
Acquisition Cost $1000 $1000
Initial amount $500 $500Transfer charge $500 $500Monthly Profit $250 $250
Customer Life Time Value (CLTV) 11900 4545
CLTV After Moving to CMS
• CMS- increases CLTV• Transfer costs- $500 offer for free• Restrict non-CMS• Prompt to move CMS
B2B SEGMENT
• B2B greater value• Long Term Relationship• B2B least churn rate• 68% of the current
customer
OWNER OLLIES
• 73 percent of the total customers
• 56% -B<25 category where only basic tools required
• Lesser churn rates -CMS• Acquisition cost is 1/5th of
MM
MARKETER MARY
• Have lesser churn rates• Increased lifetime value• Wide range of Hubspot
products.
Recommendations on Target Segments
Recommendations on Target Segments
• High Churn rate• Analyze reason• Attractive discounts• Product features be
expanded• If log-in is rare,
intimate the reasons for poor results
• Diverse Segment• Reduce Churn rate• Pricing for new customer• Retaining the old customer
Problems in Pricing
• Software as a Service (SAAS)-renewal model
• Charging upfront for the software – locking in the customers
Pricing Options for Consideration
GIVEN PRICING
• Hubspot Owner - $500 consulting fee at start-up and $250/month
ongoing fee
• Hubspot Marketer - $500 consulting fee at start-up and $500/month
ongoing fee
• To move to CMS and extra of $500 is demanded.
Target Segments
Pricing Model
Marketing Mary
SaaS
B2B SaaS
Owner Ollie Option between Monthly and Yearly
Pricing Model
Initial payment -MM - $500OO - $750
For OO- CMS Monthly- $250 • Every 3 months Package- $750 - $600• Yearly package can be offered for
$3000 - $2500
Recommendations Based on the suggested segments
• Better to go for SaaS• low upfront cost for its products. • allows customers to pay cheaper monthly instalments
• HubSpot should address those people who rarely log-in to their accounts • HubSpot’s customers discontinue at 18 months stage.• Pricing change-discounts • Find reason – high churn rate
Based on the following Inference
• IM - not capture market potential
• Loses a lot of potential revenue that OM can bring in,
• Competitors - both IM and OM
•Market leadership- A question mark?
• Should Hubspot concentrate on both IM and OM?
Missing Anything?
• OM UAC – 6 to 7 times higher than IM. • Hubspot - loses brand Image and loyalty• Inbound marketing -pull effect• IM - good awareness about Hubspot. •More active awareness will give more leads
Implications
• Outbound techniques might be partially applied like online advertisements• Logo on the client site• Need not go into expensive outbound methods like offline
marketing.• Outbound techniques might be later used in following
scenarios• For feedback mechanism• Subscription suggestions
Suggestions
• 86 percent to 117 percent year over year in bookings• 80 percent in MM, 20 percent in OO.• Towards simple integrated system.
marketer -> HubSpot sales person ->Salesforce.com
• Plan to go public• Pricing:
Basic-$200/mo , Professional -$600/mo and for Enterprise -$1000/mo . No of Contacts in Database (pricing change as of September 1, 2011) Cost for Small/Medium Business: $3,000/yr Cost for Enterprise Business: $18,000/yr Comparative package based on features.