Hubspot: Inbound Marketing and Web 2.0

Owner Ollies

Market Merrys

Advantages

1. They form a larger segment of the Business for Hubspot (73%)
2. They are fairly easy to sell to due to lack of previous experience of technology
3. Hubspot’s cost of acquiring such a customer was lesser (1000$)
4. A higher number (13%) of such customers used the CMS service, which has lower churn rates

Disadvantages

1. They had higher Churn rates
2. They sometimes did not invest time on the software initially which led to higher complaints of the product
3. They are more susceptible to recession or bad economic situations

Advantages

1. They have a lower churn rate as compared to Owner Ollies
2. Their willingness to pay for the product was higher
3. Due to familiarity with the product, lesser training time was required for them
4. The current trend indicates a higher growth rate of new customers for this category

Disadvantages

1. They are harder to reach and have longer sales cycle
2. They only represent a small portion of the customer base

Parameter

Owner Ollie

Market Merry

OO B2B

OO B2C

MM B2B

MM B2C

OO CMS

OO W/O CMS

Acquisition Cost ($)

1000

5000

1000

1000

5000

5000

1000

1000

Fixed Fees ($)

500

500

500

500

500

500

500

500

Monthly Fee ($)

250

500

250

250

500

500

250

250

Churn Rate (%)

4.3

3.2

3.3

6

3.3

6

2.1

5.5

Break Even (Months)

2

9

2

2

9

9

2

2

CLTV

5314

11125

7076

3667

10652

3833

11405

4045