Hubspot Case Analysis

HubSpot created an easy to use-low priced lead generation system which incorporated their idea of inbound marketing and allowed them to gain a competitive advantage in the Web 2.0 space. Now, they must decide which direction to take in order to grow their business. Hubspot should consider a few things: 1) narrow or widen their focus on customers they want to serve 2) adjust their pricing model and, 3) implement outbound marketing, even though the “rules of marketing have changed.”

First, HubSpot should focus on Owner Ollies and the B2B segment. Second, they should change the pricing strategy, charging customers more upfront, in order to lower churn rates and increase revenue. Lastly, they should introduce outbound marketing to reach as many potential customers as possible.

Owner Ollies need easy-to-use, low priced products and B2B customers can derive value from the consultant services Hubspot offers. Also, the cost of acquiring Owner Ollies is significantly less as compared to some other customer segments. The current monthly pricing strategy led to Owner Ollies’ high churn rate. By changing the subscription model to a half-yearly or yearly one with a slightly higher-than-current upfront fee, HubSpot will be able to capture more value from their customers and reduce the churn rate. HubSpot could reduce Ollies’ churn rate further by encouraging the customers to host their content on HubSpot’s CMS. HubSpot discards 50% of the leads they generate, they could increase the number of customers reached by incorporating outbound marketing to complement inbound marketing tactics. For example, they could do this by sending out direct emails to potential customers with relevant information about their services. HubSpot will not tarnish its reputation by incorporating outbound marketing. Though inbound marketing is a growing trend, marketing has changed but not completely. So, HubSpot should use a mix of both inbound and outbound