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Hubspot: Inbound Marketing and Web 2.0
Hubspot: Inbound Marketing and Web 2.0
• Had little or no experience with Web 2.0 • These companies were sophisticated
and required more attention in form of Web 2.0 users and found Hubspot
customer service. content templates rudimentary.
• Derived greater value from inbound • Already had high performing websites
marketing to feed their customer funnel as and a strong social media presence.
they sold complex products involving • As the value derived by these customers
longer decision making cycles. is comparatively less than other
• Therefore, these customers derived segments, the churn rate for these
greater value from lead-qualification customers is highest.
analysis that Hubspot provided.
Addressing the problem of Churn
from a pricing format
• Owner Ollie’s churn rate is higher as compared to Marketer Mary but start-up fee is the
same for both in current pricing strategy. As Owner Ollie’s are easier to acquire and
derive most of their value initially, they should be charged a higher up front fee. A higher
up front fee and lower ongoing fee will reduce their churn rates. Also, higher ongoing fee
can be charged to MM’s as their price sensitivity is low and their continuous engagement
is high.
• Profiling of customers should be done based on their expected lifetime with Hubspot and
customers with lower lifetime values should be charge higher upfront fee and
subscriptions for longer lock in periods at lower rates.
• Exhibit 8 shows that higher rate of churn takes place in the second year after customer
acquisition. Therefore, customers should be provided subscriptions of 2 years at
significantly lower rates. An increase in engagement with Hubspot resources might lead
to lower churn.
• Due to lack of targeting, the customer set is very diverse which leads to difficulty in
setting an optimal pricing strategy for every customer.