Final hubspot presentation
- 1. Anusha.G Saranya.B Section A, Second Year Section A, Second Year Department Of Management Studies Department Of Management Studies Pondicherry University Pondicherry University
- 5. Type : Private Industry : Internet Marketing Web Analytics Online Marketing Founded : June 2006 Headquarters: Cambridge, Massachusetts Key people : Brian Halligan and Dharmesh Shah, CEO & Founder
- 6. 3 skills for inbound marketing • Compelling content • Content distribution • Engage Community Benefits of Inbound Marketing • Attaining Marketing Efficiencies • Sales + marketing = Smarketing • Building Relationships • B2B increased 37% inbound and 30% outbound
- 7. What Hubspot provides? • Content Management System • Keyword Grader • Templates • Exposure Optimization • SEO tools • Link Grader • Lead Tracking and Intelligence • Marketing Intelligence analytics • Sales Funnel
- 8. SALES FUNNEL
- 9. COMPETITOR’S Filling the AREA & customer funnel 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
- 10. Targeting Segments • Owners Ollie-68% 1-25 Employees • Objective: Generate More leads (SEO) • Marketer Mary-31% • 25-100 employees • Web consultants • Analytics and reports
- 11. B2B vs B2C Interested Sophisticated only in Web 2.0 Complex basic users Business template Highly Model due to performing longer websites decision cycle Business Business 2 2 High social Selective Sales Force Business Customer media presence Derive greater value Have web 2.0 from the consultants lead qualification
- 12. Hubspot – Problem Statement 1. Target segments? B2B B2C 2. Revised pricing ? 3. Are we missing anything? Marketer Owners Ollies Mary
- 13. Problem 1: Which customers to serve
- 14. Owner Ollies Marketer Mary Pros Cons Pros Cons Easier to Reach High churn rate- Lower Churn rate Harder to reach mainly concerned about SEO High Revenue per Longer Selling Low cost of Revenue generated customers Cycle acquisition - $1000 is less Longer relationship CMS usage is less Basic and simple Unstable business than 2% solutions model Usage of more Acquisition cost is Shorter Selling inbound tools of high - $5000 Cycle hubspot
- 15. CUSTOMER LIFETIME VALUE OO MM Churn rate 4.3 3.2 Average customer 23.36 31.25 life Acquisition Cost $1000 $5000 Initial amount $500 $500 Monthly Profit $250 $500 Customer Life Time Value (CLTV) 5340 11125 Inference: Towards Marketer Mary
- 16. New Customer Acquisition Business Type Sub-types Percentage of Customers (February 2008) B2B>25 6% New Owner Ollies B2B<25 56% B2C>25 6% B2C<25 32% B2B>25 41% B2B<25 26% Marketer Mary B2C>25 18% B2C<25 16% Total B2B 65% Total B2C 35%
- 17. CHURN RATE BUSINESS TYPE AVERAGE CHURN RATE (Cancellations per month) in % Higher Churn Owner Ollies 4.3 Towards CMS Rate Marketer Marys 3.2 Total B2B 3.3 In 2009, 13% of Owner Ollies went for CMS and Owner Ollies form 73% of the Total B2C 6.0 Customers as of December 2008 CMS 2.1 B2B segment is found to have the Non-CMS 5.5 least churn rate Total 4.1 Only, 2% of Marketer Mary chose CMS
- 18. CLTV After Moving to CMS CMS Non-CMS Churn rate 2.1 5.5 Average customer 47.6 18.18 life • CMS- increases CLTV Acquisition Cost $1000 $1000 • Transfer costs- $500 offer for free • Restrict non-CMS Initial amount $500 $500 • Prompt to move CMS Transfer charge $500 $500 Monthly Profit $250 $250 Customer Life Time Value (CLTV) 11900 4545
- 19. Recommendations on Target Segments OWNER OLLIES B2B SEGMENT • 73 percent of the total MARKETER MARY customers • B2B greater value • 56% -B<25 category • Long Term Relationship • Have lesser churn rates where only basic tools • B2B least churn rate • Increased lifetime value required • 68% of the current • Wide range of Hubspot • Lesser churn rates -CMS customer products. • Acquisition cost is 1/5th of MM
- 20. 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
- 21. Problem 2: Pricing Model
- 22. Problems in Pricing • Diverse Segment • Reduce Churn rate • Pricing for new customer • Retaining the old customer
- 23. Pricing Options for Consideration • Software as a Service (SAAS)-renewal model • Charging upfront for the software – locking in the customers
- 24. 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.
- 25. Recommendations Based on the suggested segments Target Pricing Model Segments Initial payment - MM - $500 Marketing SaaS OO - $750 Mary For OO- CMS Monthly- $250 • Every 3 months Package- $750 - $600 B2B SaaS • Yearly package can be offered for $3000 - $2500 Owner Ollie Option between Monthly and Yearly Pricing Model
- 26. Based on the following Inference • 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
- 27. Problem 3: IM vs OM
- 28. Missing Anything? • 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?
- 29. Implications • 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
- 30. Suggestions • 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
- 31. Current status of Inbound Marketing (Hubspot)
- 32. • 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.
- 33. THANK YOU
Editor's Notes
- #20: Change the headings