Topics: Marketing, Business terms, Churn rate Pages: 11 (2420 words) Published: December 29, 2012
Problem Overview2
Situation Appraisal2
Company Description2
Core Competencies2
Customer Segmentation2
Vulnerabilities / Constraints3
SWOT Analysis3
(Porter 5 Forces ??)4
Options to Assist in Driving Growth5
Segmentation Strategy Evaluation6
Quantitative Evaluation Component7
Data Exploration Process7
Qualitative considerations:10
Supplementation Strategy Evaluation11
Pricing Strategy Evaluation12
Conclusion / Summary Recommendations14

Problem Overview
TODO: Finish up
Hubspot is at a critical time in their evolution as a company. It appears that their options are sink or scale. There immediate problem is the acceleration of growth rate through the increase of market share and increase of profitability. Situation Appraisal

Company Description
TODO: Add and / or consolidate with appropriate sections.

Core Competencies
* Inbound marketing pioneer and thought leader.

HubSpot is used as a supplement or a replacement of traditional marketing tools. Traditional marketing, however, are decreasing in effectiveness and yielding less business. Conversely, companies are finding that blogs and social media are increasing in effectiveness. HubSpot has been publicly vocal about the intrusive nature of traditional marketing and therefore a change in this message would result in a loss of credibility. Inbound marketing is about attracting the relevant or qualified customer, who is drawn in by engaging and relevant content. This is how customers are buying today. Three items are needed: 1) create compelling content, 2) distribute this content, and 3) attract and engage the customer. This pulls only customers interested in the product, which is more efficient and 5-7x less costly. It does not require any IT staff. Businesses are increasing their outbound marketing budgets, particularly in B2B (37% of budget). It also allows small firms to compete. HubSpot envisions becoming the leader in helping businesses manage their funnel. Pricing

Low cost and ease of use are competitive advantages. Pricing is $500 on boarding package plus a monthly fee of $250-$500. May purchase additional consulting for $500 per 4 hours.

Customer Segmentation:
HubSpot has 1000 diverse customers. Attractive customers makes use of the website, white papers, blogs, LinkedIn, podcasts, employee websites, and most importantly, freeware. Freeware is really what draws prospects into the funnel. The company now weeds out 50% of the leads in the funnel. Of the remaining 50%, 63% are graded from 7-10 (high). Closing takes 30-45 days. Inbound marketing did not target a specific type of customer (why not? Is it due to content?). The two visible customer types are MM and OO. * OO is 68% of portfolio. They are time constrained, unsophisticated. They are focused on feeding the top of the funnel. The initial value proposition appears greater for OO but higher churn later. Cost of acquisition is $1000. * MM is 31% of portfolio. More educated and are focused on analytics and reports. Harder upfront sell but less churn. Cost to acquire is $5000. * B2C are more sophisticated and required less customer support (lower cost). They drive less value from inbound marketing. * B2B had little experience and no support. However, B2B drive greater value from inbound marketing. More complex buying cycle. * CMS clients had lower churn. Sales pushing OO to migrate. Now 13% host on CMS. This cost $500 with 12 hours of consulting. Only 2% of MM are CMS clients. * Time spent results in greater success and lower churn. 10 hours/week is needed. * Employees debate which segment is most profitable long-term. There are more OO but MM may be more profitable. Vulnerabilities / Constraints

Of key consideration are some operational constraints around the engineering and support of their...
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