Hubspot Case Study Answers
Case 1: HubSpot: Inbound Marketing and Web 2.0
1. Customer lifetime value = lifetime (in months) * monthly payments (Exhibit 7) – acquisition cost (pp. 8)
Customer life time = 1/churn rate (Table A)
Marketer Marys: CLV = (1/ 3.2%) * 500 – 5,000 = 10,625
Owner Ollies: CLV = (1/ 4.3%) * 250 – 1,000 = 4,813.95
B2B: CLV = (1/ 3.3%) * 375 – 3,000 = 8,363.64
B2C: CLV = (1/ 6.0%) * 375 – 3,000 = 3,250
2. HubSpot is not finding and serving the right set of customers. Even if at first it was very important to widen its customer base in order to gain more reputation and profit as a startup company, HubSpot needs to understand that targeting specific customers will not only give them a clearer understanding of the target market, but also improve …show more content…
It will make it easier for HubSpot to reach MMs and shorten the selling cycle. And since MMs tend to stay longer, the increased monthly payments will generate more profit for HubSpot.
SaaS Pricing: The advantage of low cost makes HubSpot stand out among it competitors. And at the same time, HubSpot is able to capture maximum value from customers and gain a reliable income stream. However, as mentioned in the case, some customers only take the “initial burst of value” and unsubscribe the software within the first several months.
4. I don’t think they are stubborn because of not doing any outbound marketing. And I think they should continue to practice what they preach by focusing on inbound marketing alone. As consumers has changed the way they search for information and make purchasing decisions, it is important for businesses today should match their strategies with the changes of customer behaviors. Moreover, inbound marketing is like an icon for HubSpot. “If HubSpot couldn’t achieve enough scale through inbound marketing efforts, then how could it convince its customers that inbound market would work for them?”
Inbound:
Pros:
• Pull relevant prospects and customers toward a business and its
1. Customer lifetime value = lifetime (in months) * monthly payments (Exhibit 7) – acquisition cost (pp. 8)
Customer life time = 1/churn rate (Table A)
Marketer Marys: CLV = (1/ 3.2%) * 500 – 5,000 = 10,625
Owner Ollies: CLV = (1/ 4.3%) * 250 – 1,000 = 4,813.95
B2B: CLV = (1/ 3.3%) * 375 – 3,000 = 8,363.64
B2C: CLV = (1/ 6.0%) * 375 – 3,000 = 3,250
2. HubSpot is not finding and serving the right set of customers. Even if at first it was very important to widen its customer base in order to gain more reputation and profit as a startup company, HubSpot needs to understand that targeting specific customers will not only give them a clearer understanding of the target market, but also improve …show more content…
It will make it easier for HubSpot to reach MMs and shorten the selling cycle. And since MMs tend to stay longer, the increased monthly payments will generate more profit for HubSpot.
SaaS Pricing: The advantage of low cost makes HubSpot stand out among it competitors. And at the same time, HubSpot is able to capture maximum value from customers and gain a reliable income stream. However, as mentioned in the case, some customers only take the “initial burst of value” and unsubscribe the software within the first several months.
4. I don’t think they are stubborn because of not doing any outbound marketing. And I think they should continue to practice what they preach by focusing on inbound marketing alone. As consumers has changed the way they search for information and make purchasing decisions, it is important for businesses today should match their strategies with the changes of customer behaviors. Moreover, inbound marketing is like an icon for HubSpot. “If HubSpot couldn’t achieve enough scale through inbound marketing efforts, then how could it convince its customers that inbound market would work for them?”
Inbound:
Pros:
• Pull relevant prospects and customers toward a business and its