Segment Analysis Marketer Mary and Owner Ollies

Marketer Mary (MM) is a type of customers with company size from 26 to 100 people. It usually comprises marketing professionals with educated knowledge of web 2.0 in the company. So the inbound marketing tools MM need are more sophisticated ones, which can help them conduct more detailed level analysis of customers. To acquire this type of customer, it costs $5,000. But if HubSpot acquire MM successfully, it has lower churn rates, 3.2%, compared with Owner Ollies’ 4.3%. MM accounts for 31% of HubSpot’s customer portfolio in 2009.

Should HubSpot (HS) target Marketer Mary segment?
3Cs analysis:
Company:
-MM Accounts for only 31% of HS’s customer portfolio
-Costs HB $5,000 to acquire MM
+$500 initial consulting fee, $500 ongoing monthly fee, which is more than OO
+ The products that Hubspot provide meet sophisticated needs of MM, because HS provides complete series of inbound marketing tools
-Might consider to rebuild pricing model for MM. As their business needs is more complicated, but the start-up consulting fee is the same as OO
+Roberge thinks they can get more money on MM because OO has a lot of macroeconomic risk, i.e. small business is risky during recession
+/-Founders think it’s better to focus on one only one segment (p.11)
+/- Volpe resist on using inbound marketing only, rather than combining both inbound and outbound

Customer:
+MM are larger businesses (26-100 people) with marketing professionals in the companies
+MM had more money to spend on HubSpot’s products (more affordable)
-Need longer approval process. It needs to be signed up by high level of managers
+HB’s products such as analytics and reports are more attractive to MM, so MM will have higher acceptance rate of HB’s products.
+More educated in Web 2.0 than OO
+Lower churn rate (3.2%)

Competitor:
+/- Most of competitors play in only one area of three types in customer funnel
-Competitors in inbound marketing are getting more crowded than before
-Competitor