Hubspot Essay

A NEW MARKETING PARADIGM: HUBSPOT, INBOUND MARKETING AND WEB 2.0

HubSpot have successfully reached 1,000 customers and want to accelerate their growth and profitability but have three key areas of concern: (i) They have two distinct customer segments with very different requirements so need to decide to either keep both or focus on only one.

(ii) Their business is an inbound marketing platform so they are concerned if they use traditional outbound marketing methods for growth it could impact negatively their brand. (iii) Finally their current pricing structure isn’t optimized for either of the two segments they are currently serving so they need to create the correct structure to increase profitability without impacting negatively on growth.

Using a series of websites, blogs and groups they generated over 300,000 unique visits to their website and very quickly went from following up on all leads coming into the funnel that by 2009 volumes were so high they cut out almost 50% of their leads. The remaining leads were rated 1 (low) to 10 (high) and only leads rated from 7 to 10 were acted on. From this initial strategy they took on all the business they could to hit critical mass and by the time they reached 1000 clients they identified two key customer segments, Ollie Owners (OO) & Mary Marketers (MM). Appendix

Currently there are 1.1 million companies in this category and combined with the 2008 HubSpot sales funnel statistics there were 24,084 leads, driving 2345 opportunities and ultimately 910 customers. So it would be realistic to assume that even if growth remained static this would lead to at least 115 customers per month or 1,380 new customers for 2009. Appendix 5 &