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Hubspot Case Study Essay

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Problems

Founders Brian Halligan and Dharmesh Shah of upstart inbound-marketing firm HubSpot have come to a crossroads in their business model. The direction of the company must adapt in order to continue on the stated path of growing as big as possible, as fast as possible. HubSpot is facing two problems that it must address in order to accomplish its goals.

First, HubSpot has a corporate culture centered on an evangelical attitude towards inbound-marketing. HubSpot offers the services of inbound-marketing, which uses strategies such as Search Engine Optimization (SEO), the ability to write compelling content that attracts customers and the ability to attract and engage a community of followers who interact with the content.

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While not going so far as to begin cold-calling for new clients, HubSpot could develop a targeted outbound-marketing campaign in environments such as industry trade shows that may open up the company to potential customers who may have yet to hear of HubSpot, try their services or contact them about service subscription. If done properly, HubSpot could use an outbound-marketing strategy for its inbound and outbound services while still staying true to its roots.

Alternatives for pricing

The pricing structure has the potential to evolve in a number of different ways. HubSpot could go begin selling subscriptions for longer intervals beyond month to month to lock in customers for longer periods of times. This could be particularly beneficial for keeping the Owner Ollies from canceling services immediately after receiving the majority of the added value.

HubSpot could also begin charging B2B and B2C customers differently as well. B2B customers derive greater value and could be charged an added premium or conversely B2C customers could be given an added discount of services if combined with a longer subscription purchase.

Hubspot could also increase its initial fee of $500 for Owner Ollies who reap the majority of the benefits upfront and who don’t require as much customer service. A discount to this increase could be coupled with participation with the CMS service, thus increasing the chance the customer stays with HubSpot

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