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Hubspot

In: Business and Management

Submitted By amandaennis
Words 442
Pages 2
As Hubspot wishes to quickly grow their business in a short period of time, it is highly recommended that the company focus its efforts towards Owner Ollies. This strategy is centered on the simplicity of their required product, Hubspot’s ability to maximize profits combined with the potential for further market penetration.

The market of small business owners is not only greater than that of medium to large business but is also the simplest to serve. These clients, limited in marketing knowledge, are looking into quick and easy solutions to increase traffic to their websites. At this junction, Hubspot should rely on their simple product line and focus efforts on satisfying these owners and attracting similar customers. Spending a copious amount of time and money with marketers on complex and costly products would detract from the company’s fast pace growth.

In addition to this, the profit of an Owner Ollie customer surpasses that of a Marketer Mary for the first 16 months of business. (Appendix A Figure 1) As the churn rate continues to rise and approximately 60% of the total customers have left, it is critical that Hubspot make its greatest profits prior to this milestone. (Appendix A Figure 2) The breakeven point for the owners also takes place during the second month of operation; considerably sooner than that of the marketers occurring in the 9th month at a cumulative churn rate of 32.6%.

The opportunity to significantly impact the business of an owner is more evident than that of a marketer. By positively affecting a greater number of customers Hubspot would generate a strong word of mouth. This ultimately powerful method of marketing would increase interested traffic to their site and likely lead to other opportunities without compromising the company’s own image.

Word Count: 293
Appendix A

[pic]
Figure 1Profitability

Owner = -1000$...

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