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Hubspot

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Submitted By wonder1009
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Pricing : I think the existing pricing model is good. This is because its upfront cost is cheap and the monthly instalments are chap that lessen customers immediate burden. And it derives a constant flow of revenue.
To increase the profitability ; 1) For OO – since this customer does not think about marketing most of the time and typically doesn’t shop around and try to find any other competitive, I think Hubspot can increase its initial and monthly payment slightly that would improve Hubspot's profitability. 2) For MM – this customer is larger in size compared to OO and has more purchasing power. Exhibit 7 shows it can potentially charge higher price premiums. Since Customer lifetime is higher for MM than OO, Hubspot can make profit from MM for a longer period of time. MM is more stable businesses and 67% of MM are B2B which is showed in Exhibit 5. Since inbound marketing is more effective for B2B compared to B2C, I think Hubspot should focus more on MM to increase its profit. For both case, I think Hubspot should study their price sensitivity before increasing its prices. To do so, one way may be to analyze changes in post purchase customer retention and new customer acquisition data resulting from variations in price.

In my opinion, Hubspot should mix inbound marketing and outbound marketing. Even though, the acquisition cost through outbound is 5-7 times larger than that through inbound, OM will generate more customers. The cost for advertising in mass media like TV or magazine will be very expensive. But, if Hubspot takes internet ads on the popular website that will cost cheaper. Hubspot can find the website that many potential customers visit by using its own software. Hubspot can think about going for joint venture or partnership with the popular website. Hubspot has SEO(search engine optimization) which will be an excellent weapon to

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