HubSpot`s Inbound Marketing Strategy for SaaS Businesses

Case Code: MKTG426
Case Length: 12 Pages
Period: 2006-2020
Pub Date: 2020
Teaching Note: Available
Price: Rs.300
Organization : HubSpot, Inc.
Industry :Technology & Communications
Countries : United States
Themes: Sales Management/ B2B Marketing/ Sales Force Management/Marketing Strategy
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts


Hubspot’s Growth Platform

HubSpot’s ‘Growth Platform’ was designed to help businesses grow in line with the inbound marketing concept, i.e., attract, engage, and delight customers all through the customer lifecycle. The fully integrated marketing, sales, and customer service platform had a single user interface and one central customer relationship management (CRM) database of lead and customer conversations. The database featured marketing software, sales software, customer service software, content management system software (CMS), as well as integrated applications which helped businesses in drawing prospects to their respective websites and social media pages, converting prospects to leads, converting leads into customers, and finally delighting customers. The platform not only helped companies create, publish, and promote content but also provided an analysis of its performance. The database was modeled on Hubspot’s flywheel business model...

Hubspot’s Marketing Strategies

HubSpot also followed the inbound marketing concept to market and sell its software products and ‘Growth platform’ services. The company employed a marketing mix strategy that focused on promotion as well as distribution (channel management) and enabled it to draw and engage prospects and clients efficiently...

Managing Customer Churn

HubSpot’s revenues grew from US$0 to US$100 million within just seven years of its founding. One of the reasons for this growth was the company’s ability to manage customer churn using compensation plans created for the sales teams by Mark Roberge (Roberge), who joined the company as Vice President, Sales, in 2006. Roberge believed that sales compensation plans should be at the heart of the company’s sales strategy. HubSpot adopted three different sales compensation plans on its way to reaching US$100 million in revenues. As an early-stage start-up, its top priority in 2006-07 was to increase its revenue and the sales compensation plan rewarded the sales team for customer acquisition. Roberge soon realized that many customers were cancelling their subscriptions to the company’s SaaS products after a few months. ..

Future Plans

HubSpot channel teams had enlisted a growing number of inbound marketing agencies and converted them into HubSpot partners. There were a dozen HubSpot certified Tiered Indian partners listed in the HubSpot Partner directory and over 130 unlisted agencies in 2018. In 2019, HubSpot entered into partnership with 24 value-added resellers such as NetSuite – a cloud-computing company, CrazyCall, Inc., – a provider of enterprise telecommunications service, Spiffy – a provider of e-commerce solutions, and Gleam – a provider of marketing applications, among others. In the same year, the company announced plans to expand its value-added reseller program by partnering with newer resellers. The company also stated that it would expand the ‘Growth Platform’ with innovative tools that would make it more user-friendly for customers and further enhance their business growth. Toward this end, the company was open to acquiring complementary businesses, teams, as well as technologies...


Exhibit I: Inbound Marketing Vs Outbound Marketing
Exhibit II: The Flywheel Business Model
Exhibit III: Free Software Tools Offered by HubSpot (As of September 8, 2020)
Exhibit IV: Popular Blogs and Latest Webinars of HubSpot (As of September 8, 2020)

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