Hubspot

Problem Statement

HubSpot is a company that sells Web 2.0 inbound marketing services and tools. HubSpot, like it’s services, relies solely on a non-invasive inbound marketing system. HubSpot refuses to use outbound marketing tools for it would contradict the idea behind their product of total inbound marketing. They have developed a method that allows them to minimize marketing cost by limiting spending to prospects that are likely to become customers .They accomplish this by using a filtering technique called funneling. Although efficient, this inbound marketing system limits the number of qualified leads. Based on HubSpot’s customer forecasts, their current inbound marketing system is unable to drive the necessary growth to achieve HubSpot’s long-term goals.

Alternative Evaluation

To address the lack of growth due to the limitations of HubSpot’s inbound marketing system the following alternative solutions are listed below:

Alternative 1: Expand to Outbound Marketing

Pros: Expanding to an outbound marketing strategy will allow access to new advertising channels, increase overall brand presence, and improve market penetration. Using advertising vehicles like TV ads and email promotions can allow HubSpot to reach a wider range of potential customers, in turn, increasing traffic.

Cons: By using outbound marketing, HubSpot spot is passively promoting the use of outbound marketing. Their sole mission is to sell a service that insists that the old outbound marketing methods are obsolete. This is contradictory and doesn’t support their product/services and may discourage potential clients from using them altogether.

Alternative 2: More Lenient Lead Generating Algorithm

Pros: In effort to minimize spending on unlikely potential customers, Hubspot's lead generating algorithm filters out roughly 50% of potential clients. This may help them keep spending down, but at the cost of losing a potential client that the algorithm may have overlooked or misinterpreted. This will allow for a “wider net” expanding the range of potential customers.

Cons: If too lenient, the system could allow for low quality leads to sift through. They may generate more revenue by landing more clients, but the end result could be a loss if they spend too much money on “dead end” leads.

Alternative 3: Redesign Marketing Strategy and Products to Include Outbound Marketing

Pros: If the service/product they sell isn’t designed to handle the growth they intend to have, then they should be and add possible 15% of outbound marketing. HubSpot can use less invasive strategies like opt-in surveys