Marketing and Customers Essay

Right now, HubSpot is service of process different customers with different requirements. This ca holds their applied science and gross revenue staff to be stretched thin. They are falling behind on product releases and their sales staff is converting only 4% (exhibit 10) of the potential grocery store into customers. To increase efficiency, HubSpot should narrow their derriere market. If they betoken the most profitable division of customers, then they can acquire to a greater extent of those profitable customers and increase general profit.The attached exhibit breaks down the LTV value for different customer segments found on their churn and revenue generation. Across all the segments, small B2B businesses present natural depressionest churn rove of 1. 4% and hence highest LTV of $17357. As shown in exhibit, total number of potential customers in small B2B business 12126. This would permit Hubspot to grow 12 times their current size. Hence, HubSpot should target this s egment as their priority. They could even convert more than 12126 customers out of total market if their sales team is totally targeted at this segment.The next most profitable target segment, as evident for attached exhibit, is Marketer Marys. Within Marketer Marys, Hubspot should target B2B customers. This is because, B2B have lower churn rates compared to B2C customers. Also, Hubspot is already geared towards serving B2B customers. Company (HubSpot) The core competency for company is their philosophical system of inbound marketing. They cast and market their software using this philosophy. So they should not tinker with this philosophy and should stick to inbound marketing.Another point to note from the exhibit 10 is that the biggest customer churn happens between 12th and 18th month. To address this phenomenon, they could hug drug discounts to customers later 12th month. Also, the customers who have switched to CMS have lower churn rate compared to customers who have not swi tched. So in order to increase customer retention, they could consider offering free CMS to all customers and possibly discounts to customers who adopt CMS.They would til now be profitable after discounts as they seem to ave very low marginal termss. Competitor HubSpot also have relative advantages over their nearest customer Eloqua. HubSpot offers software-as-a-service compared to the large upfront fee of Eloqua. This leads to low switching cost for customer and hence easier penetration for HubSpot. They also have ease of use over Eloqua. But they do need to upgrade their software for more sophisticated users. This would be more required when they start going after Marketer Marys B2B business.