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HubSpot Inbound Marketing and Web 2 0 Case Solution

Solution Id Length Case Author Case Publisher
774 913 Words (3 Pages) Thomas Steenburgh, Jill Avery, Naseem Dahod Harvard Business School : 509049
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Currently, the company is pursuing a strategy in which it is selling its services to only those customers who want to purchase its product. It uses inbound marketing strategy to attract customers into the “customer funnel”. It then filters out the weak customer group (low quality leads). This weak group currently is about 50% of the total customers brought in by inbound marketing strategy.

The company cannot shift to outbound marketing tactics in order to attract strong customers. Otherwise, it would affect the company’s brand image in an adverse manner. Outbound marketing strategies would go against company’s brand image as HubSpot, itself has tagged marketers as losers who use outbound marketing strategies.

Case Analysis for HubSpot Inbound Marketing and Web 2 0

However, outbound marketing will bring in potential business, and the company is mature enough to service a large number of customers brought in by outbound marketing strategies. Currently, company’s sales force does not give cold calls to customers as founders of the company are completely against it. The company was founded on the philosophy that customers should be interrupted to grab their attention. Outbound marketing strategy would go against this philosophy.

So, the company can still grow by focusing resources on the 50% of weak customers and making them into strong customers (high quality lead) to which it can easily sell its services. No doubt, the company has to spend extra resources, more than usual, to convert low quality lead into high quality lead, but it is an imperative for company’s growth. 

Approximately 68% of the business is brought in by Owner Ollies; whereas, 31% of the business is brought in Marketers Marys. Owner Ollies do not sustain long term relations with the company. They simple gather their customers and unsubscribe HubSpot’s services. On the other hand, Marketer Marys constitute a small portion of the total sales, but they easily maintain long term relations with the company. Both types of customers have a different kind of needs. The company has carefully divided these needs in exhibit 7. The company should focus on both types of customers as it adds diversity into company’s customer portfolio. This diversity is imperative because during recession Owner Ollies do not perform well and then the company can rely on established Marketer.

Right now, the company is focusing on B2C customers as they frequently contact the company for web optimization and other various services that the company provides. However, the company has noted that its services enhances B2B customers’ sale with a larger magnitude than that of B2C customers. The underlying reason for this trend is that because B2B customers do a thorough research via the internet and other secondary resources before making the purchase. HubSpot can offer inbound marketing strategies that would help potential customers of B2B clients in entering their funnel.

Interestingly, it was also noted that B2C businesses have mastered Web 2.0 services; whereas, B2B businesses are still lacking behind. So, this provides HubSpot with an excellent opportunity to exploit these customers by making them aware of the benefits of its services. The company needs to spend some extra resources for convincing B2B customers via aggressive inbound marketing tactics.

Moreover, the company needs to maintain both, B2B and B2C, customer bases in order to scale up its business. Both types of customers have different needs, like Owner Ollies and Marketer Marys. So, the company can dedicate separate resources for B2B customers as it is in their own benefit in order to sustain long term relations with customers and HubSpot can easily provide customizable services to them. It would help the company in scaling up its business by focusing on both types of customers, B2B and B2C.

It is recommended in the light of aforesaid facts and analysis that the company needs to spend extra resources on its low quality lead. The company has become extra choosy as it is maturing. This attitude is not beneficial for the company as it looks like the company has developed its own comfort zone and is reluctant to get out of it. It needs to spend more of its resources on low quality lead that are brought in by inbound marketing strategy. In order to do so, the company does not need to alter its current filtering algorithm.

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