Professional Documents
Culture Documents
B2B
Pros
Cons
Marketing Mary
Characteristic
1) Often have in-house capability to develop high websites and programs
2) More money to spend but have long-selling cycle
Primary need
1) May need Hubspot web site design capability
2) Needs high-value features such as analytics and reports for deriving insights and decision
making
Cons:
Slow decision making would result in slow to moderate growth
Does not require website design features or CMS tool
Pros:
Has significant marketing spend if right products be offered
Highy sticky customer-base and stable income generation
Strong potential to convert them into brand promoters
Churn: Likely less than 3.2%
CLV: ~11,000 per customer
Characteristic
1) Sofisticated Web 2.0 customer and has strong in-house capability to develop high websites
and programs
2) Have shorter decision timecycle than B2B customers
Primary need
1) Needs very high-value features such as analytics and reports for deriving insights and
decision making
Cons:
Have low utility for Hubspot's current product portfolio, so churn is high
Cost-to-serve will be high as quality of service has to be excellent
Pros:
Has significant marketing spend if right products be offered;price elasticity is low
Churn: Likely to be in the range of 3.2%-7.8%
CLV: ~11,000 per customer
Significant market opportunity- Around 1,675,000 small and very small businesses in the US
Higher segment focus would lead to quick scalability and growth
Sticky customer base
Better ability to increase adoption of CMS, leading to increase in CLV
Sources:
https://hbr.org/2012/10/target-the-right-market-2
Owner Ollives
Characteristic
1) Limited marketing muscle and inadequate sales team
2) Limited financial resources
Primary need
1) Primary need is lead generation; does not uses other resources or tools because of
lack of awareness
Cons:
Price elasticity is high
Pros:
Target customer size is significant
Relatively a sticky customer base
High probability of converting into CMS
Recommendations
Target Marketing Mary
Target Both
Marketing Mary
Acquisition cost
Income
First year
Subsequent year
Cost
Cost-to-serve
Churn
CLV
$5,000
$500
$500
$0
3.20%
$11,125
Acquisition cost
Income
First year
Subsequent year
Cost
Cost-to-serve
Churn
CLV
Cost
Cost-to-serve
Churn
CLV
Churn
CLV
Owner Ollies
W/o CMS
$1,000
CMS
$1,000
Rentention rate
$500
$250
$500
$250
$0
$0
4.30%
$5,314
95.7%
2.10%
$11,405
with CMS
Rentention rate
97.9%
Rentention rate
96.8%
$1,000
$500
$250
$500
$250
$0
$0
2.4%
$9,778
1.50%
$16,167
NA
$500
$250
NA
NA
$0
$0
7.5%
$2,833
NA
NA
Marketing Mary's
Period
Exsiting income
Price uptick (x times)
Income
Retention
Cost to serve (%)
Cost-to serve
CLV
1
500
1.0x
500
100.0%
0.0%
0
($500)
$2,650
2
250
1.0x
250
95.7%
250
91.6%
250
87.6%
250
83.9%
0
$239
0
$229
0
$219
0
$210
1
500
1.5x
750
100.0%
0.0%
0
($250)
$15,389
2
250
1.5x
375
97.9%
375
95.8%
375
93.8%
375
91.9%
0
$367
0
$359
0
$352
0
$344
1
500
1.5x
750
100.0%
0.0%
0
($4,250)
$16,109
2
500
1.5x
750
96.8%
750
93.7%
750
90.7%
750
87.8%
0
$726
0
$703
0
$680
0
$659
Sensitivity analysis
Owner Ollies- With CMS
$15,389
0%
10%
20%
30%
40%
50%
2.0x
2.0x
Marketing Mary
3.0x
$16,109
0%
10%
20%
30%
40%
50%
10
11
12
13
250
80.3%
250
76.8%
250
73.5%
250
70.4%
250
67.3%
250
64.4%
250
61.7%
250
59.0%
0
$201
0
$192
0
$184
0
$176
0
$168
0
$161
0
$154
0
$148
10
11
12
13
375
89.9%
375
88.0%
375
86.2%
375
84.4%
375
82.6%
375
80.9%
375
79.2%
375
77.5%
0
$337
0
$330
0
$323
0
$316
0
$310
0
$303
0
$297
0
$291
10
11
12
13
750
85.0%
750
82.3%
750
79.6%
750
77.1%
750
74.6%
750
72.2%
750
69.9%
750
67.7%
0
$637
0
$617
0
$597
0
$578
0
$560
0
$542
0
$524
0
$508
14
15
16
17
18
19
20
21
250
56.5%
250
54.0%
250
51.7%
250
49.5%
250
47.4%
250
45.3%
250
43.4%
250
41.5%
0
$141
0
$135
0
$129
0
$124
0
$118
0
$113
0
$108
0
$104
14
15
16
17
18
19
20
21
375
75.9%
375
74.3%
375
72.7%
375
71.2%
375
69.7%
375
68.2%
375
66.8%
375
65.4%
0
$285
0
$279
0
$273
0
$267
0
$261
0
$256
0
$251
0
$245
14
15
16
17
18
19
20
21
750
65.5%
750
63.4%
750
61.4%
750
59.4%
750
57.5%
750
55.7%
750
53.9%
750
52.2%
0
$491
0
$476
0
$460
0
$446
0
$431
0
$418
0
$404
0
$391
22
23
24
25
26
27
28
29
250
39.7%
250
38.0%
250
36.4%
250
34.8%
250
33.3%
250
31.9%
250
30.5%
250
29.2%
0
$99
0
$95
0
$91
0
$87
0
$83
0
$80
0
$76
0
$73
22
23
24
25
26
27
28
29
375
64.0%
375
62.7%
375
61.4%
375
60.1%
375
58.8%
375
57.6%
375
56.4%
375
55.2%
0
$240
0
$235
0
$230
0
$225
0
$221
0
$216
0
$211
0
$207
22
23
24
25
26
27
28
29
750
50.5%
750
48.9%
750
47.3%
750
45.8%
750
44.3%
750
42.9%
750
41.6%
750
40.2%
0
$379
0
$367
0
$355
0
$344
0
$333
0
$322
0
$312
0
$302
30
31
32
33
34
35
36
37
250
28.0%
250
26.8%
250
25.6%
250
24.5%
250
23.4%
250
22.4%
250
21.5%
250
20.6%
0
$70
0
$67
0
$64
0
$61
0
$59
0
$56
0
$54
0
$51
30
31
32
33
34
35
36
37
375
54.0%
375
52.9%
375
51.8%
375
50.7%
375
49.6%
375
48.6%
375
47.6%
375
46.6%
0
$203
0
$198
0
$194
0
$190
0
$186
0
$182
0
$178
0
$175
30
31
32
33
34
35
36
37
750
38.9%
750
37.7%
750
36.5%
750
35.3%
750
34.2%
750
33.1%
750
32.0%
750
31.0%
0
$292
0
$283
0
$274
0
$265
0
$256
0
$248
0
$240
0
$233
38
39
40
41
42
43
44
45
250
19.7%
250
18.8%
250
18.0%
250
17.2%
250
16.5%
250
15.8%
250
15.1%
250
14.5%
0
$49
0
$47
0
$45
0
$43
0
$41
0
$39
0
$38
0
$36
38
39
40
41
42
43
44
45
375
45.6%
375
44.6%
375
43.7%
375
42.8%
375
41.9%
375
41.0%
375
40.1%
375
39.3%
0
$171
0
$167
0
$164
0
$160
0
$157
0
$154
0
$151
0
$147
38
39
40
41
42
43
44
45
750
30.0%
750
29.1%
750
28.1%
750
27.2%
750
26.4%
750
25.5%
750
24.7%
750
23.9%
0
$225
0
$218
0
$211
0
$204
0
$198
0
$191
0
$185
0
$179
46
47
48
49
50
51
52
53
250
13.8%
250
13.2%
250
12.7%
250
12.1%
250
11.6%
250
11.1%
250
10.6%
250
10.2%
0
$35
0
$33
0
$32
0
$30
0
$29
0
$28
0
$27
0
$25
46
47
48
49
50
51
52
53
375
38.5%
375
37.7%
375
36.9%
375
36.1%
375
35.3%
375
34.6%
375
33.9%
375
33.2%
0
$144
0
$141
0
$138
0
$135
0
$133
0
$130
0
$127
0
$124
46
47
48
49
50
51
52
53
750
23.1%
750
22.4%
750
21.7%
750
21.0%
750
20.3%
750
19.7%
750
19.0%
750
18.4%
0
$174
0
$168
0
$163
0
$157
0
$152
0
$148
0
$143
0
$138
54
55
56
57
58
59
60
61
375
32.5%
375
31.8%
375
31.1%
375
30.5%
375
29.8%
375
29.2%
375
28.6%
375
28.0%
0
$121.76
0
$119.21
0
$116.70
0
$114.25
0
$111.85
0
$109.50
0
$107.20
0
$104.95
54
55
56
57
58
59
60
61
750
17.8%
750
17.3%
750
16.7%
750
16.2%
750
15.7%
750
15.2%
750
14.7%
750
14.2%
0
$133.80
0
$129.52
0
$125.37
0
$121.36
0
$117.48
0
$113.72
0
$110.08
0
$106.56
62
63
64
65
66
67
68
69
375
27.4%
375
26.8%
375
26.3%
375
25.7%
375
25.2%
375
24.6%
375
24.1%
375
23.6%
0
$102.75
0
$100.59
0
$98.48
0
$96.41
0
$94.39
0
$92.40
0
$90.46
0
$88.56
62
63
64
65
66
67
68
69
750
13.8%
750
13.3%
750
12.9%
750
12.5%
750
12.1%
750
11.7%
750
11.3%
750
11.0%
0
$103.15
0
$99.85
0
$96.65
0
$93.56
0
$90.56
0
$87.67
0
$84.86
0
$82.15
70
71
72
73
74
75
76
77
375
23.1%
375
22.6%
375
22.2%
375
21.7%
375
21.2%
375
20.8%
375
20.4%
375
19.9%
0
$86.70
0
$84.88
70
71
750
10.6%
750
10.3%
0
$79.52
0
$76.97
$83.10
$81.36
$79.65
$77.97
$76.34
$74.73
78
79
80
81
82
83
84
85
375
19.5%
375
19.1%
375
18.7%
375
18.3%
375
17.9%
375
17.5%
375
17.2%
375
16.8%
$73.16
$71.63
$70.12
$68.65
$67.21
$65.80
$64.42
$63.06
86
87
88
89
90
91
92
93
375
16.5%
375
16.1%
375
15.8%
375
15.4%
375
15.1%
375
14.8%
375
14.5%
375
14.2%
$61.74
$60.44
$59.17
$57.93
$56.71
$55.52
$54.36
$53.22
94
95
96
97
98
99
100
101
375
13.9%
375
13.6%
375
13.3%
375
13.0%
375
12.8%
375
12.5%
375
12.2%
375
12.0%
$52.10
$51.00
$49.93
$48.88
$47.86
$46.85
$45.87
$44.91
102
103
104
105
106
107
375
11.7%
375
11.5%
375
11.2%
375
11.0%
375
10.8%
375
10.5%
$43.96
$43.04
$42.14
$41.25
$40.38
$39.54