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Digest...
There are a few things we learned about Hubspot that anyone considering investing in the company should know. In July, Hubspot's top two technical people quit the company. Hubspot's chief product officer, David Cancel, and vice president of engineering, Elias Torres, quit at the same time to go start a new company together. It's not a small loss. Cancel and Torres hired most of Hubspot's engineering staff. So far, none of those people have followed them out the door — but insiders expect that to change six months to a year from now. Hubspot management blew its relationship with Salesforce.com, costing themselves hundreds of millions of dollars and costing the company sales. A few years ago, $35 billion SaaS giant Salesforce invested in Hubspot. Soon, it was sending some of its customers Hubspot's way. Then, in early 2013, Salesforce approached Hubspot with an offer to buy the company for a price north of $1 billion. Hubspot management said no. Salesforce.com went with plan B and bought the parent company of a Hubspot competitor, Pardot. Now Salesforce is going to its customers it previously set up with Hubspot and offering them discounts to switch to Pardot. Meanwhile, Hubspot is looking to IPO at a price lower than Salesforce's offer a year and a half ago. Hubspot has higher than normal customer churn. In part because Hubspot sells to small and medium-sized business , it has a higher than normal customer churn rate. The number Hubspot cares more about, "subscription dollar retention rate" isn't much better. In 2013, the last full year reported in the company's IPO filing, it was 82.9%. That means 17% of 2012's subscription revenue dollars went away in 2013. This white paper from Bessemer Venture Partners says healthy SaaS companies keep their retention rate above 90%. Hubspot's customer-acquisition costs keep rising. We're told it takes something like 20 to 24 months for a single Hubspot customer to generate enough revenues to pay for the marketing costs it took for that customer to be acquired. ___________________________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Digest...
1. HubSpot Introduces a New CRM 2. The Future of Inbound Marketing is Inbound Sales 3. Lead Nurturing Does Lead to Sales According to Chris Brogan, 80% of all sales come through the 5th-11th contact with the person you’re trying to sell to. This means that you will want to follow up with your leads and have the right conversations with them at the right times during the buying process. 7. Shifting Power from Seller to Buyer During Brian Halligan’s keynote, he commented on the evolving buyer-seller relationship by saying: “The world used to be buyer beware, but it’s shifted to seller beware.” This not only effects how consumers buy, but also how they interpret the way you market to them. Today’s buyers have the power to choose how and when they will engage with a company; they often block out advertising messages and other forms of marketing naturally. So in order for you to make a real impression, and for your company to thrive, you have to modernize your marketing efforts to reflect modern buyers’ buying habits. 8. Blog Your Heart Out for ROI 12. Shift from Specialist to Generalist Because traditional marketers and specialists have spent such a long time becoming experts in a particular arena that when challenged with innovative ideas, they have to hire a team to adapt. The bottom line: companies need someone who can think strategically but also implement at the tactical level. Generalists will soon be in high demand. So grab yours while you still can. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Excerpt...
It’s the fact that the HubSpot CRM reverses the priority of CRM – from sales first to marketing first. So now, rather than CRM and sales leading the customer process, HubSpot reaches out through its marketing platform to engage customers and then automatically connects them through to the sales teams seamlessly. The CRM platform works almost behind the scenes, logging your sales emails, phone calls and leads as they are made, not after the fact. And because it is part of the one platform, the marketing data that has been accumulated through various touch points, from web, to download, to webinar and so on, is also immediately available to the sales team as the relationship moves closer to conversion. This new extension to an already powerful mid-market solution will strengthen what is already an attractive software platform. More importantly, it presents small and medium businesses with a compelling proposition – all in one, integrated sales and marketing automation. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Digest...
In addition to launching a CRM at its INBOUND 2014 event, HubSpot added a number of new features to its marketing platform, including enhanced attribution and revenue reporting, campaign wizard and a content calendar. These upgrades come as the company prepares to launch its IPO. “Our ultimate goal since we started HubSpot has been to help companies and agencies worldwide grow their business with inbound marketing,” Dharmesh Shah, HubSpot’s Co-founder and Chief Technology Officer, told attendees at INBOUND 2014. “The product launches represent massive leaps in what’s possible for marketers with HubSpot’s platform, and include features that will help marketers worldwide fundamentally transform the buying experience e for their prospects, customers, and leads.” Among the new features, Shah highlighted revenue reporting, which he called “the one metric that matters most.” The upgrade is an expansion of Revenue Reporting in HubSpot to work with a range of CRMs and tie marketing channels, content offers, and campaigns to the bottom line, he explained. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Digest...
HubSpot, the IPO-bound company that makes marketing software that runs in the cloud, expanded into two new lines of business today. Today it added two new product lines — one is a customer-relationship management (CRM) application, and the other it calls a sales acceleration application. HubSpot is going after companies that Salesforce and other CRM vendors tend to overlook. He called it the “mid-market,” or companies with 20 to 2,000 employees. A CRM add-on has been HubSpot’s most-requested addition from its 12000 customers. As for the sales acceleration part, HubSpot has changed the name of an existing tool called Signals, which debuted last year, to Sidekick. The basic point of Sidekick is to let you know when a potential sales lead is “engaging,” which is a fancy of way of saying checking out your stuff. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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The 2014 State of Inbound Marketing Report is a comprehensive overview on how the industry has evolved and how companies around the globe have shifted the way they do marketing. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Excerpt...
The basic picture, then, is a disciplined company that has grown quickly while keeping costs in line. As I say, pretty much what we suspected.
The S-1 does provide some other insights – in particular, highlighting HubSpot’s shift in focus from very small businesses to mid-size business. The following table, taken directly from the S-1, shows this clearly: revenue per customer has climbed steadily from $5,395 in 2011 to $8,823 in the first half of 2014 – a 64% increase. Still, the average revenue per client is nowhere near Marketo, which is in the $30,000 to $40,000 range. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Digest...
By going public, HubSpot is following the route of its marketing automation competitor Marketo, which filed for an IPO last year. Unfortunately, also like Marketo, HubSpot's financial documents revealed that the company hasn't turned a profit in the last five years. In its S-1 filing, HubSpot was candid about the risks it faced, acknowledging its history of losses and the possibility that it may not achieve profitability in the future. It also identified the risk of its customers assembling a suite of individual point solutions for content marketing, web optimization, email and social media marketing instead of buying HubSpot's all-in-one platform. Conversely, it's also facing competition from the larger all-in-one marketing platforms, such as Oracle, Salesforce and Adobe, who can achieve economies of scale faster. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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-- > 11,624 customers and 1,900 marketing agency partners (pg. 1) -- > Focused on the mid-market (pg. 1 — this is a change from a few years ago when they were small business focused) -- > Mid-market defined as companies between 10 and 2,000 employees (pg. 2 — this is a very broad definition of the mid-market) -- > Average revenue per customer is $8,823 per year (pg. 2) -- > 20% of customers outside the U.S. (pg. 4) -- > One major risk factor is the inability of customers to create content to make blogging, social media, and inbound marketing in general worthwhile (pg. 10 — regularly writing good content is a serious effort) __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Digest...
HubSpot filed its S-1 document with the U.S. Securities and Exchange Commission today, putting the marketing automation company in line to go public and raise $100 million. The company brought in $77.6 million in revenue last year, and in the first six months of 2014, revenue surpassed the $50 million mark, coming in at $51.2 million. Even so, the company is not profitable. Net loss last year came out to $34.2 million, according to the filing. __________________ ► Receive a FREE daily summary of The Marketing Technology Alert directly to your inbox. To subscribe, please go to http://ineomarketing.com/About_The_MAR_Sub.html (your privacy is protected).
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Inbound Marketing with Hubspot vs. Without Hubspot
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Online-marketing software company HubSpot Inc. has started the process for an initial public offering and is working with Morgan Stanley on a potential deal.
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Excerpt...
Signals is a notification app that helps you know when and how to engage your leads. It lives in Google Chrome, and connects to many of the other tools that salespeople use on a daily basis. Signals shows you real-time notifications based on “signals” coming from emails you’ve sent, your website, your CRM system, even social media. What kind of “signals” are we talking about? Here are a few examples: - When a lead opens or clicks an email I’ve sent from Outlook, Gmail,or Salesforce, I get a notification, giving me insight into the lead's level of engagement and where they stand in the sales process.
- When a long-term lead who I thought was cold returns to my website after months of absence, I get an instant notification, right on my desktop.
- When a new lead is assigned to me in Salesforce, I know about it and can follow up right away.
Because we are so excited about the potential Signals has to change how salespeople work, we’ve decided to take a different approach to how we typically introduce our tools. Anyone, HubSpot customer or not, can use Signals for free to get notifications about email interactions. You’ll get up to 200 email notifications for free every month; and if you want to get unlimited notifications, to get lead revisit alerts from HubSpot, or to integrate your CRM system, you can do that for just $10 per month, per person.
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HubSpotsays the earliest it will IPO is the beginning of 2014, but that plan got a bit of a boost today as one of its major competitors experienced a nice bump during its public offering.
Marketo, a marketing automation company and oft-cited HubSpot competitor, went public today. And, as Forbes reports, it saw a nice bump: Marketo shares surged after the company’s initial public offering today, rising more than 50% from its offering price.
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Key excerpt #1...
The most concrete news, Social Inbox, extends existing HubSpot features by more fully integrating social media monitoring and response with the HubSpot interface. The Social Inbox presents a list of Twiter posts by user-specified individuals or containing specified key words. Users can drill into each post to see a complete profile of the poster. The big deal in HubSpot’s eyes is the profiles include all information the HubSpot database about each person, and are even color-coded with the sales lead stage. The data includes Web and email behavior captured directly in HubSpot, data imported from Salesforce.com, and whatever else the system has available. Users can respond directly, forward a post to someone else, or add the poster to a HubSpot campaign. The system can automatically alert users to new Tweets as they happen or on a regular schedule.
Key excerpt #2...
Admittedly, I’ve been arguing this for a long time: the need for integrated customer treatments will eventually lead marketing automation, CRM, and Web content management to become a single system, or at least to share a common customer database. HubSpot’s current vision of highly personalized data-driven marketing is consistent with this. The current vision is also quite different from the original HubSpot vision of attracting traffic through huge volumes of great (but not personalized) content. But the new vision is a logical extension of the original: once you’ve attracted people and start to learn their preferences, the more you’re able to make targeted content recommendations. And, the more content you have available, the more you need those recommendation to point people at the right materials.
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Summary...
Compared with last year, the revenue growth rate is about the same (82% vs 85%), while the customer growth rate is sharply lower (42% vs. 55%). That means revenue per customer grew by significantly, by 24%. This reflects HubSpot's aggressive moves to serve larger companies and provide expanded features for traditional marketing automation such as more robust email and lead nurturing. The revenue per customer suggest that things are going according to plan.
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![Inbound Marketing with Hubspot vs. Without Hubspot [Infographic] - InfographicB2B | #TheMarketingTechAlert | The MarTech Digest | Scoop.it](https://img.scoop.it/E9O3npuIFoP7h_Y4yVXF__L6dadsvGA8m9WNoVsbzkY=)
And there's the rationale for HubSpot's lack of presence at Dreamforce, and their foray into CRM. But the more important issue has to do with the Engineering crew.