Inbound Marketing& HubSpotCMU Tepper Business School – November 30, 2009

Mike VolpeVP Marketing @HubSpotTwitter: @mvolpe

Marketing is Changing

1950 - 2000 2000 - 2050

Outbound Marketing

Outbound Marketing is Harder

800-555-1234AnnoyingSalesperson

The Good News…

Inbound Marketing:Get Found using Google, Social Media and Blogs

#4 Marketing Book on Amazon

InboundBook.com

Inbound Gives Leverage

Budget vs. Brains

Flickr: Refracted Moments Flickr: Gaetoan Lee

Advice for the road ahead…

Stop thinking like amarketer or advertiser.

Start thinking like apublisher and

socializer.

How does HubSpotmarket itself?

Inbound Marketing

Inbound Marketing

Publish

Promote

Optimize

Convert

Case Study: Website Grader

• Free interactive tool• 1.7 million URLs• 40,000 inbound links• 5,000 websites w/ badge & link• 4,500 Del.icio.us bookmarks• Great PR coverage (TechCrunch, RWW)• 50,000+ visitors from StumbleUpon• 100,000+ opt-in emails & leads

Case Study: HubSpot TV

• Weekly video podcast• 80-100 live viewers• 1-2K views / episode• Top 5 marketing podcast in iTunes• 70,000 views in first year• Guests: MC Hammer, Biz Stone, David

Meerman Scott, Chris Brogan

Case Study: HubSpot Blog

• Top 3 source of leads• ~10% visit company website• ~10-20% lead conversion rate

Case Study: B2B Music Video

• Video• 40,000 views first week• 10,000 views first day

• Social Media• #1 source = StumbleUpon• #2 source = Twitter• #3 source = Facebook

• SEO• Page 1 for “inbound marketing”• 50+ inbound links to blog article

http://www.youtube.com/watch?v=4-lGe5MnBlY

HubSpot MarketingGradersBlog IM.com SEOPaid $$

HubSpot.com Landing Page

Leads

Qualified Leads(SALES)

Demos / Customers

Social

ProspectEmail DB

(HI-IQ)

Un-Qualified Leads

Nurturing

Scoring

Nurturing

Nurturing

Did not buy

Analysis and Measurement

Flickr: akisra

Traffic

Leads

Sales

…By Channel or Source

Visitors Leads Sales

SEO

SocialMedia

What is HubSpot’sbusiness model?

What’s HubSpot?

• Marketing software for SMBs• Over 1,900 customers in 3 years• 100+ employees, lots of MIT grads• $33m raised in three VC rounds

HubSpot Software

• All in one integrated system

• Target small and medium businesses

• Easy to buy, deploy, and use

• Very broad, not very deep

Search Engine Optimization

• Keyword Grader• Link Grader• Page Grader

Blogging & Social Media

• Business Blog Software

• Blog Analytics• Social Media

Monitoring• Social Media

Publishing

Lead Capture and Intelligence

• Landing Pages• Lead Intelligence• Lead Alerts• Visitor Profiling

Competitor Tracking & Benchmarking

Marketing Analytics

• Assess the effectiveness of your marketing on a campaign-by-campaign level

• Optimize resource allocation to maximize sales

Saas Business Model

• Software-as-a-service (Saas)

• Customers pay for access to online software

• Salesforce.com, Netsuite, Omniture

Saas Business Model Mechanics

• Cost of Customer Acquisition (COCA)

• Total Lifetime Value (TLV)• Average Revenue Per User (ARPU)• Retention Rate (Churn)

• Very similar to buying bonds

Key Saas Metrics

• Magic Number• (Qt Rev – Qt-1 Rev) / Qt-1 Sales + Mktg

• COCA / First Year Rev• Revenue Based Churn Rate

• (Qt Rev* – Qt-1 Rev) / Qt-1 Rev

Rev = subscription (recurring) revenueRev* = subscription (recurring) revenue excluding revenue

from new customers added that period

HubSpot Business Model

• $250 to $1000 per month

• 97%+ retention rate

• Very good magic number ;)

What jobs are in inbound marketing?

Mike’s Background

• Bowdoin College (Econ)• 4 years in San Francisco

• Tech Industry I-Banking• Marketing / Biz Dev at Startups

• MIT Sloan MBA• 4 yrs Dir Mktg at $300m software co.• Joined HubSpot as #5 in Q1 2007

Hiring for Inbound Marketing

• Digital• Analytical• Reach• Content

• Super Smart• GSD

Pats Dev /Free Tools

Product Evangelism

Partner / BizDev

ConvertGet Found

Marketing Team @ HubSpot

RickBurnes

RebeccaCorliss

EllieMirman

Prashant Kaw

DanZarrella

Peter Caputa IV

JeanneHopkins

PamelaSeiple

CarolOrtenberg

KirstenKnipp

JordyneWu

Shannon Sweetser

+ Developers(from Dev team)

MikeVolpe

Thank You / Q&Awww.HubSpot.comwww.MikeVolpe.comToday’s Slides: www.MikeVolpe.com/CMUTepper

Mike VolpeVP Marketing @HubSpotTwitter: @mvolpe