Menu
Sign In Search Podcasts Charts People & Topics Add Podcast API Blog Pricing

Brian Halligan

๐Ÿ‘ค Speaker
234 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

And we use an inside Salesforce.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

It was about a 30 day sales cycle cost to acquire the customers, maybe 13, $14,000.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

And then when we were going into the sales business, we said, okay, the marketing business is working, but if we were to start that marketing business over, what can we do to really lower that cost to acquire a customer, match the way we sell really with the way people buy, and see if we can scale it in a different way.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

So instead of using that

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

30-day inside sales model, inbound model.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

We call that our content funnel.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

We use content to drive leads in.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

We said, let's build a code funnel is what we called it.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

It was basically a classic freemium model where we gave the CRM software away for free and then users would buy it for $50 per month.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

And so our cost to acquire a customer went from, you know, whatever, $13,000 to something like $1,000.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

So it dramatically dropped.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

But the total lifetime value is there as well.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

And so what we look at internally is our old cost to acquire a customer was, let's say, $13,000, $14,000.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

Total lifetime value was maybe $50,000, $60,000.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

On the sales product, the cost to acquire was more like, you know, $1,000 and then $5,000 total lifetime value.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

What happened is we blend them together and our total cost to acquire is down or total lifetime values down.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

But the ratio is up.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

And that's what we want.

SaaS Interviews with CEOs, Startups, Founders
962 Why Hubspot Spent 1000's+ Hours On Pricing

We want the return on CAC to be higher.