Tuesday, October 18

Topic

  • Hubspot Case Discussion

Objective

  • To learn how you can use the CLV formula for targeting decisions
  • To introduce the concept of a value model and explore how you can use value models to systematize your decision-making about making strategic changes to marketing-mix variables

Discussion Questions

  1. What decision needs to be made in the Hubspot case, and what alternatives should Halligan and Shah be considering? Arrive at three alternatives, with one being to maintain the status quo.
  2. Assuming a zero percent discount rate, what is the customer lifetime value of an Owner Ollie? Show your work.
  3. Assuming a zero percent discount rate, what is the customer lifetime value of a Marketer Mary? Show your work.
  4. Building on your answers to Q2 and Q3, if Halligan and Shah had $100,000 to spend on customer acquisition, who should they spend it on, Ollies or Marys? Show your work.
  5. What direction does your research suggest Halligan and Shah should go in? Build an argument for your decision.
  6. What are the key advantages of creating a value model relative to making a list of pros and cons?

Assignments Due

  • Answers to today’s discussion questions
    • After signing into Blackboard, submit your answers to this folder
  • Discuss your analysis of the Hubspot case with your group members before today’s class

Assignments Made

  • Hubspot Case Reflection
  • Answers to the discussion questions for our next session of marketing
  • Discuss your analysis of the Starbucks case with your group members before our next session of marketing

References

Johnson, Steven (2018), “How to Make a Big Decision,” The New York Times.
Steenburgh, Thomas and Jill Avery (2017), Marketing Analysis Toolkit: Customer Lifetime Value Analysis, Boston, MA: Harvard Business School Publishing.
———, ———, and Naseem Dahod (2017), HubSpot: Inbound Marketing and Web 2.0, Boston, MA: Harvard Business School Publishing.