Case | HBS Case Collection | January 2010 (Revised March 2013)

HubSpot: Lower Churn through Greater CHI

by F. Asis Martinez Jerez, Thomas Steenburgh, Jill Avery and Lisa Brem

Abstract

HubSpot, a web marketing startup is under pressure from VCs to rapidly acquire new customers and to maintain a low level of customer churn. In the case, students explore the drivers of customer churn and uncover opportunities to increase customer retention across the customer selection, selling, and training processes. Students assess a metric, CHI (Customer Happiness Index) which HubSpot uses to predict which customers will churn, and suggest alternatives to improve the firm's predictions. Students develop programs to reduce churn post-hoc and then reengineer the company's marketing, selling, and customer relationship management processes to manage churn proactively through market segmentation and targeting, product design, and customer interactions.

Keywords: Business Startups; Customer Relationship Management; Customer Satisfaction; Customer Value and Value Chain; Forecasting and Prediction; Consumer Behavior; Happiness; Consulting Industry;

Citation:

Martinez Jerez, F. Asis, Thomas Steenburgh, Jill Avery, and Lisa Brem. "HubSpot: Lower Churn through Greater CHI." Harvard Business School Case 110-052, January 2010. (Revised March 2013.)