HubSpot is one of the most successful SaaS companies in the world, with over $2 billion in ARR and more than 121,000 customers. The company offers a suite of software products for marketing, sales, service, and operations, as well as a free CRM platform. HubSpot has been growing steadily since its founding in 2006, and has become a leader in the inbound marketing methodology.
But what makes HubSpot so successful? And what can other SaaS founders and executives learn from its journey? In this blog post, we will explore six key learnings from HubSpot that can help you grow your own SaaS business.
1. Focus on solving a real problem for your customers
One of the first lessons from HubSpot is to focus on solving a real problem for your customers. HubSpot was born out of the frustration of its founders, Brian Halligan and Dharmesh Shah, who realized that traditional marketing methods were becoming less effective and more expensive. They saw an opportunity to create a new way of marketing that was more aligned with how people shop and buy online. They called it inbound marketing, and it involved attracting, engaging, and delighting customers with valuable content and personalized experiences.
HubSpot’s mission is to help millions of organizations grow better by providing them with the tools and education they need to succeed with inbound marketing. By focusing on solving a real problem for their customers, HubSpot has been able to create a loyal fan base and a strong brand identity.
2. Build a product that customers love and can grow with
Another lesson from HubSpot is to build a product that customers love and can grow with. HubSpot’s product strategy is based on three principles: simplicity, power, and scalability. Simplicity means making the product easy to use and intuitive for users of all skill levels. Power means providing the features and functionality that customers need to achieve their goals. Scalability means enabling customers to grow their usage and value as their business grows.
HubSpot’s product portfolio consists of four hubs: Marketing Hub, Sales Hub, Service Hub, and Operations Hub. Each hub offers different plans and tiers that cater to different customer segments and needs. Customers can also choose to use HubSpot’s free CRM platform, which integrates with all the hubs and provides a single source of truth for customer data. By building a product that customers love and can grow with, HubSpot has been able to increase customer retention and expansion.
3. Invest in content marketing and education
A third lesson from HubSpot is to invest in content marketing and education. Content marketing is one of the core pillars of inbound marketing, and HubSpot has been a pioneer in this field. HubSpot produces a vast amount of high-quality content across various formats and channels, such as blogs, ebooks, webinars, podcasts, videos, courses, certifications, and more. HubSpot’s content covers topics ranging from marketing, sales, service, operations, leadership, culture, trends, best practices, case studies, and more.
HubSpot’s content marketing strategy has two main objectives: to attract potential customers to its website and to educate existing customers on how to use its products and grow their businesses. By investing in content marketing and education, HubSpot has been able to generate millions of visitors, leads, customers, advocates, and promoters.
4. Cultivate a customer-centric culture
A fourth lesson from HubSpot is to cultivate a customer-centric culture. Customer-centricity is one of HubSpot’s core values, and it guides everything they do as a company. HubSpot believes that the customer is always right (even when they’re wrong), and that the best way to grow better is to listen to them, learn from them, and delight them.
HubSpot’s culture code4 states that “we obsess over our customers’ success”. This means that every employee at HubSpot is expected to put the customer first in every decision they make. HubSpot also measures its customer satisfaction using metrics such as net promoter score (NPS), customer satisfaction (CSAT), customer effort score (CES), customer lifetime value (CLV), churn rate, retention rate, expansion rate, etc. By cultivating a customer-centric culture, HubSpot has been able to create loyal customers who trust them and refer them.
5. Embrace experimentation and innovation
A fifth lesson from HubSpot is to embrace experimentation and innovation. Experimentation and innovation are essential for any SaaS company that wants to stay ahead of the competition and adapt to changing customer needs and market conditions. HubSpot has a culture of experimentation and innovation that encourages its employees to try new things, test new ideas, learn from failures, and iterate quickly.
HubSpot’s innovation framework5 consists of four stages: explore, validate, grow, and scale. Explore is where employees generate and pitch new ideas for products, features, or processes. Validate is where they test the feasibility and desirability of those ideas with customers and data. Grow is where they optimize the performance and adoption of those ideas. Scale is where they expand the reach and impact of those ideas across the company and the market. By embracing experimentation and innovation, HubSpot has been able to launch new products, features, and initiatives that drive growth and customer value.
6. Hire and retain great talent
A sixth lesson from HubSpot is to hire and retain great talent. Talent is the most important asset for any SaaS company, and HubSpot knows this very well. HubSpot has a rigorous hiring process that evaluates candidates not only on their skills and experience, but also on their fit with HubSpot’s culture and values. HubSpot looks for candidates who are humble, empathetic, adaptable, remarkable, transparent, and growth-oriented.
HubSpot also invests heavily in retaining and developing its talent. HubSpot offers its employees competitive compensation and benefits, flexible work arrangements, unlimited vacation, career growth opportunities, learning and development programs, recognition and rewards, wellness initiatives, diversity and inclusion efforts, social events, volunteer opportunities, and more. By hiring and retaining great talent, HubSpot has been able to build a strong team that delivers exceptional results.
Conclusion
HubSpot is a remarkable example of a SaaS company that has achieved timeless dominance in its industry. By following these six learnings from HubSpot, you can also grow your own SaaS business better:
- Focus on solving a real problem for your customers
- Build a product that customers love and can grow with
- Invest in content marketing and education
- Cultivate a customer-centric culture
- Embrace experimentation and innovation
- Hire and retain great talent