HubSpot: Lower Churn Though Greater CHI

Posted: 28 Feb 2012

See all articles by Francisco de Asis Martinez-Jerez

Francisco de Asis Martinez-Jerez

University of Notre Dame - Department of Accountancy

Thomas J. Steenburgh

University of Virginia - Darden Graduate School of Business

Jill Avery

Harvard Business School

Lisa Brem

Harvard Business School

Date Written: April 5, 2011

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.

Learning Objective: Analyze the economic implications of churn rates, and examine the methods for predicting and manage customer churn. Discuss the relationship between churn rates, customer satisfaction, and customer lifetime value.

Suggested Citation

Martinez-Jerez, Francisco de Asis and Steenburgh, Thomas J. and Avery, Jill J. and Brem, Lisa, HubSpot: Lower Churn Though Greater CHI (April 5, 2011). Harvard Business School Accounting & Management Unit Case No. 110-052. Available at SSRN: https://ssrn.com/abstract=2012716

Francisco de Asis Martinez-Jerez (Contact Author)

University of Notre Dame - Department of Accountancy ( email )

Mendoza College of Business
Notre Dame, IN 46556-5646
United States

Thomas J. Steenburgh

University of Virginia - Darden Graduate School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Jill J. Avery

Harvard Business School ( email )

Cambridge, MA
United States
6174958084 (Phone)

Lisa Brem

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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