HubSpot: Lower Churn through Greater CHI (2010) Harvard Business School Case (F. Asis Martinez-Jerez, Thomas Steenburgh, Jill Avery and Lisa Brem)
In this case, students wrestle with the trade-offs inherent in rapidly growing a customer base and retaining customers over time. HubSpot, an entrepreneurial start-up selling Web 2.0 software-as-a-service to B2B and B2C customers, is under pressure from its venture capital backers to acquire new customers at a rapid rate 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 company model used to predict which customers will churn and suggest alternatives to improve the model’s prediction. Students develop programs to reduce churn post-hoc and then reengineer the company’s marketing and customer relationship management processes to manage churn proactively through market segmentation and targeting, product design, and customer interactions.