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Recorded: Monday 06 September 2021 | Published: Friday 10 September 2021
Shot 1: Growth Thought of the Week
Have you ever struggled with your company’s pricing models?
I’m pretty sure it’s not just me.
One way to learn how to improve pricing and packaging of products/services is to analyse how successful companies do it.
So, if you’re reading this and already have your HubSpot Hub licensing in place, you could be tempted to dismiss this episode as not particularly relevant. I hear you. After all, you’re not likely to change your setup based on a few points in a podcast...
But perhaps there’s some details here that will help you with your own business’ pricing model?
If there’s any company we can learn from when it comes to bundling and pricing, it’s HubSpot. The thought they’ve put into their pricing over the years is quite impressive (even if there are a few oddities in there - we’ll get to marketing contact pricing later in the show).
Approach this with a learner’s mindset - what can we learn and implement into our own ‘bundling’ of offerings?
Understanding Pricing Triggers
I like to analyse pricing tiers in terms of:
Irritation based upgrade triggers
Company growth triggers
Irritation triggers are things like running out of active lists to use, or pages you can create, based on your current tier. I really dislike these types of artificial limitations.
Company growth triggers on the other hand are related to functionality that your company has grown into e.g. things like A/B testing, personalisation, separate brands, process automation etc. They represent a natural step in your company’s growth. Typically they aren’t features that a smaller company has the appetite or bandwidth to use just yet.
I’m happy to see that most of the upgrade triggers in HubSpot tiers are the second kind - the company growth triggers.
At the risk of oversimplification, here’s how I see the natural steps between tiers:
has the basics in an all in one package
Pro has a focus on:
Testing and personalisation
Enterprise has a focus on:
Which includes content and feature partitioning
Growth into multiple brands (domains and business units)
An Unpopular Opinion
I do have some niggles however - Single Sign On (SSO) being one. SSO is one of those ‘features’ that admittedly is mostly only used by larger corporates, but should be available (IMO) to every company - because it provides better security. And better security should be a default ‘feature’ of every product and tier. Eg I think SSO should be available in the Free tier. I know I’m in the minority here - after all it’s in the Enterprise tier for most SaaS products. I’d love to see HubSpot change the game here and make it available in Free (eg in the same way that 2FA is).
A Final Note - HubSpot Pricing is Continually Changing
Important to note that HubSpot is continuously adapting their pricing models. These could be based on global events (eg the pandemic instigated the CRM Suite Starter pricing), product updates (Eg a new Hub such as Operations Hub) and feature updates (Eg brand domains being split into brand units and domains).
With that all said, let’s get started digging into CRM Suite Professional and Enterprise...
Understanding CRM Suite Professional and Enterprise Bundles
HubSpot has ‘bundles’ that allow you to bundle together Hubs and save.
They also have pre-configured bundles called ‘suites’.
One of those pre-configured suites is the CRM Suite Professional.
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Salesforce & Microsoft Dynamics
Shot 6: Quote of the Week
“Leaders: When you learn something, turn around and pass it on to others. A learner builds a reservoir of learning, but a leader builds a reservoir of learning and then becomes a river of learning to others.”
From the #MaxwellPodcast with @jmarkcole and @tracimorrow - How To Become A Life-Long Learner.