Halligan: Blending low-price sales funnels improved HubSpot's LTV-to-CAC ratio
Brian Halligan · 962 Why Hubspot Spent 1000's+ Hours On Pricing · Mar 13, 2018 · at 11:53
HubSpot co-founder and CEO Brian Halligan explains the strategic rationale behind introducing lower-priced freemium products despite lowering company-wide ARPU.
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“What happened is we blend them together and our total cost to acquire is down or total lifetime values down, but the ratio is up and that's what we want. We want the return on CAC to be higher. And we're just pouring new customers in at this lower price point, and then we're able to upsell them the marketing products.”
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