We love when one of our sponsors here at Marketing Pilgrim does something big. Today that would be HubSpot and their acquisition of marketing automation company Performable.
HubSpot is known for its service to the small business community but has seen how inbound marketing can turn small companies into larger ones with more advanced needs. The acquisition of Performable helps move HubSpot into another area which will help their current 4,500 HubSpot customers but also grow the company in other areas.
Inbound marketing is about ToFu (top of the funnel) and MoFu (middle of the funnel)
The way people learn, shop for and buy products has changed, and marketers need to adapt to these changes if they want to succeed. Since 2006, we have been educating hundreds of thousands of marketers and business owners about how marketing is changing and the importance of implementing more inbound marketing into your sales and marketing funnel. But the less talked about story within inbound marketing is that MoFu is also changing. It is harder and harder to get into the email inbox, and relying on email as the primary communication with your prospects and leads in the future is not going to be a solid strategy. People communicate more and more with social media (spending more time on Facebook now than on email) and the way you manage your leads through the sales and marketing funnel needs to be a process that moves beyond email.
This move toward trying to embrace the change occurring in marketing throughout the lead acquisition and conversion (lead to sale) process is critical for business in the new world order of business. Much like with Google, Facebook, Twitter etc much of this is simply being figured out “on the fly” with the hopes of being right. Considering the success of HubSpot to this point, they haven’t been wrong about much yet so this move toward the middle of the funnel is one that should be paid attention to.
So how can this change business? Well, that obviously remains to be seen but one real advantage that HubSpot gets from this acquisition is software development talent. That’s capital that SaaS businesses treasure the most (right after cold, hard cash of course). Halligan continues
We have admired the product development folks working at performable for some time. In fact, Dharmesh Shah (our technical co-founder and CTO) has known David Cancel (Perfomable CEO and former CTO of Compete.com) since before he founded Compete.com. David is a visionary product development leader and does an especially good job of recruiting amazing product talent. David is going to serve as our Chief Product Officer. The team does not stop there however, because David has recruited some of the best minds for product development as well as product usability and design, and they are all joining HubSpot.
We believe that combining the Perfomable team with the already fantastic HubSpot product team will give us the best product development team in all of B2B software. All of us are very excited to see the HubSpot product evolve and improve over the coming months and years.
Admittedly, it’s a pretty big statement to say that e-mail marketing is, in effect, becoming less effective in the sales process but it makes sense. It doesn’t mean it is ineffective it just means that its ability to capture the potential customer has changed. If there is nothing else to learn from business at the speed of the Internet, it’s that change is as normal as breathing.
So congratulations to the combined teams of HubSpot and Performable. It will be interesting to see how this combination works to change how business does marketing in the Internet Age.