Jeetu Mahtani, Sales Leader @Hubspot: How and When to Go International and Crush It | E1207

HubSpot's Expansion Strategy

• HubSpot opened an office in Dublin in 2013 after achieving a strong LTV to CAC ratio, indicating good product-market fit and customer retention. (5m25s)
• HubSpot validated demand in the UK before opening a Dublin office by having employees based in Cambridge, England start their days early to call UK prospects. (9m18s)

HubSpot's Sales Strategy

• The typical ramp time for HubSpot sales representatives, regardless of geography, is six to nine months. (12m4s)
• To achieve suitable return on investment with a company of 25-500 employees, an annual contract value of 10-12k is required. (12m52s)
• When expanding into new markets, it's crucial to tailor the go-to-market strategy to the specific complexities of the country and product. Relying solely on a direct sales approach might not be suitable for countries with high operational complexity, like Japan. Partnering with local resellers can be more effective in such scenarios. (17m26s)
• HubSpot's revenue increased due to predictable demand, a focus on hiring and training sales representatives, and a robust partner ecosystem that generates approximately half of the company's revenue. (19m38s)
• When expanding into new markets, it is crucial to prioritize building a predictable sales pipeline by targeting companies that align with the company's ideal customer profile and have reasonable sales cycles, rather than solely focusing on acquiring large, well-known clients. (35m26s)
• Founders should actively participate in creating the sales playbook and be present on sales calls, especially during the early stages of the company's growth. (33m17s)
• Sales compensation plans should incentivize desired behaviors and evolve with the company's growth phase. (37m12s)
• Sales representatives should ask probing questions to uncover the customer's true needs and motivations rather than relying on surface-level urgency. (48m39s)
• Discounting should not be a primary sales tactic and should only be used strategically to address budget gaps after a thorough needs assessment. (50m41s)
• Sales experience alone is not the most important factor when hiring sales representatives; other characteristics should be considered. (53m25s)
• Mahtani believes that a large part of selling will be automated with AI in the future and that salespeople will need to be better at advising prospects. (56m8s)
• Mahtani believes that the discovery part of the sales process will be automated first, but that customers will still need salespeople to help them make the right choice. (56m27s)

HubSpot's Partner Program

• Founders should consider establishing a partner program when there is a clear understanding of the role partners can play in supporting customer success with their product. This could involve service providers, app partners, or ecosystem partners. (22m21s)
• Companies need to consider how they will incentivize partners to provide services to their customers. (25m46s)
• HubSpot required partners to use and understand their product before joining their partner program. (26m11s)

HubSpot's International Expansion

• When expanding to Japan, attempting to replicate the success of sending an expatriate team to locations like Dublin and Sydney proved unsuccessful due to language barriers and cultural differences. Hiring locally, while initially challenging, became essential for understanding the nuances of the Japanese market. (15m28s)
• HubSpot initially saw success in Germany with English content but had to adjust their strategy in Japan where English content was not effective. (27m29s)
• Before establishing a physical presence in a non-English speaking country, it is advisable to hire a marketer 18 to 24 months in advance to gauge demand. (31m5s)

HubSpot's Customer Success Strategy

• Customer success teams should be incentivized on revenue-generating activities like upselling and retention. (38m19s)
• Jeetu Mahtani believes that founders should play a role in early customer success (CS) activities to understand what drives customer results and long-term retention. (44m27s)
• Jeetu Mahtani advises startups to establish a foundation of self-help resources, knowledge bases, and content before significantly investing in a large CS team. (45m44s)

HubSpot's Marketing Strategy

• While SEO has become more challenging, it remains crucial for businesses to utilize. Companies should focus on content creation and distribution through various channels like social media and LinkedIn. (20m32s)
• Jeetu Mahtani noticed the HubSpot logo on a tennis player's sleeve at Wimbledon and believes this type of brand marketing is effective at creating awareness. (43m0s)

HubSpot's Leadership

• Jeetu Mahtani and Peter Kuda previously ran a business together that combined events and Facebook. They eventually sold the business and interviewed at HubSpot. (1m15s)
• Mahtani initially wanted to be a product manager at HubSpot but was told by Brian Halligan (CEO and co-founder) that there was no position available. (2m51s)
• Jeetu Mahtani had an office with a wall in the center and had the wall removed so that everyone could learn from each other. (54m33s)

Future of Sales

• Companies are consolidating their tech stacks to simplify operations and improve efficiency. (40m34s)
• A user describes an experience using a chatbot that ultimately led to a phone call with a human representative. (59m45s)
• The user believes that a customer experience model that includes digital leads, human interaction, and sales representatives is the direction businesses are moving towards. (1h0m1s)
• Jeetu Mahtani and Harry, the other participant in the conversation, express their enjoyment of the conversation. (1h0m18s)