Hubspot Moves Up Market with Integrated CRM

Hubspot is targeting the ‘M’ in SMB. Its newest CRM tool caters to mid-market businesses in the 500 headcount range, where cross-functional integrations start to gain complexity. So rather than just sales workflows, it broadens functionality for integrations with system admins and other stakeholders.

Announced this week at its Inbound conference, HubSpot Sales Hub Enterprise builds on Hubspot’s existing CRM software that was previously targeted to smaller teams and SMBs. The thought is that mid-market companies have greater software integration needs, due to often using many more platforms.

For example, mid-market companies often have more complex sales workflows as they ingest data from more places: marketing platforms, databases and other lead sources. This signaled Hubspot to add integrations to its existing CRM in order to meet demand in the opportune mid-market segment.

“What we find is that the customer experience for a 500-person company or for a 1,000-person company is quite different and their expectations are quite different than a 10-person small business,” Chief Customer Officer Yamini Rangan told TechCrunch. “What the Sales Hub Enterprise specifically brings is the ease of use, as well as the powerful features [ … ] to a larger midmarket organization,”

Simplicity & Focus

Hubspot is also hoping to bring its signature simplicity to the mid-market. In other words, the same minimalist design and UX that has made Hubspot a hit among SMBs and small marketing teams could have appeal among slightly-larger enterprises where many of the same personas reside.

There, it will compete with other CRM and (and marketing automation platforms) like Adobe, Salesforce and SAP. Its message will be for customers to benefit from a simpler and more integrated platform versus a patchwork of functions from other vendors. Though in fairness, most vendors sell the same line.

But Hubspot is also likely thinking that this mid-market segment is where it could hold advantages in terms of focus. The aforementioned enterprise software giants are drawn to larger enterprise clients, so Hubspot can have a sales and service edge in its attention to mid-market customers.

Sweet Spot

The up-market move could also be a foothold for Hubspot in terms of what we can expect in its ongoing product road map. CRM is a entry point, which will likely allow it to deepen customer relationships (and ARPU) with the same message of integrated one-stop-shop software suites.

Mid-market companies can also be more dynamic than other segments in terms of growth stage. Larger enterprises are more mature in the aggregate, while smaller SMBs are unproven. The mid-market could be a nice sweet spot in terms of a strategic target for Hubspot to grow with its customers.

“What we find is that companies will start as a 100-person company and grow to become a 500- or a 1,000-person company, and as they grow up on HubSpot we become their growth suite and we become the core platform of record for them to continue to grow,” Rangan said.

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