CEO on yesterday’s conference call:
"how’s HubSpot’s freemium play growing? Well, you can see some of the momentum as our total customers are growing north of 40%. At our scale, that sort of customer growth is pretty remarkable. Interestingly enough, the growth we’ve seen in total customers isn’t coming through our traditional funnel where lead downloads a white paper then fills out a form, speaks to a sales rep and then purchase the product over a 30-day sales cycle.
Increasingly, customers start by using and getting value out of one of our free products and then upgrade into a paid version. We’ve seen evidence of this trend, that’s about 1/3 of our new marketing customers since 2016 begin actively using our CRM product before purchasing the Basic, professional and Enterprise versions of our marketing product.
This shift should:
*Lower cost of customer acquisition.
*Enable fast growth in customers.