Want a successful startup? Delight your customers, advises Hubspot CEO

When he was studying his MBA, a professor told Brian Halligan not to bother starting a business unless his product was going to be 10 times better than the competition.

The co-founder and CEO of Hubspot, a company dedicated to digital marketing, shared that he was fortunate not to have followed that advice during his talk at INCmty 2020.

“I know that entrepreneurs and winning companies often don’t necessarily have products 10 times better than the competition. I think the winners are those who create a customer experience that’s 10 times better than everyone else’s,” Halligan said.

Today, Hubspot is a global leader in inbound marketing software solutions; it is valued at $18 billion USD. Halligan created this marketing methodology with Dharmesh Shah in 2005.

Halligan shared that from the very beginning of Hubspot, he knew that his vision had to go beyond what already existed. He understood that companies had to migrate from offline to online space, from outside selling to inside selling, and from outbound marketing to inbound marketing.

Disrupting the customer experience

Just as Halligan had to think differently from his professor to be able to develop his own company, he says that entrepreneurs must come up with strategies which are disruptive.

He said that opting for new ways of offering your products and services to customers in order to meet their needs and generate improved experiences involves creative disruption.

“For example, shopping today is much cooler online. It’s not just e-commerce solutions that are able to create a complete experience (...) it is as much about what you sell as how you sell it,” he added.

“The winners are those who create a customer experience 10 times better than the competition.”

A new marketing model

The guru explained that marketing used to be based on a model which was represented by a funnel, a metaphor to explain how marketing creates leads at the top with sales at the bottom.

Halligan is the co-creator of a new marketing model: a customer-based cycle which, metaphorically, proposes different types of customers located on a wheel rotating around an axis.

“I think a better model, to my mind, is what I describe as a steering wheel, which includes visitors and potential customers, as well as current customers, delighted customers, and even more delighted customers (...) it will turn faster and faster, depending on how much friction there is,” he explained.

This model -which is used by companies like Amazon- seeks to make customers as happy as possible, and this is the type of experience that should be offered, said the expert.

You have to be ‘online’

Halligan believes that people have changed the way they behave in recent years. Now, they spend their time glued to their smartphones: they live on Google, Twitter, and Facebook.

Based on this new digital behavior, entrepreneurs and companies must reevaluate the way in which they promote and market their brands and products.

“Everybody is online, profoundly online, and I think it will be increasingly difficult for companies to be caught offline and trapped in the 1990s,” he shared.

He said that the mistake made by many companies is in moving towards digitization too slowly, or gradually and step by step; he recommends a change in strategy involving the use of digital platforms to strengthen relationships with the customer.

“The platforms are really good and are relatively easy to adopt.

“What’s more, moving to a digital environment is great for right now. Due to the COVID-19 pandemic, we have to move everything that is offline online,” he said.

Advice for entrepreneurs: generate content

Halligan thinks marketing has changed - hardly anyone sees billboards or TV commercials anymore.

He said that instead of entrepreneurs investing their money in television or radio advertising, they should develop publicity channels on the net.

For example, content generated on YouTube, via a podcast, or through blog posts, is very attractive to the public.

Rather than paying for platforms like Facebook or Google, those funds can be used for a company to grow.

“Invest that money in hiring excellent marketers and content creators to become a media-based company,” he said. “Your marketing should be an instant business.”

More about INCmty 2020

Over the course of five days, INCmty brought together more than 10,000 entrepreneurs, business owners, investors, and leaders from Mexico, the United States, Chile, Colombia, Germany, Spain, Peru, Israel, Brazil, and Canada.

Via a 100% digital format, participants were able to meet and interact with experts on digital inclusion and a sustainable future.

“Through INCmty, the Tec renews its commitment to entrepreneurship, which is a key part of its DNA. At times like these, it’s vital to bear in mind that challenging times also present great opportunities,” shared David Garza, Rector and Executive President of Tec de Monterrey.

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