Breaking Down HubSpot Marketing Hub's Total Cost of Ownership (TCO)

Marketing is crucial for any business, and with ever-increasing competition, businesses need to make sure they are staying on top of their marketing strategies. One tool that stands out above the rest is HubSpot's Marketing Hub.?

With its powerful features and ease of use, HubSpot 's Marketing Hub has become a favorite among marketers. However, before you dive in, it's important to understand the total cost of ownership (TCO) of the software.

How to define the Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO) refers to the comprehensive costs and expenses that are involved in acquiring, implementing, operating, and managing software solutions. It encompasses both direct and indirect expenses.

The significance of TCO lies in its ability to determine the return on investment (ROI) for software solutions. Conducting a thorough TCO analysis can reveal that software costs a business more than 5-8 times the original purchase price. Understanding the cost of software over time is crucial in making informed decisions when selecting software that offers the best ROI.

Various factors contribute to the TCO of software solutions. The three major cost areas associated with purchasing and implementing software are acquisition costs, operating costs, and personnel costs. Acquisition costs include the purchase price of the software, fees associated with licensing, support, or training, and any additional hardware or software required.

Operating costs are the ongoing expenses necessary to keep the software running, such as maintenance, upgrades, and support. Personnel costs include the cost of staff time required to manage the software, including training, technical support, and troubleshooting.?

Considering all of these costs helps businesses determine the true cost of a software solution and avoid any unexpected expenses down the line.

HubSpot’s Marketing Hub Pricing Tiers

The Marketing Hub TCO is made up of several components. First, there is the upfront cost of the software. HubSpot offers three tiers of the Marketing Hub: Starter, Professional, and Enterprise. Each tier comes with different features, and the cost increases with each tier. The Starter tier starts at $50 per month, while the Professional and Enterprise tiers start at $890 and $3,200 per month, respectively. These prices can vary depending on the number of contacts you have.

In addition to the upfront cost, there are minimal implementation costs. HubSpot offers a comprehensive onboarding process that helps businesses get started with the software. The process includes a dedicated onboarding specialist who will guide you through the setup and answer any questions you may have. HubSpot's onboarding process typically takes four to six weeks. Implementation can either be done directly with HubSport or a trusted partner such as Glare Marketing.. Pricing will vary accordingly.?

HubSpot's onboarding process typically takes six to twelve weeks.

One of the benefits of using HubSpot's Marketing Hub is that there are typically no additional costs to operate the software. Maintenance, training, and support are included at no additional charge. HubSpot's support team is available 24/7 to help with any issues you may encounter. They also offer extensive training resources, including live and on-demand training sessions, webinars, and certification programs, to help users get the most out of the software.

Yes, but what about personnel costs?

Personnel costs are another component of the Marketing Hub TCO. However, most businesses do not need to hire dedicated HubSpot administrators or IT personnel. HubSpot's user-friendly interface and comprehensive support resources make it easy for existing staff to manage the software. In fact, HubSpot's Marketing Hub is designed to be user-friendly and intuitive, so even those without a technical background can use it.

That being said, there may be some personnel costs associated with using HubSpot's Marketing Hub. Businesses may need to dedicate some time to training their staff on how to use the software effectively. Additionally, businesses may need to allocate some staff time to manage the software and analyze the data it provides. However, these costs are minimal compared to the benefits that the software can provide. In general, it’s considered best practice to work with an external vendor to ensure that the platform is being utilized to its full potential and being maintained.

The TCO of HubSpot's Marketing Hub can increase as the plan moves up from Starter to Professional to Enterprise, and as the number of marketing contacts increases. The Starter tier is designed for small businesses with fewer than 1,000 marketing contacts. The Professional tier is suitable for businesses with up to 10,000 contacts, while the Enterprise tier is designed for businesses with more than 10,000 contacts. The number of contacts can be increased, which will result in an increase in costs.

The Professional and Enterprise tiers come with additional features, such as predictive lead scoring, advanced analytics, and custom event triggers, which can help businesses streamline their marketing efforts and generate more leads. These additional features can be incredibly valuable for businesses that are looking to take their marketing to the next level. However, they do come at a higher cost.

Making sense of it all

• Marketing Hub Total Cost of Ownership is made up primarily of the upfront cost of the software, minimal implementation costs, and the costs of paying existing staff.
• There are typically no additional costs to operate Marketing Hub because maintenance, training, and support are included at no additional charge.
• Personnel costs are typically dedicated to paying existing staff because most customers do not hire a dedicated HubSpot admin or IT personnel.
• The TCO of Marketing Hub increases as the plan moves up from Starter to Professional to Enterprise, and as the number of contacts increases.

* The results described in these images are based on a survey conducted by HubSpot on July 28, 2022 of 112 HubSpot Marketing Hub customers. All survey results are provided for information purposes only and are "as is", with no guarantee of completeness, accuracy, timeliness, or results obtained from the use of this information, and without warranty of any kind. Please keep in mind that results for individual businesses, including yours, may differ based on your own markets, customer base, industry, geography, stage, and/or other factors.