Introduction
Ryan Holmes, founded the HootSuite and he was the Chief Executive Officer (CEO) of Hootsuite and it was launched in December 2008. The headquarter of HootSuite was in Vancouver, Canada with around 140 employees. There were 650,000 users of HootSuit. The customers of HootSuite were characterized into four categories: the free users, prosumer, small and medium-sized businesses and enterprise. Whereas the prosumers, agencies and consultants accounted for 20% from 80% of volume traffic. The target of revenue was estimated to be $100 million, as stated by Gunn. HootSuite, was working as the social media dashboard. It provided services in a way that the customers could track their multiple social media accounts via HootSuite. With the boom in the social media, many websites such as Facebook, Twitter, LinkedIn and YouTube were proving to be an essential tool for businesses to market their products. Therefore, many businesses took the services of HootSuite, so that they could track their customers and also queries for the different products and services they had to offer. It was a social media dashboard, which provided the brand management in integration with the Facebook, Twitter, YouTube, etc.
Problem Statement
HootSuite was a software service, social media dashboard. It was in the growing process and it was growing very fast. HootSuite, with the growth faced few problems as well. The major problem that HootSuite’s vice president, Gunn was facing was the determination of the best strategy that could monetize their user base and also it should not affect their rapid growth.
Case Analysis
Answer of Part A
HootSuite was a software service, developed as a social media dashboard. HootSuite was having 650,000 and its growth started to increase, but the problem was that the stream of revenue was not taking place. Most of the users of the HootSuite were free, whereas, it is comprised of the businesses, agencies and consultants. The vice president of business development of HootSuite, Gunn, had a big challenge. The challenge he was facing was that they needed to come up with the strategy by which they could transfer its free users with the paid accounts. This was a pretty tough situation for Gunn, as Gunn had to implement the strategy through which he could do that and this could also affect the current growth of the HootSuite. There was a problem that, most of the users wanted to enjoy all the facilities given by HootSuite, but they were not able to afford the paid account. The users of HootSuite had different categories such as: free, prosumer, businesses and enterprise. The problem arose with the differentiation of HootSuite, and making it the product appealing the different segments. And how the different versions were supposed to be implemented so that the users could be entertained through them. Gunn also had concerns such as maintaining a good relationship with the prosumers and that relationship was very meaningful for HootSuite. They were the users who helped HootSuite achieve the desired results and they were kick starters for the software. Therefore, charging the users could have disappointed them and they could have left using HootSuite and could choose some other software service. Thus HootSuite had a challenging task to segment its users according to the paid accounts and avoiding the decline in the growth rate of the HootSuit.
Answer of Part B4
Promotional Plan
HootSuite was the software that provided services to its users in a way that they were able to track and manage their multiple accounts on the social media websites such as Facebook, YouTube, Twitter and LinkedIn. The basic objectives of the HootSuite were to offer its users different benefits such as the customers did not have to log in to their different accounts, track the update of the accounts and also the customers could view the whole conversations and tweets. The customers included the companies, journalists and consultants as they had many fans or the customers to whom they interacted via the social media sites. The users were also given benefit that they could write the message and select the correct time on which they had to send the message. The users were also given the opportunity to give their feedbacks and those feedbacks were being entertained by the company.
So the different objectives in terms of customers could be achieved via different promotional strategies. The following are the elements through which HootSuit could be...................
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