Quick Tip: Associating Contacts, Companies, and Deals - A Case Study in LemonadeSOLVE
06-07-2017 08:50 - last edited Tuesday by roisinkirby
My name is Jenny Sowyrda and I am a Community Moderator on the HubSpot Support team. I am based out of HubSpot’s Portsmouth, New Hampshire office and have worked on the Support team for almost a year. I enjoy all things HubSpot from deals to workflows, and I am here to lend a hand when necessary.
One way to think of contacts, companies and deals in terms of the simplest business model there is: the lemonade stand.
In general, contacts are the human connections you are making for all elements of your business. A deal is pitched to a human, a company is run by a human, your emails are read and answered by humans.
In my lemonade stand business, the contacts are the potential customers I have. Drivers passing by, children out riding bikes, parents out jogging-they are all the contacts in my CRM because they are my potential customers. They are my contacts.
Companies are more than where your contact works. A company defines your contact’s budget, resources, and ultimately whether your contact will be able to buy your product.
For my lemonade stand, the neighborhoods that I market my lemonade to are the companies. If I set up a lemonade stand in a neighborhood that no one drives or walks through, or a neighborhood that has six other lemonade stands, I am not going to sell my lemonade. These neighborhoods would not be the right companies for me to market to. And just like companies can have multiple contacts, neighborhoods can have multiple individuals eagerly lining up for my lemonade.
An important note—just like an individual cannot live in two neighborhoods at the same time, a contact in HubSpot cannot be associated with multiple companies at the same time.
Generally speaking, deals are the business transactions that are associated with a contact or a company.
For my lemonade stand, a deal is when I begin to pitch my lemonade to a customer. While not everyone who stops by my stand will purchase lemonade, my deals are each transaction. And just like one customer can purchase two cups of lemonade, a contact can be associated with two deals.
While contacts, companies and deals can all act independently in a CRM, using them together makes every deal as sweet as selling lemonade.
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