Email marketing has made a huge buzz in the online industry these past
few years. Studies by AMR Research have shown that targeted email
marketing campaign generated about 7 to 12 times the response rate of the
traditional snail-mail marketing.
Email marketing has been the easiest strategy to do since the emergence of
the internet. It became easy to communicate with people and reach your
target audience with the use of this technology. That is why more and more
companies have ventured into this marketing campaign for the hopes of
better results for their business
A report made by Forrester Research showed that companies spent $1.1
billion just on email marketing during 2001 and has considerably increased
in the following years. That is why several vendors that provide email
marketing products and services came out to take advantage of this booming
There are indeed a lot of solutions and services available for any
company’s needs but the thing is, it is difficult to choose which one
would suit your company best.
Before starting to evaluate the different solutions available, it is best
to understand email marketing campaign and its components better. Email
campaign involves strategy, creativity, copywriting skills, list
management, process execution, reporting and analysis. Some of the service
vendors provide most, if not all, of these categories. Depending on your
company’s specific needs, you may avail some or all of these features.
Evaluating Different Solutions and Services
Email marketing service providers can be categorized in three main areas:
off-the-shelf, mid-range, and high-end solutions. Evaluate the main
characteristics of each solution in terms of the features, benefits and
- Off-the-shelf solutions. This type of service is ideal for small
businesses willing to allot internal resources for email marketing. The
features commonly included in this type of service include sending
personalized HTML emails, list management, basic tracking and reporting,
and customer service.
The maximum number of emails off-the-shelf products can handle is 500,000
per month. This kind of service can range for as low as $30 to $350 per
However, for most of these service vendors, ownership and control of
list, reporting and data tracking are theirs.
- Mid-range solutions. An example of a mid-range solutions provider is
Pixel Bridge. It provides its clients with fully customized solutions,
from strategy formulation to tracking, analysis and maintenance, depending
on the clients’ needs.
This type of service provider is ideal for small and mid-sized entities
with advanced marketing needs. These companies are usually those that are
comfortable in using outsourced marketing services and customized
The costs of availing the service of mid-range solutions providers range
from $500-$3,000 per month. They typically manage 1,000 – 100,000 emails
per month. The application that these service providers offer can also be
bought outright for $10,000-$50,000.
- High-end solutions. These high-end marketing companies are focused and
really specialize on email marketing. Examples of these firms are Carat
Interactive, MarketFirst and Responsys. These providers offer
sophisticated marketing technologies capable of launching and monitoring
online or offline marketing strategies that involve millions of
These providers offer a more comprehensive data analysis approach such as
helping their clients identify historical patterns to improve their
conversion rate. The cost of availing the services of high-end providers
range from $6,000-$60,000 per campaign, which average from $20,000-$30,000
for most promotions.
Each company has its own unique set of requirements, and email marketing
has evolved to offer different solutions to address those needs. When
choosing the right email marketing service, keep in mind your company’s
needs. List down all possible vendors that you think will suit you best,
and then map out each one to identify which among them can address all of
your company’s requirements.
Price is always an important factor to consider. However, you do not have
to always sacrifice quality of service for a low price. The important
thing to be addressed is your internal needs and requirements. If you
choose the right service provider for your company, paying a bit steeper
price may not matter anymore since you will eventually earn it back with
the huge returns that the marketing campaign promises.
Several big organizations have realized that email marketing is such a
unique field and most traditional marketing practices just don’t keep up
with the online world. So when it comes to choosing your email marketing
provider, be sure to make the right decision for more successful years