Optimizing Your Email Marketing Budget with a Hybrid Solution

There is a dire need to optimize the email marketing budget for smaller organizations with the tools and processes that currently exist at our disposal. When it comes to the small and medium online businesses (SMBs), with a restricted budget to spend on marketing activities, the marketing cost increases by leaps and bounds as soon as the email list subscribers crosses 5000.

At present, there are more than 500 email service providers in the market. The most popular ones are Aweber, MailChimp, Constant Contact and Campaigner. Along with that, there are a multitude of SMTP relay servers present in the market with the sole focus on email delivery. Some famous ones are Amazon SES, SparkPost, MailGun, ElasticEmail, and SendGrid.

Need for a Hybrid Solution

All of these email solutions have their own pros and cons. None of the solutions come close when it comes to optimization of the email marketing budget for SMBs. While the email service providers have a multitude of features to streamline the email marketing campaigns for minimum effort and maximum convenience, they are extremely expensive for a small business. They focus more on the feature list, often neglecting the email delivery (into inbox) aspect. On the other hand, the SMTP relay servers focus solely on the email delivery aspect and completely neglect the feature lists, like email list management and campaign management.

Hybrid Solution

Hybrid Email Marketing Solution is the need for the day, especially for the SMBs. A hybrid email marketing solution comprises of multiple SMTP relay servers, economical and affordable low end email servers as well as high deliverability email servers. Here are the ways in which the email marketing budget can be optimized enhancing the ROI with a hybrid email marketing solution:

Higher Deliverability Rates increases ROI

For different SMTP relay servers, the average deliverability rate keeps on fluctuating with time as well as by ISPs. By carefully tracking the fluctuations of deliverability trends based on ISPs and time, users can route their emails for different segments using SMTP delivery servers that deliver the best performance for that particular segment in a specific timeframe.

  • Improved email delivery to inbox
  • Enhances open-rates, leading to increase in ROI

Cost Effective and Scalable Solution for different category of emails

Different types of emails (transactional receipts, promotional campaigns, upsells, password recovery) have different costs. These emails can be categorized differently and can be sent using different mechanisms. For example, transactional emails to highly engaged customers can be sent using SMTP relay solution, thereby reducing costs; while marketing emails can be sent using powerful dedicated SMTPs which will be costly but more efficient in terms of recipient response. Thus, using multiple email delivery mechanisms to send different types of emails-

  • Reduces overall marketing costs
  • Helps in scaling up in an economical way
  • Manages the leads and carries out marketing campaigns without loss of effectiveness and efficiency.

Multiple Email Mechanisms

Email Marketing Budget Optimization by switching SMTP relay servers

The email marketing budget can be optimized by switching to different SMTP relay servers based on the type of the subscribers and their engagement activities. For a niche, highly segregated and active subscriber list, a high-end SMTP relay server can be used to increase the deliverability rates, which will result in subscriber engagement and conversion. Similarly, for low value subscriber list that are inactive, old and not properly segregated, an economical low end SMTP relay server can be used. Moreover, by using this mechanism, one can easily avoid IP/Domain reputation damage on their preferred channel for less engaged recipients.

Ankit Prakash

Ankit Prakash is the co-founder of EasySendy Pro – a hybrid email marketing solution provider for small and medium b2c businesses. Ankit is a passionate and determined entrepreneur; building internet products and services since 2006. You can follow him on Twitter for marketing optimization related tips.