In a world overflowing with information and technology, sometimes the simplest solutions are the most overlooked. Today, I want to share an incredibly straightforward yet highly effective method to slash your yearly email marketing costs by up to 70%.
Common Sense is Not Common
The phrase “common sense is not common” rings especially true in the realm of business expenses. Many companies are overpaying for email services simply because they haven’t explored more efficient alternatives. The majority of enterprises either use Google Workspace or MS 365 primarily for their email needs in the quest for a secure and reliable email system. However, they tend to overlook the fact that these are pricey email systems loaded with numerous features that are required only by a few users. Yet, they pay the same for all users year after year.
In a nutshell, they overpay and underutilize.
Let’s delve deeper into how this happens. Businesses often subscribe to premium plans without fully assessing their actual needs. For example, Google Workspace and MS 365 offer a plethora of features including cloud storage, advanced security, collaborative tools, and more. While these features are beneficial, the reality is that most employees typically use only the basic functions such as email, calendar, and document storage. This results in paying a premium for features that go largely unused.
Moreover, the subscription model of these services means that businesses are continuously paying a high price per user per year. With a large number of users, this cost quickly adds up, leading to significant annual expenses. The lack of customization and flexibility in these plans further compounds the issue.
The Sureshot Way to Save
Hybrid is the way to go. With the continuous evolution of technology, it is now possible to go hybrid. This means one can subscribe to a cost-effective and secure email system for the majority of users and under the same domain identity, use pricey systems like Google Workspace or MS 365 for a limited number of users.
This hybrid approach is not only cost-effective but also ensures that you are utilizing resources efficiently. Here’s a step-by-step guide to achieving significant savings without compromising on the quality or effectiveness of the email system:
- Audit Your Current Email Service Provider
Start by conducting a thorough audit of your current email service provider. This involves:
- Reviewing your current plan and its features.
- Analyzing the usage patterns of your employees.
- Identifying features you are paying for but not using.
By understanding your actual needs, you can determine which services and features are essential and which are superfluous. This audit will provide a clear picture of where your money is going and how much of it is being wasted on unnecessary features.
- Evaluate Alternatives
Once you have a clear understanding of your needs, the next step is to evaluate alternatives. Research other email service providers (ESPs) that offer similar services but at a more competitive price. Look for providers that cater specifically to your business size and type. Consider newer or lesser-known ESPs that might offer more competitive pricing.
For instance, there are several cost-effective alternatives to Google Workspace and MS 365 that provide basic email services with necessary security features. These alternatives often come at a fraction of the cost and can meet the needs of the majority of your users.
- Leverage Open-Source Solutions
Open-source email systems are a great way to reduce costs without compromising on functionality. Tools such as Mailtrain or Mautic offer robust email marketing capabilities and can be customized to fit your specific needs. These tools often provide similar features to paid ESPs, including automation, segmentation, and analytics, but without the high price tag.
Implementing an open-source solution requires some initial setup and maintenance, but the long-term savings can be substantial. Additionally, open-source tools offer greater flexibility and control over your email system, allowing you to tailor it to your exact requirements.
- Adopt a Hybrid Model
The key to maximizing savings is to adopt a hybrid model. Under this model, you can use a cost-effective email system for the majority of your users while retaining premium services like Google Workspace or MS 365 for a select group of users who genuinely need advanced features.
For example, your marketing and sales teams might benefit from the advanced collaboration tools offered by Google Workspace, while your support and administrative staff can use a more basic and affordable email system. This way, you can optimize costs without sacrificing functionality where it matters most.
One of our clients, a mid-sized e-commerce company, managed to reduce their annual email subscription expenditure from INR 5,00,000 to just INR 1,20,000 by adopting a hybrid model of an email system. They identified that only 20% of their workforce needed the advanced features of MS 365, while the remaining 80% could function efficiently with a more basic and cost-effective email system. This strategic shift not only saved them money but also improved their overall efficiency.
- Optimize Your Email List
Another important aspect of saving on email costs is optimizing your email list. Regularly clean your email list to remove inactive subscribers. Focus on quality over quantity to ensure you are only paying for engaged contacts. An optimized email list not only reduces costs but also improves your email deliverability and engagement rates.
- Negotiate Your Contract
Don’t hesitate to negotiate with your current provider. Many providers are willing to offer discounts or customized plans to retain their customers. Present the cost comparison and ask for a better rate or customized plan that suits your specific needs.
- Automate and Streamline
Use automation to reduce manual efforts and improve efficiency. Streamline your email campaigns to focus on high-impact strategies. Automation tools can help you manage your email campaigns more effectively, saving time and resources.
Take Action Now
Implement these strategies today and start seeing the savings roll in. It’s time to apply common sense and make smart financial decisions for your business. The savings achieved through a hybrid email system can be redirected towards other critical business areas, enhancing your overall productivity and growth.
If you need any assistance or want to discuss this further, feel free to reach out. We are here to help you maximize your marketing budget and achieve your business goals.
