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3 Reasons Why Email Service Providers are so Expensive?

What is your ROI of your investing on your Email Service Providers? If you are one like many marketers, your answer might say that you pay a fixed rate for sending a limited number of email messages per month. Though sending emails is our final goal, definitely other costs roll the dice into overall spending on Email Service Providers.expensive email service providers

These prices may lead to your ROI of your product, and that is the reason why you are a partner with your Email service Providers. They offer online and phone support from their side. With their support team with whom you can be relied deliberately upon; understand your needs, a development team to add new functionality and proper analytics to check your emails reached safely to your subscribers.

They provide detailed reporting about the results of the email campaign including the delivery success, click through rates (CTR) and email open rates. The most important feature of the provider is their excellent reporting which helps to measure the effectiveness of the email campaigns.

But there are some other expenses of which you are not aware of, in fact, they are hidden from your eye and plundering your pocket. It associates with your internal resources along with exposure to risk which does not provide any benefit to your company.

What are the expenses on Email Service providers?

Database Replication

Copying of data from database in computer or server to another database, or to a different location termed as Database replication. This process applies by every SaaS – based Email Service providers, it requires and manages your ability to operate efficiently. The majority of enterprise companies have already maintained data warehouses where their critical data continues to store. But the question is why we need to duplicate that information while we can access it directly?

Related Post: Optimize Email Marketing Budget with Hybrid Emails

We can categorize expenses of data replication into three parts. Although they did not mention these components on your invoice, in reality, these factors will make a huge difference with every enterprise marketer.data-migration

  • Expenses in Database Migration – The process of Migrating databases is a daunting task to perform. Every Email Service providers contracts mostly include of front-loaded with substantial fees for onboarding. They also take a certain amount of setting up the ETL processes which means Extract Transform and Load. As the migration completes, it may become desperate to add some new data fields or entries, and it may also become hard to make sure changes for integration. They have to do designing of emails and managing the data to sending the emails. It needs continued support from your IT support team until your entire task accomplishes till you reach your expected result. Apparently, today you must plan for the Future of your Program!

Imagine how you will have authentication to work on all your database fields while also discontinuing IT resources to some extent?data-secure

  • Expenses On Data Security – Health insurer Anthem is the one of the company to make headlines as a result of its data breach. So we can anticipate finding some other company in the news for similar that had a data breach. Your data is under continues attacks and performing replicating it to another server which will increase your exposure.

Why would you trust someone else to safeguard your database (and risking your company’s reputation) if it’s not necessary?storage expenses

  • Storage Expenses – Data storage cost will inevitably hit the bar from your Email Service providers side and which in turn increase the CPM rate. Unlike the two above mentioned costs, which are mostly economic? If your product uses significant amounts of customer information, then Email Service providers will charge good amount to store that data.
    SaaS-based Email Service Providers are incurring the same cost to duplicate that data to their multiple servers and passing a portion of those expenses on you.

Why is it not possible to utilize the database which you already paid?

Many experienced marketers agree to these costs because of lack of any other alternative. But now with the emerging of Hybrid technology, which allows marketers to get access to their complete databases without a need of sending that data to a third party servers or computers is made possible. In effect this results in reduce the expenses in at least three ways:

  1. It helps to loosen your ties freeing your IT resources, giving control of full flexibility in utilizing data.
  2. It lets you maintain an only centralized database which allows us to have complete control from our end, which results in results of security risk by keeping your customer information.
  3. It enables your ESP to work more correctly, efficiently and the efficiency gains back to you.

It’s time to think how much you pay for your Email Service Providers and how it is working towards your company’s success.


About EasySendy Pro-


EasySendy Pro is an email marketing platform for the digital marketing team. It integrates with multiple SMTP relay service providers and enables delivery of email campaigns to a list of opt-in emails. You can split test email deliveries across the relay servers and check reports, track email clicks, opens of each email campaign. It also has smart autoresponder and email list segmentation.

To support Micro-Deliverability in Emails; currently, EasySendy Pro allows integration with SMTP relay gateways like Amazon SES, Mandrill, SendGrid, SparkPost, Leadersend, Dyn, Elasticemail, MailGun, SendinBlue, MailJet, TipiMail, and MailerQ. If you are sending an email to a list of above 25,000 email subscribers, then, Micro-deliverability of the email through multiple SMTP gateways provide better email open rate.

Comments

4 Comments

Cindy

Ankit, I agree on your points. I can truely relate with these reasons as i work under an organisation which works on email marketing so that i can relate thfough every point you have mentioned.

Sarah Williams

There are several reasons email providers are expensive , including these three.I believe that ESPs are both time-consuming and costly but still there are brands like yours who offers good in less. I am glad !

Richa

You shared a meaningful content as email service provider are expensive for sure 🙂 Well, you can take the help of various tools for the purpose of marketing, content writing, email marketing, all available at https://betapage.co/ check them out.

Ankit Prakash

Thanks for the information Richa!
Will take a look through website.


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