Switching Email Service Providers

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Recent survey data from Strongmail reveals the majority of businesses employing an email service provider (ESP) have switched within the last two years and another third plan to do so in the next 12 months. Why?

According to the release, “the data shows that 77 percent of these companies have switched providers in the past two years for three main reasons: lack of product features, limited services and high costs.” With such variance in pricing across the industry, I expect that it has more to do with cost than pricing. 

Other reasons for switching email service providers include deliverability challenges, the inability to leverage data in campaigns, general dissatisfaction, poor support, system down time, data security and a desire to bring email on-premise. It is interesting to note that deliverability services are consumed at nearly three times the rate of any other ESP service offering. 

On a related note, Website Magazine recent post on email metrics has generated a lot of attention so we encourage you to check that out. Our guidance is to do all that you can to optimize email effectiveness before switching email service providers.


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2 comments

Dror Zaifman 07-21-2010 12:38 AM

My opinion is in order to switch email service providers one would do so more for low quality of service then cost for a simple reason.

Clients look at true cost that is being billed to them at the end of the month without taking into considerations other costs such as a learning curve when training employees at the new email service providers and possible errors that can occur during that time which may affect revenue.

Emails not being sent out during the switch over period which can again effect revenue.

Bad service or delivery at the new email service providers which prevents emails from reaching the in boxes affecting sales. This may cause a company to decide to go back to the original email service provider leading in more downtime.

Everything has to be looked at and considered before making such an important move by researching the new email service providers, asking customers on web forums and maybe testing the new provider with a smaller list to check service, delivery, and performance before moving the entire list over.

SamM 10-01-2010 8:21 PM

Of course the smart thing to do is have more than one Email Service Provider, that is if you are unhappy with the first one, then instead of a hard cut over, go with an other firm, do a few email campaigns and then if the new company is doing a great job, give them more work. There is nothing that says a company can not have two firms, granted it is more work for the company but the competition will cause one service provider to step up.

Sam

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