Mail Chimp

Part
01
of two
Part
01

MailChimp Positioning

Since the new all-in-one platform focuses on marketing automation, MailChimp will be able to compete with other such services like HubSpot. Also, with the addition of artificial intelligence monitoring, recommendations, and e-commerce application, the company will be able to compete with Zoho and Shopify, which also have the same functions.

METHODOLOGY

We began our research by searching through reputable sources like The Muse, Inc.com, Business Insider, PC Mag, TechCrunch, EmailToolsetter, MarTech Today, E-commerce Times, TechTarget, MarketWatch, and Practical Ecommerce. Through these sources, we searched for pre-compiled information in business analyst reports, business media, and industry commentary sources that satisfy the requested information. However, because the all-in-one solution is a newly launched platform, information showing how well it is positioned to move into its new market is minimal. Through our reseach, some useful insights on the features of the new solution in MarTech Today and PC Mag were found but they didn't directly describe how the service compares to the all-in-one services of its competitors.

Next, we then explored blog posts in reputable blogs like BigCommerce, MailChimp's blog, and Get Elastic looking for possible comparisons and other useful information. While we found insights on the features of MailChimp's new all-in-one solution and some additional helpful information, there was no information on how it gives MailChimp an edge over its competitors.
At this point, we opted to focus on noting the features of MailChimp's all-in-one service and attempting to draw comparisons with each of the listed competitors offering similar all-in-one solutions. This was done by checking each of their websites and blogs and other reputable sources like those listed above. From this analysis, we were able to compile a breakdown of how MailChimp compares favorably or matches up to its competitors' all-in-one services.

AUTOMATION

Since the new platform focuses on marketing automation, MailChimp will be able to compete with other such services like HubSpot. It also has an advantage over Zoho, because Zoho is a simplified email marketing platform while MailChimp has advertising and automation facilities.

Ai AND E-COMMERCE

New features in MailChimp's all-in-one solution include an inbuilt AI that offers marketing recommendations to users based on information collected from about 4 billion users. With the addition of AI monitoring, recommendations, and e-commerce application to MailChimp, the company will be able to compete with Zoho and Shopify, which also have the same functions. MailChimp will also be able to confront Shopify since it no longer partners with the company.

WEBSITE BUILDER AND DOMAIN SALE

Competitors like Squarespace, an all-in-one platform that allows businesses to build websites, buy domains, track analytics and so forth, and Wix, which has an email newsletter tool (Wix ShoutOut), website building and domain hosting facilities now have to contend with the new MailChimp all-in-one solution, which is complete with an established email marketing platform, website builder, and sells domains.

FREE ACCOUNT AND INTEGRATIONS

Unlike Shopify, Squarespace, and Wix, MailChimp offers free accounts and lower starting prices than Shopify, Squarespace. MailChimp's free plan includes seven marketing channels, email, basic templates, landing pages, the marketing CRM, multichannel capabilities, Facebook and Instagram ads, and simple website templates. MailChimp also has more integrations than the rest of its competitors with a total of 935 integrations compared to 501, 128, 84, and 31 for Shopify, Squarespace, Wix, and Zoho, respectively.

EXISTING BIG MARKETING PRESENCE

According to MailChimp, over 1.25 million e-commerce orders are generated through MailChimp campaigns daily with more than 450 million e-commerce orders in 2018. Through multivariate + A/B campaigns, its customers have sold goods worth over $250 million.

Focus on small businesses

MailChimp new full-service solution is aimed at small businesses. It joins the trend of offering a unified marketing platform for small business owners. For example, a business can pull images from Instagram into its database, which would be used to target its Facebook audience.

Part
02
of two
Part
02

Mailchimp Founding & History

MailChimp was founded by Ben Chestnut and Dan Kursius in 2001. The company is one of the leading marketing platforms in the world and offers three plans which include Free, Grow and Pro. Since its inception, the company has acquired several companies which include TinyLetter, Sawa and LemonStand.

Information for this research was obtained from the official company website and reports from reputable sources such as Bloomberg, Crunchbase and Pitch.

FOUNDING STORY AND HISTORY OF MAILCHIMP

FOUNDING STORY

The company was founded by Ben Chestnut and Dan Kurzius in 2001 and is located in Atlanta, Georgia. They started the Rocket Science Group, a web design agency, but also provided email marketing services for their smaller clients. As such, it provided a cheap alternative to other expensive email software, making it affordable for small business owners to access these technologies and enabling them to grow.

Currently, MailChimp is one of the leading marketing platforms globally. The success of the company is based on the email marketing tool that is targeted at small businesses.

HISTORY FROM FOUNDING TILL PRESENT DAY

In 2011, MailChimp acquired TinyLetter, a newsletter service. In February 2019, MailChimp acquired Sawa, an Atlanta based automatic graphic design platform and in March 2019, MailChimp bought LemonStand, which is a flexible platform for growing e-commerce businesses. Before the purchase, the company parted ways with Shopify, which is one of its competitors.

Between 2018 and 2019, the company provided scholarships to students at Clayton State who are majoring in IT, Computer Science and Mathematics. In 2017, MailChamp was selected by Atlanta Contemporary to receive the Nexus Award. It has also been named Company of the Year by Inc.

INFORMATION ON THE PRINCIPAL ACTORS

1.Ben Chessnut

Position: Co-founder and CEO.
Education: Bachelor’s Degree in Industrial Design from Georgia Tech.
Other info.: Named Ernst & Young Entrepreneur of the Year in 2016.

2. Dan Kurzius

Position: Co-founder and Chief Customer Officer. Was MailChimp’s first support agent and built the department.
Duties: He focuses on MailChimp’s workplace and culture.

3. Farray Kennedy

Position: Chief Operating Officer. Joined MailChimp as Support VP in 2014.
Duties: Manages the company’s technical and operations team.

4. Marti Wolf

Position: Chief Culture Officer.
Duties: Coordinates employee experience, company’s culture, corporate affairs and communications teams.

5. Rick Lynch

Position: Chief Finance Officer
Duties: Head of planning, finance, and investment.

6. Tom Klein

Position: Chief Marketing Officer
Duties: In charge of marketing and strategic partnerships.

MAJOR SHIFTS OR CRITICAL EVOLUTIONS IN THEIR BUSINESS MODEL AND PRODUCT OFFERING

The operational model by the company includes getting closer to customers, and this enables the company to understand what various businesses want out of the marketing tools. Additionally, it has expanded its brand reach by sponsoring various initiatives such as serials, popular podcasts and art projects. These initiatives have contributed to the evolution of the company whereby its the campaigns have gone viral.
  • 2001-2004: The company charges for prepaid credits which range from 1-2 cents per email based on the pricing tier that clients choose.
  • 2005-2006: The company launched a free trial account which gives clients 25 email sends for free. Additionally, clients could select one of twelve pricing offerings which range from $15 to $2,500.
  • 2007: The founders phased out the web design agency and focused on MailChimp. The result was the introduction of five different monthly plans with the costs depending on the email size list of the client. Costs for this service was $15 for between 0-500 emails, and the highest monthly price was $150 for clients with between 10,001-25,000 email lists.
  • 2008-2011: The company introduced the Forever Free Plan that provided 100,500,1000 and 2000 free emails to subscribers in 2008, 2009, 2010 and 2011 respectively. This move resulted in significant growth for the company, as subscribers increased from 85,000 to 450,000. Additionally, the company’s profits increased by 650% after the launch of the free plans.
  • 2014: The company launched three new monthly plans, New Business which was free, Growing Business priced at $10 monthly and Pro Marketer priced at $199 monthly.
  • 2014-2017: The names of the various plans changed, New Business changed to Entrepreneur plan while Pro Marketer changed to High Volume Sender plan.
  • 2017: The Entrepreneur and High Volume Sender plans were changed back to Starting Up, and Pro Marketer plans. Later, they were changed to New Business, Pro Marketer and Growing Business plans. Within the year, the company started advertising on Instagram and Facebook. It also started using various landing pages and Google ads for marketing purposes as the company expanded.
  • Presently: Plans by the company are named Free which is free of charge, Grow which is changed at $10 monthly and Pro which is charged at $199 monthly.

Sources
Sources

From Part 01
Quotes
  • "We’re dedicated to democratizing marketing technology for small business, and providing the latest, most powerful tools at affordable prices. We’ll continue listening hard to our customers’ needs, constantly improving our platform and building new features along the way "
  • "our current customers will be able to stay on their pricing plan as long as they like until they choose to upgrade. We even have an Essential Plan designed for those customers who still use Mailchimp primarily for email marketing "
Quotes
  • "They include technology to record and track customer leads; the ability to purchase domains and build sites; ad retargeting on Facebook and Instagram; social media management. It will also offer business intelligence that leverages a new move into the artificial intelligence to provide recommendations to users on how and when to market to whom."
  • "The latter of these will be particularly interesting considering the data that it has collected and will collect on 4 billion individuals and their responses to emails and other services that Mailchimp now offers."
  • "....but Mailchimp’s unique selling point — or so it hopes — is that it’s the platform that has no vested interests in other business areas, and will therefore be as focused as the small businesses themselves are"
Quotes
  • "With its revamped platform, Mailchimp will compete in the marketing automation space with companies such as HubSpot$50.00 at HubSpot Email Marketing and Pardot. "
  • "Mailchimp will now incorporate a set of customer relationship management (CRM) features to let marketers collect insights about thier customers "
  • "marketing automation will be a key feature for Mailchimp"
  • "Email doesn't go anywhere," Foreman said. "It's still a part of the product. Email is one marketing channel that's tied to it.""
Quotes
  • "We figured you’d want to know how ShoutOut stacks up to other more popular newsletter tools, such as MailChimp. We’re not really sure we can compare the two, though. MailChimp is a fully fledged email marketing tool, while ShoutOut does only a fraction of what MailChimp does. No prizes for guessing who the winner would be!"