MailChimp Recommends SparkPost to its Departing Customers

By CIOReview | Thursday, March 10, 2016
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FREMONT, CA: Transactional emails, which pose as a proof of transaction, opens up immense possibilities be it for up selling or to have further engagements of customers making it a valuable tool in e-mail marketing. They can be broadly classified as one-to-many and one-to-one (personalized) variants. In the realm of transactional email service providers, MailChimp is a company that owns major market share which accounts to more than 40 percent.

As reported by Venturebeat.com (VB), MailChimp completely dominates the transactional email market with its Mandrill product. It’s also shown impressive growth, with more than 800,000 users delivering more than 88 billion messages through the service in just the past three years. On Feb 24th, through an official blog post, citing the company’s vision for a more personalized e-mail marketing tool, MailChimp announced that Mandrill would become a paid add-on for monthly MailChimp accounts. It did create a wave among existing users who openly expressed via twitter and other social media platforms, their intent to migrate to other providers. Companies providing similar services like Amazon Web Services, MailJet etc. were quick to act, tweeting as better alternatives to Mandrill while promising smooth migration.

In an update to the same post, on Feb 29th MailChimp highlighted that SparkPost, another cloud email delivery provider and to an extent, the Former’s competition, ‘has offered to take on “any departing Mandrill users and to honor Mandrill’s pricing for those users.” Interestingly, SparkPost has announced a free version of its transactional email service that will allow marketers and developers to send up to 100,000 emails per month, which is a considerable upgrade from the free 10,000 per month developer product announced earlier in the year. 

SparkPost was founded in 2014 as a child company of Message Systems, which apparently powers 25 percent of all email bulks and boasts customers including Twitter, Facebook, LinkedIn etc. SparkPost thus appears to be a rightful choice by MailChimp to compensate departing customers with a seemingly sound alternative while it embraces its bold and brave decision pursues innovations in a rather untapped subset of email marketing.