The cost of an Unmanaged Mailing List

Earlier this year, Mailchimp changed its pricing plan. Managing your mailing list just got much more important, not least because you may start paying more for your account with them.

Pricing PlanOld Plan New Plan  
Data RecordsNo. of usersPriceData RecordsNo. of usersPrice
FreeUp to 2000 subscribers£0Up to 2000 contacts1£0
MonthlyUp to 52,000 subscribers
Essentials500 to 50,0003from £7.95 per month
Standard500 to 100,0005from £11.93 per month
Premium10,000 to 200,000unlimitedfrom £237.99 per month
Pay As You GoUnlimitedyou bought creditsUnlimitedYou buy credits

Why you need to monitor your data count

One of the biggest changes that impact the pricing of Mailchimp is the change from subscribers to contacts. It used to be that only subscribers counted towards your pricing.  It didn’t matter how many data records you had within your account, or how many lists. It was only the number of subscribers that counted.

Monthly charges

This has now changed, so that all data records are counted (minus archived, cleaned and deleted records). Add up subscribed, non-subscribed and unsubscribed to see how much you are going to be paying. If you’re approaching the limit of a Free account (2000), just a small number of unsubscribed contacts could mean you have to start paying. If just 20% of your list is unsubscribed, you have a monthly bill of £23.87 (Essential plan, up to 2,500 contacts). Bearing in mind that, once they unsubscribe, very few people come back, you need to clean out your data regularly.

Lists & Audiences

One of the biggest issues with Mailchimp until recently was the Lists function.  This allowed you to build as many lists as you wanted. The problem was that a single person could often end up in multiple lists. When someone unsubscribed, they only stopped getting emails from that particular list – not every list they were in. With GDPR now firmly in place (and not going anywhere, even if Brexit happens), sending people emails after they have unsubscribed is a big no-no and likely to get you into all sorts of trouble.

The changes make managing your mailing list so much easier, without having to complicate matters with multiple lists.

Segments, Groups & Tags

In the last section we discussed Lists and how they can be a problem, particularly for GDPR purposes. Having just one audience and then making use of segments, groups and tags help you avoid this problem.

Groups

Designed to be contact-facing, Groups allow to gather contacts with the same attributes. Perhaps they have all bought specific categories of products or have attended specific events. Contacts can choose which groups they want to be in. Perhaps they wish to receive information about particular services, for example.

Individual contacts can be in multiple groups and, if they unsubscribe, their data stays in the group, but they will never receive any emails sent to subscribed members of the group.

Segments

Segments allow you to create groups of contacts based on multiple criteria, whereas groups are single criteria-based. Perhaps you have sent out a number of emails and want to send a further campaign to contacts who have clicked on a link in any of those emails. You can build an ANY segment to look at up to five different email campaigns. Alternatively, if you wanted to create a group of contacts who opened all of them, you can use an ALL segment.

Tags

Tags are just for you, to help organise your contacts. You create tags and then attach them to contacts in a way that helps you to categorise them the way you want them categorised. Mailchimp has a number of ways they automatically tag contacts to help you manage and engage with your audience. Geographical tags, engagement level tags and Import date tags are all automatic. Of course, your tags can be as detailed or as light-handed as you want them to be. Perhaps you want to tag contacts in your sales pipeline so you can communicate accordingly with them?

You can then use these tags to group contacts for campaigns. After all, the more personalised the email you send, the more likely it is to be opened and engaged with. That is, after all, what you want to happen.

Performance rates

Having lots of people in your audiences is a great thing, if they want to be there and you control what you send to them. You will get higher open rate percentages and higher clickthrough rates. As a marketer, you want to be able to show the boss (even if that is you, as well) high levels of engagement. The more people are engaging with your email marketing, the more they are likely to be doing what you want them to do – usually buying your products/services. So why would you keep data in your audiences who don’t want to be there?

The changes Mailchimp has made do mean that you need to manage your data more proactively in order to control the costs of your email marketing. However, the changes they have made also make it far easier for you to control the data. You can make it more appropriate to the contact and more personalised as you collect and use data. From there you will get better results from your marketing. Of course, if managing your mailing list is proving to be difficult, SME Needs is a Mailchimp Partner and we are more than happy to help you get the best results from your email marketing

We hope this helps

What’s your best source of great leads for your small business?

Do you know?

Your business relies of leads. Leads that become qualified and then convert to sales. Without these leads, you will eventually lose all your clients and your business will go under – harsh but fair.

If you understand where your best leads come from, you can do more of that marketing. You will grow your business with a high return on investment from your marketing. Do you know your best source of leads for your business?  Is the source with the highest number of leads also the one that generates the most business? Read more

Does your marketing support your business goals?

You have goals for your business.

You may want to sell your business in five years’ time. Perhaps you want to keep growing, simply to see how big you can get. Whatever your goal, you have to have a marketing strategy that supports your business goals. Let’s look at whether your marketing will support your goals. Read more

Mathematics will help your small business improve its marketing

Almost all small businesses worry about sales levels; indeed all large businesses worry about sales levels as well, but as I work with small businesses lets stick to them.

There is a way to be more certain about sales levels and that is through the use of simple mathematics. Let’s look at how mathematics can help small businesses.

As a small business owner, you will know how much profit you need to make each month in order to pay the bills. Now lets work backwards:

  • From your profit margin, you can then calculate how much turnover you need to generate.
  • From your turnover you can work out how many sales you need to make, to current or new clients
  • From the sales figure you can see how many prospects you need to talk to about how you can help them.
  • From your prospects figures you should then be able to see how much resource needs to be committed to generating interest in your services.
    • The amount of traffic to your website
    • The number of outbound sales calls
    • The level of interaction on your social media platforms

Let’s calculate the figures for an example company, which sells cufflinks to retailers:

  • Money needed each month: £3,000
  • Profit margin: 60%, so the company needs to generate £5,000 in sales
  • At £50 a pair (they’re nice cufflinks), that’s 100 units per month
  • Every other retailer they talk to buys, on average, 10 pairs of cufflinks, and they have a good number of retailers who buy each month. 60% of sales come from repeat customers, so this takes care of sales for 60 units per month.
  • That leaves a further 40 units to sell, with a close rate of 50%, so they need to talk to 8 different retailers every month.
  • As their website isn’t an e-commerce site, retailers have to call to discuss their needs. On average 50 people look at the site for every person to pick up the phone so they need 400 visits per month
  • At the moment the website gets 250 unique visits per month

From here you can see what work needs to be done: the company needs to develop another 150, or more, unique visitors to their website.

If you can do these calculations for your business, that’s great and I hope this helps.  If you can’t please get in touch and I will be happy to work with you on developing the numbers

 

Which routes to market work best for you?

Your marketing budget is precious and you need to ensure it provides a great return on investment for you.  When was the last time you reviewed the performance of each route to market? Do you know which routes to market work best?

You will be using a number of different routes to market with, potentially, multiple campaigns running. Some of them will produce great results and you will be really busy dealing with the sales enquiries and the resulting work so will you have time to monitor the performance of your other marketing activities?

If some of your marketing is not delivering a good ROI, why keep it going?  The money, or time, you use on this campaign can be used for two alternatives:

  • improving your bottom line.  Money not spent goes straight back into your profits
  • Generating more money.  Why not spend it on increasing the marketing activity that is generating new business

If you haven’t recently reviewed the performance of each marketing campaign, you could have been wasting money for quite some time. It’s vital you know your best routes to market. Don’t delay any longer.