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It turns out that a high price is not a good signal of quality for email marketing software. In fact, our independent review of 19 leading web-based email marketing solutions found an inverse relationship between price and quality.
Yes, you heard right. The higher the rating, the lower the price …even though price was just one of ten factors we considered. See the graph below for a summary of average price by star rating for the solutions reviewed.
This finding is great news for small and mid-sized businesses who want to get started with (or ramp up) their permission-based email marketing. You can rest assured that there are great solutions out there at a very affordable price. However, it also means you need to choose carefully as price, functionality & usability vary considerably.
For example, looking at the scenario of a business sending 5000 emails per month to a list of 2500 subscribers, the products given five-star ratings cost an average of $31 per month, compared to over $166 per month for the two-star products. The most expensive solution in our list cost a remarkable 17 times more than the most affordable, but was actually much less useful. Ouch!
Launch of our Email Marketing Software Review Pack
The findings above are based on the reviews in our new Email Marketing Software Review Pack, which we’re pleased to officially launch today.
This comprehensive 33 page report contains detailed independent reviews of 19 leading web-based email marketing solutions, including AWeber, Benchmark, Campaign Monitor, Campaigner, Constant Contact, Email Brain, Ennect Mail, GetResponse, GraphicMail, iContact, inwise, JangoMail, MailChimp, newzapp, Savicom, SimplyCast, Streamsend, Vertical Response, and Vision 6.
Buy the Review Pack
You can purchase the Review Pack on Software Shortlist (RRP $149) and download the report immediately.
Win a Review Pack!
To celebrate the launch of the Review Pack, we will be giving away 2 free copies.
For your chance to win, simply complete our email marketing software survey, including the final question about the challenges you’ve faced in choosing email marketing software and why you want to win the Review Pack. We’ll choose two (2) winners based on how interesting & insightful your answers are. Entries close 31st March 2010. For full terms & conditions, see the survey.
Enter now!
Previous Winner: Congratulations to David M. from Australia. He completed our February survey about email marketing software and his answer was judged to be the best by Software Shortlist staff. David will be receiving his free copy of the Email Marketing Software Review Pack today.
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Are you planning to invest in new software for your business this year? Your competitors probably are!
After a slowdown in the financial turmoil of 2009, spending on software and other technology is expected to rebound strongly in 2010 according to a recent report by Forrester Research. Global IT spending dropped 8.9% last year, but is predicted to bounce up in 2010 by about the same amount. Software is among the sectors leading the charge, with spending predicted to increase by 9.7%.
We wrote last year that the upside of a downturn is that it can prompt companies to re-examine processes and improve operations. The statistics show that many companies do the opposite and bunker down. Now many firms are again starting to open up their wallets and invest in software, hardware and other technology.
So, if you haven’t already, now is a good time to think about how new software can help drive your business in 2010…
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Have you been given the task of finding, evaluating and recommending software for the small business where you work ?
It’s a great opportunity ahead of you but it also presents some risks and pitfalls that need watching. The search process itself can also be a big hidden cost. Here are a few things you should be aware of before you jump into the process…
Deciding on software for small business
- Owners or partners of a small business often delegate the software selection process to employees they see as more technically-savvy or more organised than most. Your job is to present a shortlist of recommended options, to help them make the final decision. Think of the task as a vote of confidence in you.
- Employees made responsible for software selection often feel overwhelmed and unsure where to begin. There are so many products available, and you may not have been through a process like this before. That’s normal.
- A sense of personal risk is often involved – this is a chance to prove yourself but conversely you don’t want to make a recommendation that backfires on you. You don’t want to be “that guy” who suggested buying the software everyone hates.
- Research shows that owners of a business choose software differently than managers. [ref 1] For instance, managers often think the price and popularity of a package are critical … but business owners rate those amongst the least important! Research suggests owners tend to be more strategic, considering more factors and weighing them differently than managers do when evaluating software.
What does this mean for you?
Firstly, it means you should take the task seriously because the owners of the business certainly will.
You should also look for ways to educate yourself about good software selection practices and involve outside experts or information sources if possible. Adhering to a solid process gives the owner confidence, and can help you manage the many stakeholders involved.
You should also discuss what the important factors are with your boss and other stakeholders, and ensure that you are transparent in how you arrived at your recommendations. This focuses the discussion on the evaluation process (not just the end outcome) and not only does it help you choose software more intelligently, it also protects you from any perceived personal risk.
How Software Shortlist can help
Software Shortlist provides a “shortlist + compare” tool that can help you recommend software for your business. It steps you through a more robust software evaluation process than small businesses typically use, but it is still simple and easy to use for non-IT experts.
Software Shortlist also gives you the flexibility to adjust the weighting of different factors (e.g. price, ease of use, scalability). So if your boss turns out to have a different view on priorities you can easily adjust your shortlist accordingly. Plus, we’ve screened out products that aren’t up to scratch and have conducted independent reviews on each software product included in the comparison service. User reviews are available too to give you an additional, external perspective.
Go find that software
I hope this post helps you understand a bit more about the challenge and opportunity ahead of you in choosing software for your small business.
Why not let us know how it goes, and share your thoughts or experiences below so others can benefit too?
[ref 1]: P.Y.K Chau “Factors use in the selection of packaged software in small businesses: Views of owners and managers,”Information & Management 29 (1995) 71-78
