Mailchimp vs Sendgrid: Which Is the Best Email Marketing Service?

SendGrid and MailChimp are the most popular email marketing tools in the market. While they’re the two biggest email platforms for higher volume senders and offer tons of useful features, you need to understand how they compare to pick the right tool for your business.

Both MailChimp and SendGrid are designed with different types of businesses in mind. This post will help you decide which is the better tool for your business.

What Is MailChimp?

MailChimp is a powerful email marketing tool that specializes in making sure that your emails reach the right people at the right time. It enables you to formulate an easy design, build, launch, monitor, optimized, targeted email or ad campaigns by targeting your customers based on behavior, preferences, previous purchases and also sends a series of emails with just a single API request. 

With 11 million active customers and a total audience of 4 billion users, Mailchimp comes with a feature that helps you lock down your leads and gives them an expected service that grabs their attention.

If you are looking for an email software that gives you an advanced reporting feature which lets you access your sales, revenue or any other report from anywhere, anytime—– Mailchimp is the one for you. 

Plug: TeamWave is an integrated CRM, Project Management & HR platform for small business. TeamWave has deep integration with Mailchimp.

Features

  • Automation
  • Blasts And Targeted Emails
  • Reports and Analytics
  • A/B Testing
  • Abandoned Cart Email
  • Auto-Responders
  • Click Map
  • Click-through Tracking

For a more detailed list of features offered by MailChimp, Click Here

Benefits

  • MailChimp can be used for free for up to 2,000 subscribers and 12,000 emails per month
  • It packs with a lot of functionality in a clean, usability-focused user interface.
  • You can automate this by sending out a newsletter that’s populated by content from your RSS feed. All you need to do is create a template and control how much of that content and how often it is sent out.
  • It allows delivering mail based on where the recipient resides.
  • It offers detailed tracking reports to let you know how well your newsletter fared.

Pricing Plans

Mailchimp’s most popular plan is their free plan. It allows you to store up to 2,000 subscribers and send 12,000 emails per month.  

Paid Plans:

 

  • Essentials:$9.99—–  Includes contacts with up to 50,000 users. All email templates, A/B testing, Custom branding, 24/7 support
  • Standard:$14.99 —- Includes Everything in Essentials, plus: Contacts for up to 100,000 users, Automation series, Retargeting ads, Custom templates, Advanced audience insights
  • Premium:$299 —–  Includes Everything in Standards, plus:  contacts with up to 200,000 users, Advanced segmentation, Multivariate testing, Unlimited seats, and role-based access, Phone support

 

When to choose Mailchimp

  • You want simplicity
  • You love a good brand experience
  • You only need an email solution for marketing
  • You want great automation features
  • You’re a small business and price is a factor

Cons

  •  Customer support via phone is available only for premium.
  •  Awful sign-up/login process

What Is Sendgrid?

Founded in 2009 and acquired by Twilio for $3 billion, Sendgrid is a trusted and powerful email delivery tool that offers tools and features to empower your email marketing campaigns. By using its simple and easy-to-use interface, you can create and design emails the way you want to. 

You can send over 4,000 emails per second using Sendgrid. You can also keep a track of emails sent, delivery rates, spam reports, bounces, link clicks and a lot more. SendGrid’s is a transactional email API which simplifies the way you engage your customers and helps you in sending relevant and targeted emails.

With advanced real-time analytics tools, Sendgrid offers world-class deliverability expertise, detailed insights, and reports on various key metrics. Lastly, It supports all major platforms such as Python, PHP, java nodejs, etc.

Features

  • Empowered Deliverability
  • Gigantic Scalability
  • Excellent Customer Service and Support
  • SMTP Service
  • Custom API Integration
  • Open & Click Tracking
  • Email Template Engine
  • Unsubscribe Tracking
  • Reputation Monitoring
  • SPAM Filter Testing

Here’s the full list of features

Benefits

  • It offers world-class analytics and reports. You can check which messages are delivered, which are marked as spam and more. It also lets you download data to look through it locally.
  • If you are getting started or learning about email marketing and transactional emails, SendGrid includes wonderful videos and guides to help you work out any problems you may have. What’s more, it also has a phone, chat and email support available for 24/7.
  • When choosing a service to send your application’s emails to, generally you need two. One is to send the newsletter and promotions from the marketing and the other to send your application’s automatic emails and messages. But you need one here. 
  • The API is very simple to use. Also,  the documentation for the API is complete and very useful, covering everything you need to know.
  • 12,000 free e-mails per month.

Pricing Plans

In SendGrid’s pricing plans, you can choose whether you want their Email API, Marketing Campaigns, or Email API + Marketing Campaigns. Across these three options, there’s a free plan with 40,000 emails for your first 30 days, then you can send 100/day, forever. 

Paid Plans:

  • Essentials — Starting: $14.95 — Ideal for teams sending up to 100000 Emails per Month. Includes Core Email API Features and Core Marketing Campaigns Features
  • Pro —  Starting: $79.95 — Ideal for businesses sending from 100000 to 1.5 Million Emails per Month. Includes  features of Essentials plan, plus Data rich email activity feed, Dedicated IP included, Subuser management
  • Premium — Custom pricing —  Ideal for businesses sending 1.5 Million plus Emails per Month. Includes features of the Pro plan, plus a dedicated customer success manager and Prioritized support.

When to choose Sendgrid

  • You’re a developer with complex requirements
  • You’re operating at scale
  • You need an e-commerce or transactional email solution
  • If you want more data
  • You need better deliverability

Cons:

  • Sendgrid does not support test keys that can be used to check integration with SendGrid and that cannot be used to send a real e-mail out. 
  • They do not capture the sent emails. It means you cannot check whether the email was sent correctly, and it makes it harder to debug issues that arise.

Summary

 

Features

MailChimp SendGrid
  • Automation
  • Empowered Deliverability
  • Blasts And Targeted Emails
  • Gigantic Scalability
  • Reports and Analytics
  • Customer Service and Support

 

Price

Sendgrid MailChimp
  • Free Trial
  • Free trial
  • Essential Business Plan for $14.95/month
  • Essentials Plan for $9.95/month
  • Pro Plan which is $79.95/month
  • Pro Plan for $79.95/month
Premium
  • Premier Plan

When to use

When Sendgrid is the best When MailChimp is the best
You’re a developer with complex requirements You want simplicity
You’re operating at scale You love a good brand experience
You need an e-commerce or transactional email solution You only need an email solution for marketing
You want more data You want great automation features
You need stellar deliverability You’re a small business and price is a factor

 

Top 10 Email Service Providers For Small Business

According to a report by Gartner (Q1, 2016), 80% of companies using cloud email with revenue above $10 billion have subscribed to Microsoft service and Google has close to 50% market share in relatively smaller company segment (revenue less than $50 million). Although it is early days for cloud email adoption, both Microsoft and Google have achieved significant traction among enterprises of different sizes, industries and geographies.

We have compiled a list of cloud based email providers for small business:

 

1. Google Mail for Business

gmail-for-business

Gmail is part of “Google Apps for Work”, so you’ll get Google Calendar, Google Docs, Google Slides, Google Drive and more.  If you’re already familiar with the free version, it is easier to customize settings for your business requirement. The iOS and Android apps can be used to read and draft messages even if you’re offline, and they will be sent once the app gets back online. Gmail starter plan gives 30 GB storage for Drive and Gmail for $5 per user per month and the unlimited storage plan is available for $10 per user per month.

Note: TeamWave (CRM, Project Management & HR Software) is fully integrated with Google Apps for Work.

2. Microsoft Exchange Online

microsoft-exchange

Microsoft Exchange Online gives you access to email, calendar and contacts via web browser, Outlook app for both iOS and Android. You’ll be able to collaborate on documents using OneDrive and create work groups for your employees. There is option to buy it a independent service or as part of Microsoft 365. There are two plans – $4 user/month gives 50 GB mailbox storage with ability to send emails  up to 150 MB in size and $8 user/month has unlimited storage using In-Place Archives.

3. Amazon WorkMail

amazon-workmail

Amazon WorkMail came out of preview mode back in January, 2016. Email and calendar can be integrated with Microsoft Outlook client (native support on both Windows and Mac OS X) and accessed via web browser, native iOS and Android app. Amazon WorkMail also gives you enterprise grade security and option to choose data storage location by selecting the AWS region. It costs $4 per user per month which gives 50GB storage per user.

4. Aabaco (Yahoo)

yahoo-aabaco-email

Yahoo Small Business was rebranded as Aabaco Small Business in December, 2015. Their unique offerings are 1 TB of free space (1000 GB) for all the plans and a free domain if you maintain an active Business Mail subscription. Price starts from $3.19 for single mailbox per month when billed annually and gradually comes down with purchase of multiple mailboxes ($1.59 for 5 mailboxes).

Plug: TeamWave is an integrated suite of business applications for small & medium-sized companies. Apps include CRM, Project Management, HRIS, Invoicing & Contact Management.

5. Rackspace Email

rackspace-emailRackspace webmail comes with 100% Uptime Guarantee and free migration service while switching from existing mail provider. Gives you access to mail from Outlook and mobile apps via IMAP. There is three layers of scanning for spam and virus protection. Mailboxes come with 25 GB storage and message size can go up to 50 MB. Price starts from $2 per user per month and $3 per user per month plan gives you unlimited storage via archiving.

6. GMX

gmx-mail
GMX provides free email service and positions itself as all-in-one service. It offers webmail with unlimited storage and allows you to send emails with up to 50 MB attachments. You also get online calendar, email archive, antivirus and spam filter.

7. IceWarp Email

icewrap-email

Icewrap offers integrated solution for webmail, document management, calendar, webchat, meeting and webphone. They also offer native support for Outlook 2013, windows 8 & 10 Mail/People/Calendar support, antivirus, spam protection and a lot more. Price starts from $380 per month with 100 GB storage for unlimited users.

8. Kerio Cloud

kerio-connect

Kerio Cloud offering gives you email, calendar, contacts, notes, instant messaging and VoIP phone system. It supports IMAP and POP compliant email clients across Windows, Linux and Mac operating systems.  They use direct push synchronisation to keep your mailbox synced in any kind of smartphone OS (iOS, Android to Symbian). $4.99 per month pricing gets you 10 GB mailbox and $8.99 plan offers unlimited mailboxes. Email archiving will cost $3.00/mailbox.

9. Ipswitch IMail

ipswitch-email

Ipswitch IMail offers 2 GB storage per mailbox and stores data in Virtual Private Server. Anti-virus and anti-spam protection is powered by Cyren. For a 10 member team, the most basic plan for a year will cost $199Microsoft Exchange ActiveSync will cost $4.99 per user to sync mobile devices with email, calendar, contacts and tasks.

10. Atmail

atmail

Atmail pioneered one of the first businesses webmail applications and they have been innovating  in the email space since 1998. You can manage email, calendar and contacts on the mobile device and get support for desktop clients (example: Outlook and Apple Mail) as well. It costs $79 per month for 50 users with 500 GB storage quota.


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