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If you're in the market for a new email system, what should you expect to pay?
Email marketing platforms typically cost between $40,000 and $50,000 annually, according to CUES member Kenneth Jost, senior AVP/marketing at $3.8 billion/380,000-member Redstone Federal Credit Union, Huntsville, Ala., who adds, “Most vendors offer a not-for-profit discount that makes the technology more feasible for credit unions.”
Cost also depends on the level of service required, as well as on the number of subscribers in the email list, says Jesse Boyer, president/CEO of CUES Supplier member and strategic partner DigitalMailer, Inc., Herndon, Va.
“Bigger credit unions generally have the internal resources to handle all aspects of email marketing; smaller or mid-sized ones don’t. So it’s important to know what they can handle in house and what kind of support they need,” he says.
Ray Parenteau, founder/president of ClickRSVP, Milford, Mass., breaks out the different levels of service like this:
Self-service/small-business providers. “Users log into a Web-based platform and perform all functions of list management, campaign creation and reporting. The application often provides wizards, templates and help tools.”
Semi-managed and managed services. “Users work with a client representative in planning, creating and deploying campaigns.”
Specialty providers, such as e-newsletters, mortgage leads and so on. “These are typically turnkey programs that include content and scheduled campaign deployments, as well as lead-nurturing messages to prospects in the system.”
Third-party providers/private-label vendors. “Some ESPs offer ‘white-label’ programs to agencies that then offer email solutions around those capabilities. The agency typically provides strategy, creative, content and production services.”
Enterprise-grade solutions. “These powerful systems can handle complex, multi-unit programs, as well as integration options to support transactional and other non-marketing messages.”
“Pure self-service providers cost less ($200 to $500 per month) but charge extra for customization and support,” he says. “Additionally, some of the program cost gets shifted to the credit union, which must handle more of the production and other management. Other providers may bundle in features like content, social media monitoring and sales automation. This can bring costs up to $1,000 per month or more.”
However, despite the power and value of email marketing—London-based business information solutions provider DBS says email provides a return on investment of 38 to one—Parenteau says most credit unions under-budget their email marketing. Instead, they should allocate 3-5 percent of their overall marketing budget (less staffing costs) to this effort, he says.
Do your homework and exercise appropriate due diligence, getting at least “three solid quotes, scope of work and demos,” says CUES member Wendy Bryant-Beswick, chief marketing officer at $550 million/50,900-member Generations Federal Credit Union, San Antonio. “Vendors have ways of providing ‘bloated’ statistics [so] don’t be afraid to do some hard research on email statistics yourself. The more you know going in, the easier it is to select a vendor that can deliver on their promises.”
This is Web-only bonus from “Message Received” in the October 2015 issue of CU Management.
Pamela Mills-Senn is a freelance writer based in Long Beach, Calif.
