The New Pricing Model: Users Under Management (UUM)Jul 10, 2012 - by Michael Hershfield
At Sailthru, we are continually looking for ways to improve our business and be a better partner to our clients. Since the date this post was published, we have changed our pricing model. For more information on current pricing, please contact your sales person at firstname.lastname@example.org.
The email industry is broken. Ask most consumers, and they’ll agree that their inbox is nearly unmanageable, which makes sense given that a recent study reported that 204 MILLION emails are sent every minute. The problem lies with companies sending on assumption, not data, and not tailoring their messages to be relevant to the user. Sailthru has been working to fix this problem for years, by providing both actionable analytics for a company to fully understand their user across multiple channels, but also the technology to send custom, one-to-one emails that are aligned with user interests and behavior. In short, we’re making the Internet more personally relevant.
It’s now time to address the other industry problem: the pricing model. To date, traditional ESPs price their services on a volume-based model, charging their clients for every email that is sent. This is fundamentally flawed, and creates a misalignment between the vendor in the client. How can your email provider give you unbiased advice then if their revenue is directly tied to the volume their clients are sending? Wouldn’t they simply encourage their clients to just send more, so they could create more revenue for themselves?
At Sailthru, we’re making the first step to change this. Introducing the new Sailthru Pricing Model: Users Under Management. Instead of pricing based on the volume of email that you’re sending, we’re helping you look at your userbase individually yet also holistically and charging you a price per user in your system. We know that your users are individuals and want to be communicated to as such, and this pricing model lets you do just that. It provides you value, and respects your customers.
What does this mean to you? A few things. You can now send unlimited email to each user. (Yes, you read that correctly.) This doesn’t necessarily mean that you should, but you can. (And we won’t charge you extra for it.) This also means that in many cases, you’ll actually send LESS email, because you have valuable insight on your users and how they like to be communicated to. Our predictive disengagement automatically identifies and takes action on users who are likely to respond more quickly to your emails vs. those who are no longer engaged & don’t open them. This new pricing model supports you gaining this insight, and making your communications decisions based on informed data, not on the “more is more”, one-email-fits-all mentality that other ESPs have been promoting for years. Our product value proposition is about respecting the user, connecting with them on any channel (email, on-site, mobile), and our pricing model now reflects that.
This is the first step in what we see to be an ongoing conversation. You’ll see more from us in academic whitepapers, guest posts on news sites, and on our blog, so stay tuned. We hope that by changing this model, our friends in the email industry will follow suit. We welcome, and encourage, this change. It’s time, and it’s important.
Welcome to the era of the user.
-Michael Hershfield, VP Strategic Partnerships & Legal Affairs at Sailthru
For more info, please contact us at email@example.com