SparkPost competes Mandrill with New Free e-mail Service

By CIOReview | Wednesday, March 9, 2016
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FREMONT, CA: With the emergence of personalized messaging, mobile developers are playing a critical role in shaping a customers’ relationship with email. It is found that over 50 percent of email interactions today is done through mobile device. As it has become an inevitable part of online and in-store shopping, global email usage expected to increase by over 2.8 billion users in the next four years. It is then, Cloud email delivery provider, SparkPost has launched a free upgraded version of transactional email service that allows marketers to send up to 100,000 emails every month to compete with the industry leader MailChimp.

“Email connects users to app developers, brands to consumers, and people to each other. We all have some degree of connection to our email, whether it’s for work or play, on our mobile device or on desktop,” says Len Shneyder, VP, Industry Relations at SparkPost.

SparkPost that leverages over 25 percent of the global emails believes this shift significant for mobile app ecosystem built around transactional email. While MailChimp covers over 40 percent of total market share, the company has informed customers, who were using its free transactional email platform Mandrill, to convert to the paying accounts for continue the free service. As the need for smarter, more personalized messaging and marketing increases, MailChimp aims to shepherd its developer community with their core marketing tool for providing personalization services.

According to Datanyze, a marketing lead generation software provider, “MailChimp’s Mandrill dominates the transactional email market as more than 800,000 users have delivered over 88 billion messages through the service in the past 3 years. We expect this chart to shift dramatically over the course of the next few months.”

However, with falling open rates across many app and retail verticals, email as a channel of interaction is in desperate need of rebranding. SparkPost’s free service is hoped to help developers to test new features and systems in their apps and come up with the next great engagement solution.