Does Email Still Drive SMB Marketing? Privy Says ‘Yes’


We’re said to be in a post-email generation, as Millennials increasingly rely on messaging and other channels. There will need to be a lot of adjustment for marketing strategies.

But email is still the most reliable connection for most consumers. It remains the primary input for customer lists, which are now being collected by 80 percent of SMBs, per BIA/Kelsey. In fact, no other SMB marketing feature ranks as high.

Are SMBs doing enough with their email lists? The obvious answer is “no.”

Optimizing email for leads and engagement is the role that Boston-based Privy has given itself. Founded in 2012 as an offers company during the Groupon boom, Privy has remade itself as a freemium/premium email marketing enhancer that is tightly integrated with more than 10 top email programs (Mail Chimp, Constant Contact, Fishbowl etc.)

The 10 person company currently has a base of 14,000 SMBs under its email marketing efforts, and is now growing by 3,000 to 4,000 new small businesses every month. It hopes to enlist 50,000- 60,000 SMBs by the end of the year.

CEO and Founder Ben Jabbawy tells us that the company’s initial focus on offers and then “closed loop marketing systems” was an effective way to acquire consumers, but businesses were slow to adopt. The new focus on email list growth has given the company a period of rapid new growth – even though much of the leads- based functionality (attaching offers etc.) remains pretty much the same.

Two types of campaigns are typically run, says Jabbawy. “The first is a generic, ‘Hey , welcome to the website’ type effort. They may see a 1.5 – 2 percent conversion. The second is offer-based. “Join our list and get X% off.’ Offer driven campaign can see conversion rates jump to 5-15 percent. Offers are (still) a great carrot to incentivize customers to establish relationships.,” he says.

While the core email programs provide a lot of services, Jabbawy says Privy’s ability to provide more sophisticated targeting, offer tracking and redemption fully complement them. “When businesses sign up for Constant Contact or Mail Chimp, they typically have (few) email contacts,” he suggests. “The majority have sub 100 email contacts, or sub 500 contacts.”

Privy is offering a feature-rich freemium tier, with paid plans costing either $19 a month, $79 a month and higher (which is mostly for Enterprise players.) Given the expense of cold calling and acquiring SMBs in general, Jabbawy says it is an attractive offering.

And while email is the focus, a Privy campaign just as easily leads in to website-based marketing. Privy simplifies getting SMBs onto Websites, he says. SMBs that have Shopify, WordPress and Weebly.com accounts are the company’s fastest growing channels.

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