Think MailChimp just supports small business email marketing? Think again.
Based in Atlanta–far outside Silicon Valley’s bubble of venture-funded would-be unicorns–the company has 600-plus employees and did more than $400 million in revenue last year. More than 15 million customers sent 246 billion emails in 2016.
But the future of the company, CEO Ben Chestnut says, is “to take MailChimp magic we give to email, and sprinkle it on other marketing channels.”
A year ago, MailChimp introduced a recommendation engine–akin to the ones devised by big companies such as Amazon–that let its customers plunk product suggestions into the emails they sent their customers. In January of this year, it began helping small businesses buy Facebook ads.
Now MailChimp’s Instagram ad-buying feature aims to simplify the process of purchasing ads.
MailChimp’s strategy with these new ad-buying services and other functionality it’s recently added isn’t to give itself a new revenue stream. Instead, it’s offering them as part of its existing subscriptions at the same price as before. As with its freemium model, the company is betting that the more essential it can make itself to the way small businesses operate, the easier it will be to get large numbers of them to pay on an ongoing basis.
Why It’s Hot
While most companies aim to leave their roots behind and move on to bigger and better customers, MailChimp is staying firmly committed to small businesses and providing them easy yet robust marketing support at a price most can afford.