As of this year, around 64% of small businesses in North America use email marketing to engage customers and promote their services. Surprisingly, only 20–30% of these businesses use email marketing through their CRM platforms. The remaining 70–80% rely on third-party providers, such as MailChimp and Constant Contact.
This figure is especially curious given that 55% of small businesses already use a CRM. So why aren’t more leveraging the built-in email marketing features of their CRM? The reasons typically fall into three categories:
- Flexible monthly billing: short billing cycles from third-party platforms seem more attractive.
- Ease of setup and use: third-party platforms are perceived to be easier.
- Underutilization of CRM features: many businesses don’t realize their CRM includes email marketing (even though 50% do).
COST: The Hidden Expense of “Flexible” Billing
While monthly billing may seem convenient, our research shows most MailChimp and Constant Contact users stay subscribed for over a year—often missing out on 15% discounts by sticking to monthly plans. These users typically spend $30–$50/month, which adds up quickly.
By comparison, Act! Premium Cloud users can upgrade to Act! Advantage plans with more features and better email capabilities for as little as $15/user/month. For small teams (1–3 users), that’s just $180–$540/year—a significant savings over non-integrated solutions.
Here’s a breakdown of Act! Advantage upgrade costs:
- Act! Advantage Professional: $180/year/user (vs. a typical $948/year value)
- Act! Advantage Ultimate: $360/year/user (vs. a typical $2,388/year value)
These plans offer massive savings, especially for smaller teams, and include additional features, support discounts, and productivity tools.
EASE OF USE: Setup vs. Long-Term Efficiency
Third-party platforms like MailChimp and Constant Contact are known for their user-friendly template editors. But Act!’s email marketing tools are also intuitive and easy to learn. More importantly, Act! eliminates the need to upload contact lists repeatedly—you simply select the groups you want to target directly from your CRM.
Why CRM-Integrated Email Marketing Is the Smarter Choice
While standalone platforms offer simplicity, they fall short in key areas that matter for growth-focused businesses:
- Unified Customer Data: CRM-integrated campaigns use real-time customer data (purchase history, preferences, interactions) for more personalized messaging. Third-party tools require manual syncing, which risks outdated or incomplete data.
- Smarter Segmentation: Create dynamic groups based on live CRM data (e.g., lifecycle stage, behavior, demographics). Standalone tools rely on static lists, limiting personalization.
- Streamlined Automation: Trigger follow-up emails based on CRM events (e.g., abandoned cart, lead score changes). Third-party platforms often require manual setup or workarounds.
- Better Reporting & ROI Tracking: Integrated tools link email engagement directly to sales, pipeline movement, and retention—making ROI easier to measure.
- Lower Risk of Errors & Compliance Issues: A single source of truth reduces data errors and ensures consistent opt-in/out status, helping with GDPR and other compliance needs.
Bottom Line: Look Beyond the Billing Cycle
Standalone email tools may seem cheaper month-to-month, but when you consider annual costs and overall value, CRM-integrated solutions like Act! Advantage delivers a far better return on investment. For small businesses ready to grow smarter—not just faster, Act! Advantage Professional and Ultimate offer the tools, insights, and savings to make it happen.
If you're an existing Act! Premium Cloud customer and want to calculate your prorated upgrade cost, click here to use our online calculator.
