Brothers, Jonathan and Gareth started EmailOctopus (email marketing SaaS) in 2014.
They have since helped 34,000 organizations send a total of 6.9 billion emails. Bootstrapped.
How?
A very focused SaaS marketing strategy.
This post explainsâŚ
Jeff Bezos once stated:
Your margin is my opportunity.
To describe Amazonâs ruthless prices cutting tactics driven by their customer obsession.
(All big meetings at Amazon have an empty chair, where âthe customerâ attends)
Amazon has been able to deliver a high level of service at rock bottom prices through a combination of volume (1.6m packages per day) and fundraising ($101m in private markets).
EmailOctopus has neither of these things⌠but still manages to drop prices significantly below competitors.
Hereâs the price difference if youâre looking to host a list of 19,500 subscribers:
Enabling EmailOctopus to adopt a disruptive strategy, winning over-served customers from higher-priced competitors:
How?
As EmailOctopus mention in a blog post:
- âWe send your emails via Amazon SESâ
This is the big one.
Amazon SES lets you send 60,000 emails per month for free, eradicating this cost for EmailOctopus AND their customer.
If you go with MailChimp, youâre paying for those emails.
- âWe keep our features simple and easy to useâ
OKOKOK
- âWe spend less on advertisingâ
This is interestingâŚ
Publicly stating that you donât use paid acquisition is an interesting tactic.
Itâs like saying to your customers:
Weâre not going to grow big fast⌠but we are going to serve you well and need your help to grow slow.
And itâs working:
What did we learn?
EmailOctopus focus on low prices, simple features, and great service. What do you focus on?