Here’s When You Should Opt for a Dedicated Email Marketing Server

dedicated email marketing server

Many companies are now trying their hand at maintaining their dedicated email marketing servers to help with their marketing campaigns. Some companies have outgrown their current email marketing tool and are looking for a scaleable option while many others never found success with email marketing and are looking to find an email marketing tool they can rely on.

Either way, if you are someone who is weighing both the options, the choice might be a tad bit confusing. So here’s a look at when and where you need to opt for a dedicated server for your email marketing campaigns.

How do Email Marketing Servers work?

Email marketing involves the process of sending promotional messages to potential and existing customers via email to sell, educate, grow, or build loyalty. With a DMA study concluding that every dollar spent on email marketing, results in a return of $32, it is safe to say, that email marketing remains one of the most widely used forms of marketing in the world. These emails may be sent out via two routes; either through a shared email marketing service like MailChimp, SendGrid or dedicated email marketing servers. So what’s the difference?

In case of services offered by mail service providers, a single email marketing server is shared by many customers and the sender IP address itself belongs to an email server or a pool of delivery servers. The emails are sent in bulk by shared or dedicated IP addresses which are grouped. Therefore, multiple senders utilize the same IPs to send out their promotional emails.

Unlike such email marketing service providers, a dedicated email server provides exclusive right to send emails from it, and this means that the company does not have to share this email server or IP address with anyone else. Hence, the customer is solely responsible for the quality and reputation of the email sent. This isn’t the case with shared IPs wherein the fault of one can lead to the misery of many.

What’s the Right Answer Here?

The first step in making a choice is understanding the available options. What difference does a dedicated email marketing server make? Let’s get started on our way by exploring the two options and trying to understand the factors that govern them.

A shared IP address is used by several senders or a pool of companies while a dedicated IP address will have only one sender; you. It seems pretty simple, right? So what makes deciding between the two so complicated? That is where the variety of factors enter the picture. Let’s take a look at them, one by one.

Costs

The financial aspect between the two options is relatively straightforward. Shared IPs, due to the simple reason they are shared are less expensive when compared to dedicated IPs, which serve only one customer. Since a shared IP/server has more customers, the cost of upkeep gets divided amongst them, leading to reduced overheads.

Companies who own a dedicated email marketing servers have to pay for the initial setup costs and also for its upkeep and maintenance. The most crucial factor here is your volume.

If your company or business has enough volume and sales to make this expense minimal, then a dedicated email marketing server may be the right choice for you.

On the other hand, if you are a fledgling company that’s just starting, investing so much in a dedicated email server might not be the best choice because that capital can be deployed elsewhere.

Email Volume

Just having a dedicated email marketing server does no good, you need to make sure you are sending out emails on a daily basis, to warm up your sender IP addresses. To authenticate yourself as a reliable, spam-free sender, you need to maintain a consistent volume. This does not become an issue in shared services as the service provider takes care of it.

Without a doubt, one of the most important factors you need to consider when considering the switch is your volume. Dedicated IPs work best for companies that have to send bulk emails regularly. By bulk, I mean more than a hundred thousand emails a month. Do you have that kind of volume? If so, then you need to consider shifting seriously. If not, try to improve your email practices and keep using a shared email marketing services.

Also like we just saw, it’s not just the volume that counts, it’s also the quality. Make sure all your lists are permission-based and engaging to minimize your bounce rates. For high volume senders, having a dedicated server guarantees more extended command over the deliverability of their emails.

Sender Reputation

Sender reputation decides whether your email makes it to the inbox or ends up in someone’s spam folder. Hence it is everything when it comes to deliverability. Your email volume is one factor that decides your reputation, but it isn’t the only one. Metrics such as hard bounce rate, spamtrap hits, and spam complaint rate also play an important role in deciding your reputation. This is also where dedicated servers have a significant advantage.

When you use shared services, you have no control over the quality of emails sent by the other users on the same shared server, and hence you suffer as a result if they spam too much. On the other hand, by shifting to a dedicated server, you take up full accountability.

While ESPs do try to maintain specific quality control measures, actions of a few can still affect deliverability rates. But that doesn’t mean that switching to a dedicated server will solve all your problems. You still need to follow the best email marketing guidelines to ensure your mails are spam-free and have quality content.

Ease of Operation

This is the one criteria wherein shared email service providers have an advantage because they are a lot easier to use. Not every company might have the technical know-how to maintain dedicated email marketing servers. Managing a dedicated server requires technical knowhow and regular maintenance. Unless you have a dedicated tech team, this might not be an easy thing to accomplish.

Esanosys helps 100s of companies worldwide manage their dedicated email marketing servers. We can also help you plan your email marketing strategy, set up a dedicated server and provided continuous managed services, making things easier and more convenient for you.

Account Blacklisting

If your mailing lists aren’t clean and email campaigns have a high bounce rate or spam report rate then most email marketing service providers will blacklist your account. You will lose all the good sender reputation you’d gained, associated data and will have to recreate a new account.

This might be okay for a company just getting started with email marketing but for an established firm with thousands of subscribers, this might blow a death knell to their email marketing plans. Decide where you’re in your email marketing journey and make an informed decision. If the stakes are too high, opt for a dedicated email marketing server without a second thought.

Pros and Cons of Dedicated Email Marketing Servers

I am summarizing the pros and cons of using dedicated email marketing servers as a ready reckoner.

Pros:

Extremely flexible and can be configured based on the requirements
Ability to send higher volumes
Very cost-effective for bulk senders
Low recurring costs
Better delivery rates
Fewer instances of black-listing
Greater accountability

Cons:

High set-up costs
Needs technical know-how to manage
Not suitable for low-volume senders

Email marketing is one of the most sought after marketing channels, which allow you to connect with people on an unprecedented scale at the lowest costs. Choosing the right email marketing services could be one of the most important business decisions you will make as you scale your email marketing campaigns. Being aware of all the choices available to you will help you make an informed decision.

Summary

In this article, we took a look at the various advantages and disadvantages of dedicated email marketing servers. The right choice of an email marketing server depends on your needs. If you think your business requires a dedicated server for email marketing, then contact us with your email marketing requirements.

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