How Intuit’s acquisition of Mailchimp is beneficial
The American company Intuit became the owner of the mailing service Mailchimp. The transaction amounted to $12 billion. According to the buyer, this step will allow him to expand the target audience of users among small and medium-sized businesses. Additionally, Mailchimp’s tools are suitable for promoting Intuit’s services, and by increasing the range of services the company will be able to significantly strengthen its market position.
Intuit develops software for accounting and taxation activities. Its customers include representatives from various sectors of the market that conduct financial and tax controls. Through the acquisition of Mailchimp, Intuit will be able to offer customers a huge number of services to successfully carry out professional activities. With the accounting software, customers will be able to keep records, while the mailing service and analytics tools allow them to promote their product and optimize internal processes.
Intuit’s most well-known product is TurboTax, a service for tax reporting. In addition, the Mint application and Proconnect are highly popular. The first is a service that helps control personal finances, monitor transactions, plan and adjust expenses. Proconnect, like TurboTax, facilitates interaction with the tax service – filing returns, accounting and more. For small businesses, the company has developed the Quickbooks toolkit, which includes various services to simplify doing business. Currently more than 30% of small and medium-sized businesses in the U.S. use Intuit products. In turn, the customer base of Quickbooks and Mint applications includes more than 75 million people.
Mailchimp develops mailing and marketing automation tools. It was founded in 2001, and since then it has had great success on the market. The platform itself was originally conceived as a tool for internal use, but the developers saw that email marketing automation was in demand among small businesses. Gradually Mailchimp’s list of products has expanded to include marketing services, analytics, reporting and more. There is also a constructor for creating an online store from scratch.
The company’s services became especially relevant during the pandemic, when companies had to switch to remote work in an emergency and automate most operations. In 2020, Mailchimp’s revenues jumped 20% to $800 million, with more than 2.4 million active users.
Services from Mailchimp are paid, depending on the feature set and the number of emails to send, the monthly cost ranges from $10 to $300.