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Why SaaS Companies Are Leaving Mailchimp (And Where They're Going)

12 min read

If you're running a SaaS company and finding Mailchimp increasingly frustrating, you're not alone. Over the past few years, a noticeable pattern has emerged: SaaS founders and marketing teams who started on Mailchimp are actively looking for Mailchimp alternatives that better fit their needs.

This isn't because Mailchimp is a bad product. It's a capable email platform that serves millions of businesses. But Mailchimp was built for a different era and a different type of company. As it evolved into an all-in-one marketing platform, the gap between what SaaS companies need and what Mailchimp offers has widened.

Here's what's driving the shift and what to consider if you're thinking about making a move.

Mailchimp's Evolution From Email Tool to Marketing Platform

Understanding why SaaS companies leave Mailchimp starts with understanding how Mailchimp got here.

Mailchimp launched in 2001 as a simple email newsletter tool. Upload a list, design an email, hit send. That simplicity made it the default choice for small businesses and startups. If you needed to send emails, you used Mailchimp.

Over twenty years, Mailchimp expanded far beyond email. They added landing pages, social media scheduling, websites, postcards, digital ads, and more. After Intuit acquired them for $12 billion in 2021, the pace of horizontal expansion accelerated.

The result is a platform that does many things adequately but fewer things exceptionally. For generalist marketers running multi-channel campaigns for small businesses, this breadth works. For SaaS companies with specific needs around product events, user behavior, and subscription management, it creates friction.

The transactional email situation exemplifies this. When SaaS companies need to send password resets, team invitations, and payment notifications—emails that Mailchimp considers "transactional"—they're directed to Mandrill, a separate product with separate pricing. What should be simple becomes two dashboards, two integrations, two sets of deliverability concerns.

Event-Based Automation That Falls Short

The most common frustration I hear from SaaS founders is about automation capabilities. Modern SaaS email marketing depends on sending the right message based on what users do inside your product. Someone who completed onboarding should get different emails than someone who stalled out. A user approaching their usage limit needs different treatment than a user who hasn't logged in for a week.

This kind of behavioral email marketing requires your email platform to understand product events. With Mailchimp, setting this up requires significant workarounds.

The typical approach is to use Mailchimp's API or a tool like Zapier to add tags when users complete actions in your product, then build automations that trigger when those tags are applied. It works, but the gap between "user completed action" and "email sends" involves manual plumbing that shouldn't be necessary.

More fundamentally, Mailchimp treats product events as an afterthought rather than a core feature. The automation builder is optimized for time-based sequences ("send email 2 three days after email 1") not behavioral triggers ("send email 2 when user completes their first project"). You end up fighting the tool instead of leveraging it.

Tools built for SaaS—like Customer.io, Vero, or Sequenzy—treat events as first-class citizens. Fire an event from your product, and it's immediately available for segmentation and automation triggers. No tags, no workarounds, no middleware.

Pricing Changes That Hit SaaS Hard

Mailchimp's pricing has shifted in ways that particularly impact SaaS companies.

The big change came in 2024: Mailchimp now counts all contacts toward your plan limit, including unsubscribed and unconfirmed contacts. For a typical SaaS with normal churn patterns, this means paying for contacts you can no longer email.

Consider a SaaS with 10,000 current subscribers. Over a few years of operation, you've probably accumulated another 5,000-10,000 unsubscribed or bounced contacts. With Mailchimp's current model, you're billed for all of them. With platforms that only count active subscribers, you pay for 10,000.

The other pricing pain point is feature gating. Meaningful automation features, better segmentation, and advanced A/B testing often require jumping to higher-tier plans. For SaaS companies that need these capabilities, the bill grows faster than subscriber count would suggest.

At 10,000 contacts, Mailchimp's Standard plan runs around $135/month. Add Mandrill for transactional email ($20-50/month depending on volume), and you're looking at $155-185/month before any add-ons.

Compare that to unified platforms where transactional and marketing email come bundled at $49-99/month for the same subscriber count. The math doesn't favor Mailchimp.

The Mandrill Complexity

Transactional email is table stakes for SaaS. Password resets, email verification, team invitations, payment receipts, security alerts—these emails need to reach users reliably and immediately.

Mailchimp's answer is Mandrill, a transactional email service they acquired in 2016. Mandrill is capable; deliverability is good, the API works, templates are reasonable. The problem is operational: you're running two products.

Two dashboards to monitor. Two sets of analytics to check. Two places where deliverability issues might be hiding. Two integrations to maintain in your codebase.

When debugging delivery problems—"why didn't this user receive their password reset?"—you're jumping between systems. When analyzing how users respond to communications—"which users opened transactional emails but ignored marketing?"—you're stitching data together manually or not doing it at all.

Unified platforms that handle both transactional and marketing email in one system avoid this. Same contact database, same event tracking, same deliverability reputation, same interface. It's less to manage and a clearer picture of each user's email experience.

Not Built for Product-Led Growth

Product-led growth (PLG) has become the default model for many SaaS companies. Users sign up, try the product, and convert themselves—or don't. Email plays a crucial role in activation and conversion, but the emails need to respond to what's happening in the product.

Mailchimp was built before PLG was a concept. Its mental model is traditional marketing: you have an audience, you send them campaigns, you measure engagement. The audience exists outside your product.

For PLG SaaS, users are inside your product. The signals that matter—feature adoption, usage patterns, activation milestones—come from product data, not email engagement. A user who opened every email but never logged in is less valuable than a user who ignored your emails but is actively using the product.

Platforms built for SaaS understand this. They integrate product events alongside email engagement. Segmentation includes "users who completed onboarding" not just "users who clicked a link." Automation triggers respond to product behavior, not just time passing.

If your growth model depends on converting free users based on their product experience, you need tools that understand product experience.

Support That Doesn't Scale with You

As SaaS companies grow, support needs change. Early on, you can figure things out from documentation. Later, when email is critical infrastructure touching every user, you need responsive support that understands your context.

Mailchimp's support follows a typical tiered model. Free and lower-tier plans get email support with slower response times. Premium plans ($350+/month) unlock phone support. In between, you're largely on your own.

For SaaS companies where an email outage means failed payments, missed critical notifications, or broken user flows, this can be uncomfortable. Debugging deliverability issues or unexpected automation behavior with slow email support is frustrating when the problem is actively affecting users.

Smaller, SaaS-focused platforms often offer different support experiences. Some include direct access to founders or senior team members. Some have faster response times as a differentiator. The trade-off is less documentation and community resources, but more hands-on help when you need it.

Alternatives by Category

If Mailchimp isn't working for your SaaS, alternatives break into several categories.

Unified Transactional + Marketing Platforms

These solve the Mandrill problem by handling both email types in one system.

Sequenzy is built specifically for SaaS, with native Stripe integration and behavioral automation. Transactional and marketing emails share the same platform, contact data, and deliverability reputation.

Loops offers a similar unified approach with a modern, simple interface. It's explicitly SaaS-focused and gets you up and running quickly.

Behavioral Automation Specialists

If event-triggered email is your primary need, these tools go deeper.

Customer.io is the enterprise option for complex behavioral campaigns. It handles sophisticated branching, multi-channel messaging, and advanced segmentation—at enterprise pricing.

Vero offers behavioral email with less complexity than Customer.io, at a lower price point. Good middle ground for growing SaaS.

Developer-First Tools

For SaaS with strong engineering teams who want to own the email layer:

Resend has the best developer experience in transactional email. Clean API, excellent documentation, React Email for templating. Marketing features are newer but growing.

Postmark focuses obsessively on deliverability. If your transactional emails absolutely must arrive, Postmark's reputation is hard to beat.

All-in-One Marketing Platforms

If you need email alongside CRM and broader marketing:

HubSpot makes sense if you have a sales team and want unified sales and marketing tools. It's expensive but genuinely integrated.

ActiveCampaign offers powerful automation at a lower price than HubSpot, with a built-in CRM that works for smaller teams.

For a comprehensive comparison, see our B2B SaaS email tools guide.

What Migration Actually Involves

Leaving Mailchimp is straightforward conceptually but takes more time than vendors suggest. Here's what to expect.

Contact migration is the easy part. Export your subscribers as CSV, import to the new platform. Custom fields and tags need mapping, but the data moves cleanly.

Template recreation takes longer. Your existing designs need to be rebuilt in the new system's editor or reimported as HTML. If you have dozens of templates, budget hours for this.

Automation reconstruction is the real work. Workflows don't transfer between platforms. You'll need to document your existing automations, then rebuild them in the new tool. This is also an opportunity to improve them—but it takes time.

DNS updates for email authentication (SPF, DKIM, DMARC) need coordination. You'll also want a warm-up period on the new platform's IP addresses to establish sender reputation.

Integration changes require developer time. Anywhere your product sends events or syncs data to Mailchimp needs to point to the new platform's API.

Plan for two to four weeks for a complete migration if you have meaningful automation and template libraries. Rushing increases the risk of broken flows and deliverability hiccups.

When Staying on Mailchimp Makes Sense

Not every SaaS company should leave Mailchimp. There are scenarios where staying is the right call.

If you're genuinely using multi-channel marketing features—running Facebook Ads, social scheduling, and email from one platform—the unified dashboard has value. Switching means adding separate tools for each channel.

If you have a large template library and non-technical marketing team, the switching cost is real. Mailchimp's template ecosystem and drag-and-drop builder are mature. Recreating everything takes time you might not have.

If your email strategy is primarily newsletter-style broadcasts rather than behavioral automation, Mailchimp handles that well. The event-triggered limitations matter less if your emails are scheduled campaigns.

If you're a hybrid SaaS + e-commerce business, Mailchimp's Shopify and WooCommerce integrations are mature. SaaS-focused tools don't offer this.

If enterprise compliance features matter—SSO, advanced permissions, audit logs—Mailchimp's larger platform has more enterprise-grade features than newer alternatives.

And if things are basically working, migration has real costs. The grass isn't always greener. Before switching, be clear about what specific problem you're solving and whether a new platform actually solves it better.

Making the Decision

The pattern of SaaS companies leaving Mailchimp reflects a broader shift in what email marketing means for software businesses. The broadcast-email era, where you collected subscribers and sent them newsletters, has given way to behavioral email tied to product experience.

Mailchimp was built for the broadcast era and has struggled to evolve. The additions of product events, the Mandrill separation, the pricing changes that penalize natural SaaS churn—these aren't random decisions, they're artifacts of a platform trying to serve everyone while specializing for no one.

If your email needs are simple—periodic newsletters, basic automation, general audience engagement—Mailchimp remains perfectly capable. If your needs include behavioral triggers, unified transactional email, subscription lifecycle management, or deep product integration, purpose-built alternatives will serve you better.

The migration isn't trivial, but for many SaaS companies, the operational simplification and capability gains justify the switch. Start by identifying your most painful Mailchimp limitation, evaluate which alternatives solve it, and plan a realistic migration timeline.

For a direct feature comparison, see our Mailchimp vs Sequenzy analysis.