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Email marketing and AI

Email marketing is still effective

Here are three reasons why email marketing services is still a relevant and effective marketing tool for both B2B and B2C businesses:

  1. Half of the global population uses email, so regardless of who your target audience is, chances are you can reach them through email.
  2. If you send your audience valuable content that matters to them, they are likely to read it, engage with it, and appreciate it.
  3. An email based marketing campaign can be a relatively inexpensive strategy. According to the Direct Marketing Association, email based marketing brings in $40 for every $1 spent, which means that it outperforms search, display, and social marketing.

With a well-planned strategy developed by an experienced marketer or a professional digital marketing agency, your email campaigns can become an impactful and profitable part of your overall marketing strategy.

Types of Email Based Marketing

Four common email based marketing messages that businesses can use to connect with (potential) clients and promote their products or services include information emails, digital newsletters, product updates, and transactional emails;

  1. Information emails focus on a specific offer, product announcement, or upcoming event, and include a CTA that brings the reader to a dedicated landing page where they can learn more.
  2. Digital newsletters are sent on a regular basis, and keep subscribers up-to-date with relevant information about products, services, and promotions.
  3. Product updates are used to inform (potential) customers about either new products or services, or updates to existing products and services.
  4. Transactional emails are sent to one person at a time based on an action, for example; to confirm that an order is being processed, or a payment has been received.

The Changing Landscape of Email Marketing with AI

Connecting with your audience is the key to any successful email marketing campaign. In the past, marketers would often cast a wide but inefficient net with low success rates. These days, email marketing has become more advanced, more personalized, and less intrusive. Companies are now targeting specific audiences who have visited their website, or who have shown online behavior that classifies them as interested in the company’s products or services.

By collecting the right data, companies can create personalized and effective email campaigns. One study showed that personalized emails based on behavior were three times better received than impersonal, large batch emails. According to Single Grain, personalized emails drive 18x more revenue than broadcast emails. The future of email marketing will invariably be personality or behaviorally-based and customized accordingly.

AI for Email Marketing

AI-powered tools help boost revenue by increasing the number of open rates and click rates, while simultaneously decreasing costs by reducing the amount of time spent on producing collateral for email campaigns.

AI and personalization

AI can manage large sets of data and develop meaningful analytic solutions. As a business collects a growing number of emails, the data related to those emails can continue to grow to the point where managing it becomes a time-consuming job. By embracing AI, this data can be more easily catalogued and readied for use. Personalized emails can mean the difference between a successful email marketing strategy and a waste of time, energy and money. According to a study by Campaign Monitor, emails with a personalized subject line with the individual's first name are 26% more likely to be opened and deliver 6x higher transaction rates.

Customizing information

When it comes to personalized email marketing, AI tools can reveal exciting insights into customer behavior and enable marketers to carry out better data analytics services. In the case of personality-based marketing, AI can help sort through data to determine if individuals fall into a certain pre-determined personality type. Regardless of whether marketing is based on psychographic segmentation (a technique where groups are formed according to psychological traits that influence consumption habits drawn from people's lifestyle and preferences) or another manner of personality categorization, AI can label and filter data in order to send tailored emails to each individual. For example, if it’s known that someone who falls into the personality category “A” likes to see information presented in infographics, an email can be arranged and sent in an infographic format to that individual.

Predictive analytics

AI can also help with predictive analytics which allow marketers to have a good idea of how a user will act based on their past behavior. While this type of data requires past interactions with a user, its collection can become invaluable. Based on past behavior and predictive analytics, AI can determine how likely it will be for a user to open an email in the morning but ignore the same email if it arrives after 4pm. And based on this information, it can inform a business as to the best time to send emails to their different audiences.

Ecommerce

With the right analytics a business can understand shoppers purchasing habits, browsing patterns and even spending behavior. With AI, quick real-time emails can be sent to users with custom recommendations or reminders of items left in a cart. These emails help boost engagement and conversations, and increase sales. An in depth study of shopping cart abandonment found that a single initial email had an open rate of 62.94%, a click-through rate of 14.53%, and revenue per recipient of $10.75.

Key Takeaways

  • Email marketing is still an effective marketing tool as it allows businesses to reach and share valuable content with their desired audiences in a relatively inexpensive way, but its success has become dependent on personalization.
  • Artificial Intelligence (AI) makes it possible to collect and analyze data which enables marketers to connect and communicate with their audiences through personalization.
  • Personalized emails are more relevant to subscribers, which increases the number of open rates and click rates, which may lead to more conversions.
  • With a well-planned strategy developed by an experienced marketer or a professional digital marketing agency, the results of your email marketing campaigns will be impressive.

About Pixel506

Are you interested in implementing AI tools to help improve your email marketing? Feel free to contact us to see how we can assist you with your challenges and put you on a solid track to business growth. Pixel506 is a nearshore Costa Rica agency that helps companies with creative digital solutions and innovative technologies. Our experts offer business consulting including email marketing, AI, template design, copywriting, distribution, and tracking. We would be happy to partner with you to achieve success.

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