06/14/2023

The Transformative Impact of AI on Email Marketing Strategy

Insights

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Email is a very important mode of communication for business and it’s hard to imagine the world without it. Statista estimates that by 2023 there will be 4.3 billion users of email worldwide. 73% of millennials – the generation that is gradually changing the demographics of the client base of major brands – prefer to communicate their business affairs and dealings via email. Email marketing is still important in the B2B world. Statista revealed that 30 marketing experts around the world stated that email marketing provides the highest ROI.

Email marketing is a vital part of business, so it’s no surprise that email marketers are using Artificial Intelligence more and more. Automation tools and technology are being used by almost every industry to reduce costs and streamline complex processes. AI is a great tool for E-mail Marketing strategy, as it can analyze data more efficiently than a person. AI can be used to support several emerging trends, such as machine learning, big data, and others.

With AI, most brands can easily determine which parts of their email marketing strategy are working and which need to be changed. Smart segmentation, email automation workflows, optimized subject lines and other techniques can help increase open and click-through rates. Every digital native’s world has been revolutionized by it.

What do the Stats Say?

Forrester Research estimates that companies who use AI to drive their e-mail campaigns will grow by $1.2 trillion per year compared to those who don’t.

According to a recent report by Tractica the AI market has entered a new stage, where the story is shifting from buzzwords to reality.

* 49% of businesses already use automation to send emails as part of their email marketing strategy. This number is expected to rise, as marketers and business owners see the future.

* GetResponse’s and Ascend’s latest study found that 63 % of B2B marketers increased their budgets for email marketing every year due to positive campaign results. Meanwhile, 18 % decreased investments because of deteriorating performance

* Socialmediatoday stats revealed that with artificial intelligence, 82 percent of marketers reported a high open rate after using customized techniques in their email campaigns. 75 percent agreed it resulted in high click-through rates.

* Tractica also revealed that software using AI technology will increase the return from 9.5 billion dollars in 2018 to $118,6 billion annually worldwide revenue by 2025. AI will grow at a rapid pace, which in turn would result in email marketing reaching new heights.

What are the Email Marketing Campaign Objectives?

Determining your main goals can help you to better understand the structure of your email campaign. Understanding what you want to achieve is the first step in creating a coherent and overarching strategy.

Ensure that your goals are: SMART

* Specific – understandable and precise

* Easy to measure

* Achievable- attainable

* Realistic and sensible

* Specific time – When do you want to achieve your goals?

Use OKRs

Identify the main results you want to achieve from each goal. Then, determine how you will work towards achieving these results.

  • Key Results

Use AI to maximize your email marketing campaign

AI technology in email marketing is already changing the way marketers plan, develop and implement e-mail campaigns. Email marketing is a challenging strategy.

  • Lead generation: How to increase it
  • Increasing engagement
  • Conversions can be increased

Here is how Artificial Intelligence (AI) can benefit email marketing over the long term:

  1. Automating content with AI and automation technology is a simple way to produce email-marketing-friendly formats.
  2. AI can be used to analyze several email campaigns.
  3. You can eliminate the guesswork by deciding when to send your emails.
  4. AI can retarget users by analyzing their browsing habits and preferences and then sending emails to increase conversion rates.
  5. Email marketing can boost daily results, performance, and strategy
  6. AI can help companies retain existing customers and discover new ones
  7. AI can help businesses grow by providing better insights

Artificial Intelligence can be used to improve personalization and conversion rates. It also allows for smart segmentation. Customers will feel more satisfied, which leads to a significant increase in customer retention.

5 Ways AI is Transforming Email Marketing

Artificial intelligence is a powerful tool that can transform the email marketing industry. We’ll look at how to integrate and leverage AI to get the most from your email marketing strategy.

1. Use Personalized Emails to Create Smarter Campaigns

Email marketing is a practice that relies heavily on personalization. Emails with personalized subject lines are 26 percent more likely than other emails to be clicked and have a 6x higher transaction value. Even 74% of marketers believe that personalized emails increase their client engagement.

The importance of personalized emails:

  • Personalized emails are more likely to be opened and clicked on.
  • These emails are a good example of custom-made, highly relevant material that stands out in the mailbox.
  • Email marketers can personalize their content by using true personalization.
  • Sending the right email with the correct content at the right time to the appropriate users will enhance the client experience.

Email marketing tools make it easy to personalize emails by using tags and segmentation of email lists. AI in email marketing allows even more personalization through the analysis of target customers’ behavior. This makes it easier to determine what content they respond to. AI can analyze complex client data and algorithms as well as client behavior based on previous interactions. Email marketers can use the latest platforms, such as Persado or Phrasee, to allow AI to determine what body copy, subject line, and calls to action recipients are most likely to respond to.

Personalization is a way to make emails more effective.

* Understand real-time preferences and interests of consumers

You can personalize your content for a single audience.

* Updated continuously based on the user’s behavior

2. AI Email Subject Line Optimization

This is undoubtedly a key element in your message. A perfect subject line will attract the user’s interest, but a subject line that is not appealing will be quickly marked as spam or ignored. The open rate of subject lines that contain only 5 words is 15.9 percent higher than those with more. Chadwick Bailey The survey found that almost 40% of respondents decide whether to open an email based solely on its subject line. The subject line should be optimized to avoid common mistakes.

There are too many possible actions

The sentences are too long

* No personalization

AI combined with innovative ideas can create subject lines that are more appealing and increase CTR. It analyses the results of each email marketing campaign to optimize the subject line over time. Phrasee, an email marketing tool that uses AI technology to create efficient subject lines, is one of the smartest tools available. It optimizes email in three modes:

Subject lines that are personalized and optimized

* Body text that drives a click

* Call to action to increase conversions

AI can be used to analyze which content and copy is most effective.

3. Predictive Analytics and Metrics

Marketers today use predictive analytics in email marketing. This secret power will help them create highly effective email campaigns and begin selling by analyzing the data of site visitors and subscribers. Predictive analytics helps you to create personalized and relevant content by identifying how your customers will respond to a particular email or promotional offer.

Marketers are leveraging AI, machine learning, statistical algorithms, and modeling in addition to AI-powered algorithms to optimize email marketing campaigns. They also use existing data to analyze and predict future changes. The question now is, how much of an impact will predictive analytics have on email campaigns? Forrester surveyed 579 marketing decision-makers to answer this question. The results are as follows:

  • All email marketing will soon be predictive, according to 78 percent of respondents
  • 82% agreed that email marketing with predictive capabilities will be essential to remain on the cutting edge
  • 81% plan to increase the use of predictive analytics to improve email marketing results

This highly advanced AI-driven technology identifies customers at a granular scale. Netflix is one of many examples of email personalization and predictive analytics.

4. Customizing Special Email Promotions

Offer special promotions on your personalized email list to encourage more users to join the list, and also to increase sales. Email marketing with AI can help in planning special promotions and the right strategy to optimize email frequency. Email marketers can easily generate sales by customizing promotions and offering the optimal offer to each customer.

AI-powered algorithms know what promotions work best for each user based on interests, habits, and history. This includes product discounts, rebates, or recommendations. As more and more subscribers sign up for your newsletter, sales data will continue to grow. AI-powered email marketing techniques allow marketers to analyze user behavior, manage data and send personalized promotional emails to each customer.

According to CRM, Artificial Intelligence, for example, can analyze the behavior of your subscribers, from their buying patterns to website forms. It can also identify patterns to help segment your audience. This is done much faster than a human being could.

People will stop subscribing if you promote too much. They will also forget the purpose of your business. Artificial Intelligence has a significant impact on conversions. AI-powered software can optimize minimal promotions. It can use prewritten promotions, images and copy, links, curated blog posts, snippets of blog posts, and even machine-generated content to create customized emails with a high rate of engagement. AI would not be able to create this type of personalized promotion.

5. AI-powered Smart Segmentation for E-mail Retargeting

Are you sending emails to the correct audience? Your subscriber list is segmented correctly? Each consumer has a unique set of actions and behaviors that make them stand out from other consumers. Email marketing campaigns can increase revenue by 760. AI-powered techniques may eventually improve data so that consumers can be targeted for hyper-relevant advertising. Segmenting subscribers based on criteria such as a subscriber’s position in the sales funnel, their location, demographics, and purchase history can also help you better target your users.

It is now easier for email specialists to access specific customer information and refine their retargeting strategies with the advent of artificial intelligence (AI) and machine learning. The right emails will ensure that you send the correct information to interested customers, thereby facilitating CTRs. AI can also differentiate between different types of customers, and send retargeting emails at the optimal time. AI can send an email to a client who abandons their shopping cart to either recommend or buy a product similar. Shortly, segmentation using AI can elevate your email marketing campaign.

Final Verdict

Smart technologies such as AI can help you optimize your email campaigns, allowing you to achieve your KPIs faster and increase your ROI. Artificial Intelligence is now a key component of email marketing strategies. AI-powered marketing via email is the future. What are you waiting for? Your email marketing strategy will stand out amid a crowded market.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.