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How Artificial Intelligence is Shaping Email Marketing

How Artificial Intelligence is Shaping Email Marketing

Introduction

For every $1 you spend on email marketing, you can expect $42. No wonder 81% of small businesses rely on email marketing for customer acquisition, and 80% rely on email marketing for customer retention.

If a marketing strategy can have that ROI, using it effectively is vital for every marketer. Email marketing is one area where artificial intelligence is making many inroads. Understanding how artificial intelligence is shaping email marketing is essential so that marketers can learn how to create and execute better email marketing campaigns.

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Segmentation

Segmentation is so crucial to email marketing. Different factors (age, interest, sex, location) differentiate the audience of every business. The goal of the marketer is to understand how those factors affect their buying decisions and interaction with your brand.

However, some differentiating factors are hard for marketers to identify. With Artificial Intelligence, marketers can better segment their audience based on AI-generated data about their behavior, interests, and past actions. The more data the marketer has about the audience, the higher the capacity for segmentation. The better the segmentation, the higher the return on investment – you only spend a campaign’s budget on people to whom that campaign is relevant.

Personalization

Segmentation is the backbone of personalization. The more the marketer understands the buyer’s behavior, interests, and past decisions, the higher the capacity to send personalized messages to them.

Personalization is why email marketing is so effective. However, in a world where we receive tens and tens of emails in a single day, the demand for personalization is higher.

Emails with a personalized subject line have 50% higher open rates.

However, personalization is more than including a person’s name in the email. AI is increasing opportunities for personalization.

With AI, marketers can know the time of day, the day of the week, and the frequency with which to send emails to every individual. AI can analyze every individual and their past interactions with emails to suggest how and when to send emails.

Rather than spending time A/B testing to come up with the best time of day, day of the week, and frequency to send emails to all the people in your list, AI helps you to know the time of day, day of the week, and the frequency with which to send emails to everyone on the list. What you get is better open rates, more engagement, and higher conversions.

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Offers

Another way personalization works is making specific and relevant offers to an audience. Before AI, marketing was more like throwing a hook into the river and hoping it catches a fish. The marketer makes an offer to an audience and waits (and hopes) that people will respond. It is the same offer for everyone.

With AI, a marketer can make personalized offers based on the customer’s past behavior and purchasing decisions. This works especially with discounts, rebates, and freebies.

It is not everyone on your list that needs a discount to convert. However, without data, you cannot know; you will lose money convincing someone to buy at a discount when he would have purchased without the discount. Also, a monolithic discount offer cannot work as much as a personalized discount offer. AI makes it possible to make customized offers to everyone on the list.

Personalized offers increase conversion rates and ROI.

Retargeting

At the basic level, retargeting is making specific offers to people who did not complete a particular desired action.

Email marketing has been an excellent way to reduce shopping cart abandonment.

AI can help you achieve better results with retargeting. It can use data to help you decide when to retarget and what offer to make to who.

Content Optimization

AI also helps to optimize the content of every email. While it is essential to know when and how often to send a mail, it is crucial to send the right mail – right subject line, copy, content, multimedia. Writers spend time trying to create the perfect subject line and all the other parts of an email.

With AI, marketers can understand what works best for every segment in the list, and every person on the list. The personalization that AI offers extends to the very content/copy.

Automation

AI goes one step ahead in the way it transforms email marketing. By analyzing the different marketing emails that a marketer has sent and the various results of those campaigns, AI can automate the email marketing process. AI comes up with a combination of pre-written copy and other multimedia content that will have the best conversion.

AI can also automate the process by identifying the behaviors or events that will trigger a particular marketing campaign. Therefore, rather than adding new individuals to the campaign, the technology automatically includes anyone who satisfies some predefined criteria.

Testing and Predictive Analytics

While multivariate (A/B) testing is essential, AI helps marketers achieve more through testing. With AI, you can quickly identify trends and make predictions rather than wait for new data to make a decision. AI tools can even help you optimize the campaigns on the go as actual data become available.

 Some AI Platforms for Email Marketing

Below are some platforms that allow marketers to achieve better results with their email marketing through the power of AI.

Persado uses AI to help marketers optimize their marketing messages. Persado understands the importance of messaging to marketing and uses natural language generation to help you find the words that win

Zeta Global’s marketing tool uses AI to provide the data that marketers need to segment their audiences and personalize their messages across various channels. It helps to identify the right segment, channel, timing, and message for each marketing campaign.

Marketers can use Albert’s tool to create and optimize marketing campaigns for every stage of the buyer’s journey. It offers intense personalization. The tool also works for paid advertising.

Phrasee uses AI-powered algorithms to generate the best subject lines, contents, and CTAs. It uses machine learning to determine the messages to which an audience will respond.

Conclusion

Email marketing is an essential tool in the marketer’s box. With the ROI email marketing generates, winning at email marketing is a big success for every business.

Employing these AI tools will help businesses achieve better results with email marketing and grow their businesses on steroids.

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