PREDICTIONS REPORT 2019 - CRM & Email Marketing - Elite SEM
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2019 PREDICTIONS REPORT CRM & Email Marketing
T HE ATTENTION STRUGGLE is real. The average U.S. office worker receives 121 email messages each day,1 according to Campaign Monitor, making the temptation strong to skim subject lines and delete mer- cilessly if the first lines of a message fail to resonate. Average U.S. office worker daily inbox Furthermore, email providers are streamlining unsubscribe process- es, even automating the functionality for brands whose messages are consistently left unopened. Against this backdrop, brands must prioritize their audience’s needs 121 emails per day and work hard to win engagement. Each and every email brands send needs to provide value to subscribers in order to earn opens and clicks. Luckily, a new generation of email and customer relationship manage- ment tools enable marketers to harness the power of artificial intelli- Source: Campaign Monitor gence, which—combined with ultra-relevant content, sleek design, and a singular brand voice—can win the day. 2019 Predictions Report: CRM & Email Marketing elitesem.com 2
Privacy safeguards are now mandatory May’s GDPR rollout in Europe,2 which requires companies to obtain consent for data collection and empowers consumers to rescind that consent at any time, ushered in a new era of online privacy protection—requiring more explicit permis- sion requests and granular back-end con- trols than ever before. In Canada, broad anti-spam legislation took full effect in 2017,3 and in the U.S., California passed privacy regulations that will go into effect in 2020.4 A handful of other states have passed new restrictions on data collec- Europe: GDPR tion.5 Expect the regulatory environment to grow more complex in 2019. Reports of the death of email marketing post-GDPR were greatly exaggerated. In an October survey, email firm Litmus California: CCPA found that 60% of brands complying with GDPR saw their list size decrease by 10% or less.6 Nonetheless, rigorous applica- tion of best practices is now mandatory, from double opt-in subscription process- es to prominent opt-out language within Vermont: H.764 promotional messages. Email marketers should expect to invest in an audit and Data privacy legislation springing up in overhaul of the signup process and cam- U.S. states following Europe's GDPR. paign messaging. Reports of the death of email marketing post-GDPR were greatly exaggerated. An October survey found that 60% of brands complying with GDPR saw their list size decrease 10% or less. 2019 Predictions Report: CRM & Email Marketing elitesem.com 3
Machine-powered personalization closes in on 1:1 relevance Marketers are increasingly taking advantage of artificial intelli- gence to derive real-time insights into customer behavior. While just 17% of email marketers named AI spe- cifically as a priority for 2018,7 according to U.S. B2C marketers increasingly eConsultancy, another 53% said automation using artificial intelligence for 1-to-1 personalization would be a focus. And BlueShift found that among U.S. B2C companies, 64% of marketers predict they’ll increase AI use in the coming year.8 In 2019, email marketers will increasingly customize content by in- dividual email recipient rather than pre-defined segments, connecting consumers with relevant products dynamically 64% expect to step up AI usage next year selected and presented based on prior purchase and brows- ing behavior, expected future purchases, contextual cues, Source: BlueShift and other criteria. On the back end, marketers will have access to predictive analytics to power their strategies. Forecasting churn, next order date, and customer lifetime value can help marketers accurately target campaign content. Additionally, ESPs and ven- dors will make this data more easily available—a welcome move, since 30% of marketers say they lack the funds and 34% say they lack the in-house talent to tackle AI initiatives single-handedly,9 Information Week reported. Chief among the new ways to access Marketers need help from ESPs and vendors to consumer information implement AI initiatives. in 2019 will be natu- ral-language process- ing tools that empow- er marketers to ask questions in plain En- 30% 34% glish and receive rele- marketers lack marketers lack funding in-house talent vant slices of data in Source: Information Week return. 2019 Predictions Report: CRM & Email Marketing elitesem.com 4
Email cadence, in particular, will be personalized in 2019, replacing pre-set “opt- down” segments. Brands will use engagement and response metrics to adjust email cadence and promote optimal contact schedules. With subscribers’ pri- or behavior informing how often they receive email, marketers can help reduce churn and boost engagement. Loyalty programs with a high Personalization will also enable degree of individualization an increased focus on loyalty pro- grams and perks. Some 8 in 10 drive higher satisfaction for marketers already use email for customer retention,10 but in 2019, 79% of customers. those programs will earn further investment—a wise move, as re- tention programs can potentially drive 20% of profits.11 As brands strive to de- velop true 1-to-1 relationships with their most valuable customers, they’ll also be delivering on consumer expectations for personalized service: loyalty programs with a high degree of individualization drive higher satisfaction for 79% of cus- tomers,12 Marketing Land reported. From email providers to integrated platforms As marketers strive to collect, analyze and act on nu- merous streams of data—whether using AI-assisted tools or not—they’ll increasingly seek to knit togeth- er marketing channels to make a cohesive whole. To achieve consistency in design, voice, and content and deliver a seamless customer experience, brands will look for unified vendor platforms that can handle push notifications, in-app messaging, and social media management as well as email. Those who stick with standalone solutions will invest in integrations to ensure the seamless flow of information. 2019 Predictions Report: CRM & Email Marketing elitesem.com 5
Renewed focus on the “person” in personalization Even as machine learning and automation power more email campaigns, mar- keters will strive to establish personal relationships with individual consumers through email content. Rather than sending a steady stream of individual mes- sages focusing on daily deals or urgent promotions, brands will use personaliza- tion data and context to identify meaningful narratives that unfold over several campaigns, creating a deeper connection. One in four marketers identified brand storytelling as a priority this year,13 according to Litmus, and in 2019 building res- onant stories will help brands build loy- alty that doesn’t depend on constant heavy discounting or promotions. As part of the effort to build personal connections, marketers will emphasize what makes brands unique. Emails will increasingly showcase a singular brand voice, from formal to sarcastic and ev- erything in between. And marketers will increasingly push the envelope when it comes to promoting causes and char- itable works in an effort to establish credibility. More than half of consum- ers globally believe companies exclusively concerned with profits are bound to fail,14 Edelman found, while 81% of consumers globally believe companies should help improve the environment,15 according to Nielsen. The message to marketers in 2019 is clear: don’t be safe—be you. To give a platform to storytelling emails, more brands will employ text- based “letter format” emails. These formats allow marketers to incor- porate dynamic, personalized content, while simultaneously taking a 1:4 marketers identified brand storytelling as a priority conversational approach and showcasing brand voice. Source: Litmus 2019 Predictions Report: CRM & Email Marketing elitesem.com 6
Reconfigured email designs enable seamless access for all Email is now primarily consumed on mobile devices,16 EmailMonday reports— just one indicator of the central role mobile now plays when it comes to online activity. Indeed, mobile now makes up the majority of web usage,17 and mobile devices play a role in a third of all retail transactions at some point on the path 33% retail transactions to purchase.18 In response, Google has switched its organic ranking and indexing to prioritize “mobile-first”.19 In 2019, mobile browsing and buying will only grow, where mobile so brands must follow suit and ensure their email marketing is effective on small devices play a role screens. Doing so pays off in performance: responsive templates earned 15% more clicks on average from mobile viewers than messages not optimized for Source: Adweek small screens,20 Litmus found. Interactive email experiences topped the chart of email design trends this year, enabling purchases or other conversions without leaving the inbox. In part to serve the growing audience of mobile email users, who favor streamlined experiences requiring fewer taps and form fields, marketers will increasingly use interactive emails that enable purchase or other conversion without leaving the inbox. Interactive email experiences topped the chart of email design trends this year,21 according to Litmus, and in 2019 these in- teractive features will go still further, enabling custom- ers to make SKU selections within messages before completing purchases. 2019 Predictions Report: CRM & Email Marketing elitesem.com 7
Compatibility isn’t just about screen size; brands must also ensure their email content can be accessed by subscribers with disabilities. Target was successful- ly sued over its web site’s failure to comply with the Americans with Disabilities Act,22 and litigation is set to rise in the absence of federal guidelines in 2019.23 Compliance is more than a matter of applying alternative text tags to email con- tent; marketers should invest in auditing their email designs in order to avoid po- tential litigation. Marketers woo subscribers with irresistible content As brands vie for attention in the email inbox, marketers will put the focus on content versus design. Minimalist templates are not only more likely to be mo- bile-friendly; using only the most essential design components to create visual- ly-appealing but straightforward messages reduces distraction. “Less is more” is here to stay. At the same time, a focus on rich, di- verse content means that emails will be longer than the single-promotion an- nouncements of the past, especially for brands that carry different product types. Showcasing multiple offers, products, or collections allows loyal customers to buy across more categories and expos- es new customers to additional products that may drive initial conversions. 2019 Predictions Report: CRM & Email Marketing elitesem.com 8
Cinemagraphs will make their way into more designs across touchpoints; they’re a quickly growing feature that has a high customer impact due to smooth looping action and minimalist movement. Mar- ketingProfs found that 72% of market- ers using cinemagraphs or animated gifs achieved higher transaction-to-click rates than standard bulk emails.24 On social media, teaser headlines that ask questions, provoke an emotional re- sponse, or create intrigue drive “curiosity clicks” to the content being promoted. That technique is now making its way into email copy; 29% of marketers said “bite-sized” nuggets of content were trending this year,25 according to Litmus, and In 2019, marketers hoping to woo email viewers to their brand web sites will up the ante. For example, an email may read, “Our most popular product is back in stock” and then require the subscriber to click through to see what exactly the product is. Conclusion: innovation and authenticity win engagement Want to receive more Brands enter 2019 with more competition than ever in email inboxes. To convince content like this? Sign up consumers to engage with email content, marketers will combine predictive intel- for our newsletter: ligence with authentic content in new ways, creating strong brand relationships elitesem.com/newsletter as they earn sales. n ELITE SEM IS AN AWARD-WINNING digital marketing agency founded on Search and focused on holistic per- formance-driven digital marketing. From discovery through acquisition, retention, reactivation, and loyalty, Elite's services span all stages of an integrated marketing strategy, allowing leading industry brands to effec- tively and strategically evaluate digital marketing spend and increase cross-channel performance. Elite's com- mitment to people and performance has cemented their position as one of the top digital marketing agencies in North America. For more information, visit www.elitesem.com. Paid Search • Paid Social • CRM & Email Marketing • Shopping & Feed • Amazon & Marketplaces • Display Advertising • SEO • Affiliate Marketing • Creative Services • Conversion Rate Optimization (CRO) • Integrated Media Strategy • Analytics/Marketing Science 2019 Predictions Report: CRM & Email Marketing elitesem.com 9
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