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-
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                             ligence with authentic content in new ways, creating strong brand relationships
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                             as they earn sales. n

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                                                               2019 Predictions Report: CRM & Email Marketing         elitesem.com         9
Sources
1. “The Shocking Truth about How Many...” Campaign Monitor, Mar. 2018
https://www.campaignmonitor.com/blog/email-marketing/2018/03/shocking-truth-about-how-many-emails-sent/             14. “2018 Edelman Trust Barometer.” Edelman, Oct. 2018
                                                                                                                    https://www.edelman.com/sites/g/files/aatuss191/files/2018-10/2018_Edelman_Trust_Barometer_Global_Report_FEB.pdf
2. “Resources and Information for GDPR.” GDPR.org, 2018
https://www.gdpr.org/                                                                                               15. “Global Consumers Seek Companies That Care...” Nielsen, Nov. 2018
                                                                                                                    https://www.nielsen.com/ca/en/insights/news/2018/global-consumers-seek-companies-that-care-about-environmen-
3. “Canada’s Anti-Spam Legislation (CASL)—A Brief...” 250ok, Oct. 2017                                              tal-issues.html
https://250ok.com/email-deliverability/canadas-anti-spam-legislation-casl/
                                                                                                                    16. “The Ultimate Mobile Email Statistics...” EmailMonday, Jul. 2018
4. “California Passes Sweeping Law to...” New York Times, Jun. 2018                                                 https://www.emailmonday.com/mobile-email-usage-statistics/
https://www.nytimes.com/2018/06/28/technology/california-online-privacy-law.html
                                                                                                                    17. “Percentage of All Global Web Pages Served...” Statista, 2018
5. “States are Leading the Way on Data Privacy.” The Hill, Aug. 2018                                                https://www.statista.com/statistics/241462/global-mobile-phone-website-traffic-share/
https://thehill.com/opinion/technology/402775-states-are-leading-the-way-on-data-privacy
                                                                                                                    18. “Mobile Shopping Is on the Rise, But Remains...” Adweek, Feb. 2018
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https://litmus.com/blog/remember-when-they-said-gdpr-would-kill-email-it-didnt
                                                                                                                    19. “How Does Mobile-First Indexing Work, and How...” Moz, Jan. 2018
7. “Only 17% of Email Marketers Planning for...” Econsultancy, Jun 2018                                             https://moz.com/blog/mobile-first-indexing-seo
https://econsultancy.com/only-17-of-email-marketers-planning-for-ai-more-than-half-will-innovate-with-automation/
                                                                                                                    20. “The Ultimate Mobile Email Statistics...” EmailMonday, Jul. 2018
8. “Activating Customer Data for AI Powered Marketing.” Blueshift, 2018                                             https://www.emailmonday.com/mobile-email-usage-statistics/
https://downloads.blueshift.com/report-customer-data-for-ai/
                                                                                                                    21. “Top Email Design Trends for 2018.” Litmus, Jan. 2018
9. “10 Top Barriers to AI Success” InformationWeek, Jul. 2018                                                       https://d31v04zdn5vmni.cloudfront.net/blog/wp-content/uploads/2018/01/litmus-top_email_design_trends_for_2018.png
https://www.informationweek.com/big-data/10-top-barriers-to-ai-success/d/d-id/1332421
                                                                                                                    22. “What to Take Away From FedEx and...” 3PlayMedia, Sep. 2017
10. “Adapting to the Pace of Omnichannel Commerce.” Emarsys, 2016                                                   https://www.3playmedia.com/2017/09/14/take-away-fedex-targets-accessibility-lawsuit/
https://www.emarsys.com/en/resources/whitepapers/adapting-to-the-pace-of-omnichannel-commerce/
                                                                                                                    23. “Lawsuits Targeting Business...” Los Angeles Times, Nov. 2018
11. “Loyalty: Is It Really Working for...” McKinsey & Company, Dec. 2011                                            https://www.latimes.com/business/la-fi-hotels-ada-compliance-20181111-story.html
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/loyalty-is-it-really-working-for-you
                                                                                                                    24. “Moving Pictures: How to Increase...” MarketingProfs, Feb. 2018
12. “The 7 Biggest Trends Driving Customer...” Marketing Land, Jan. 2018                                            https://www.marketingprofs.com/articles/2018/33545/moving-pictures-how-to-increase-engagement-with-cinema-
https://marketingland.com/7-biggest-trends-driving-customer-loyalty-232518                                          graphs

13. “Top Email Design Trends for 2018.” Litmus, Jan. 2018                                                           25. “Top Email Design Trends for 2018.” Litmus, Jan. 2018
https://d31v04zdn5vmni.cloudfront.net/blog/wp-content/uploads/2018/01/litmus-top_email_design_trends_for_2018.png   https://d31v04zdn5vmni.cloudfront.net/blog/wp-content/uploads/2018/01/litmus-top_email_design_trends_for_2018.png
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