The Future of Machine Learning and AI Powered Email Marketing

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 The rise of artificial intelligence is one of the most relevant technological trends of 2020, especially in digital marketing. An astonishing growth has been recorded and it is projected to continue in the future, with new applications emerging continuously. More companies are now adopting these technologies to get more insight into their customers as well as to reduce costs. One of the most important applications of AI in marketing is for the email channel. In fact, email marketing is still the most effective way for companies to reach their customers, because of its low cost and its incredibly high average ROI of 3800% (Source: Hubspot). 

Some Facts About AI 

  • The global market for machine learning is projected to grow at a compound growth rate of 42.8% a year to 2024. (Source: Forbes)
  • 58% of large companies surveyed report adopting AI in at least one function or business unit in 2019, up from 47% in 2018. (Source: Stanford AI index )
  • In 2019, 15% of respondents from the State of AI study reported using AI to do consumer segmentation in their marketing departments, up from 9% in 2018. (Source: State of AI 2019)

The Importance of Segmentation and Personalization in Email Marketing 

Segmentation and personalization are the two most important factors when it comes to achieving good open rates and click-through rates in email marketing. According to the DDMA Email Benchmark for 2019, a report which analyzes 19.6 billion emails sent worldwide, factors like list size and frequency are closely related to the performance of an email campaign. In fact, campaigns with a list size of over 10 thousand emails, are likely to have a 2% to 5% decrease in the open rate, while campaigns with a frequency higher than 400 emails a year can cause a decrease in open rates up to 3%. AI-based email marketing allows for a more segmented audience and smaller list sizes, as it can use predictions based on previous data and other techniques to create new relevant segments for the campaign. For instance, AI can automate functions like A/B testing or other content personalizations inside the email, which can improve open rates up to 4.8% and click rates up to 1.8%, depending on the degree of personalization. By doing so, subscribers receive a tailored message, more relevant to their customer journey, and where they are in the funnel.

What AI Based Email Marketing Means for Your Business

The rise and the growing popularity of AI in marketing allows brands for a more customer centric approach. Providing personalized subject lines and content can increase click through rates by 4.8% on average (source: DDMA).

Machine learning, which is a sub-field of AI, enables email management softwares to learn based on previous tests and to change parameters such as the subject line, an image or other contents accordingly.

This means that you can cut costs by automating functions like finding optimal sending times for a campaign and content for an email.

Additionally, you can become more relevant for your customers and provide more value to their experience, increasingly going through all the phases of the funnel. 

Are you interested in knowing more about how to improve your email marketing results with the use of AI and machine learning?

Contact us if you want to know more about how you can reach your customers more effectively through email and visit our Email Marketing service page.

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