The world of AI seems to be having a moment right now. There isn’t a blog post out there that hasn’t mentioned it, and this I’m afraid is no different.
Email marketing has always utilised the power of AI just in a more innate way. From personalised recommendations to predicted time of send, we’ve always been at the forefront of where technology is. However, there is a difference between an AI that has been programmed on a set of algorithms versus that which is actually learning as it interacts with you.
If we look at product recommendations, these are more or less created on a set of conditions or algorithms that have been pre-determined by the marketer. We instruct the tool to suggest correlating items depending on what a customer has either viewed or added to the basket etc. It doesn’t make these suggestions based on its own intel, but more from a set of codes and eventualities that we’ve programmed. Whereas a machine that learns starts off with a base idea, however it has room to grow and evolve as it studies your customers, coming up with values that it feels is best suited to your target audience.
AI can help businesses increase the effectiveness of their email campaigns, improve customer engagement, and drive more revenue. In this blog post, we'll discuss how AI can be used in email marketing and the benefits it can bring.
1. Personalisation
One of the main benefits of using AI in email marketing is the ability to personalise messages to individual recipients. By analysing data about customers’ past and current behaviour as well as preferences, AI algorithms can suggest personalised product recommendations or even generate personalised subject lines and email content, which can lead to higher open rates, click-through rates, and conversion rates, as customers are more likely to engage with messages that are relevant to their interests.
2. Segmentation
Segmentation is no hidden strategy, but how many of us have the bandwidth to create meaningful and evolving segments that increase channel revenue? On average segmented emails’ open rates are 14% higher and can contribute to an average 58% of total email revenue. AI can be used to help businesses segment their email lists more effectively. Using bespoke algorithms, businesses can analyse customer behaviour and preferences to create custom audiences based on various criteria, such as past purchases, website behaviour, or demographic data. By targeting specific segments with tailored content and offers, businesses can increase the relevance of their messages and improve the chances of conversions, without depending heavily on internal resources to produce this level of output.
3. Predictive Analytics
Predictive analytics is another way in which AI can enhance email marketing. By analysing data on customer behaviour and purchase history, AI algorithms can make predictions about future customer behaviour, such as the likelihood of a customer making a purchase or the likelihood of a customer churning. This information can then be used to create targeted automated campaigns designed to retain customers or drive incremental revenue. We are seeing a growing number of email service providers incorporate this technology into their current tech stack. It may be worth enquiring to see if this feature is enabled within your platform, so you can utilise this functionality on your next campaign.
4. A/B Testing
We could all do with optimising the way we test, so why not utilise the power of AI? By testing different versions of email campaigns with various groups of customers, businesses can determine which versions are more effective and adjust their campaigns accordingly. AI algorithms can help analyse the results of these tests and suggest changes to improve performance. Which means no more spreadsheets. However to make your tests effective it is always best to start with a hypothesis. An anchor that connects your tests together which will provide useful insights.
5. Email Design
Finally, AI can also be used to optimise email design. Algorithms can analyse customer behaviour and preferences to suggest design elements such as colour schemes, font choices, and image placement that are most likely to resonate with subscribers. This can potentially lead to higher engagement and conversion rates, as readers are more likely to be attracted to emails that are visually appealing and easy to read.
The use of AI in email marketing can help businesses improve the effectiveness of their campaigns, reduce internal resource time, increase engagement, and drive more revenue. But it still needs the marketer to create the strategy as it can only do so much. By leveraging the power of AI within your strategy to personalise messages, segment your base, and make predictions about customer behaviour, businesses can create effective email campaigns that resonate with customers and drive results.
Photo by Nick Fewings on Unsplash