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eMarketer Webinar: Email’s Role in Omnichannel Marketing—Beyond the Opens and Clicks



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Opens and clicks are important metrics to measure how email as a channel is performing, but it’s only part of the story. Topics in this webinar include: Why marketers still rely on email as a solid-performing channel; What email performance benchmarks are most critical to marketers today; How big data and real-time optimization tactics are helping practitioners ensure emails are relevant to their end user; What emerging email practices businesses are adopting, such as interactive email and predictive content.

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eMarketer Webinar: Email’s Role in Omnichannel Marketing—Beyond the Opens and Clicks

  1. 1. © 2017 eMarketer Inc. Made possible by Email’s Role in Omnichannel Marketing: Beyond the Opens and Clicks Jillian Ryan Analyst October 19, 2017
  2. 2. © 2017 eMarketer Inc. Today’s webinar at a glance  Why marketers still rely on email as a solid-performing channel  What email performance benchmarks are most critical to marketers today  How big data and real-time optimization tactics are helping practitioners ensure emails are relevant to their end users  What emerging email practices businesses are adopting #eMwebinar Made possible by
  3. 3. © 2017 eMarketer Inc. The State of Email Marketing
  4. 4. © 2017 eMarketer Inc. Email is still king 90.6% of marketers in North America say they use email to engage their audience, the most commonly used channel over display, owned web content and search Source: Winterberry Group and the Data & Marketing Association (DMA), September 2016 #eMwebinar Made possible by
  5. 5. © 2017 eMarketer Inc. Email marketers are mainly focused on acquisition  More than two-thirds cited attracting new customers as a leading marketing goal for 2017  Increased brand awareness and customer retention were also common objectives #eMwebinar Made possible by
  6. 6. © 2017 eMarketer Inc. The number of emails sent and received every day is expanding  In 2017, 269 billion emails, including business and consumer emails, were sent worldwide  Annually, that number will grow by about 4.4%  By 2021, 319.6 billion will be sent and received #eMwebinar Made possible by
  7. 7. © 2017 eMarketer Inc. Marketers continue to allocate more budget to email marketing, due to its solid ROI 58% of marketers in the US planned to increase email marketing budget in 2017 Source: Emma, Q3 2016 #eMwebinar 73% of in-house marketers worldwide said that email marketing provided a strong ROI in 2017 Source: Econsultancy and Adestra, April 2017 Made possible by
  8. 8. © 2017 eMarketer Inc. Email continues to bring in revenue In Q2 2017, revenues attributed to email made up 21% of the total, up from 17% year over year #eMwebinar Made possible by
  9. 9. © 2017 eMarketer Inc. The Email Audience
  10. 10. © 2017 eMarketer Inc. The email audience also continues to grow  In 2017, 76.0% of the population, or 248.2 million people, are expected to use email  By 2021, that number is forecast to reach 266.3 million, making up 79.0% of the total US population #eMwebinar Made possible by
  11. 11. © 2017 eMarketer Inc. US digital buyers, across age groups, prefer email for brand communications  Even younger cohorts named email as their preferred channel  65% of Gen Z and 62% of millennials named email as their preferred channel—nothing else came close #eMwebinar Made possible by
  12. 12. © 2017 eMarketer Inc. Users have strong inbox preferences, especially about message usefulness and frequency A good portion of US email users said they rarely (33%) or never (24%) find marketing emails useful. Source: Fluent, October 2016 Roughly two in five US internet users want to receive marketing and advertising emails weekly, while one in five said monthly. Only 7.8% said they would prefer to have them arrive daily. Source: Mapp Digital, August 2016 #eMwebinar Made possible by
  13. 13. © 2017 eMarketer Inc. Sales and discounts, brand reputation and ease of transaction all drive purchases from email  Sales and discounts were a deciding factor for 92% of US internet users  Respondents also cited brand reputation, ease of transaction and easy online/mobile purchase as other important factors #eMwebinar Made possible by
  14. 14. © 2017 eMarketer Inc. Mobile is the primary device used to check email  Two in three email users said their smartphone was their chief device for checking email  Laptops (12%), tablets (11%) and desktops (10%) were used by smaller groups of respondents #eMwebinar Made possible by
  15. 15. © 2017 eMarketer Inc. Measuring Email’s Impact Across Channels
  16. 16. © 2017 eMarketer Inc. A look at email performance benchmarks  For channel marketers, email performance benchmarks will always be important  Continued assessment of KPIs is critical for success and strategic optimization over time  Messages must be relevant in order for opens and clicks to convert into ROI #eMwebinar Made possible by
  17. 17. © 2017 eMarketer Inc. Epsilon, Q1 2017  Nonbounce rates were 98.3%, the highest rate over the quarters covered  Open rates remained stable, with 33.5% of emails sent opened by recipients  CTR was at a steady 3.2% #eMwebinar Made possible by
  18. 18. © 2017 eMarketer Inc. Cheetah Digital, Q1 2017  Open rates had a minimal increase, while total click rate and unique click rate were both down  Transaction-to-click rate and transaction rate were both on the rise  The volume of email sent increased 14.9% #eMwebinar Made possible by
  19. 19. © 2017 eMarketer Inc. Beyond email benchmarks  Although opens and clicks are important metrics, they are only part of the story.  Advanced marketing practitioners are more focused on how communications across multiple channels activate a customer and change behavior over time.  This trend follows suit with marketers’ increased focus on omnichannel marketing and the holistic customer experience.  Email KPIs must be integrated with customer experience metrics. #eMwebinar Made possible by
  20. 20. © 2017 eMarketer Inc. Marketers want to get deeper cross-channel metrics to improve email strategies 51% of in-house marketers globally said having cross-channel data insights to see the bigger picture is an area of email marketing they would like to improve Source: Econsultancy and Adestra, March 2017 #eMwebinar Made possible by
  21. 21. © 2017 eMarketer Inc. Using Data for Contextual Relevance
  22. 22. © 2017 eMarketer Inc. Variable testing can maximize performance Subject lines, alternate offers, and varying email layouts and creative were the most commonly implemented testing and optimizing strategies However, 51% of respondents didn’t proactively test their email marketing #eMwebinar Made possible by
  23. 23. © 2017 eMarketer Inc. A real-time data stream can create an optimized experience, improving relevancy and KPIs “This is done in real time, using data on how customers are engaging with the email. If an email isn’t really generating a lot of activity, we can change the content before we send it out to more customers.” —Tanner McGrath, Lead Product Manager, Postmates #eMwebinar Made possible by
  24. 24. © 2017 eMarketer Inc. Savvy marketers can harness the data they have to create messages that are more relevant for the target recipient #eMwebinar Made possible by
  25. 25. © 2017 eMarketer Inc. Trend alert: the rise of the preference center  Many ESPs say marketers are adopting preference centers to learn more about their subscribers  Preferences can include: which device subscribers use to check email, or what time/day of week they like to receive emails  Those preferences are used to tailor emails to the end user’s inclinations, making emails more relevant and data-driven #eMwebinar Made possible by
  26. 26. © 2017 eMarketer Inc. Consumers want companies to take their interests into account 76.9% of US internet users say they expect companies will use the interests they have in their profile to personalize marketing and advertising emails Source: Mapp Digital, August 2016 #eMwebinar Made possible by
  27. 27. © 2017 eMarketer Inc. Integrating data across marketing systems is critical for an omnichannel view of the customer  Two-thirds of marketers in North America said their customer data was fully integrated  29% said it was partially integrated #eMwebinar Made possible by
  28. 28. © 2017 eMarketer Inc. Behavior-based, dynamic emails help with relevance Nearly seven in 10 marketing professionals in Europe and the US said they use dynamic email marketing based on user behavior. Source: Qualtrics and AdRoll, February 2017 42% of marketing decision-makers in North America sent triggered emails that were contextualized with messages and content based on real-time behaviors, interactions, event or environmental conditions of the recipient. Source: Forrester Consulting, March 2017 #eMwebinar Made possible by
  29. 29. © 2017 eMarketer Inc. Triggered emails see higher performance rates  At many ESPs, clients that send triggers got higher KPIs: – At Emma, triggers perform with a 600% higher conversion rate when based on relevant user behavior. – On Epsilon’s platform in Q1 2017, triggered messages saw 69% higher open rates and 165% higher CTRs when compared with standard, business-as-usual emails. #eMwebinar Made possible by
  30. 30. © 2017 eMarketer Inc. Segmentation and personalization can also make emails more relevant to recipients  Data should also be used to craft emails via: – Segmentation: Custom emails specifically designed for similar groups of subscribers – Personalization: Custom emails made for an individual #eMwebinar Made possible by
  31. 31. © 2017 eMarketer Inc. Marketers are still struggling to implement data- driven segmentation and personalization 56% of in-house marketers say they need to get better at segmentation Source: Econsultancy and Adestra, April 2017 #eMwebinar 44% of US marketing execs say lack of internal buy-in hinders email personalization 26.3% say it’s not a budgetary priority Source: OneSpot, April 2017 Made possible by
  32. 32. © 2017 eMarketer Inc. Two brands doing email personalization right “ We’re very focused on the timing of when we send our emails, as well as the content we’re including. It’s all based on when and what people have purchased in the past.” —Lauren Henderson, Marketing Manager, Minibar “ We target users based on customer lifecycle data points like where they are in their wedding planning process or their wedding date.” —Jeffra Trumpower, Senior Marketing Manager, WeddingWire #eMwebinar Made possible by
  33. 33. © 2017 eMarketer Inc. Artificial intelligence (AI) is also emerging as a personalization tool  AI capabilities can implement dynamic email content that is based on users’ behavioral history  Every time a user opens an email, clicks a link or engages with a piece of content, those data points are collected  Through machine learning, the data makes the predictive engine smarter over time #eMwebinar Made possible by
  34. 34. © 2017 eMarketer Inc. Let’s recap…  Email remains a healthy channel for brands, and the email audience is growing and engaged.  Email performance benchmarks are steady, but aren’t the full picture. Marketers need to consider the holistic customer experience and how email contributes to it.  Big data and real-time optimization ensure emails’ relevance—with triggered messages, segmentation and personalization remaining central to this approach.  Emerging practices like dynamic email, predictive content and AI are starting to be adopted, but remain rare. #eMwebinar Made possible by
  35. 35. Email’s Role in Omni-Channel Marketing Alyssa Jarrett Sr. Content Marketing Manager 10.19.17
  36. 36. Iterable, Inc. All Rights Reserved We live in the now economy. The only moment that matters to your customers is what is relevant to them right now.
  37. 37. Iterable, Inc. All Rights Reserved But customers are still inundated with messaging that is not relevant. >94%of consumers have discontinued a brand relationship due to irrelevant messaging. — Blue Research (2016)
  38. 38. Iterable, Inc. All Rights Reserved Customers also want relevance across multiple channels.
  39. 39. Iterable, Inc. All Rights Reserved But current Omni-channel messaging is broken. >80%of consumers have a fragmented experience as they travel from channel to channel. — Accenture (2016)
  40. 40. Iterable, Inc. All Rights Reserved The growth marketer's task is to create Omni-channel relevance.
  41. 41. © 2017 eMarketer Inc. Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Q&A Session Made possible by You will receive an email tomorrow with a link to view the deck and webinar recording. To learn more: 800-405-0844 or Jillian Ryan Analyst Email’s Role in Omnichannel Marketing: Beyond the Opens and Clicks  Customer Experience 2017: The Journey Toward Customer- Centricity Continues  Marketing Technology 2017: Putting Customer Data at the Center  B2B Personalization: Delivering One-to-One Experiences to Buyers  Cross-Device Targeting: A More Holistic Audience View and a More Compelling Customer Experience