2024 Email & The Future of Retention Marketing

Summary

The video discusses the future of email and SMS marketing, highlighting key trends like the dominance of email for conversions, the rise of AI in sorting and summarizing emails, and the increasing complexity of privacy regulations. It emphasizes the importance of customer segmentation, personalized communication, and brand loyalty. As inboxes become more crowded and AI-driven filters become more sophisticated, marketers must adapt by creating more targeted, high-quality content while ensuring compliance with evolving privacy laws. The speakers also introduce their new podcast, 'Send It,' focused on retention strategies for email and SMS marketing.

Takeaways

• 😀 81% of last-click conversions come from email, while SMS contributes 19%. This highlights email's dominance in driving conversions despite the growing use of SMS.
• 😀 Generational preferences, such as older individuals often preferring to complete purchases on desktops after receiving an SMS, influence the success of email vs SMS marketing.
• 😀 iOS 18 introduces new inbox categorization (Primary, Promotions, Updates, Transactions), which could affect open rates and visibility, emphasizing the need for targeted email strategies.
• 😀 Apple's new email summarization feature could group emails based on subject lines, preview text, and content, making email copywriting, alt text for images, and metadata more crucial than ever.
• 😀 Increased AI-driven categorization of emails means marketers need to optimize for both human engagement and AI algorithms, focusing on clear and accurate email content.
• 😀 Privacy regulations are becoming stricter, with many states implementing their own versions of laws like the GDPR and CCPA. Marketers must stay updated on these changes to avoid legal issues.
• 😀 The shift from third-party to first-party data continues, with a growing focus on customer lifetime value (CLTV) for segmentation and retention strategies.
• 😀 Consistency in email marketing is key to staying visible in crowded inboxes. Some of the most successful brands now send daily emails to maintain audience engagement.
• 😀 Audience segmentation is critical for improving retention. Marketers should focus on tailoring messages to different customer segments based on behavior and CLTV.
• 😀 The role of email marketers is becoming more complex, requiring specialized knowledge in areas like deliverability, privacy laws, and AI optimization, adding to the challenges and costs of email marketing.
• 😀 To succeed in 2025, brands must think strategically about their email marketing: sending more frequent emails, refining messaging based on customer behavior, and maintaining consistency to drive engagement and revenue.

Q & A

What is the primary takeaway from the data on last-click attribution between email and SMS?

The primary takeaway is that email still dominates last-click conversions, accounting for 81% of conversions, while SMS accounts for 19%. This indicates that email remains the more effective channel for final purchases, although SMS plays a supportive role.

How does the panel suggest the changing role of AI will impact email marketing in the future?

AI is expected to play a significant role in sorting and categorizing emails, particularly with iOS 18’s introduction of new inbox categories like 'primary,' 'promotions,' 'updates,' and 'transactions.' Marketers will need to adjust their strategies by improving subject lines, preview text, and image alt text to ensure their emails are effectively categorized and displayed.

What challenges do marketers face due to the increase in email volume and AI filters?

Marketers face challenges in cutting through a more crowded inbox as email volume increases. AI-driven filtering and summarization of emails by platforms like Apple make it harder to reach the primary inbox. Marketers will need to improve the relevance of their content and focus on personalization to stand out.

What is the impact of privacy laws like GDPR and CCPA on email marketing?

Privacy laws like GDPR in Europe and CCPA in California are making it increasingly important for marketers to comply with stricter regulations. Failure to comply can lead to legal challenges, and marketers must stay informed about evolving state and international privacy laws to avoid penalties.

Why is audience management crucial for successful email marketing in 2025?

Audience management is crucial because it allows marketers to segment customers more effectively, leading to personalized and relevant content. By focusing on high-value customers and tailoring messages based on their past behavior and value, brands can drive more conversions and improve retention.

What does the panel mean by the 'MVC formula' in audience segmentation?

The 'MVC formula' refers to identifying a brand’s most valuable customers (MVC) and segmenting them into different cohorts based on their purchase history. The goal is to increase the value of each customer segment by tailoring marketing efforts to encourage higher-value purchases.

How will Apple's AI summarization feature affect email marketing?

Apple’s AI summarization will group similar emails together based on subject lines and content, making it more difficult for marketers to stand out. To adapt, marketers will need to improve their email copy, making it clear and engaging, while also ensuring that emails are properly categorized and summarized.

What is the significance of alt text in email marketing, especially with the rise of AI?

Alt text is becoming increasingly important as AI-driven sorting systems like Apple's summarize emails. Alt text helps ensure that images in emails are correctly interpreted by AI, preventing misinterpretation and ensuring that the content of the email is accurately displayed to the recipient.

What role does branding play in email marketing as inboxes become more crowded?

Branding plays a crucial role in helping emails stand out in a crowded inbox. By creating strong brand recognition, marketers can ensure that recipients are more likely to engage with emails based on the sender's name or brand identity, rather than just the content of the email itself.

How does email frequency affect engagement and deliverability?

Increasing email frequency can help improve engagement and deliverability. By sending more emails regularly, brands reduce the likelihood of their emails being marked as spam. Consistency helps ensure that brands remain visible in recipients’ inboxes, maintaining engagement throughout the year.