Commentary

The AI Drill: How Email Teams Are Using It, And The Hurdles They Face

Email marketers are taking tentative steps to use AI, and believe it will help their businesses. But most are not there yet, judging by Email Marketing & AI 2023, a study by Ascend2 and research partner RPEOrigin. 

Of the firms surveyed, 35% are using AI in their email marketing campaigns, 11% extensively. Another 33% say they have plans to use it.

Marketers are using AI (or plan to) for: 

  • Email retargeting — 55%
  • Content personalization — 53% 
  • Subject-line optimization — 44% 
  • Dynamic content generation — 42% 
  • Automated segmentation and targeting — 40%
  • Send time optimization — 37% 
  • Predictive analytics for customer behavior — 33%
  • A/B Testing and optimization — 26% 

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Of brands using AI, 42% describe its impact as extremely positive and 54% as somewhat so.  

A mere 3% say there has been a negative impact, and 1% that there has been no significant effect. 

But firms face these challenges in trying to implement AI: 

  • Data quality or availability issues — 44% 
  • Concerns about customer privacy and data protection — 42% 
  • Lack of an effective strategy — 36%
  • Limited budget for AI implementation — 35% 
  • Lack of internal expertise — 33% 
  • Lack of tools and/or limitations of current tech stack — 30%
  • Resistance from stakeholders or team members — 22%
As for their wish list, the respondents say these AI capabilities or features would be most helpful in email marketing:
  • Enhanced personalization algorithms and recommendation engines — 51%
  • Automated content creation and copywriting — 47% 
  • Improved predictive analytics and customer behavior modeling — 46% 
  • Better integration with CRM and other marketing tools — 40%
  • Advanced testing and optimization functionalities — 36%

Looking forward, the respondents predict the following: 

  • AI will play a central role in all aspects of email marketing—32%
  • AI will have a significant impact but won’t replace human creativity and strategy — 40%
  • AI will have limited applications in email marketing — 12% 
  • Not sure — 16% 

In general, 25% say their email strategy is very successful at achieving objectives — they are the best in class.  

But 64% say they are somewhat successful. Only 11% are unsuccessful.

AI aside, firms plan to include these tactics in their email program for the year ahead:

  • Mobile-friendly design — 56%
  • Personalization (beyond the name) — 52% 
  • Email marketing automation — 48%
  • Interactive content — 40% 
  • Privacy/security features — 39%
  • Use of AI — 30% 
  • Accessible design — 30% 
  • Revamping of metrics/KPIs/attribution to track performance — 18% 

There were some significant shifts between 2022 and 2023. For one, only 16% mentioned AI as a goal last year.

But revamping of metrics has fallen--it was cited by 25% in 2022. 

As for tests, marketers say the most important are:

  • Message (e.g. greeting, body, closing)—43% 
  • Subject line—38%
  • Content (e.g. short/long, plain text/html)—34% 
  • Timing and frequency — 32% 
  • Layout & ‘images — 29%
  • Interactive content — 22%
  • Calls-to-action (CTAs) — 22%
  • Landing pages — 17% 

The last two items saw declines YoY. Calls-to-action was mentioned by 30% in 2022, and landing pages by 24%. 

Ascend and RPEOrigin surveyed 378 marketers during the week of July 17, 2023. Of these, 25% are in B2B, 51% in B2C and 24% in both equally.

The respondents are in firms with more than 500 employees (19%), 50 to 500 (29%) and fewer than 50 (52%). 

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