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Top 4 Benefits of Personalized Email Marketing in 2024

Updated on Jan 11
4 min read
Written by
Cem Dilmegani
Cem Dilmegani
Cem Dilmegani

Cem is the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per Similarweb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

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“Email personalization” is projected to reach its highest level of popularity. This surge is because email personalization in marketing domains allows companies to: 

  • Give marketing pitches that reflect who they want to be, 
  • Personalize their outreach to customers, 
  • Reach them at scale, 
  • Increase their customers’ engagement with them. 

In this article, we first go in-depth into what email marketing personalization is and then discuss its top 4 benefits.

What is personalized email marketing?

Personalized email marketing, in marketing campaigns, is companies reaching out to customers by sending them personalized emails.

What distinguishes personalized email marketing from generic email marketing efforts is its personalization. The dedicated software sending out these emails collects users’ data from their journey mapping and other business ERP applications, such as their past transactions with the company. The result is an email that contains the recipient’s name, an acknowledgment of their past interactions with the company, and finally, a personalized marketing pitch that might appeal to them.

The following are all the benefits that businesses can gain from personalized email marketing campaigns:

1. Stay true to the message 

Generic email templates might not reflect a brand’s uniqueness or eccentricity. For instance, the American brand, dbrand, specializes in phone cases and protective skins. And thanks to their quirky marketing slogans, they have attracted tech reviewers’ and customers’ attention. 

Counterfactually, emails that would not conform to dbrand’s general marketing patterns could confuse readers about whether or not the person behind these emails is a bot, which could sway them towards disregarding all marketing emails as spam.

Personalized marketing software will curate emails by leveraging pre-approved templates that are in line with the reflection that the business owners would like their brand to give.

2. Make tailored recommendations 

If the offerings of a business are vast, it could lose potential customers by emailing them about everything and anything – or to boil the ocean, so to speak. Personalized email marketing solutions can be integrated with customer mapping software or business ERP systems to curate the content of emails in a way that reflects the users’ interests and past transactions. 

Amazon and other online retailers excel in this. Users who search for “sneakers” might keep getting relevant marketing emails, even long after they have decided to shop for flip-flops instead. Equally, Netflix emailing a subscriber about its upcoming cooking shows would be out of place if all they’ve ever watched is documentaries. 

Emailing customers with tailored recommendations shows them that you have followed their activities and that you are curating to their needs and interests instead of mindless suggestions. The implication is that the business could see a higher rate of customer retention.

Case Study: Netflix 

Barring the recent downturn, Netflix usually has the lowest churn rates in its industry. One reason is the accuracy of algorithms in absorbing the subscriber’s viewing data and recommending similar shows and programs accordingly. When applied to other business areas, tailored recommendations could have similar impacts, regardless of the industry in which the company is operating. 

3. Outreach en masse

We found no statistics on the average time that it takes to draft an email. But it’s safe to assume that if a personalized email is to be written – that is, if the recipient’s name is taken from one database, their interests from another, and so on – it’d take around 15 to 20 minutes to complete one. We should also take into account proofreads and fine tunes. 

Automated, personalized email generators can collect such data from different ERP platforms in seconds. Moreover, by leveraging email templates from pre-screened catalogs, a draft can be readied at a quicker pace than if done manually.  

Furthermore, the software can be scheduled to undertake these sequences of steps not only for one client, but for many, and at the same time. This means a company with a large client base does not have to dedicate manpower to this repetitive and time-consuming activity. 

4. Increased engagement 

Suppose the business’ personalized emails reflect the user’s interactions with the brand. In that case, there is then the likelihood that the customers will increase their engagement in order to receive similar personalized offers and marketing material that is of interest to them. 

If a user had spent time on the company’s website reading its success case studies with other clients, for example, sending he/she a link to their newsletter to directly receive the latest case studies on their email, as they are published, would stimulate greater customer engagement. That is because the company has awarded the customer for their engagement with a direct access point to whatever they had been interested in. 

The lead would then have a favorable outlook on the brand because they would know that their engagement with it would be encouraged through personalized campaigns. 

Use case: Cart abandonment 

The average rate of cart abandonment across all industries is 69.57%. A use case of personalized email marketing could be an email reminding the customer that their item is yet to be checked out.

An automatically sent email filled with personalized information is an efficient and economically sound approach for businesses to be confident that they’ve done all they can to follow up on a sale. 

Furthermore, if no progress was made, another follow-up email could be sent with specific questions as to why they made the customer made their journey through the cart but didn’t check out. The type of questions that could be asked in an email could include, but not be limited to, the following: 

  • Whether a cheaper alternative was found 
  • Whether payment options were limited
  • Whether shipping was too expensive

For more on marketing

If you believe your business would benefit from adopting a personalization and/or marketing solution, we have data-driven lists of vendors for:

We will help you choose the right tool for your business:

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Access Cem's 2 decades of B2B tech experience as a tech consultant, enterprise leader, startup entrepreneur & industry analyst. Leverage insights informing top Fortune 500 every month.
Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem is the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per Similarweb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

Sources:

AIMultiple.com Traffic Analytics, Ranking & Audience, Similarweb.
Why Microsoft, IBM, and Google Are Ramping up Efforts on AI Ethics, Business Insider.
Microsoft invests $1 billion in OpenAI to pursue artificial intelligence that’s smarter than we are, Washington Post.
Data management barriers to AI success, Deloitte.
Empowering AI Leadership: AI C-Suite Toolkit, World Economic Forum.
Science, Research and Innovation Performance of the EU, European Commission.
Public-sector digitization: The trillion-dollar challenge, McKinsey & Company.
Hypatos gets $11.8M for a deep learning approach to document processing, TechCrunch.
We got an exclusive look at the pitch deck AI startup Hypatos used to raise $11 million, Business Insider.

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