Introduction
Want to find out how Artificial Intelligence is revolutionizing personalized email marketing?
Imagine being able to create tailored messages for each customer, based on their preferences, habits and past interactions, increasing email open rates and, above all, conversions. The future of marketing is already here, and AI allows us to anticipate consumers’ needs, offering them unique experiences. Discover how integrating AI not only improves campaigns, but builds stronger, longer-lasting relationships with customers.
In today’s digital age, artificial intelligence is no longer a futuristic vision, but a concrete reality that influences every aspect of our lives, including marketing. Companies are increasingly pushed to find innovative solutions to connect with consumers, and AI is becoming the key. Personalizing emails using intelligent algorithms means not only improving the effectiveness of campaigns, but also building deep and lasting relationships with customers. Find out how AI is redefining the way email marketing is done today.
1.1 PERSONALIZED EMAILS WITH AI
1.2 What is personalization?
If you read the definition given in the Oxford dictionary you will see that personalization is “the action of designing or producing something that meets someone’s individual requirements”. Some studies show that the strong importance of customization and its implementation increases turnover by 5%-15%, leading to a level up of 10%-30% in marketing efficiency (Boudet et al., 2019) .
It can therefore be deduced that the strategic use of personalization leads to achieving a strong competitive advantage, since it aims to improve the satisfaction of the individual customer, in order to reduce decision-making stress, reduce the cognitive load and improve the relationship between customer and company, thus achieving loyalty.
We realize that traditional “one best fit” marketing strategies not only fail to attract the consumer’s attention, but do not even adapt to the continuous technological evolution and constant change in the world of digital marketing.
The customer, therefore, is at the center of everything and companies do their utmost to satisfy their needs every day through strategies that vary and differentiate based on the uniqueness of the individual consumer.
1.3 Email personalization with AI
Personalized email refers to using specific information about recipients to create tailored messages that directly respond to their interests and behaviors. In a context dominated by artificial intelligence (AI), this form of personalization has undergone a significant evolution, moving from simple segmentation based on demographic data to advanced personalization that leverages behavioral data and individual preferences.
Traditionally, marketers used basic segmentation, grouping customers into broad categories. However, with the advent of AI, complex data can be analyzed in real time, enabling a deeper understanding of user interactions. For example, AI can monitor user actions, such as past purchases, product views, and previous email interactions, to formulate highly targeted messages. A study of Salesforce revealed that 80% of consumers are more likely to purchase from a brand that offers personalized experiences
The role of AI in improving the accuracy and effectiveness of personalization is crucial. Through machine learning techniques, companies can identify patterns and trends in data, adapting messages based on predictions about future customer behaviors. This approach not only improves engagement but also optimizes campaigns, increasing open and conversion rates. According to a report by McKinsey, companies that use advanced personalization strategies can see a 10-30% increase in revenue.
1.4 Benefits of AI in personalized emails
Introducing artificial intelligence (AI) into email marketing therefore leads to significant advantages, not only for companies, but also for customers, improving the overall interaction experience and increasing the effectiveness of campaigns. Let’s look at some of these advantages in detail.
Hyper-personalization and Customer Engagement
Hyper-personalization is the evolution of traditional personalization, where each email is tailor-made for the individual recipient, taking into account their preferences, past behaviors and previous interactions. Thanks to AI, it is possible to collect and analyze data in real time, allowing you to send highly relevant and timely content. According to a study by Ranktracker, hyper-personalized emails can increase open rates by up to 29% and click-through rates by up to 41% compared to standard communications.
AI also allows you to anticipate customer needs, offering offers and suggestions based on past behavior. For example, if a customer recently viewed a product, the AI can send an email containing a special offer for that item. This type of approach not only improves engagement, but also creates a stronger emotional bond between the customer and the brand, making the experience more rewarding and personalized.
Operational Efficiency and Automation
Another key benefit of AI in personalized emails is operational efficiency. Campaign automation allows marketers to save time and resources by managing complex workflows without the need for manual intervention. Email marketing platforms integrated with AI can automatically send messages based on events, such as a customer’s birthday or cart abandonment. Second Salesforce, companies that use automation in their email marketing strategies have seen a 74% increase in conversion rate.
Furthermore, the integration of AI with Customer Relationship Management (CRM) platforms allows you to synchronize communications across multiple channels, ensuring a consistent and personalized experience for the customer. This integration helps you track customer interactions, facilitating even more accurate personalization in future emails.
2.1 INCREASED LOYALTY THROUGH EMAIL PERSONALIZATION WITH AI
Customer loyalty in marketing refers to strategies aimed at keeping existing customers loyal to a brand, reducing churn and increasing their value over time. These strategies include personalized communications, loyalty programs, and targeted promotions that reward customers for their ongoing interactions and purchases. Building customer loyalty is crucial because acquiring new customers is generally more expensive than retaining existing ones, and loyal customers tend to generate more profits and become brand advocates.
Customer loyalty therefore becomes one of the main aspects but also one of the most difficult aspects to manage if the right strategies are not implemented.
AI also plays a crucial role in increasing customer loyalty through personalized loyalty programs. Using data analytics, AI can identify the most loyal customers and create tailored offers to incentivize them to continue choosing a brand. Second SAP News Center, AI can monitor purchasing behavior and social media interactions to offer targeted rewards and personalized promotions.
These programs not only connect online and offline interactions, but also create a positive feedback loop, where customers feel valued and motivated to remain loyal to the brand. The use of personalized strategies not only improves the customer experience, but also stimulates positive word of mouth and social media engagement, further amplifying the company’s visibility and reputation.
3.1 THE FUTURE: WHAT TO EXPECT IN 2025 AND BEYOND
The future of digital marketing, and email marketing in particular, is set to be shaped by the continued evolution of artificial intelligence (AI). In 2024 and beyond, we expect AI to play an increasingly central role in creating personalized experiences for consumers. Second Active Powered, companies are already investing in AI technologies to analyze customer data more deeply, enabling personalization that extends beyond the content of the email and encompasses the entire customer experience
Combining this approach with hyper-personalization will allow companies to meet the growing expectations of customers, who seek increasingly relevant and engaging experiences, as interactive and omnichannel emails become more common.
CONCLUSION
AI has started a real revolution and a new era where personalized content is and will be the basis for the real economic growth of a company. This will make undifferentiated marketing and therefore the development of generic content and emails a characteristic element of the past.
Currently only 6% of marketers implement the power of AI, personalized email campaigns and predictive models in their marketing system.
Artificial intelligence therefore has the potential to transform email marketing, offering unprecedented opportunities for personalization and customer loyalty. To position themselves for the future, companies must integrate AI and new technologies into their email marketing strategies, creating more effective and engaging campaigns that respond to customers’ evolving needs. Only in this way will they be able to build lasting and satisfying relationships with their audience.
REFERENCES:
- Shobhana Chandra, Sanjeev Verma, Weng Marc Lim, Satish Kumar, Naveen Donthu, Personalization in personalized marketing: Trends and ways forward, Psycology & Marketing, Wiley online library.
- Vivek Gujar, New age marketing: AI personalization Strategy in digital world, Researchgate
- Anna Sunikka and Johanna Bragge, What, who and where: insight into Personalization, Helsinki School of Economics.
- Boudet, J., Gregg, B., Rathje, K., & Stein, J. (2019). The Future of Personalization—and How to Get Ready for It. McKinsey & Company.
- Salesforce. (s.d.). State of the Connected Customer [Relationship]. Salesforce. https://www.salesforce.com/ap/resources/research-reports/state-of-the-connected-customer/
- Ranktracker. (s.d.). Hyper-Personalized Emails: Increasing Open Rates and Click-Through Rates. Ranktracker.
- Personalization in Email Marketing: Strategies for improved engagement, Felix Rose-Collins, Apr 16, 24. https://www.ranktracker.com/blog/personalization-in-email-marketing-strategies-for-improved-engagement/
- McKinsey & Company. (s.d.). Personalization: A Strategic Imperative.
- SAP News Center. (s.d.). AI and Customer Loyalty: How AI is Revolutionizing Customer Retention Strategies. SAP News Center.
Active Powered. (2024). The Future of AI in Digital Marketing.