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2008 Predictions from the Voices of Email

We asked the Voices of Email to look into their crystal balls and foretell what 2008 had in store for the email marketing industry. Here are their predictions:

Stephanie Miller of Return Path:
#1 - Email Marketers, if you want to keep your job, segment your file. I was hoping that last year would be the year that we’d see more targeted, tailored, relevant campaigns and less batch and blast. Not sure that happened, although I was half right in that we certainly saw MORE segmentation and targeting than in 2006.

Why will email marketers lose their job if they don’t do it now? Because the email channel is more expensive than ever, and there are too many risks to brand and customer satisfaction and loyalty. Unhappy email subscribers—all that dead wood on your file—is not just a missed opportunity, it’s a liability. Engaging with those folks is going to take more time and effort in creative and list hygiene and segmentation than ever before. To get those budgets, the email marketer has to prove the channel. To prove the channel, the email messages have to be a lot more relevant. To be relevant, they must be segmented. Thankfully, the technology and best practices are already in place and proven. We just need to set our minds to it.

#2 - The Data Capture form goes multichannel. We’ll see more and more email marketers open up their data capture form to include permission to contact via SMS and mobile marketing. Building up the database with these contact touch points will be increasingly important as more marketers start to test the efficacy of those channels.

#3 - Transactions will become touchpoints sometimes too hot to handle. More email marketers are going to push the envelope on turning transactional messages into marketing opportunities. The receivers and FTC will get stricter on standards, potentially causing trouble for some senders. With the need to dynamically create, message and track these messages, ESPs will aggressively go after the transactional email market to build their base and capture higher share of wallet.

Chip House of ExactTarget: Increasing focus on subscriber engagement. When emphasizing the importance of list hygiene, David Daniels of Jupiter Research often compares mailing the portion of your list that hasn’t opened or clicked on your emails in several months to “flying an advertisement over a ghost town.” Many marketers are realizing the benefits to their success potential via email by truly understanding which segments of their list are responding, and which aren’t. The non-responsive segments drag down your deliverability and ROI, and waste your time. This is something that I like to call the “ignore rate.” Marketers that ignore the needs of their subscribers, send irrelevant communications, or make other blunders leading to dissatisfied subscribers, drive a higher ignore rate.

Most sophisticated email marketers now closely track their open and click rates, and more are even tracking subscriber spam complaints by ISP. However, it is often what you don’t see that can be most harmful to your deliverability and campaign ROI. More marketers are beginning to see the benefits of closely analyzing the portion of their customer base that IS NOT paying attention. By doing so they can better reactivate them, opt them in again, or discard them—all to the benefit of their response rates and ROI.

2008 is about flying hundreds of planes, towing just the right message, over hundreds of small cities.

Amy Bills of Bulldog Solutions: I think we will see some shaking out in the use of social media for lead generation. Right now, a lot of companies are really struggling to understand what works and what can be integrated into their existing strategies. Is a blog, a podcast, RSS, an online community, a presence on Twitter, Facebook, LinkedIn, etc. going to be worth the effort and resources? How can you even measure their effect on your objectives? And of course, what works for one company is not going to be the same formula for another. Some have the impulse to try everything. Others want to bury their heads in the sand and deny the landscape is changing at all. A third group is experimenting and trying to be smart about making good choices, thinking about what their prospects will respond to and how to make social media enhance what they are already doing.

After Paul Dunay joined Bulldog in November for a webinar on making sense of social media for BtoB marketing, he made a comment that really stuck with me. “[The question isn’t] if social media is right for your company, but which social media is right for your company. And at this point in time and state of your company, you need to determine which social media is right for your company for next year. A year from now, the picture may look very different. And the answer to which social media is right for your company will be different for each company. My advice is look into next year with an eye toward experimenting with a few tactics to begin to get yourself and your team up to speed.”

So, I predict that more marketers will ease into that third group, and start to get smarter about social media. And by “smarter” I mean more creative and experienced about how to make tactics work and measure their results, and brave enough to admit when a particular tactic might not work.

Tricia Robinson of StrongMail Systems: The email space gets larger and faster daily. With this growth comes change, and I predict we’ll experience much change in 2008.

Automation Becomes The New Buzzword. We’ve lived through closing-the-loop, 1to1 digi-dialogues, and deliverability. Look for campaign automation to catch-on in 2008. We’re seeing more clients rapidly move in this direction. Those that already have are realizing the time/cost benefits of auto-generated programs.

The Final Sunset for the Old Homegrowns. The replacement of the original homegrown system has been a trend since 2006. However, this year we’ll see the last of the first homegrown systems built by Web 1.0 companies and those that thought “email is easy, we’ll make our own.” Some organizations will always custom-build, but most have done it on top of something more sophisticated than generic MTAs.

All Outbound Customer Email Includes Marketing. Even if it’s the inclusion of a logo, all outbound customer email (transactional, customer service, promotional, etc.) will include a touch of marketing. According to MarketingSherpa in mid-2007, 90% of email marketers planned to overhaul their transactional email in the next 12 months. Not sure if they will meet their own deadline by June, but look for an improvement in the look of all outbound email. I’m not crazy enough to predict the death of the text email, but maybe next year.

Still More Acquisitions. 2004-2006 were large vendor consolidation years in our space. I argue that 2007 was the year of the IPO. Now with more cash and CNBC viewers to consider, look for Constant Contact and ExactTarget to make purchases that round out their offerings or extend their reach into new markets.

Unlike many, I like change. It’s good to shake things up as long as the goal is always towards improvement. Happy New Year!

Chad White of the eec: 2008 will be the year that retailers and other B2C marketers increase the transparency of their email programs and relinquish more control to subscribers. In 2007 we saw more retailers allow potential subscribers to view a sample email before signing up. More also offered emails on different topics or allowed some level of content preference selection—which is key to elevating relevancy. Consumers are getting very used to having more control over how they’re marketed to, and email will be forced to fall in line over time. On the upside, giving consumers more control over content and frequency, and being more upfront about those aspects of their email programs, should generate more lifetime value from subscribers. Although eventually we’ll see this kind of control move to the front end, during 2008 we’ll start to see it more and more on the tail end of the relationship when subscribers are fed up and trying to opt out. Rather than lose subscribers, more marketers will give up control over frequency and other elements to boost retention.

During 2008 we’ll also see retailers pay more attention to content—product reviews, videos of product demonstrations and fashion shows, blogs, articles, podcasts, etc.—and do a better job of leveraging it in their email channels.

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Comments (1)

Kelly:

Awesome predictions!

Posted by Kelly | January 4, 2008 1:19 AM

Posted on January 4, 2008 01:19

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the voices of email

The Email Experience Council's membership includes many of the brightest and most committed email marketing experts. We're pleased to have some of them share their insights here on these pages. Our blog contributors include:

Jordan Ayan is the chairman of Create-It!, a technology consulting organization, as well as the CEO of SubscriberMail, one of the leading email marketing companies. A two-time book author, a patent holder and a frequent speaker, Jordan has more than 20 years of experience in direct and database marketing. Read more.

Nicholas Einstein is director of strategic and analytic services at Datran Media. Specializing in email and CRM strategy, he helps some of America’s top brands leverage online channels to communicate more effectively with their customers and prospects.

Lisa Harmon is a principal at Smith-Harmon, a creative services consultancy dedicated to email marketing strategy and production. She works with marketers to increase clickthrough, maximize revenue, and infuse delight into their email creative. Lisa is also the blogger behind edm.smith-harmon.com, an ongoing commentary on the best (and worst!) in email marketing creative. Read more.

Chip House is ExactTarget's VP of marketing services, leading the teams responsible for client success. He was named to BtoB Magazine’s 2005 “Who’s Who in B-To-B,” for being a vocal proponent of legitimate commercial email and an active lobbyist regarding spam and privacy issues. Read more.

Marco Marini is the CEO of ClickMail Marketing (CMM) and an acknowledged expert in e-marketing with over a decade and half's-worth of experience in the field. Before taking over as CEO, he was CMM's VP of Marketing & Operations. Marini has also held key marketing positions with CyberSource, eHealthInsurance, DoveBid and IBM Canada.

Stephanie Miller is VP of strategic services for Return Path, the leading email performance company. She works with marketers to earn a higher ROI and response from their acquisition and retention email programs—developing content, contact and segmentation strategies, along with testing, measurement and production programs. Read more.

Erick Mott is communications director at email service provider Lyris. He has 20 years of experience from enterprise, SMB, agency and start-up marketing, communications and innovation roles at companies including Habeas, Nokia, MarkMonitor, GlobalFluency, Cisco, Sun Microsystems, Philips Electronics and two of his own start-ups. Read more.

Jeanniey Mullen is the Email Experience Council's founder and the global EVP and CMO of global online publishing company Zinio. She is a thought leader and visionary in the email and digital marketing field. A columnist for ClickZ, she has published numerous papers and is a frequent speaker. Read more.

Kevin Senne is the Strategic Deliverability Director for Premiere Global Services. Kevin has been heavily involved in all facets of email marketing for more than a decade and he previously managed Email Operations for Travelocity.com. Kevin specializes in deliverability, strategy, and social media integratio and he focuses on helping marketers become permission-based one-to-one marketers. Read more.

Charles Stiles is the VP of worldwide business development at Goodmail Systems. In his role, Charles is focused on helping generate a better understanding of the email environment and potential solutions for a better consumer experience. He currently serves as the chairman for the Messaging Anti-Abuse Work Group. Read more.

Jeremy Swift is director of client relations for email service provider BlueHornet. He helped form BlueHornet’s founding team in 2000 and has been responsible for client services and marketing strategy since the company’s inception. Jeremy is known for his ability to articulate technical information in ways that clearly resonate with today’s online marketer.

Kara Trivunovic currently serves as the senior director of strategic services for StrongMail Systems, where she is responsible for helping marketers optimize their email marketing programs for greater returns. Most recently Kara was founder and principal of The Email Advisor, a respected email marketing consultancy. Prior to launching The Email Advisor, Kara led strategic services for the email division of Premiere Global Services. Kara brings a unique perspective to the space having worked on the client, agency and provider side for 10 years.

Chris Wheeleris the director of deliverability at Bronto Software. He is leading the charge for ensuring both Bronto's customers and staff are well informed about email marketing practices and technology as well as being the face of Bronto deliverability externally. Previously, Chris created the internal deliverability program at Amazon.com alongside program managing the operations of the email team and was at an ESP leading a team of deliverability consultants. Besides being a frequent contributor on Deliverability.com, Chris is a part of many email industry forums, both business and technical. Read more.

Chad White is the research director at Smith-Harmon, an email marketing strategy and creative services agency. He is the founder of the Retail Email Blog, a blog dedicated to tracking the email marketing practices of the largest online retailers. Chad regularly writes major research reports on email marketing and is an Email Insider columnist for MediaPost. Read more.

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