The answer…
18% --> We don’t segment. All our emails are broadcast and/or triggered.
52% --> We do basic segmentation (demographic, geographic, etc.).
30% --> We do advanced segmentation (behavioral, etc.).

Are you surprised by the results? Share your comments below.

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What level of permission to you get from most of your email subscribers?

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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.

Is 'customer-centric' just a concept put into practice by the early adopters...or is there a point soon where we'll see quicker adoption of real data-driven 1:1 marketing?

Is it a data/data modeling issue? Is it an analytics issue? Is it a ROI issue? Is it a content issue? Is it due to internal resource constraints? Is it due to lack of subject matter expertise? —R.E.

The Voices of Email had this advice:

Tricia Robinson-Pridemore: Customer-centric messaging is the same “behavioral” “interactive” messaging paradigm we’ve been chatting about for years. It’s being done by some F100 and Web 2.0 organizations. F100 companies are running it out of marketing and Web 2.0 companies manage it out of their technology/customer behavior/e-commerce groups. The two biggest reasons it isn’t more widely adopted are data synchronization and strategy. Customer data is all over the place in organizations. Stored in multiple databases, e-commerce systems, web analytic systems, and *still* often in flat files (a.k.a. Excel spreadsheets). To make that data useful and in any way operational, email systems need to talk to that data where it resides or marketers must synchronize and consolidate that data.

The other current spoiler for customer-centric messaging is lack of strategy. In a recent JupiterResearch survey of email marketers, the number one most important challenge they cite when working with email is “defining an email strategy.” If determining a strategy for email is tough for them imagine what making a real data-driven 1:1 marketing strategy is like? Although important, technology will only be as successful as your messaging strategy. Find the right partners who have creative, experienced experts to help build your messaging strategy and your technology implementation.

Chip House: I think we’re seeing true customer-centric communications now. Just think about the real-time, transactional messages that are driven by customer actions (buying something, signing up for something, or going somewhere). Going deeper here includes email messages triggered by information captured via web analytics data, such as product category visited, or a shopping cart abandon. Certainly there are barriers to scaling this type of customer-centric communications into some organizations and business process, but if there is a reason we don’t see broader adoption I believe it has to do more with the fact that it takes a concerted effort for marketers to actively leverage and integrate the available technologies and data to drive highly-relevant communications. In the end marketers need to spend more time with their database experts and focus on developing “one view” of the customer, and reacting to the customers’ wants and needs and behaviors. Too many marketers resign themselves to sending another weekly email focused on the “specials” highlighted in the Sunday circular.

We could really write books around this topic, so I’ll stop there. The answer is that in the world of technology, the CMO and the CIO have to start working closely together to leverage current technologies.

Chad White: In retail email marketing, I see a lot of broadcast emails. And to a certain extent that makes perfect sense—sales notifications, for instance. But there’s plenty of room for a lot more tailored communications. Offering more niche newsletters is a huge step toward 1:1 marketing. Only 28% of major online retailers offer more than one newsletter, according to the 2007 Retail Email Subscription Benchmark Study. For example, Barnes & Noble offers 21 different email newsletters so people can get content and promotions about just the kinds of books and music they enjoy. Giving customers the ability to express their preferences is a relatively easy way to boost relevancy without diving into behavioral analytics, which may be beyond many retailers’ current capabilities.

While expressed preferences can get you far, to get any closer to 1:1 marketing retailers will have to rethink what they consider to be their inventory. They need to move from a product-centric view, where goods are the inventory and retailing is about finding customers that want those goods, to a customer-centric view, where customers are the inventory and retailing is about supplying the goods that your individual customers want. To do that, retailers will need to consolidate all their far-flung customer data first.

Have some good advice that we missed? Please add a comment and take part in the conversation.

Have a question for the Voices of Email? Email Chad your question at chad@emailexperience.org and we’ll REPLY TO ALL by posting the answers so everyone can benefit.

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