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July 2020 Essence of Email Quarterly Q2 2020
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Page 1: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

July 2020

Essence of Email Quarterly

Q2 2020

Page 2: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Table of Contents

Letter from the Essence of Email Managing Director

The Email Technology Landscape

Email Client Market Share

Shopify Goes Above and Beyond

Facebook Launches Email

The Rise of Text Messaging

Marketing Automation Updates

Tips & Insights: How Q2 events will shape the future

Email Campaigns

Email Flows (Automations)

Tips & Insights: What’s coming next for eCommerce brands

Email Deliverability

Privacy Regulations

Email Design Trends

Tips & Insights: A piece of advice for eCommerce brands in Q3

Who Is Essence of Email

Credits

Content Sources

3

4

5

5

7

7

8

10

12

17

20

22

25

28

33

36

38

39

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Letter from the Essence of Email Managing Director

In our first edition of the Essence of Email Quarterly, we share our view on what has likely been the strangest and perhaps most challenging quarter in the company’s 6-year history. Through the exceptional talent and expertise of our teams, we were able to continue growing and gaining market share.

We were stretched as we adapted to the rapidly changing business environment, including reviewing all of our clients’ content, campaigns, and automated emails to ensure they were sensitive to the challenges everyone was facing across the U.S.

During this difficult period, we saw an explosion in the number of emails sent. Our clients, as well as brands across the country, reached out to express concern and care for their customers. Again and again, even if the facts are largely buried under the self-interested marketing of the major ad networks, we see that email is the preferred channel for companies to communicate most intimately and effectively with their customers.

Another important development was that even with the massive increase in the number of emails, open and click rates increased. While all of us generally

dislike receiving emails from brands or individuals we aren’t interested in, we often forget that we do, indeed, enjoy emails from those companies and, of course, people that we care about. In an effort to not be in the annoying category, companies are leaving opportunities on the table by not reaching out more often.

Email remains that blissful technology where putting an end to annoying is a couple of clicks away and we can easily sort through what we want or do not want to see. For those that are in the know, in this period of great uncertainty, email remains the not-so-secret edge in staying close to those we care about and growing our companies in difficult circumstances.

Our Experts have worked hard to analyze and comment on the important events over the last few months. I hope you enjoy and benefit from their insights, and the insights of our partners, as much as I have.

Heath

Letter from the Essence of Email Managing Director 3

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The Email Technology Landscape

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The Email Technology Landscape

The Email Technology Landscape

5

Nothing is constant, except change. And email.

In the eCommerce world, it’s a battle of the titans. The biggest tech

companies in the world are continuously trying to find ways to

dominate the market, compete with each other, and hold their ground

against Amazon.

But in an industry filled with massive companies, email is the unsung

hero. Despite the incredible pace of tech developments, it remains the

most reliable channel. Email more than proved its worth during the

pandemic and has weathered change after change in the eCommerce

universe.

When you think about it, it’s really quite impressive.

Email Client Market Share

When it comes to the market share of consumer inboxes, Apple and

Gmail are neck and neck, which is no surprise given the ubiquity of

Android and Apple products. Microsoft taught us long ago that users

often stick to the system default. According to Litmus Email Analytics’

client usage data, collected from 1.09 billion email opens worldwide,

the companies have a combined market share of almost 80%.

Gmail is the number one email client, with a 43% market share,

followed by Apple iPhone (27%), and Apple Mail (9%). When iOS 14 is

released this fall, iPhone users will be able to change their default mail

from Apple Mail, so we’ll be watching closely to see if this impacts the

market in favor of Gmail and other email clients.

Source: EmailClientShare

Shopify Goes Above and Beyond

The launch of Shopify Email

Following the infamous Mailchimp vs. Shopify battle in late 2019,

Shopify Email was launched in April. More importantly, it’s free of

charge until October 2020.

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The Email Technology Landscape 6

For now, it’s a basic email marketing tool that lacks the complexity of

email platforms like Klaviyo. It seems to be aimed mostly at startups

and small merchants that have previously used Mailchimp and are

concerned about cost.

The arrival of Shop

Shopify didn’t stop there though. Two weeks later, it launched a

consumer shopping assistant app of its own, called Shop. Shop offers

personalized product recommendations and allows users to offset the

carbon emissions of their deliveries. It also tracks packages, provides

one-click checkouts, and simplifies returns. The addition of local filters

means that Shop’s users can locate nearby merchants and browse

their inventories – making it easy for them to support neighborhood

businesses.

Without a doubt, the app has moved Shopify further into the

consumer space. And to top it off, stocks rose following the launch.

Shopify partners with Walmart, threatening Amazon’s kingdom

To wrap up the quarter… Shopify and Walmart hit the headlines

announcing their partnership.

Back in February, Walmart surpassed eBay to snatch second place

in the US eCommerce space. The retailer hit 5.3% of sales – still way

behind Amazon’s 38.7%, but impressive nonetheless.

Top 10 US Companies, Ranked by Retail Ecommerce Sales Share, 2020% of US retail ecommerce sales

Source: eMarketer

1. Amazon38.7%

2. Walmart5.3%

4.7%

3.7%

1.7%

1.3%

1.2%

1.2%

1.1%

3. eBay

4. Apple

5. The Home Depot

6. Wayfair

7. Best Buy

8. Target

9. Costco

10. Macy’s

1.5%

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The Email Technology Landscape 7

Looking ahead… This access to Shopify’s merchant marketplace makes

Walmart an even more serious competitor, offering a refuge for sellers

tired of Amazon’s cluttered website and high advertising costs.

For Shopify, this is a major win. Millions of its merchants now have

access to Walmart’s customers. Plus, Walmart is one of the most

talked-about brands among U.S. millennials – a nice bonus for Shopify.

Google’s making changes

Since late April, merchants have been able to sell for free via Google.

Plus, search results on the Google Shopping tab now primarily consist

of free listings. According to Google, this gives sellers the opportunity

to reach millions of shoppers, while consumers get to see more

products from more stores. As if that wasn’t enough, it also means

advertisers can now supplement paid campaigns with free listings.

Facebook Launches Email

Facebook now allows users to “send customized marketing emails”

through the Facebook Pages app. The feature seems particularly

relevant for brands that aren’t familiar with email marketing, as it

allows them to connect with audiences via simple, CRM-style tools.

This could also help businesses target their Facebook ads. Once a

brand has an active listing of email contacts, they can use it to build

Custom Audiences. Facebook’s data-matching tools can also help

businesses reach people with similar traits and interests.

Looking ahead… The feature isn’t live for every user yet, so check for

updates on Social Media Today.

Facebook launched a new commerce toolkit – ‘Shops’

What it’s all about: The new toolkit reflects Facebook’s revamped

model and its position in the current online shopping landscape.

Facebook’s Shops gives small and medium businesses, merchants, and

product companies the ability to set up a virtual storefront across

Facebook’s apps. Unlike previous Facebook and Instagram commerce

tools, the idea behind Shops is that it’s native to the platform.

The anchor partner for the announcement is… You guessed it, right?

Shopify. The Facebook-Shopify partnership allows retailers to import

Shopify product catalogs to Facebook’s Shops.

The Rise of Text Messaging

In Q2, we saw a continuation of the trend of existing apps and

platforms extending their services to include SMS.

SMS-related stats: This concerted push to include SMS is no

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The Email Technology Landscape 8

surprise considering that over half of total eCommerce sales (54%)

are expected to come from mobile by 2021. Meanwhile, over 81%

of traffic and 71% of orders on Shopify stores currently come from

mobile devices.

The performance of SMS is impressive – over 41% of consumers

are willing to share information with a brand if it means they’ll get

a more personalized SMS experience. And over 54% of consumers

are more likely to make a purchase if the messages they receive are

personalized.

A few recent examples of technology platforms that are including SMS

marketing in their offers are Klaviyo, formerly an email-only platform,

Privy, initially an email capture platform, and DojoMojo, a partnership

marketing company.

Looking ahead... Marketers now have the choice of going with

the highest-ranking apps, utilizing integrations, or using all-in-one

solutions.

Marketing Automation Updates

Automation recipes accessible to eCommerce brands

ActiveCampaign Marketplace enabled businesses to search easily

for automation recipes, i.e. templates that offer a starting point for

creating email automations. They’re designed to be imported into an

ActiveCampaign account, so brands can easily tweak and adapt them

to businesses’ specific needs.

Big picture: Since its creation in 2016, Marketplace has been used to

design more than 300,000 unique email automations.

Personalized text messaging, especially when paired

strategically with existing email marketing initiatives, helps

brands effectively reach their target audiences in a very

visible and actionable way.

Nerisah Baksh, Senior Marketing Manager, Partnerships,

Attentive

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The Email Technology Landscape 9

SparkPost and ActionIQ create an email integration

SparkPost, an email delivery and analytics engine, and ActionIQ, a

customer data platform for enterprises, announced an integrated

solution for bringing real-time email delivery, intelligence, and

personalization to brands.

The solution delivers more personalized email experiences to

customers while increasing revenue potential for brands—all at a

significantly lower cost.

As the marketing world continues to lean on digital solutions to

engage customers, this partnership comes at a crucial time. By

helping brands deal with new marketing pressures and constraints

in an increasingly budget-conscious environment, this integration is

impressively relevant.

Litmus and SAP® Marketing Cloud join forces to optimize email testing and streamline email production

Once again, Litmus is making innovative moves. This new integration

with SAP® Marketing Cloud allows for streamlined collaboration

across marketing teams, so that emails can be tested as they’re built.

Litmus already provides similar functionality to other industry leaders,

like Salesforce, so this helps SAP® provide a more competitive

offering in the CRM space.

A tool to help hotels with email marketing automation

The hotel industry has been hit incredibly hard by the coronavirus

pandemic. But it’s not all doom and gloom. Clairvoyix, a marketing

technology and services company dedicated to hospitality-specific

marketing automation, recently announced its Rapid Recovery

Response – R3© Solution.

This email marketing tool is designed to be the simplest and least

expensive option for hoteliers, helping them conduct rapid email

marketing during and after the crisis.

Email marketing for cannabis and CBD brands

Now that more than half of US states have legalized cannabis in some

form, 1 in 5 Americans lives in a state where they can use cannabis

recreationally.

Google, Facebook, Instagram, and Twitter don’t allow ads for cannabis

products yet. So, shifting your marketing focus to other channels,

including email, is essential for success.

But to avoid potential email problems, like account cancellation,

random suspensions, and marketing restrictions, brands need to

choose a cannabis-friendly email service provider, and the list of those

keeps growing.

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Tips & Insights: How Q2 events will shape the future

We asked eCommerce technology companies to share their views on

how Q2 events will shape the future.

What happened to your brand in Q2 that will be important in the future?

As a SaaS Technology Solutions provider, Pearl has witnessed

the change in buying behavior by consumers across all

eCommerce product categories. Given the COVID-19

outbreak, the spike in online sales will only continue to grow

as big-box retail stores disappear and/or greatly reduce the

number of physical locations. Brands will require the insights

necessary to know when and how buying behavior is changing

so they can deliver personalized marketing and customer

experiences as well as relevant products to retain customers

and continue to grow sales.

Brad Ketchum III, Partner, PearlThinks

Consumers are spending more time than ever on their

mobile devices, with 56% of consumers saying they’ve been

using their phone more since the beginning of March 2020.

People are using their phones to research and complete

purchases, as many stores are still closed or in the beginning

opening phases. The question now is how can brands directly

reach their consumers—whether with offers and product

updates, or info about safety guidelines they’re implementing.

Personalized text messaging, especially when paired

strategically with existing email marketing initiatives, helps

brands effectively reach their target audiences in a very visible

and actionable way.

Nerisah Baksh, Senior Marketing Manager, Partnerships,

Attentive

Tips & Insights: How Q2 events will shape the future 10

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At Justuno, we saw our customers realize the importance of

converting their website traffic! Some brands surged due to

the pandemic and online shopping trends. Others did not. But

the commonality is that, in a time when people were forced

to shop exclusively online, our merchants understood the

value of their traffic. This has a profound impact on merchant

mentality and the future of eCommerce. The increase of

shopping online is said to have been permanently impacted

and will be much more common in the near future. So the

importance of CRO (conversion rate optimization) has never

been greater!

Jane Serra, Director of Marketing, Justuno

The recent events increased demand for our company’s data

services and really highlighted the importance of always

having the correct client and prospect email information on

hand so you can reach them at any given time. Additionally,

we majorly shifted our focus to digital marketing efforts in

place of face-to-face events.

Matt Wolosz, VP Sales, TowerData

Tips & Insights: How Q2 events will shape the future 11

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Email Campaigns

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Email Campaigns

Email Campaigns

13

How things have changed

The COVID-19 pandemic turned the world upside down, so it’s no

surprise that email campaigns changed dramatically this year. In Q2

2020, email marketers were forced to quickly adapt their campaign

strategies. But did everyone do a good job?

Looking at the numbers, we can see there was a 40% increase in email

volume in Q2 compared to last year, plus an additional 15% increase

in open rates across all industries. But the click rates and conversions

haven’t changed drastically – we can actually see a slight decrease

there.

What we are trying to say is that such high open rates are pretty much

unheard of. If brands can implement a 40% increase in a marketing

metric, with no meaningful drop-off in performance, it means that

customers are happy to get more emails than previously thought.

When a brand has a message to communicate, people will read it. And

even better, they’ll keep on opening and clicking.

Short-term thinking worked best

In Q2, the usual workflow of email campaign strategies was shattered

since companies couldn’t plan for an uncertain future. Campaign

calendars were revisited on a daily basis, making sure the content was

appropriate.

On top of this, a lot of businesses were, and still are, experiencing

issues with stock and delays in production. This is pushing planned

sales and promos even further into the future.

Source: Klaviyo

Source: Klaviyo

Email open rates have risen by up to 25% week-on-week

in retail. What is more, daily email open rates are generally

increasing by 5-10% each week.

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Email Campaigns 14

Think big, shop small

When COVID-19 forced people into quarantine and retail

stores shut their doors, consumers turned to eCommerce.

We knew that people wanted to “shop small” but didn’t know

where to find those brands online. That’s why we dropped all

our other initiatives and launched ShopSmallEcomm.com, a

community that grew to over 2,500 small eCommerce stores.

Our goal was to help support small and growing eCommerce

businesses by giving them another platform to be found on –

at no cost to them. Launching this community gives us a great

foundation to do more to support small eCommerce stores

moving forward.

Alison Aldrich, VP of Partnerships, Privy

The initial reaction

For most brands, the initial instinct was to send out “we are in this

together” campaigns. There were also countless emails addressing

delays in shipping and production due to the lockdowns. Throughout

April and the first half of May, these blasts made up the bulk of emails.

Source: Hubspot

Outcome: With inboxes saturated with COVID-19 emails and

non-stop discussions about the pandemic – people quickly became

tired of it.

The new normal

All of a sudden, it seemed like there was a new normal in terms of

the tone and timing of emails. Q2 revealed the importance of being

on-point and carefully checking the content of emails. This checklist

became the basis for Q2 campaign content:

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15

• Send messages based on value: how products and services

make people feel, or how they fulfill a certain need

• Use a tone of voice that comes across as positive, yet aware

of the bigger picture

• Avoid messaging around urgency, like saying ‘this is your last

chance’. People are stressed out already, so brands should

avoid adding that extra layer of stress and urgency

• Don’t focus on products that may be out of stock

• Use appropriate imagery and avoid travel-related images and

images of people in groups

• Adjust send times and send days, as best practices changed

due to people spending a lot more time at home

Email Campaigns

Looking ahead, it seems like this way of communicating is here to

stay – for a while, at least. And chances are it’ll have a lasting impact

on customer/subscriber behavior. For brands, continuing to use email

campaigns to strengthen customer relationships is a smart approach.

In Q2, we saw our customer base dial-up their empathy in

their SMS marketing messages. This is primarily due to the

global impacts of COVID-19. Many brands wanted to find

a helpful and empathetic way to connect with subscribers

when traditional marketing messages felt tone-deaf for the

times. In the future, we believe that leading with empathy and

connecting in a way that feels more human will be table stakes.

Alicia Thomas, Director of Community, Postscript

Marketing in a time of social unrest

Before we dive in… As we all know, high-profile brands tend to avoid

conflict. And this is especially true during times of social unrest and

division. It’s likely that this is due to fear of upsetting customers, or an

unwillingness to be aligned with polarizing topics.

But this year was different. After the death of George Floyd on May

25 in Minneapolis, companies started to speak out publicly, stating

their thoughts on racial injustice and police violence. Brands also

aligned themselves with the #BlackLivesMatter movement, and used

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social media and email to communicate with their customers and the general public.

Big picture: Recent data shows that, while speaking up on issues like race equality can be politically divisive, most people want brands to take action. Brands that

published copy-and-paste statements, or made no statement at all, have been called out all over social media.

Different Generations Give Their Input on What Brands Should Focus on in Protest Statements

Share who said it is at least somewhat important for companies or executives to emphasize the following in their response to protest and demonstrations

in dozens of U.S. cities:

Source: MorningConsult

16Email Campaigns

Support for small businesses

Most important for boomers

Most important forGen x

Company measures taken to address racial or social inequalities

Racial inequalitiesin the U.S.

Safety of police and law enforcement officials

Social inequalitiesin the U.S.

Protection of private property, stores

Police’s role in society

Death of George Floyd

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Email Flows (Automations)

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Email Flows (Automations)

Email Flows (Automations)

18

In the midst of the email campaign challenges and slow list growth of

Q2, brands have rediscovered the value of automated emails.

In March 2020, campaigns still accounted for 60% to 80% of all email

revenue for the majority of brands. But in Q2, fewer campaign sends

and an increase of list saturation meant that numbers started to shift

in favor of automations.

So, what changed for automated emails?

The automations themselves didn’t change much from Q1 to Q2.

This makes sense, since they’re supposed to be built once and then

optimized.

The changes to content were also relatively minor – marketers

removed outdoor and group activity shots, shifted the language away

from urgency to customer value, and made sure all products were in

stock.

Overall, automations required significantly less time and effort than

the daily changes needed for email campaign strategies. But they still

delivered great results.

Source: Klaviyo

In Q2, we saw a majority of brands focus on their past

purchasers or their current marketing list. New customer

acquisition was a rarity for many brands. This shift in focus

showed the importance of engaging your past customers and

the power of building your brand’s relationship with them.

Brands who shifted their focus to past purchasers for the first

time in a while were finding that their customers had gone

cold. Moving forward, the importance of relationship building

and re-engaging with past customers will be important.

Katie Krische, Strategic Partnerships & Marketing Manager,

Octane AI

When you’re dealing with uncertain inventory, back in

stock automation is a no-brainer when the alternative is

blasting availability to an unsegmented list or otherwise

providing no communication updates at all.

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Email Flows (Automations) 19

If the automations content hasn’t changed, what has?

A combination of brands’ reliance on their existing email lists and

the slow list growth of Q2 showed us just how important automations

are.

Welcome Series took a significant dive in terms of generating revenue,

but automations like the Winback, Repeat Purchase Nurture, and

Anniversary/Birthday Series got it going again.

Across the board, Re-Engagement Series exceeded expectations in

comparison to previous months. It’s likely this was due to the same

factors that brought about the Q2 increase in open rates.

Brands got their automations mojo back

For those who saw the importance of automated emails earlier on in

Q2 (or prior), this meant that automations not only grew to account

for 50% to 70% of email revenue, but also generated a significant

increase in total email revenue.

With all of the increased interest in automations, brands started to

build additional touchpoints in their email flows, such as Cart and

Browse Abandonment. We also noticed brands creating Lapsed

Customer and Nurture flows from scratch.

The results: Thankfully, the hard work paid off. Lots of brands saw a

revenue increase of over 100%, generated by their automated emails.

Even informative automations, like shipment delay notifications and

out-of-stock notifications, steadily brought in additional sales.

Brands that paid minimal attention to their automated emails saw their

lapsed customers go completely dormant. They also had to deal with

a noticeable drop in the overall value of their email list – a long way

from the list growth they were accustomed to in Q1.

The main takeaway

From what we’ve seen in Q2, an existing subscriber base continues to

hold incredible value.

Emails, especially automated series, deliver continuous value for

minimal work outside of the original setup and tweaking.

If brands use automations to send timely and relevant content at

various stages of a subscriber’s lifecycle, the business can keep

growing. And yes – this even applies to crazy, uncertain times like the

COVID-19 crisis.

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Tips & Insights: What’s coming next for eCommerce brands

Let’s hear from eCommerce technology experts

We asked eCommerce technology platform experts for their thoughts on

what’s next for brands.

Bearing in mind the key events in Q2, what’s your forecast on what comes next in Q3 for eCommerce brands?

With much of the world still mindful of the risks of

in-person shopping due to the pandemic, we think brands will

continue to see an uptick in online sales and a preference

for contactless experiences if they venture into shops. For

digital marketers, that means the bar for excellent marketing

communications will continue to rise as more and more

retailers are going online that once were brick and mortar, or

had a presence in both the physical and digital space.

Alicia Thomas, Director of Community, Postscript

In Q2, many brands made a change to the language around

their products. There was a heavy focus on being comfortable,

lounging, or activities that practiced self-care. In Q3, as

the world slowly opens, language around outdoors, social

distancing, or fun will become more important. Many

customers are craving fun experiences, but will lean towards

activities or products that help them socialize while staying

distant. Simple copy or image changes in advertising or on

your website can help make customers feel like your brand

suits their lifestyle.

Katie Krische, Strategic Partnerships & Marketing Manager,

Octane AI

I think we will see a continued emphasis in Q3 on the trends

we started seeing in Q2 – a greater focus on online, email,

and mobile advertising.

Matt Wolosz, VP Sales, TowerData

Tips & Insights: What’s coming next for eCommerce brands 20

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Tips & Insights: What’s coming next for eCommerce brands 21

Holiday prep is on the horizon! Though it may look somewhat

different this year for brands with brick-and-mortar locations

due to safety precautions, eCommerce will still have its

moment this holiday season. Q3 is marketer prep time. At

Justuno we see brands leveraging personalized data capture

to build super-targeted email subscribers and SMS lists now in

order to segment their contacts in hopes of connecting with

them and selling more this holiday season.

Jane Serra, Director of Marketing, Justuno

With major brands boycotting Facebook advertising in the

month of July and calling on small businesses to do the

same, we think that we’ll see brands of all sizes testing new

channels and becoming more creative with their advertising

approach. And while brands will continue to rely heavily

on email marketing, which continues to drive significant

revenue, we also expect that brands will start to leverage

other channels, like SMS and direct mail, to enhance their

relationship with customers.

Alison Aldrich, VP of Partnerships, Privy

eCommerce has grown rapidly over the past few years,

and recent months have only accelerated this. Creating an

exceptional eCommerce experience is no longer a “nice to

have” for brands—it’s essential to staying ahead. Building out

your brand’s eCommerce presence and related marketing

strategies to ensure delightful and seamless online customer

experiences is not a short-term fix—it’s a major investment in

your company’s future growth.

As consumers’ motivations have shifted significantly over

the past three months, brands who are eager to test new

technologies—like SMS marketing, for example—to meet

these shifting needs are the ones who will succeed.

Nerisah Baksh, Senior Marketing Manager, Partnerships,

Attentive

Recent events across the world have shown that it is very

hard to predict the future. Lean, authentic, and agile teams &

brands will win.

Felix Suellwold, Head of Partnerships, PushOwl

Page 22: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Email Deliverability

Page 23: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Email Deliverability

Email Deliverability

23

We’ve got some stats for you: 91% of marketers believe that poor

email deliverability has a negative financial effect on their companies.

Meanwhile, 8% say the impact is severe. This is according to research

by Validity and the UK’s Data & Marketing Association (DMA). The

report, published in June 2020, can only be accessed by members at

the moment.

The report reveals that a growing number of marketers (from

10% in 2019 to 16% this year) rate their own knowledge of email

deliverability as “poor”. No need to panic yet though – 49% say their

team’s knowledge of best practices is good, while 17% rate it as very

good.

Microsoft Outlook 365 Advanced Threat Protection (ATP) and its effects

Before we dive in... Microsoft 365’s Advanced Threat Protection

(ATP) quickly determines which senders are legitimately sending you

unauthenticated emails.

What’s new: Microsoft has upgraded its protection algorithms in the

past quarter. This impacts the email deliverability of any sender who

hasn’t white-labeled their sending structure. ATP will block emails sent

to Outlook 365 if the email addresses don’t have proper DKIM and

SPF alignment.

A lot of marketers (91%) believe that poor email deliverability

has a negative financial effect on their companies and 8% say

the impact is severe.

What we have found is that a good deliverability strategy

needs to be both comprehensive and multidisciplinary.

Deliverability success involves committing budget and

resources if you are going to do it well, and those that do see

positive returns from their investment.

Guy Hanson, Vice President of Customer Engagement, Validity

International

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Email Deliverability 24

Struggling to work out what all of this means? This article will help you

get more familiar with the update and its implications for brands’ email

deliverability.

Phishing attacks during the COVID-19 pandemic

Hackers love exploiting crises, and sadly, the COVID-19 outbreak is no

exception. Since the beginning of the pandemic, cybercriminals have

been up to no good. They’ve staged all kinds of cyberattacks, from

phishing to ransomware exploits and even hospital system takeovers.

The World Health Organization (WHO), a key presence during

COVID-19, was among the targeted institutions.

Throughout the pandemic, there has been an increased number

of attacks focused on personal data acquisition. Passwords, social

security details, and bank information have become highly-prized

targets. And, concerningly, the number of attacks has tripled since

January.

Fake domains: Typically, cybercriminals send unsuspecting users to

fake domains, where they can gather their personal information or

login details. And, to make things even worse, these domains are often

embedded with malware to infect the users’ systems.

Big picture: The extent of these phishing attacks is huge, according

to Google’s Threat Analysis Group. In mid-April, the group reported

that it had blocked 18 million COVID-19 phishing emails and malware

emails per day.

Recommendation: Phishing attacks are no joke. And as COVID-19

doesn’t seem to be going anywhere, and phishing attacks are rapidly

on the rise, this is a good time for site owners to look at their security

setups.

Brands that don’t implement security measures are likely to become

targets, sooner or later.

FBI Cyber Division reported receiving between 3,000 and

4,000 cybersecurity complaints each day, a major jump

from prior to the COVID-19 pandemic when about 1,000

complaints were received daily.

Page 25: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Privacy Regulations

Page 26: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Privacy Regulations

Privacy Regulations

26

GDPR might not be dominating the headlines anymore, but it’s

definitely still a thing. Introduced in 2018, GDPR holds the title of

the toughest privacy legislation ever. And this year marked its second

anniversary.

The impact

The EU’s privacy shake-up had a ripple effect around the world. It

led to countries like California, Brazil, India, Canada, and Australia

changing their own rules around data privacy. All in all, this means

that 2 billion people – consumers and site owners – were impacted in

some way.

So… what happened over the past 2 years?

So far, the dreaded GDPR has resulted in a not-so-impressive $153

million in fines. Only two of these fines went to Silicon Valley tech

giants: a €50,000,000 fine to Google in France and €51,000 fine to

a local subsidiary of Facebook in Germany. But although these fines

seem high, they only account for a portion of daily revenue for these

companies.

Meanwhile, email-related GDPR fines amount to just over a million

euros (less than 1% of the total fines).

Turns out... GDPR’s bark is louder than its bite.

The first official report on GDPR, published in June, shows that

supervision and enforcement of GDPR is a struggle. The report

foresees challenges related to “clarifying how to apply the proven

principles to specific technologies such as artificial intelligence,

blockchain, Internet of Things or facial recognition...”

From the EU to California

Inspired by the GDPR, the California Consumer Privacy Act (CCPA)

came into effect on January 1, 2020. Thanks to the state’s population

of almost 40 million, plus the numerous tech giants that call California

home, the CCPA has a massive reach.

DataGrail reports that January 2020 saw a surge of privacy requests,

most likely due to the law going into effect and related privacy policy

A €50,000,000 fine to Google in France due to the lack of

transparency in ads personalization and a €51,000 fine to a

local subsidiary of Facebook in Germany.

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Privacy Regulations 27

updates. The report also suggests that privacy headlines (and

COVID-related emails) in March and April likely drove an increase of

CCPA privacy requests.

Out of all of these requests, 39.6% were for the deletion of data,

33.3% were related to do-not-sell, and 27.7% were access requests.

Looking ahead, a new surge in privacy requests is expected in July and

August. That’s because CCPA enforcement is set to begin on July 1,

2020.

DataGrail says that B2C companies should prepare to process around

100 to 194 requests per million consumer records each year.

It’s expected that at least 19 other states, including New York,

Washington, and Illinois, will use the CCPA as a blueprint and

implement legislation that’s already in the works.

B2C companies manually processing privacy requests are

likely to spend anywhere from $140,000 to $275,000 per one

million consumer records to process them.

Page 28: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Email Design Trends

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Email Design Trends

Email Design Trends

29

How is the pandemic shaping design?

Nothing escaped the impact of COVID-19, and that includes email

design.

Visual communication has always been central to conveying critical

messages. And in Q2, visuals had a crucial role in the fight against the

pandemic. Although perhaps not on the frontline, creatives, designers,

and artists played their part in sharing and spreading information

faster and to a wider audience. As we like to say, behind every

important message is a great design.

So, what changed?

The pandemic forced brands to change their messages and this also

affected the overall design of emails. Instead of the usual “sell, sell,

sell” mode, brands had to ensure everything they were putting out

seemed caring and empathetic.

Shifts in the use of photographs

From what we’ve seen at Essence of Email, the biggest design changes

were related to the tone and photography used in email designs.

This particularly applies to eCommerce. Brands have had to try to

keep their sales going in order to survive, while also making sure their

messaging isn’t too aggressive.

Photography was very much based around safety, comfort, and

self-care. Towards the end of the quarter, it shifted to socializing at a

distance, fun-yet-safe activities and products, and making customers

feel that a brand’s offerings fit their lifestyle.

2020’s biggest email design trends

Email designers played with a mix of trends in Q2. But the ones that

really stood out and are worth mentioning are: 3D depth and realism,

Monochrome design, Image and text masking, and Liquids.

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Example of 3D depth and realism

Source: ReallyGoodEmails

30

Page 31: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Example of monochrome design

Source: Pinterest

Example of image and text masking

Source: Pinterest

Example of Liquids design

Source: ReallyGoodEmails

Email Design Trends 31

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Email Design Trends 32

What’s coming next

Another newcomer to the world of design, and one that’s likely to

impact email, is neumorphism. Neumorphism involves focusing on the

color of the entire screen and delivering an entirely unique experience

for users. This trend is still “cooking in the UI world” and not

completely ready for mainstream use. But just like the dark mode back

in early 2019, this trend is also expected to have its email moment and

it’s worth keeping an eye on.

Source: Dribble

Dark mode for Gmail

After months of delay and inconsistent functionality, the rollout of

Google’s long-awaited dark mode for Gmail appears to have finally

been finished for iPhone and iPad.

Google announced dark mode for its Gmail app back in September

2019. But its iOS usage has been patchy, to say the least. Some users

have managed to activate dark mode via the app, only for it to vanish

the next time they restart. Others haven’t been able to access the

feature at all. So, let’s see how this trend will develop in Q3.

Page 33: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Tips & Insights: A piece of advice for eCommerce brands in Q3

Looking towards the second half of the year, we asked eCommerce

technology platforms to share their advice for eCommerce brands.

What’s one piece of advice you would give to eCommerce brands in Q3?

Tips & Insights: A piece of advice for eCommerce brands in Q3 33

Looking ahead, Q3 is the perfect time to focus on building

your marketing list in time for Black Friday and Cyber

Monday. Start optimizing your site to convert visitors to

marketing subscribers, run acquisition-focused Facebook ad

campaigns, launch a referral campaign, or other marketing

campaigns. Implementing different marketing channels can

also help grow your overall marketing lists. For example,

incorporating Messenger and SMS marketing opt-ins can

actually help you grow your email list. You can use both

channels in creative ways to engage new site visitors and

collect opt-ins for other channels.

Katie Krische, Strategic Partnerships & Marketing Manager,

Octane AI

Test and refine your strategy now! Q3 (and earlier!) is the

optimal time to discover what is working for you in order to

double-down and deploy a tested, proven strategy for the

holiday season. A/B test your SMS opt-in: what call to action

gets higher conversions? A/B test your data capture offer: does

$X off work better than X%?

Use hidden fields to understand what pages visitors are

opting-in on. Target your paid media traffic using UTM

parameters. Experiment with AI product recommendations

and learn what items are commonly bundled. These exercises

will make your holiday marketing profitable and optimize your

customers’ shopping experience.

Jane Serra, Director of Marketing, Justuno

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Tips & Insights: What’s coming next for eCommerce brands 34

Focus on collecting accurate email data from your customers

and prospects. Even if the price to advertise on networks

goes up (and it will), or if Google limits the use of cookies (and

they will), having your customers’ or prospects’ correct emails

will allow you to reach them without any hindrances on your

efforts.

Matt Wolosz, VP Sales, TowerData

Now more than ever, it’s important for you to create lasting

relationships with your customers to drive repeat purchases.

Given the uncertainty around marketing channels and the

economy, focus on the customers you’ve already built trust

with. Make sure you’re doing more than just asking for the sale.

Help your customers feel aligned with your brand and what you

stand for. With everything going on in the world, brands need to

really focus on clear messaging and mission-driven content

to keep customers engaged and coming back.

Alison Aldrich, VP of Partnerships, Privy

Data quality and making sure that customer and prospect

data is updated, accurate, current, and enriched for the

greatest ROI results. With the changes in employment

(both lost jobs and changing jobs), contact information,

and ultimately, buying habits, the one way to ensure that

marketing activation campaigns (e.g. email marketing) are

successful, is to maintain and create as highest-quality

customer data as possible. And, most importantly, give

customers what they want by having systems and a process

in place to understand customer behavior in order to deliver

relevant, targeted marketing.

Brad Ketchum III, Partner, PearlThinks

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Tips & Insights: What’s coming next for eCommerce brands 35

E-commerce brands have to be extremely flexible and

agile—it’s survival of the fastest. The brands that will survive

and thrive during these times are the ones who are quick to

adjust operating models and test new technologies. Prioritize

consumer experiences—like enhancing direct communications

through channels like personalized text messaging—to help

drive more revenue.

As a direct and instantaneous channel, using text messaging

as a complement to email means brands can rest assured

knowing their messages are seen—and acted on. By having 1:1

conversations with text subscribers, brands are building lasting

relationships—which is beneficial in the short and long-term.

Nerisah Baksh, Senior Marketing Manager, Partnerships,

Attentive

If you haven’t already, now is the time to start thinking about

your BFCM marketing strategy. As many brands start using

SMS marketing, now is the time to start building your list so

that when the holidays come, you will be able to reach and

segment your subscribers effectively and profitably.

Alicia Thomas, Director of Community, Postscript

More consumers are coming online due to COVID-19. In fact,

eCommerce adoption leapfrogged years or even a decade of

development. So while it is “easy” to acquire new customers

these days, make sure to also nail your retention tactics.

Felix Suellwold, Head of Partnerships, PushOwl

Page 36: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Who Is Essence of Email

Page 37: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Who Is Essence of Email

Who Is Essence of Email

37

Delivering results is what we do.

Email marketing is more powerful and more complex than ever

before. If you want your emails to be remembered, you need a team of

focused specialists.

That’s where we come in.

We take a highly disciplined, process-driven, iterative approach every single time.

We adapt to your needs as quickly as the market changes.

We know everything there is to know about eCommerce.

Average ROI

38xMax ROI: 184x

Positive ROI or break-even for all clients

Emails sent in the last year

73MIndustry-Leading

Net Promoter Score

Digital Marketing Agency Benchmark: 61

80

Over 6 years of experience and 270+ served clients in the USA,

Canada, and Australia has given us a clear view of what works in

different situations and in every stage of a company’s growth.

We empower eCommerce brands to sell repeatedly through

innovative email marketing.

Let us show you what we can do for you.

Book a Call Now

Page 38: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Credits

Credits

38

Heath WeaverManaging Director

Vladimir BosheskiEmail Expert

Grace HardingCopywriter

Maja StojanovicQuality Assurance Lead

Milos RakicQuality Assurance Lead

Petar MladenovicDesigner

Armin AvdicDesigner

Marija PajkovicSenior Team Lead

Dejan GeorgievTeam Lead

Snezana VelkovskaMarketing Manager

Monika GaberovaMarketing Associate

Page 39: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

Content Sources

Content Sources

39

The Email Technology Landscape: EmailClientShare, Shopify,

eMarketer, MarketingCharts, Social Media Today, ActiveCampaign

Marketplace, ActionIQ, Litmus, Hotel Online, Email Vendor Selection

Email Campaigns: Klaviyo, Hubspot, MorningConsult, eConsultancy,

Warc

Email Flows (Automations): Klaviyo

Deliverability: DMA, Microsoft, TheHill, Threat Analysis Group,

Marketo Engage

Privacy Regulation: GDPR, Privacy Affairs, European Commission,

DataGrail, Axios, CNET, WireWheel, MediaPost, SecureOps,

LegalTechnology, DCD

Email Design Trends: Neumorphism example; 3D depth and realism

example; Monochrome example; Image and Text masking example;

Liquids example;

Page 40: Essence of Email Quarterly...Now more than ever, it’s important for you to create lasting relationships with your customers to drive repeat purchases. Given the uncertainty around

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