Email Marketing Software Market Size, Share and Industry Analysis, By Channel (Business-to-Business (B2B) and Business-to-Customers (B2C)), Deployment (On-Premise and Cloud), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Application (Email Lead Generation, Sales Reporting, Customer Management), By Industry (Banking, Finance, Security and Insurance (BFSI), IT and Telecommunications) and Regional Forecast, 2020-2027

The global email marketing software market size stood at USD 1,025.7 million in 2019 and is projected to reach USD 2,275.5 million by 2027, exhibiting a CAGR of 10.5% during the forecast period.

In today’s digital era, companies are majorly focused on digital marketing and advertising campaigns. Digital marketing uses emails, websites, and social media platforms. Email marketing has become a significant communication channel as well as an effective advertising platform for business to business (B2B) and business to customers (B2C) marketers. Email marketing has been popularized as a communication medium for promoting products and services. The growing concentration of companies to enhance their customer base by implementing advanced marketing software is flourishing the adoption of email marketing software. Email software plays a significant role in improving customer relationships and maintaining customer loyalty.

Several vendors offer mobile tools and responsive templates to help email marketers to observe and manage sales as well as marketing campaigns. Thereby, due to good and low-cost marketing alternatives, email marketing is dominating the industry. For instance, salesforce.com, Inc. had surveyed the state of marketing in April 2017 which indicated that most of the business to business (B2B) marketers are still preferring email marketing for their campaign. The survey also stated that email marketing gains traction in the industry by showcasing 106% growth during the year 2015 to 2017. 

Email marketing is a measurable and direct customer engagement medium that is considered a robust communication medium during the ongoing COVID-19 pandemic. The capability to generate custom and effective message content has pushed companies to adopt email marketing during the COVID-19 pandemic.

LATEST TRENDS

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Automated Email Marketing Trend to Drive Market

Automation of email marketing also called behavior-driven email marketing is gaining traction in the industry. Automated email marketing offers the facility to send out emails to the customers automatically as per the defined schedule. Further, email automation allows to follow up with individual customer automatically. The ability to send user-specific email content has popularized the automation of email marketing. This behavior-driven email including welcome series email, nurture series emails, birthday or anniversary emails, or user verification emails offered by email software automation is booming in the industry. Along with increased performance and customization, automated email marketing offers better customer engagement. Wherein, email marketing automation offers relevant and promotional email contents and enhanced customer engagement resulting in an extension of email as a personal communication channel. The advantageous features of the automated email marketing are getting popularized day by day. Many of the businesses have started implementing automated email marketing to augment customer engagement, interest, and loyalty. Thereby, a real-time personalized approach offered by automated email marketing to engage customers is currently trending in the market.

DRIVING FACTORS

Targeting and Personalized Communication Features to Boost the Market Growth

Email marketing success depends on sending relevant content to the right candidate or customer. Targeting email includes welcome sequences, where different messages are sent to different addressees. Targeting customers offers the opportunity to send personalized and tailored messages to gain customer’s attention. Many automated email marketing platforms are being utilized to augment their business campaigns by targeting potential customers. Customer-centric businesses are likely to send personalized emails to target customers rather than sending the same mail to the entire list. This targeting and communicating features offered by the email marketing tool helps to suffice the marketing goals of the company. For instance, according to the study conducted by Salesforce.com, Inc. in April 2017, almost 52.0% of the customers are probable to switching their brands if the company doesn’t offer personalized communication to them. Therefore, the growing demand for personalized communication is driving the email marketing software market growth.

Acceptance of Bulk Emailing Marketing Channel to Supplement the Demand for Email Marketing Software

Bulk email marketing channel has evolved as an effective, easy, and solid platform to send scalable, relevant, and personalized messages. The bulk email marketing helps to encourage the relations with existing customers, propel the adoption of software. Although, it allows to send relevant content to the bulk number of recipients. The cases like e-commerce sites, promotions, newsletters and, remarketing efforts are most likely to use bulk emails as a marketing strategy, booming email marketing industry. Moreover, flexibility, feature-richness, and integrating capability offered by this software are expected to drive the market in the coming years.

Artificial Intelligence (AI)-integrated Software to Propel Market Growth  

Technological developments have led to smarter planning, scheduling, and generation of customized emails. AI-integrated marketing software is prominently used by marketers to optimize personalized content, time, and transactional emails. The innovation offered by AI empowers interactive conversation to engage customers with platforms. The capability to analyze the data and customer interest in improving productivity and performance is increasing the demand for smart email marketing platforms.

RESTRAINING FACTORS

Low Email Deliverability Rate Impeding the Adoption of Email Marketing Platforms

While dealing with email marketing technology, consumers are concerned about the deliverability rate of an email. Deliverability rate is the measure of the percentage of messages delivered to the recipient’s mailbox to the number of messages sent by the sender. It predicts several emails bounced back to predict the activeness of the email marketing system. Soft bounces are often happening as temporarily recipient’s mailboxes are full, or when the server rejects incoming mails. However, hard bounces like a permanent error to deliver an email due to non-exist email addresses may become a major issue for email marketing. A low deliverability rate is a sign of sending emails on a non-exist email account which results in less effectiveness of marketing campaign and financial loss. Low deliverability rated emails might get blocked by internet service providers (ISPs). The low deliverability rate and ISP related problems scale back the email marketing adoption rate.

SEGMENTATION

By Channel Analysis

B2C Marketers to See High Adoption of Email Marketing Platforms

By Channel, the market is segmented as business-to-business (B2B) and business to customers (B2C).

Marketers in business to business approach need to generate emails that articulate with quality, service, business value, and, trust. This software offers a platform for fulfilling these requirements. B2B marketers need to detect problems that clients are facing while dealing with products or services. Email marketing offers an analytical platform that monitors and analyzes data to understand client problems and helps to design an appropriate solution to fix it. Email marketing helps marketers to highlight products and services as a solution that addresses business needs. Thereby, as the email marketing platform strengthens the requirements of the B2B marketer’s needs, it becomes favorable in the industry.

While dealing with business to customer’s relationship, marketers direct to cost-effective and emotive email marketing. B2C marketers adopt email marketing platforms to innovatively respond to customers as per their preferences, trends, and behaviors. Personalized emails are helping B2C marketers to make a stronger customer base, henceforth the B2C segment is expected to dominate the market during the short-term period.

By Deployment Analysis

Cloud Deployment Model is Expected to Support Market Growth

By deployment, the market is bifurcated into on-premise and cloud.

Email marketing software can be deployed as an on-premise or cloud-based model. Traditional on-premise deployment architecture of digital marketing is seen to be lagged by cloud-based marketing infrastructure. As the on-premise marketing model is limited to offer a scalable and flexible model, customers are migrating towards the adoption of cloud architecture for marketing. However, advanced on-premise architecture offers enhanced security, integration capacity, and self-hosted compatibility is supplementing the adoption of on-premise deployment models.

The cloud infrastructure is a flexible and scalable platform that does not require any dedicated IT staff. The popularity of software as a service platform is expected to drive the cloud deployment model of the software. Similarly, the pay-as-you-go pricing model of cloud computing attracts enterprises to prefer a cloud email marketing platform. Cloud service providers offer the reliability of automatically updating software. The cost-optimized effective architecture of email marketing encourages small & medium enterprises to adopt the platform. The ability to adjust the computing and storage capacity of the cloud model is expected to dominate the growth of the cloud-based segment.

By Enterprise Size Analysis

SMEs to Upsurge the Market Growth throughout the Forecast Period

By enterprise size, the market is categorized as large enterprises and small and medium enterprises (SMEs).

With the arrival of emerging technology, the internet has come an extensive way to augment business activities using advanced business tools. The majority of large organizations already have deployed an advanced email marketing platform to enhance their campaign and advertising. Although, apart from email marketing, large organizations are adopting other effective marketing platforms like content marketing, social media platforms, video advertising, and many more. Thereby, large enterprises will be anticipated to demonstrating an average growth rate in email marketing.

The economic growth of the world is flourishing with rapidly growing and developing SMEs. The growth of the SME sector plays a significant role in preventing the high unemployment, low gross national product, and levels of poverty in countries. The cloud-based cost-optimized and subscription-based model of email marketing is attracting small and medium enterprises (SMEs). To enhance productivity and campaign SMEs are leveraging with advanced digital marketing solutions. Henceforth, many of the companies are seen to be designing custom marketing solutions for SMEs and startup firms. The attractive custom offerings and efficient affordable subscriptions are expected to dominating the marketing software platform across SMEs.

By Application Analysis

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Email Lead Generation Application to Dominate the Market Throughout the Forecast Period

By application segment, the market is classified into email lead generation, sales reporting, customer management, template management, reporting and analytics, and others.

Email marketing helps to engage thousands of individuals present at different cycles of product buying. Effectively engaging and promoting customer’s interest in product buying is email lead generation. It also offers the opportunity to generate a lead by offering effective email template design and interesting subject lines. Email lead generation application offered by the email marketing tools is projected to dominate the market during the forecast period. Further, lower prices and better returns on investment are promoting the software adoption for lead generation. Similarly, better template design can help to generate sales and maximizing the return of investment. Advanced email software offers the ability to generate custom templates, in turn contributing to the adoption of the platform. Successful email marketing and demand generation processes rely on a digital approach that is closely aligned with customer needs and preferences in all phases of the purchase cycle. Using a broad variety of interactive platforms provided by this software production companies, businesses can use a vast network of tools and services to make the most informed business decisions and deliver meaningful interaction with their customers.

Marketers and businesses harness the capacity of marketing technology to simplify, prioritize, and execute system programs including template creation and automatic communications. Marketing automation technology empowers advertisers to develop their understanding of consumer behavior and to grasp how it functions in campaigns. With attractively crafted emails, automated email campaigns and, in-depth reporting helps to improve interactive communication. The integration of marketing software with customer relationship management (CRM) helps to communicate with clients as well as manage and maintain customer relationships. The integrated solution offers data mining, sales forecasting, appointment scheduling, and invoicing. Although, the facility of reporting and data analysis made email marketing software, a strong analytical platform to attain customer satisfaction. Most of the larger as well as small enterprises are favoring email marketing tools for customer analysis, escalating the adoption of the platform.

By Industry Analysis

Healthcare Industry Projected to Hold the Highest CAGR in the Coming Years

Based on Industry, the market is segmented into banking financial service and insurance (BFSI), IT & telecom, healthcare, consumer goods, retail, information technology-enabled service (ITeS), travel and transportation, and others such as media and entertainment, education, and government.

Email marketing has been essential for the financial sector to develop relationships with potential customers by leveraging a low customer acquisition cost approach. Value-added marketing and interactive service communications help financial institutes to effectively promote their products and services across the customers. Email marketing software adoption is popularizing in banks and the financial sector due to its excellent return on investment (ROI) performance. By sending regular triggered emails, newsletters, and promotional emails, cause a sizable impact on sales conversion, promotes financial services. Thereby, BFSI is expected to boom the email marketing software industry.

Additionally, the IT sector is also preferring email as a professional communication channel. Optimized interactive conversation with clients offered by these platforms is attracting IT and telecommunication sectors to adopt this software. The advanced automatic email marketing platform provides personalized and custom interaction as well as offers customers engagement in optimized cost. Although, the capability to maintain the client's loyalty through real-time, custom and interactive conversations is booming the market in the IT and telecommunication industry.

With technological developments, the healthcare industry is shifting towards offering better medical services to their patients. Email marketing can target patients by sending them personalized emails depending on the patient’s interests and medical conditions. Email marketing offers an opportunity to attain the patient’s loyalty and trust. Apart from this, the retail sector is also highly adopting an email marketing platform for efficiently promoting their products and services directly to customers. The automotive email marketing platform helps to analyze customer interest and view so that retailers can able to enhance their productivity and service offerings. Consumer electronics, transportation, and, information technology-enabled services are adopting email marketing platforms as well to strengthen their customer base and campaign. 

REGIONAL INSIGHTS

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Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America is leading in the active use of emails for professional, business as well as personal communication. This factor has led marketers in the united states to use email marketing platform for enhancing their advertising campaigns. Although, the presence of a large number of small & medium enterprises is also contributing to the market growth in the coming years. In the case of Europe, the European Union’s General Data Protection Regulation (GDPR) affects all marketing fields, especially businesses that use email marketing. By GDPR, companies need to strict their subscription process. GDPR helps marketers to confirm the personal details and email addresses of consumers, to reduce soft bounces. The company is essential to confirm their email contacts and provide explicit approval before continuing to send emails to them. Although, GDPR led email marketers for ensuring a simple and appropriate way to unsubscribe for their contacts, to be obedient to the EU GDPR. However, the GDPR made the subscription process too structural and lengthy. Further, people downscale the response to email and related activities expecting to showcase moderate growth of the market across Europe.

The Asia Pacific is expected to hold the highest growth in the market, as the region demonstrates high technology demand by developing countries. Rising penetration of broadband internet services across the region brought major population online which is expected to offer lucrative opportunities for digital marketing companies. The growing IT-sector in the region is also propelling email-related activities and anticipated to enhance the market. Startups and small companies in the region with a limited marketing budget are leveraging benchmark email software as the most cost-effective way to get their product in the market and increase the customer base. The majority of small and medium business firms are adopting evolving digital marketing technologies to promote their products and services.

Furthermore, several organizations from the United Arab Emirates (UAE), Saudi Arabia have accepted email as an effective advertising and campaign platform, thereby the market trends are likely to proliferate in the Middle East and Africa. The survey conducted by UAE based, Omobono business agency, in 2017, has been predicted that email marketing is expected so significant adoption in the near future, followed by social media and corporate website marketing platform. The majority of marketers in Latin America are using inbound marketing techniques such as social media campaigns (Twitter, Facebook, Pinterest) Ebooks, topical blogs, and search engine optimized (SEO) websites for marketing and sales campaigns. Marketing platform automation is not adopted majorly in the region. However, rapid technological developments are anticipated to grow the adoption of marketing software across Latin America. Latin America will be expected to drive the email marketing industry in the coming years.

KEY INDUSTRY PLAYERS

Salesforce.com, Inc. to Emphasize on Delivering Advance Customer Engagement and Personalized Solutions

Salesforce.com, Inc. is focusing on the enhancement of its product portfolio to improve customer engagement with the platform. The company offers a marketing cloud integrated with an effective Customer Relationship Management (CRM) tool. The tool offers an opportunity for a better understanding of the customer's purchase histories, interests, and demographic information. The salesforce.com, Inc. patented tool offers flexibility which tests and tracks campaigns to make sure optimum efficacy. The company offers pre-defined event triggers, automated tasks, and drag and drop content tools which help to deliver predictive, personalized messages. The company offers a customer feedback platform, which is shareable across departments and teams to understand the client's interests and requirements, which upsurge the demand for the offering. Salesforce.com Inc. patented marketing cloud favorable in the industry due to its targeted, relevant, and effective customer engagement.

• January 2018 - Salesforce Inc., launched new solutions that enable retailers to offer more personalized and connected shopping experiences, via different channels such as, email, social media, web, mobile, and many more. The solutions will offer a facility to automatically sent a follow-up email through a marketing cloud that reminds customers to complete their purchase.

Customized Product Offerings and a Proactive Digital Strategies Opted by Key Players to Strengthen Positioning

The key players in the market are focusing on extending their product portfolio, by offering a custom email marketing platform. Although, development of marketing platforms by using artificial intelligence and machine learning escalating the demand for offerings. Some of the key players have started to serve the email marketing tool as a service platform. Service-based flexible infrastructure and free trial for email marketing platforms strategically attract customers to subscribe to their offerings. Many of the key players are focusing on designing a dedicated email marketing platform for personalization, automation, and advanced analytics to spur the demand. Industry-specific and customized email template designs, personalized content generation facilities, and automation of email marketing platform rocketed competitiveness in key players.

• December 2018 - Jivox Corporation enhanced its digital marketing channels by new capabilities namely channel connector and customer journey optimization. The enhanced capabilities offer brands to deliver a personalized customer experience across all paid digital channels including brand’s video, mobile, email, and website advertising. The channel connector enables marketers to automate personalized content delivery, such as images and copy lines, by using Jivox IQ with their preferred email marketing systems.

List of Key Companies Profiled:

• AWeber Communications.


• Benchmark Internet Group


• Campaign Monitor Pty Ltd.


• Constant Contact, Inc.


• ConvertKit LLC.


• Jivox Corporation


• Deluxe Corporation


• GetResponse Sp. z o.o.


• HubSpot, Inc.


• iContact Marketing Corp.


• Infusion Software, Inc.


• j2 Global, Inc.


• Mad Mimi


• Mailchimp


• Pinpointe On-Demand, Inc.


• Salesforce.com, inc.


• Sendinblue

KEY INDUSTRY DEVELOPMENTS:

• June 2019 – Salesforce, Inc. launched a smart email marketing platform by leveraging Artificial Intelligence (AI) technology. The smarter email marketing platform is expected to optimize timely email marketing messages and increase customer engagement.


• November 2019 – Salesforce.com, Inc. partnered with Microsoft Corporation to enhance its productivity and customer experience. Salesforce Inc. announced to use Microsoft Azure cloud as its marketing cloud platform. 

REPORT COVERAGE

The market research report offers qualitative and quantitative insights on the market and the detailed analysis of market size & growth rate for all possible segments in the market.  Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape.

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Key insights provided in the report are the adoption trends of Email marketing software by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.

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