Google Promotional Tabs

We recently had a class on E-mail campaigns and how that it's still a form of marketing used to acquire customers and retain them. However, it seems that more and more customers are not opening these promotional e-mails as they find their way to the online junk bin. One reason for the dramatic shift is due to Google's recent E-mail filtration process. Several million Gmail users now have all their promotional e-mails automatically filtered out of their primary inbox and into a "promotional" folder. Users will have to click on that tab separately to see what type of junk e-mail they received--somewhat equivalent to opening up a recycling bin, just to see what type of junk mail is inside. Clearly not the most ideal situation for marketers trying to convert us to purchase.

However, this form of filtration has also made significant dents on sales from companies that still rely on large promotional campaigns. A recent WSJ article described how the current CEO of Groupon stated that 3rd quarter sales dipped due to Google's e-mail filtration system. This makes sense since most of their sales and customer retention campaigns are sent out in the form of an E-mail. This isn't just hurting Groupon, but other large promotional sales sites that rely on sending coupons, promotional sales, newsletters, and updates via E-mail. Although some retailing sites haven't addressed it yet, Google stated that promotional e-mails have gone down since their filter process started earlier this year. This is a clear indication that e-mail marketers are seeing bad results and their e-mails are not converting as much as before.

I personally don't see or click on nearly as many promotional e-mails as I did when Gmail's inbox only had a primary folder. I doubt others user have any different experiences, especially if they use Gmail as frequently as I do. This is a serious blow to a marketing style that has relatively been around just as long as e-commerce. I predict other e-mail programs to mimic Google's filter since it's more user friendly and customers demand better, relevant content. Unfortunately for marketers and e-commerce businesses, it's once again back to the drawing board on figuring out how to capture clicks and eyeballs.