SendGrid + eggstrategy: The Future of Digital Communication

The Future of Digital Communication +

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How did we gethere? What are the priority takeaways? Study Design Executive Summary What might digital communication behaviors look like tomorrow? Communication Horizon What do digital What are the primary communication behaviors drivers of email look like today? usage? Communication Behaviours Email Influences

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HOW DID WE GET HERE? Questionnaire Structure + Study Design

THE FUTURE OF DIGITAL COMMUNICATION QUESTIONNAIRE STRUCTURE + STUDY DESIGN Overview of the Quantitative Phase Sample & Survey Specs / • N = 1,200 Digital Communication users Gen Z / N=274 (ages 13-21) Millennial / N=456 (ages 22-34) Gen X / N=470 (ages 35-50) • 10-minute online survey • US only respondents, representative mix of gender, ethnicity and age • Survey fielded July 2017 / 4 +

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THE FUTURE OF DIGITAL COMMUNICATION QUESTIONNAIRE STRUCTURE + STUDY DESIGN We built a survey questionnaire that holistically evaluated people’s relationship with digital communication. Basic Demographics 1 / SCREENER In the screener, we asked basic qualifying demographic questions like zip code, age, ethnicity, etc. We then probed on each respondent’s use of digital communication tools such as email, text Survey Qualification Questions (Screener) message, video chat, business communication apps, and social media. To move to the main questionnaire and respondents had to be communicating digitally. Platform/Content Preferences 2 / DIGITAL COMMUNICATION PERSPECTIVES Next, each respondent evaluated how they use different digital communication tools for different interactions, including catching up, sharing documents, or scheduling meetings. Company Interaction Preferences We also probed on respondents’ preferences in how they interact with companies they’re interested in or buy from. Current Category Engagement 3/ DIGITAL COMMUNICATION JOURNEY We then asked respondents to evaluate which communication forms are essential, important, or unnecessary to their lives. We also looked at types of emails (B2C, C2C, B2B) to assess any Past and Future Category Engagement differentiation there. Respondents then identified how much their communication behaviors have changed in the past few years and how likely they are to change in the next year or 5 years. Consumer Attitude and Influences 4/ CRITICAL CULTURAL INFLUENCES Respondents then answered a series of lifestyle and attitudes questions about their personality Societal Communication Influences and working environment. Demographics 5/ DEMOGRAPHICS Lastly, we asked a few more demographic questions including when they got their first email, marital status, and children in the household. / 5 +

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WHAT ARE THE PRIORITY TAKEAWAYS? Executive Summary

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THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY Executive Summary Email is essential, important and entrenched in the lives of people 1 / today across Generation Z, Millennials and Generation X. Over the next few years, Gen Z expects to increase their email 2 / usage the most of all generations. There is an overwhelming preference for email over all other 3 / communication forms when it comes to B2C interactions. Email is the channel where business is done from interactions inside 4 / a company to interactions between businesses and consumers to interactions between businesses. All personality types examined use email meaning it’s a nearly 5 / universal channel. That isn’t the case with other communications and social media tools. / 7 +

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THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY Fast Facts Email is a staple form of communication today regardless of age or life stage. Gen Z Millennials Gen X “Email isn’t personal, it should be for 85% /89% /92% business and retailers.” Of consumers use email at least ◤ monthly today. FEMALE, GEN X ++ / 8

THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY 67% of people view email as essential and/or important to their lives! 40% 33% said that email is Said email was neither both essential and essential nor important important 13% Said email was important only 14% Said email was essential only CURRENT CATEGORY ENGAGEMENT Q3A/Q4A / Which of the following forms of communication that you use is essential/important to your life? / 9 +

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THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY 83% of Gen Z believes their email usage will stay the same or increase in the next 5 years. Increase a lot 12% 13% 7% 19% 16% Increase a little 22% 23% 29% 62% Stay the same 52% 51% 35% Decrease a little 10% 9% 9% 12% Decrease a lot 4% 8% 4% 3% TOTAL Gen Z Millennial Gen X FUTURE CATEGORY ENGAGEMENT Q10 / Thinking ahead, how much more or less do you think you’ll be using each of these forms of communication in the next 5 years? / 10 +

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THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY “Email is going to hang around for a while because it’s everybody’s first experience.” ◤ MALE, GEN Z +

THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY 74% of people chose email as their preferred communication method for companies or brands to interact with them. / 12 + +

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THE FUTURE OF DIGITAL COMMUNICATION EXECUTIVE SUMMARY “With email, I can forward, I can search easily, I can organize things…I need it. It’s a necessary evil.” ◤ FEMALE, MILLENNIAL +

THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS 79% of consumers report that their email usage stayed steady or increased over the past 5 years. Email usage increase is even higher for younger generations. Increased a lot 19% 13% 21% 23% 22% Increased a little 26% 29% 29% 44% Stayed the same 35% 29% 27% Decreased a little 14% 10% 15% 16% Decreased a lot 6% 10% 6% 5% TOTAL Gen Z Millennial Gen X Stayed the same or 79% 79% 79% 79% increased PAST CATEGORY ENGAGEMENT Q6 / Now we’d like to understand how your communication habits have changed over the past few years. For each communication tool, how much has your usage increased or decreased? / 16 +

THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS “Since having a baby I’ve signed up for emails about baby products and newsletters.” ◤ FEMALE, MILLENNIAL +

THE FUTURE OF DIGITAL COMMUNICATIONCURRE NT COMMUNICATION BEHAVIORS 79% of consumers report that their email usage stayed steady or increased over the past 5 years. Email usage increase is even higher for younger generations. Increased a lot 19% 13% 21% 23% 22% Increased a little26% 29% 29% 44% Stayed the same 35% 29% 27% Decreased a little14% 10% 15% 16% Decreased a lot 6% 10% 6% 5% TOTAL Gen Z Millennial Gen X Stayed the same or 79% 79% 79% 79% increased PAST CATEGORY ENGAGEMENT Q6 / Now we’d like to understand how your communication habits have changed over the past few years. For each communication tool, how much has your usage increased or decreased? /16 +

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THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS Regardless of generation, email of all types is an essential communication form today with incredibly high usage. 93% 68% Text message 97% Personal emails between me and 92% individual people I know (outside of 78% work) 87% 92% Phone calls 95% 94% Emails from companies sending me 68% 85% advertisements, coupons, receipts 69% Email 89% from purchases or password resets 68% 92% 88% 36% Social media 87% Professional emails between me and 77% people I work with 64% 55% 66% Social communication apps 75% 64% Professional emails between me and 24% 56% companies connected to my 44% Video chat 59% occupation 38% 38% CURRENT COMMUNICATION USE CURRENT EMAIL COMMUNICATION USE S7 / On the list below, please select which of these you’ve used in the past S8/ You mentioned that you currently use email to communicate with other month. people. Which of the following best describes the types of emails you send and receive? Gen Z Millennial Gen X (ages 13-21) (ages 22-34) (ages 35-50) / 17 +

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THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS For Gen Z, email’s primary use today is exchanging personal emails and receiving emails from companies, although this could shift as they enter the work force in the near future. 93% 68% Text message 97% Personal emails between me and 92% individual people I know (outside of 78% work) 87% 92% Phone calls 95% 94% Emails from companies sending me 68% 85% advertisements, coupons, receipts 69% Email 89% from purchases or password resets 68% 92% 88% 36% Social media 87% Professional emails between me and 77% people I work with 64% 55% 66% Social communication apps 75% 64% Professional emails between me and 24% 56% companies connected to my 44% Video chat 59% occupation 38% 38% CURRENT COMMUNICATION USE CURRENT EMAIL COMMUNICATION USE S7 / On the list below, please select which of these you’ve used in the past S8 / You mentioned that you currently use email to communicate with other month. people. Which of the following best describes the types of emails you send and receive? Gen Z Millennial Gen X (ages 13-21) (ages 22-34) (ages 35-50) / 18 +

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THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS Yet, younger participants place relatively high value on B2C emails compared to older generations and compared to all other types of email communication. Gen Z Millennial Gen X Index to Index to Index to Total Total Total C2C 43% 86 45% 89 59% 118 AL I 34% 116 28% 95 28% 96 T B2C Essential Essential Essential ESSEN B2B Individual 26% 62 52% 124 42% 98 B2B Company 15% 62 27% 114 25% 108 C2C 47% 83 50% 89 68%120 T N B2C 36% 113 30% 95 31% 98 A T Important Important Important OR B2B Individual 26% 66 47% 118 41% 102 P IM B2B Company 16% 66 27% 114 25% 105 CURRENT CATEGORY ENGAGEMENT (EMAIL TYPE) Q3B/Q4B / Thinking specifically about email, which of the following forms that you use is essential/important to your life? / 19 +

THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS Email is primarily a vehicle for work exchanges, particularly for sharing documents, scheduling meetings and communicating about work generally. 48% 37% 41% 24% 23%26% 23%27% 23%23% 25% 16% 14% 18% 14%15%16% 14% 12% 8% 5% Sharing an article Sharing baby or Sharing fun Sharing a video Catching up Having a long Having a quick or other site family photos photos conversation conversation SHARING SOCIALIZING 77%73% 67% 65% 61% 61% 58% 55% 56% 52% 52%53% 47% 48% 50% 44% 42% 36% 40% 38% 31% 30% 32% 31% 29% 27% 15% 16% 16% 9% Sharing a Scheduling a Communicating Collaborating on Inviting someone Networking Coordinating Making plans Inviting someone Making plans document or meeting about work projects to a work event within a large, with a large to a personal with a small report diverse group of group event group people PROFESSIONAL COMMUNICATIONS MAKING PLANS Gen Z Millennial Gen X TOTAL PLATFORM/CONTENT PREFERENCES FOR EMAIL Q1A / Below is a list of different reasons you might communicate with others. For each one, please indicate which tool you use. / 20 +

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THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS There is also an overwhelming preference for email when used for company- to-consumer interactions. TOTAL 70% Email 72% 74% 79% Emails Physical things in the mail (e.g. 34% promotions, catalogs) 43% 41% 44% Physical things in the mail (e.g. promotions, catalogs) 31% Ads when I'm on social media (e.g. 26% 24% Facebook, Snapchat) 18% AdswhenI'monsocialmedia(e.g. Facebook, Snapchat) 27% Ads when I'm browsing the internet 19% 20% 17% AdswhenI'mbrowsingtheinternet 20% Notifications from company apps on 19% 17% my phone 13% Notifications from company apps on my phone 12% Ads via text message on my phone 12% 12% 11% Adsvia text message on my phone Gen Z Millennials Gen X COMPANY TO CONSUMER INTERACTION PREFERENCES Q2B / Which of these are your preferred methods for a company to interact with you? + / 21

THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS For consumer-to-company interactions, people prefer to follow companies on social media, receive newsletters, or email them directly. TOTAL 39% 39% Follow or “like” on social media 42% 35% Sign up for their newsletter 29% 31% 32% 34% Email company 28% 34% 32% 34% Download company’s app 28% 27% 20% 24% Call company directly 12% 20% 21% 19% Write reviews of products on 14% websites 24% 18% 14% Write reviews on company’s social 9% 11% media page 15% 10% 7% Tweet at company 8% 6% 4% Purchase items, but don’t initiate 27% anything further 24% 25% 25% Gen Z Millennials Gen X CONSUMER TO COMPANY INTERACTION PREFERENCES Q2A / How do you interact with companies you’re interested in or buy from? / 21 +

THE FUTURE OF DIGITAL COMMUNICATION CURRENT COMMUNICATION BEHAVIORS “My job requires a lot of email use to communicate with my team and other departments where I work. I also use it to get sales flyers/promotional info from companies I have purchased from more recently. I like that form of communication from companies I buy from.” MALE,MILLENNIAL + / 23

WHAT MIGHT DIGITAL COMMUNICATION BEHAVIORS LOOK LIKE TOMORROW? The Digital Communication Horizon

THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON “Previously an email was for communicating with teachers in college, now it is used for work communication, rapid spreading of information for work, and communication with companies I purchase from.” ◤ FEMALE,MILLENNIAL + / 25

THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON The vast majority of people – 88% and 85%, respectively – believe that their email usage will stay the same or increase in the next year and 5 years. Increase a lot 10% 10% 7% 12% 13% 7% 13% 19% 16% Increase a little 21% 24% 16% 22% 23% 26% 29% 66% 62% Stay the same 57% 52% 57% 51% 42% 35% Next Next 5 Next Next 5 Next Next 5 Next Next 5 1 2 3 4 5 6 7 8 9 10 11 year years year years year years year years TOTAL Gen Z Millennials Gen X Stay the same or 88% 85% 81% 83% 91% 88% 88% 85% increase FUTURE CATEGORY ENGAGEMENT Q7/Q8 / Thinking ahead, how much more or less do you think you’ll be using each of these forms of communication in the next year/next 5 years? / 26 +

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THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON Email usage is expected to continue to increase the most among Gen Z while email usage among Millennials and Gen X appears to approach saturation. Increase a lot 10% 10% 7% 12% 13% 7% 13% 19% 16% Increase a little 21% 24% 16% 22% 23% 26% 29% 57% 66% 62% Stay the same 57% 52% 51% 42% 35% Next Next 5 Next Next 5 Next Next 5 Next Next 5 1 2 3 4 5 6 7 8 9 10 11 year years year years year years year years TOTAL Gen Z Millennials Gen X Stay the same or 88% 85% 81% 83% 91% 88% 88% 85% increase FUTURE CATEGORY ENGAGEMENT Q7/Q8 / Thinking ahead, how much more or less do you think you’ll be using each of these forms of communication in the next year/next 5 years? / 27 +

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THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON Email communications of all types exhibit strong staying power! The vast majority of respondents believe their email usage (regardless of type) is going to stay the same or increase in the near future. Increase a lot 11% 12% 10% 13% 8% 10% 6% 7% Increase a little 22% 23% 25% 25% 23% 18% 19% 24% Stay the same 59% 54% 56% 53% 56% 55% 59% 59% Next Next 5 Next Next 5 Next Next 5 Next Next 5 1 2 3 4 5 6 7 8 9 10 11 year years year years year years year years Professional emails Professional emails Advertising or marketing Personal emails between between me and companies between me and people I emails from companies me and individual people I connected to my occupation work with sending me information or know (outside of work) coupons Stay the same or 91% 90% 91% 90% 88% 88% 83% 84% increase FUTURE CATEGORY ENGAGEMENT Q9/Q10 / Thinking ahead, how much more or less do you think you’ll be using each of these forms of communication in the next year/next 5 years? / 28 +

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THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON Specifically, Gen Z is more confident than any other generation that their email communication will increase next year. In the next year Gen Z Millennial Gen X Decrease Stay the Increase Decrease Stay the Increase Decrease Stay the Increase same same same Professional emails between me and companies connected to 8% 46% 46% 7% 56% 36% 11% 68% 21% my occupation Professional emails between me and people I work with 9% 40% 51% 7% 54% 38% 11% 67% 22% Advertising or marketing emails from companies sending me 14% 47% 39% 10% 55% 34% 12% 60% 28% information or coupons Personal emails between me and individual people I know 19% 51% 30% 16% 58% 26% 18% 63% 19% (outside of work) FUTURE CATEGORY ENGAGEMENT Q9/Q10 / Thinking ahead, how much more or less do you think you’ll be using each of these forms of communication in the next year/next 5 years? / 29 +

THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON This increase is anticipated to be even greater when looking ahead 5 years from now. Gen Z – more than Millennials or Gen X – believes that B2B and B2C email usage will continue to grow. In the next 5 years Gen Z Millennial Gen X Decrease Stay the Increase Decrease Stay the Increase Decrease Stay the Increase same same same Professional emails between me and companies connected to 11% 34% 55% 9% 53% 38% 12% 67% 21% my occupation Professional emails between me and people I work with 9% 34% 57% 9% 51% 40% 11% 66% 23% Advertising or marketing emails from companies sending me 13% 45% 42% 11% 54% 35% 12% 61% 27% information or coupons Personal emails between me and individual people I know 17% 48% 35% 16% 59% 25% 16% 65% 19% (outside of work) FUTURE CATEGORY ENGAGEMENT Q9/Q10 / Thinking ahead, how much more or less do you think you’ll be using each of these forms of communication in the next year/next 5 years? / 30 +

THE FUTURE OF DIGITAL COMMUNICATION THE DIGITAL COMMUNICATION HORIZON “I work remotely and have to coordinate a lot more with coworkers and colleagues, and [email] is the preferred and most professional way we communicate.” ◤ MALE, GEN X +

WHAT ARE THE PRIMARY DRIVERS OF EMAIL USAGE? Critical Email Influences

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES “I started high-school recently and now email is a great way to communicate about work efficiently with peers and teachers.” ◤ MALE, GEN Z + / 33

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES In our qualitative immersion, we captured longevity of digital communications and discovered that email is constant and important, while various social media apps are perceived as fleeting. IMPORTANT Voice/ Video Chat Email G Text CO N NS TI Facebook T E A E NT FL Instagram Twitter Snapchat FUN LONGEVITY OF DIGITAL COMMUNICATION BEHAVIORS Qualitative Consumer Immersion / 34 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES We confirmed this insight when we isolated the attitudes that people are likely to have across various digital communication forms. Email Instagram Twitter Snapchat PREDICTORS PREDICTORS PREDICTORS PREDICTORS ‣ I place a lot of value on having ‣ I place a lot of value on having ‣ I place a lot of value on having ‣ I place a lot of value on having time to myself time to myself time to myself time to myself PROHIBITORS ‣ I have a large network of friends ‣ I have a large network of friends ‣ I have a large network of friends ‣ I like to forge my own path, free that I hang out with I hang out with I hang out with from the influence of others ‣ I rely on social media to stay ‣ I write online reviews about ‣ I rely on social media to stay ‣ I prefer to keep my opinions to current things or experiences I’ve tried current myself PROHIBITORS ‣ I rely on social media to stay PROHIBITORS ‣ I rely on social media to stay ‣ Basic technology is all I need, current ‣ I prefer to relax at home than go current the super high-tech stuff isn’t for ‣ I pride myself on being in the out on weekends me know about the latest and ‣ I write online reviews about greatest technology out there things or experiences I’ve tried PROHIBITORS ‣ Basic technology is all I need, ‣ I prefer to keep my opinions to the super high-tech stuff isn’t for myself me ‣ Basic technology is all I need, the super high-tech stuff isn’t for me ATTITUDES ASSOCIATED WITH CURRENT DIGITAL COMMUNICATION BEHAVIORS / 35 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES Apps that are perceived as more fleeting are defined by narrower, transient and more life stage-centric attitudes that are likely to change over time. Email Instagram Twitter Snapchat PREDICTORS PREDICTORS PREDICTORS PREDICTORS ‣ I place a lot of value on having ‣ I place a lot of value on having ‣ I place a lot of value on having ‣ I place a lot of value on having time to myself time to myself time to myself time to myself PROHIBITORS ‣ I have a large network of friends ‣ I have a large network of friends ‣ I have a large network of friends ‣ I like to forge my own path, free that I hang out with I hang out with I hang out with from the influence of others ‣ I rely on social media to stay ‣ I write online reviews about ‣ I rely on social media to stay ‣ I prefer to keep my opinions to current things or experiences I’ve tried current myself PROHIBITORS ‣ I rely on social media to stay PROHIBITORS ‣ I rely on social media to stay ‣ Basic technology is all I need, current ‣ I prefer to relax at home than go current the super high-tech stuff isn’t for ‣ I pride myself on being in the out on weekends me know about the latest and ‣ I write online reviews about greatest technology out there things or experiences I’ve tried PROHIBITORS ‣ Basic technology is all I need, ‣ I prefer to keep my opinions to the super high-tech stuff isn’t for myself me ‣ Basic technology is all I need, the super high-tech stuff isn’t for me ATTITUDES ASSOCIATED WITH CURRENT DIGITAL COMMUNICATION BEHAVIORS / 36 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES On the other hand, the email user is broad and undefined – an indication that email is a ubiquitous communication form inherent across people with many attitudes. Email Instagram Twitter Snapchat PREDICTORS PREDICTORS PREDICTORS PREDICTORS ‣ I place a lot of value on having ‣ I place a lot of value on having ‣ I place a lot of value on having ‣ I place a lot of value on having time to myself time to myself time to myself time to myself PROHIBITORS ‣ I have a large network of friends ‣ I have a large network of friends ‣ I have a large network of friends ‣ I like to forge my own path, free that I hang out with I hang out with I hang out with from the influence of others ‣ I rely on social media to stay ‣ I write online reviews about ‣ I rely on social media to stay ‣ I prefer to keep my opinions to current things or experiences I’ve tried current myself PROHIBITORS ‣ I rely on social media to stay PROHIBITORS ‣ I rely on social media to stay ‣ Basic technology is all I need, current ‣ I prefer to relax at home than go current the super high-tech stuff isn’t for ‣ I pride myself on being in the out on weekends me know about the latest and ‣ I write online reviews about greatest technology out there things or experiences I’ve tried PROHIBITORS ‣ Basic technology is all I need, ‣ I prefer to keep my opinions to the super high-tech stuff isn’t for myself me ‣ Basic technology is all I need, the super high-tech stuff isn’t for me ATTITUDES ASSOCIATED WITH CURRENT DIGITAL COMMUNICATION BEHAVIORS / 37 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES “I started college and email is essential in college. I've had a few different jobs since starting school and some of those jobs require email for communication. I have also taken on several leadership roles in a large organization, which requires email to communicate with members throughout the country.” ◤ FEMALE, GEN Z +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES “Previously an email was for communicating with teachers in college, now it is used for work communication, rapid spreading of information for work, and communication with companies I purchase from.” ◤ FEMALE, MILLENNIAL +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES All personality types use email, but those who work in a traditional office or are entering / exiting school are most likely to send email more in the future. Life stage Attitudes Work Environment CURRENT USAGE CURRENT USAGE CURRENT USAGE ‣ Started a new job / started college ‣ I place a lot of value on having time to myself ‣ In current position 5-10 years ‣ Got promoted ‣ Moved to a new city / state ‣ Bought a house or condo NEXT YEAR NEXT YEAR NEXT YEAR ‣ Opened my own business ‣ I place a lot of value on having time to myself ‣ Currently employed ‣ Graduated high school ‣ I have a large network of friends I hang out with ‣ Work in an office / job requires a lot of time ‣ I pride myself on being in the know about the latest on the computer and greatest technology out there ‣ Less than one year at current position NEXT FIVE YEARS NEXT FIVE YEARS NEXT FIVE YEARS ‣ Opened my own business ‣ I pride myself on being in the know about the latest ‣ Less than one year at current position ‣ Finished graduate school and greatest technology out there / 40 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES Respondents told us that increased email usage results mostly from their jobs and school. They also indicated that B2C emails are driving usage. “I’m using my emails more for business as my career progresses.” Professional (job/ work) 45% ◤ MILLENNIAL Increased use of email (general) 11% B2C emails (promos, subscription, 10% billing) “I've started interacting with companies (like survey Education (school/ college) 10% companies) that email me things such as rewards or offers.” ◤ Personal life 7% GEN Z Good way to communicate (general) 6% Generally increased, but use it in “I returned to school for my PhD, and email is essential combination with other 5% in communicating with my professors, my advisory communication forms board, and often my family to be quick about getting in More efficient than other forms of touch and updating them on things, rather than making communication (record, more 4% phone calls, which I don't enjoy.” organized, better access) ◤ REASON FOR EMAIL INCREASE GEN X Q6A / You mentioned that your use of email has increased, what is the reason for that? (Coded open-ended response) / 41 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES Though email’s pervasiveness and growth overall is clear, that trend doesn’t hold for every single person. Among that minority, the greatest reasons are people turning to text, social media and other communication forms. Using text messaging more 42% “I use e-mail a lot more to get notifications from stores or Using more social media (general) 17% real estate sites and such. But with family and friends, most of my e-mail conversations seem to be drifting to Use of other communication forms 11% text.” (video chat, phone) ◤ Using communication apps more 10% (WhatsApp, FB Messenger) GEN X Professional (job/ work) 8% Found more efficient ways to 7% communicate (general) Sending/Receiving less emails 5% “Everyone has some sort of social media account and (general) it's easy to find them on there. I mainly use my email for Changes to email habits (less time, 5% promos at stores.” not going through emails regularly) Email became ineffecient (spam, 3% ◤ too many emails, too slow) MILLENNIAL Education (school/ college) 1% B2C emails 1% REASON FOR EMAIL DECREASE Q6A / You mentioned that your use of email has decreased, what is the reason for that? (Coded open-ended response) / 42 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES Digital communication behaviors are rapidly changing, in large part due to demand for convenience and more visual communication. “With my smartphone, it is easier for me to “Increased text and use of social media, I.e. Instagram. People share communicate online. Therefore, I spend more time on more pictures and videos with each other digitally and communicate with social media platforms.” each other in person less.” ◤ ◤ GEN Z MILLENNIAL “I have gone from a person who does not snapchat to “The biggest change in my digital communication is probably my ability to one who loves it more than any other form of communicate using multiple methods of communication -phone, text, communication. I was once almost all iMessage but FB messenger, etc. I don't prefer just one, I use them all because they're the visual photo as a part of the message is so much all needed for different uses.” better than any regular text.” ◤ ◤ MILLENNIAL GEN Z “I got a smart phone which allows me to use “It's faster and more reliable to send emails and much easier to messenger and snapchat and other apps.” communicate online than in the past.” ◤ ◤ GEN Z GEN X BIGGEST CHANGE TO COMMUNICATING DIGITALLY Q6B / What would you say the biggest change has been in the way you communicate digitally in the past few years? / 43 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES Regardless, all generations view email as an integral part of their digital communication portfolio that won’t waver. “I definitely communicate more professionally through “Communicationwith my co-workers at my current job is primarily email.” through email. I also started a graduate program where a lot of ◤ communication is through email.” GEN Z ◤ MILLENNIAL “The use of email. The transition from high school to college had me using email once a week to a couple “More email and texting, less talking on the phone. Also advertising my times a day.” own business (social media posts).” ◤ ◤ GEN Z GEN X “Using my phone for more, even email. More on the “I handle a lot more of my communication needs by email instead of go format.” phone call, which is what I used to do.” ◤ ◤ MILLENNIAL GEN X BIGGEST CHANGE TO COMMUNICATING DIGITALLY Q6B / What would you say the biggest change has been in the way you communicate digitally in the past few years? / 44 +

THE FUTURE OF DIGITAL COMMUNICATION CRITICAL EMAIL INFLUENCES “I communicate with companies and businesses a lot more through e-mail. Everything from getting coupons, to tracking shipments, billing notifications, scheduling and I even make inquiries by e-mail rather than phone if I can.” ◤ FEMALE,GEN X + / 45

About SendGrid SendGrid helps you focus on your business without the cost and complexity of owning and maintaining an email infrastructure. We help with all technical details (from whitelabeling to DKIM) and offer world- class deliverability expertise to help your emails reach the inbox. And with a full-featured marketing email service that offers an intuitive workflow, effortless list segmentation, and actionable analytics, all of your email needs are met in one simple platform. / 46 +

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Thank You. +