Personal, anticipated, and valued—that is the true definition of transactional email. It’s the most coveted type of email on the planet because it is triggered by an action that your user or customer has taken. In fact, we argue that since transactional email is sent once someone has become a buyer and/or user, you should take great pains with the care and nurturing of this email stream to ensure email delivery and email engagement. Not convinced? Let’s take a quick walk down memory lane.
It might surprise you to learn that transactional email was once considered a bit of a stepchild. Marketing had no visibility into its messaging or possibly even its existence. HTML and personalization was virtually nonexistent and monitoring transactional email delivery was unheard of. Yet, these were the emails that people wanted more than the millions of promotional emails that flooded their inboxes. It has only been in the past few years that transactional email has made its mark on the email ecosphere, and the results have been staggering.
- It gets delivered and consistently read! Deliverability is almost always higher for transactional email because of its sheer nature. With a 50% open rate and 20% click through rate, these high engagement levels help organizations build a solid reputation that gets them inboxed.
- It’s trusted and actionable. Since the email is anticipated, it is more likely to yield a response. In fact, customers are highly receptive to transactional email and would prefer to use it for communicating with companies as evidenced by this chart from MarketingSherpa.
- It drives revenue and reduces support costs. A well thought out transactional email can perform many tasks. It can serve as a support channel as well as a promotional outlet delivering relevant information on time and as promised while increasing profits. In fact, studies show that transactional email can have transaction rates up to 8x higher than bulk email with revenue 2-5x higher per transaction.
- It builds loyalty. Done right, a transactional email can leave a lasting impression with your users. Timely, relevant emails show that you are connected and motivate your users to engage in an ongoing dialogue that will drive brand loyalty. According to the DMA’s 2012 Email Tracking Report, 34% of consumers chose to receive 6 emails a day from brands they trust.
- It’s required. No matter what business you are in, you send transactional email to confirm orders, send updates, acquire members, or for dozens of other uses. It just makes sense to ensure that every touch point with your user works to drive lasting relationships with your brand. We’ve sent over 100 billion emails for over 100,000 companies and that number rises every day.
To learn more about transactional email and how you can improve its performance, you can download our free best practice guide, Leveraging Transactional Email for Success.