Since the late 90s, the application of Email for sales and marketing continues to be on the rise. Before email marketing came into existence, marketers used to communicate with the help of what is now called snail mail or telephone, which was very time-consuming. But with the evolution of emails, it has become much easier for your salespeople to interact with their customers and share various product updates via email. With the increase in ecommerce, it is only natural that transactional emails have played a more important role in how businesses communicate with their customers.
Since the COVID-19 pandemic, the rise in work from home has caused companies to rely on digital methods of communication, and email communication tops the list of digital communication tools. Today, this technology is highly used by businesses large and small who implement it within their internal communication channel and use it for sales and marketing. It is thus now seen as the main interaction channel between two individuals in a business.
The image also shows that by 2024, the users of email technology will grow to 4.3 billion, almost half of the Earth’s population.
Email marketing is actually a vast area with different types, and in this article, I’ll be discussing one such type that is critical to understand and implement, Transactional Emails.
Let’s start with the meaning of transactional emails.
What are Transactional Emails?
In layman’s language, transactional emails can be said to be auto-generated emails that are triggered upon certain actions performed by your customer. This becomes the main point of difference between transactional and normal marketing emails. As these are system-generated, it is considered an integral part of email marketing strategy. However, due to its functionality, it is also considered a form of marketing automation.
For example, password reset, shipping details, invoice details, etc., are kinds of transactional emails. I have included other different types within this article, and all the types are helpful to achieve whatever desired output you are seeking from your email marketing strategy.
Further Reading: A Comprehensive Guide on How to Build an Email Marketing Strategy
Importance of Transactional Emails In Email Marketing for Marketers
Compared to average emails, transactional emails receive 8x times more clicks and opens, along with a 6x revenue. (source)
Transactional emails can benefit businesses in many ways.
1. Develops customer trust
For any company to develop business, winning customers’ trust is the main key. Since the start of the interaction with your customer, it is essential for businesses to fulfill their requirements in order to make the fellow individual think of buying the product.
With transactional emails that clients receive after subscribing or purchasing the product, including monetary transactions, auto-generated feedback, subscription mails, query resolution mails, etc., they feel it satisfying to engage and feel confident in interacting with the business and trust their brand and services. With all these services, businesses can ensure to offer a positive experience to their clients.
Further Reading: The Top 38 Compelling Email Marketing Statistics for 2024
2. Increases company sales
Excellent product quality and customer service always boost company sales. While maintaining product quality is the sole responsibility of the technical team, the marketing team looks after the consumer to try to develop repeat sales. Also, your existing customers just might advocate for your brand in social media, leading to an increase in customer acquisition.
Transactional emails – the main source of today’s consumer support – can be personalized and allow you to share various suggestions based on the products they have purchased. Regularity of these mails will help maintain your customers’ attention and increase sales.
Further Reading: How to Measure Your Own Email Marketing ROI
3. Enhances engagement with clients
Being a customer ourselves, I, you, and all other people around us have the desire to receive a personalized experience when buying any product. To be precise, it gives the feeling of being treated specially and thus persuades the customer to develop importance for your brand.
Transactional emails generated automatically based on customer response can be personalized. And receiving these types of customized emails, even if they are transactional, can help build engagement between a company and its customers.
4. Improves your brand credibility
Advertising your brand at every stage of marketing is essential for your company. New customers especially need to know about your features, products, and, more specifically, how you treat your customers.
Transactional emails help customers gain more understanding about you. With a positive influence from the first conversations and emails, it is evident that they are more likely to stay with the same brand longer. Studies have found that for 96% of people customer service is important for their brand loyalty.
Further Reading: 15 Amazing Benefits of Email Marketing No One Ever Taught You
The 9 Main Types of Transactional Emails Used in Email Marketing
After understanding the meaning and inherent business value of transactional emails, let’s begin with the types of emails you can send to your customers as a part of daily transactions and interactions. As the product and company differ from one another, these types change accordingly. Still, most of the transactional emails I cover below have a lot in common and can be used by most businesses.
1. The Introductory Email
As the name says, this type of conversation shares an introduction about the company, its products, subscriptions, policies, etc., to help the clients (new customers) to want to learn more about the company. It will also make them understand how their purchase and other requirements will be managed.
Introductory emails can also be called welcome mails, as the business welcomes their customer with a motive to build a long-term relationship. As most of the conversations nowadays are not face-to-face, it is essential to let them know about your company.
Here are some points to make a perfect welcome conversation.
- It should be simple, short, and cover no irrelevant content.
- Make the subject line understandable and welcoming.
- Highlight the benefits of joining your community.
- Mention some of your featured products and customer reviews.
- Include a call to action at the end.
- Include contact details, website links, and social media pages.
2. Account Activation and Confirmation
As soon as a purchase is made, your customers usually receive an email confirming their account and activating it. You can also send double opt-in emails to those customers for confirmation of their accounts after their subscription.
Such account confirmation interaction consists of thanking customers for their subscription, monetary details, asking to confirm their account, company contact details, and other important details. Moreover, confirming the account details also allows you to keep your user data maintained with only authenticated information.
3. Password Reset
We all forget passwords. According to research, approximately 58% of email users have confirmed forgetting their passwords very often. We have also tried resetting it, so this type of email is well known to even people who don’t shop online or use social media.
The company or service provider sends password reset emails to the customer as a response to reset it. When your services/product/website requires login credentials for usage, it is essential for you to invest in creating this type of transactional mail. While creating such threads, you have to keep your tone as assertive and reassuring, as if you’re happy to help them.
As the threats of phishing and hacking are real, add a related link to block such an account or set a different password. This will only increase your brand credibility amongst your consumers.
4. Order and Shipping Confirmation
When the order is placed by your customers, you can reply to them instantly by emailing them the details that confirm their order placement, including their shipping and order tracking details. The latter one actually helps customers to track their orders, giving them assurance that their purchase is being processed and is on its way. Moreover, tracking the product also lets them know the amount of time needed for shipping and the tentative date of arrival.
It is because of these reasons that customers feel more engaged and plan to be loyal customers for a longer time. Such emails have high chances of getting opened and acknowledged.
5. Receipt and Invoice Details
This is a very important type of email that serves as a proof of purchase by your customers. Apart from providing them an invoice at the time of delivery, you can directly share those details over email conversation priorly.
Sharing such details in a personalized manner at the proper time develops a sense of customer trust which is helpful in attracting more customers. Along with such billing details, mentioning your responsibility to keep this information safe and actually confirming it enhances the trust they already have in you.
6. Delivery Confirmation
Though this doesn’t carry much importance, it helps you double-check if the delivery has been received in the right hands and in perfect quality. With delivery confirmation emails, you can ask your customers to confirm that they received their product and they are satisfied. This allows you to know if there are any mistakes that need to be rectified.
Apart from this, you can also reflect your brand identity and give options for product replacement or a refund if certain conditions are met.
7. Request for Feedback
Maintaining regular communication with your customers is essential to understand their needs. While you can choose the best communication channel for your business to seek feedback. many businesses decide to do so through emails as it truly scales and can be automated. I consider seeking regular feedback to be an essential component of email marketing.
It is a way to gather suggestions from your existing customers who wish for some changes in the products or services you provide or modifications in the way you provide them. Customer feedback can also help you know if they really appreciate your efforts and help predict how loyal of a customer they will be.
Create an email with an appealing subject line to do your best to better understand how you can better serve your customers. You can also design your own survey forms and distribute them throughout your network, including email, website, and social media.
8. Subscription Renewal
After experiencing the demand for OTT platforms like Netflix and other software subscriptions throughout the time of the coronavirus pandemic, people know how this system works. Most of the subscriptions are limited to a year or so. It becomes your duty to remind your customer of their renewals.
This is most helpful for the business working with subscription-based software or websites. While it is another chance to win your clients in renewing their software subscriptions, it is essential to leave a noticeable impact through the mails you send. Employ these strategies for the best results:
- Begin with your reminder mails as early as possible rather than waiting until the expiry date. Do not depend on your customers and wait for their attempt to renew. You can always share new plans and features beforehand.
- Share all the benefits they can lose by not renewing the plans. It will enable you to draw their attention towards updated features that they might be missing.
- You can offer them plans that benefit them by choosing a friend to share the subscription with. This mutually benefits both parties as you can also expand your network of customers.
9. Product Availability
Many a time, after choosing the perfect product, customers came across the issues of “limited stock” or “no stock”. This definitely reduces the desire for their purchases. Though you can’t exactly rush up the process and give them the product at the same time, there are other options to go for.
- Create an email explaining the problem and assure them of a tentative date for stock renewal at the same time.
- As soon as the products are restocked, share the messages with all of your waiting customers.
You can also add an option to “email when in stock” on your product page purchase button when the item is out of stock to allow your customers to be informed when that product is available again.
Further Reading: The 16 Best Email Marketing Tools to Consider Investing in Today
Leverage All of These Types of Transactional Emails and Reap the Benefits
As communication is the key for smooth buyer-seller relationships, finding chances to approach your customers and offer them benefits should be your primary goal. Email marketing is one of if not the best way to connect with your current and potential customers. It is important for you to develop a strategy for interaction and prioritize it. Give equal time to all your communications and make sure to arrange regular follow-ups.
Because transactional emails can be automated, you don’t have to spend much time writing emails to all of your customers. Creating the structure once is enough, but again you should make regular inspections and check if the process is intact and beneficial and allowing you to put your best foot forward with each communication point.
Did I miss any types of transactional emails that your company is using? Please comment below and let me know!
Meet Vara is an experienced Product Marketer at FactoHR, having expertise in creating various ideas for creative writing. He is passionate about researching and exploring blogs and checking out the latest trends and replicating his expertise in crafting exclusive content. His approach and readiness towards writing quality content are exceptional.
Hero photo by Pickawood on Unsplash
Transactional Emails FAQs
The transactional email refers to the automated messages that are sent out by businesses or websites in response to a specific action taken by the user. It is designed to provide confirmation or follow-up communication regarding a specific transaction. This could include things like purchase receipts, password resets, shipping notifications, or confirmation of email sign-ups. They are valuable for both businesses and customers alike, as they provide important information and reassurance throughout the transaction process.
One example of a transactional message could be a confirmation email or a message that you receive after placing an order on an online shopping website. These messages are meant to keep you informed about the transaction you have initiated and provide you with relevant details such as the order number, expected delivery date, and payment confirmation.
When you sign up for an online service or make a purchase at an e-commerce website, chances are you will receive a transactional email. These automated emails are triggered by a specific action, such as making a payment or changing your account information. Unlike promotional emails, transactional emails are focused on delivering important information to the recipient. They typically contain details such as order confirmation, account activation, shipping updates, or password reset instructions.
One example of a transactional email is a confirmation email that is sent after a user has made a purchase. This email typically includes details about the order, such as the item(s) purchased, the total cost, and the estimated delivery date. Other examples of transactional emails include password reset emails, welcome emails, and order update emails. These emails help maintain good customer relationships and ensure that users have the information they need to use a product or service.
Transactional emails are an essential piece of any successful email marketing campaign. With their ability to provide timely information and updates on customer interactions, these emails keep the lines of communication open between the business and the customer. They provide opportunities for cross-selling and can help build customer loyalty through personalized and relevant content.