Email marketing entails sending promotional emails or company newsletters at regular intervals to the subscribers. But how many of you have heard of transactional emails? Did you know that while comparing email marketing effectiveness data of promotional emails vs. transactional emails, transactional emails emerge out clear winner? By this very virtue, companies who are not harnessing the power of transactional emails are missing out on a huge opportunity on customer interaction, feedback retention and increasing profits from email campaigns. Here we list 5 benefits of transactional email marketing which any business can’t overlook.
Table of Contents
What are transactional emails?
The U. S. Federal trade commission (FTC) defines a transactional email as:
Emails that facilitates an agreed-upon transaction or updates a customer in an existing business relationship. For the purposes of this whitepaper, we will elaborate on the FTC’s definition to describe any email communications that typically share certain characteristics: They are triggered by a specific site visitor action, such as a purchase or service request; are deployed automatically; and the emails recipients are usually your customers.
Transactional messages differ from “commercial” or marketing emails in several significant ways, including how their use is regulated by the U.S. Federal Trade Commission’s CAN-SPAM Act of 2003. Both types of emails are important components of a successful online sales initiative; however, their differences underscore the importance of addressing transactional emails marketing as a distinct subcategory of online marketing.
Listed below are some examples of transactional emails:
- Customer service statements or enquiries
- Password change requests
- Order confirmations and receipts
- Shipping tracking and notification information
- Double opt-in email conformation links
- Emails generated from ticketing information
- Product expiry, renewal notices
- Returns, changes or refund emails
Implementation of a transactional email program:
Before delving into the benefits or drawbacks of an transactional email program, first it should be implemented across the organization departments with each one of them having their own schedule. If a business is implementing his own email service delivery program the technical team has to be requested to incorporate the transactional email feature into it. Since email delivery is a complex process and there are often hassles of getting caught into spam filters, constant inbox delivery, measuring the effectiveness of both promotional and transactional email marketing program, it is better to go for a third party service provider who handles all the technical stuff for you. This is especially good for small organizations which can simply bank on third party providers for technical implementation and focus on marketing which will bring in more profits for their business.
Benefits of Transactional emails:
1. Improves customer confidence:
When subscribers regularly receive emails with information pertaining to their service / product updates it builds trust among them. There is a great possibility of getting the emails being whitelisted so that they always get into the inbox. The simple fact that a business cares for its customers is a good thing to instill among its subscribers.
2. Lowers burdens on other customer service channels:
Most of the transactional emails are triggered automatically on some event or at timely intervals. The metrics of such transactional emails are can also be downloaded in spreadsheet format for analysis and further improvements on the customer service, customer happiness initiatives. Instead of just providing customer services transactional emails can also be used to entice users into providing valuable feedback, or announce further discounts, personalized offers etc. which again boosts the profitability of a business at very low costs.
3. Better branding opportunities:
Creating a transactional email message in line with the corporate identity of a business reinforces the value of brand in the minds of subscribers. Topping it up with relevant information and a customer centric attitude in the transactional emails puts the business brand ahead of its competitors.
4. Importance as a referral channel:
As the subscribers are already impressed by your customer service delivered via transactional emails, the opportunity can be harnessed to ask them for referrals for the business. A satisfied customer is a good brand ambassador for the business and chances are great that the subscribers list will improve via generating more referrals from existing satisfied customers.
5. Increased revenue:
First of all the transactional emails as pointed above reduce a considerable amount of burden on other customer engagement channels. This itself cuts down on spending and frees vital business resources, be it in terms of money, personnel or infrastructure.
A research reports that, for companies with an average monthly volume of 2.8 million promotional e-mails, optimizing transactional messaging for delivery and promotional content can generate as much as $500,000 additional annual revenue.
Increased awareness about customers: The insights drawn from metrics which promotional and transactional emails provide to the analytics department, provides vital information on customer behavior and their buying patterns. By segmenting this information it can be leveraged to send more customized emails to subscribers, which will improve the profits for the business.
Conclusion about Benefits of Transactional Email Program:
Transactional emails were one of the most overlooked marketing solutions by even large businesses, but they are catching up with time and finding the importance of transactional emails indispensable.