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Here’s Everything You Need to Know About Transactional Email

Here’s Everything You Need to Know About Transactional Email

Transactional email is sometimes referred to as ‘triggered or automated emails’ and it is an automated method of customer communication. 

It differs from marketing email as it is triggered by events, interactions, or preferences within a service or application rather than by a company’s marketing campaign. 

The way it works is that real time messages are sent to users through email after performing a specific action within an application or website. 

This kind of emails contain personalized details about specific actions as taken by a user. Examples will include the receipt from a purchase, shipping notification, password reset etc. since they are not just like every other generic emails, when implemented correctly, transactional emails can have very high user engagement rates.

Why send transactional emails?

one important use of transactional emails is that it helps connect and communicate valuable information to the user at very key moments of their customer experience. Every customer values on-demand services especially when they get it at the point when it is most needed. 

Transactional emails have various impacts on customer relationships. The ones with the most significant impact are identified below as they all help provide essential information that helps a user successfully manage a website, application or a digital product.

  • Account creation and activation emails
  • Welcome and onboarding messages
  • User invitations and shares
  • Security and account alerts
  • Password resets and two-factor authentication
  • Purchase receipts and shipping notifications
  • Legal notices

Who sends transactional emails?

Most businesses send transactional emails or app-generated notifications often. It can either be in the form of a notification for account creation, delivery receipts, user invites etc.

Digital products now execute transactional emails by directly embedding an email delivery service into their website or application. They do this integration through an email API that gives them control of communication with their customers through email sent directly from the website or app.

Transactional email for digital products

Successful digital products view transactional emails as an important component of their customer communication and engagement strategy. Being able to communicate with customers instantly and at critical moments of the customer journey has proven to increase product adoption, brand loyalty, and reduce churn rate. Some product teams have even utilized transactional emails as a core product feature. 

Transactional email and the customer journey

With each passing day, it becomes clear that transactional emails are essential throughout the user lifecycle and when implemented well, can significantly improve engagement, retention, and conversion.

It provides an opportunity for organization and brands to build stronger relationships with the customer through effective and prompt communication. Account creation emails, onboarding welcome messages, password resets and notifications, and other types of transactional emails provides a  standard method of business-to-consumer communication that are expected by consumers in order for them to stay loyal.

How to improve the transactional emails you send

What applies to businesses differs according to their structure and their unique values. As such it is important to understand the customers needs before making decisions on transactional email programs. 

Types of transactional emails

Event-driven notifications

These email types are similar to push notifications on mobile phones. Event- driven notifications can be used for various activities. They are not usually triggered by recipients action but by other people as is the case with status updates or reminders by certain services.

The aim of an event driven notification is to inform users of new messages or a special tag on social media. They can also be used to monitor shipping as they alert users that a package has been shipped or delivered. It also can be used to alert users of meetings as scheduled in their calendar.

Receipts and confirmations

This transactional email type is the most common. They occur after transactions have taken place. When customers make an order online, they receive a mail containing information about the purchase in order to serve as a confirmation or receipt for that particular order. New signups for accounts and events RSVP also can be used to trigger confirmation emails to verify that the registration or sign up was successful. 

Account-related alerts

Some emails aren’t explicitly requested by users but are triggered by the changes they make to an account they hold or manage. We have dunning emails that remind users of overdue invoices or failed attempts at payment can also be regarded as account related alerts. 

They function to keep users informed of billing issues and reduce churn. They also give the users the nudge they need to update their billing information when their accounts are at the risk of being deactivated. Other examples include changes to passwords or email addresses, log-in attempt notifications, trial expiration notices, or other account issues.

Explicit requests

These are types of transactional emails that contain information requested by users of an application or service. The requests are usually marked as urgent and users expect the emails to arrive immediately. 

An instance of these kinds of emails is when a user requests for a password reset. The user has no access to their accounts without a password and as such a password request comes with an expectation of an immediate response.

A request for a verification code used in two-factor authorization is another example of this kind of email. In this case, users are required to enter a temporary password in addition to their primary password to gain access to their accounts. As with password resets, users expect verification codes to arrive without delay. Most scenarios where missing account-related information is preventing users from gaining access to or activating their accounts usually fall into this category as well.

Summaries and digests

Some users, instead of receiving individual emails for every notification, prefer to combine them into groups. Summary or digest emails include a log of all the events that have occurred during a specific time frame that are sent to users at specified intervals. 

Summaries and digests are useful options for users who don’t want to miss notifications about activities that are important to them but would also not want to clutter their inbox with individual emails.

Digest emails aren’t limited to activities that have occurred in the past. They can include summaries of events that are planned to happen in the future, like the weekly summary of appointments scheduled for the following week.

Here's everything you need to know about Transactional email

Behavioral triggers

Behavioral emails can be used to increase customer loyalty and as such, are known to be a more marketing-focused transactional email types. Users will receive emails after they have achieved milestones or met certain conditions based on their interaction with a service or application. 

An onboarding email is one example of behavioral email. After creating new accounts, users receive welcome emails to help set them up and get familiar with an application. Abandoned cart emails and reactivations are also examples of behavioral emails. 

When customers have filled their carts online but didn’t check out, they can receive an automated email reminding them of the items they left in the cart. Reactivation emails also serve a similar purpose. When users haven’t interacted with an application for a length of time, or when they’ve signed up for a service but never used their account, they can receive emails to encourage them to log in again or to complete the onboarding process.

Support and feedback requests

Communication is very integral to every positive customer experience. If a customer submits a support request but does not get a confirmation that it was received, it can be frustrating, especially if the request was urgent. 

Support-based transactional emails help both sides by aiding the communication process and notifying each party of status updates. As with support requests, feedback can also help keep the customer experience positive. Very similar to how onboarding emails are triggered, feedback requests can also be set up to solicit reviews from customers sometime after they’ve made a purchase or signed up for an account. On the off chance that helpless criticism is gotten, businesses can contact clients and endeavor to transform negative encounters into positive ones.

Referrals and invitations

Numerous service providers provide means for clients to welcome their companions or associates to make a record by sending referrals and invitation emails. Rather than utilizing their email application to send an invite, users can enter their companions’ email addresses into a form, and the service will send the invitations on their behalf. 

Referral emails work in a similar way, the difference is that  yet the contrast between referral emails and invites is that referrals are boosted with an advantage for the sender and once in a while the recipient.

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