How Transactional Emails Add Value to Your Lifecycle Marketing
It’s the boring things that matter most. Broccoli isn’t appealing, yet it gives you that much-needed calcium and fiber. Squats seem mundane and repetitive on leg day, but you’ll gain strength. This principle holds true in email marketing, too. While marketing emails are fun and sometimes flashy, it’s the overlooked transactional emails that deliver value to your lifecycle marketing. According to an IBM Marketing Cloud study, transactional emails are opened more than two times as much as non-transactional emails. Moreover, transactional emails have a median click-through rate of 4.8%, exactly three times higher than non-transactional messages. With that said, it’s time to give transactional emails your undivided attention. They hold the key to customer retention. Let’s explore the value behind transactional emails and how your team can reap the benefits.
While it’s tempting to concentrate on arbitrary tactics, you’ll benefit more by building a sound strategy around your transactional email campaigns. Focus on customer behavior, then insert a path to achieve your desired goal.
Improving your transactional emails is an opportunity for your team. When you optimize for value, you’re optimizing for a better customer experience. And happy customers lead to retention.
Delivering Continuous ValueIn its simplest form, email marketing is a communication channel for your business to connect with customers. Your primary goal is to educate your audience. However, over the years, email has transformed into an outlet to constantly sell to customers. On any given day, a buyer’s inbox contains three to five emails attempting to persuade him to purchase products. This ongoing sales pitch annoys customers (especially if none of the products fit their needs). As a result, consumers ignore these messages or worse, hit the spam button. Email marketing isn’t supposed to be like a random pop-up ad or a sleazy used car salesman. Rather, its purpose is to deliver continuous value to the customer. And that’s why transactional emails earn higher open and click-through rates. They inherently give value to email recipients. While industry experts define transactional emails differently, the CAN-SPAM Act offers a broad definition:
Transactional email: facilitates an already agreed-upon transaction or updates a customer about an ongoing transactionThese lifecycle messages can extend from welcome emails to subscription invoices to password reset emails. When customers receive these emails, they expect a high level of value. For instance, when customers make a purchase, they anticipate an order confirmation email. And once received, they feel reassured about making the purchase. Transactional emails keep the customer relationship alive. Justin Hieggelke, Customer.io’s vice president of sales, offers his perspective:
“Transactional messages provide an instrumental connection between the brand and the confirmation of value received. They create confidence, anticipation, and a connection between the user and the brand’s value exchange.”Your team can bridge the gap between the customer and your brand. The starting point is understanding the value within your transactional emails.