What is transactional email?
Transactional emails are system-generated emails triggered by a specific action a user takes. Account confirmations, password resets, shipping notifications, order receipts, these are all transactional emails.
You've probably received dozens of them without thinking twice about it. If you've ever clicked 'forgot my password' or got an order confirmation after buying something online, that was a transactional email.
Why transactional emails matter
Transactional emails see higher engagement than any other email a business sends. On average, they get up to 8 times more opens and clicks than regular marketing emails, and they can generate up to 6 times more revenue.
Transactional emails are considered the most important by email recipients and they can boost revenue by 33%, Smart Insights
Most transactional emails are plain, unbranded, and built to satisfy an IT requirement rather than a marketing one. That's a missed opportunity. Because customers actively need these emails, the engagement is built in. Your newsletters might be well-designed and genuinely useful, but they're not vital. A password reset email is.
That gap in perceived value is exactly why bulk email needs a new approach. Mass mailings are less effective precisely because they lack direct relevance to the individual receiving them.
Types of transactional emails
Here's a look at the main types of transactional emails, and how you can make each one work harder.
Registration email Sent when someone creates an account on your site. Most businesses send a plain 'your account is active' message and leave it there.
TIP: Use the registration email to answer the two or three questions new customers always ask. It reduces support queries and gives customers a better first impression.
Notification email An alert about something happening in or with a customer's account. The most common example is the password reset request.
Confirmation email Sent once a customer completes an action, an online order receipt is the clearest example.
TIP: The confirmation email is one of the best places to include a relevant promotion or a product recommendation. The customer is already engaged and has just spent money, so the context is right.
Inactivity email Triggered when a customer hasn't been active for a set period, or abandoned a shopping cart mid-purchase. This is your chance to bring them back.
Transactional email best practice
- Be upfront. Put the purpose of the email front and centre. That's the reason the customer opened it. Social links and secondary content can sit below the main message.
- Be clear in your subject line. Make your emails easy to search for later. If someone requested a password reset, the subject line should say so plainly. Match the subject to the action that triggered the email.
- Be human. Write like a person, not a system. Customers can tell the difference, and a little warmth goes a long way in what is otherwise a functional email.
- Be consistent with your branding. Use your colour scheme and include your logo. Transactional emails are often the most-opened emails your brand sends, they should look like they came from you.
- Drive traffic back to your site. Every transactional email is a touchpoint. Use it to encourage customers to browse, buy again, or engage with your brand. Done well, it keeps your brand visible without feeling pushy.
If you'd like help setting up and optimising your transactional emails, get in touch, we'd love to help.
Frequently asked questions
- What is the difference between a transactional email and a marketing email?
- A transactional email is triggered by a specific action a user takes, such as creating an account, placing an order, or requesting a password reset. A marketing email is sent to a list to promote a product, share news, or drive a campaign. Transactional emails typically see much higher open rates because the recipient is expecting them.
- Can I include promotional content in a transactional email?
- Yes, and it's worth doing. Because transactional emails have high open rates, including a relevant promotion or product recommendation below the main message is an effective way to drive additional revenue. The key is to keep the primary purpose of the email clear and upfront.
- What triggers an inactivity email?
- An inactivity email is triggered when a customer hasn't logged in or made a purchase for a defined period, or when they abandon a shopping cart without completing a purchase. The goal is to bring them back before they disengage completely.
- Do transactional emails need to follow POPIA compliance rules?
- Transactional emails are generally sent on the basis of a contractual obligation or a direct action the customer took, which means they sit in a different category to marketing emails under POPIA. That said, any promotional content included in a transactional email should still comply with consent and opt-out requirements.