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Transactional emails might be your last untapped growth channel

By Veronica Best | July 9, 2024 | Categories: Email Marketing
Transactional emails might be your last untapped growth channel
⏱ 4 minute read

The massive volume of transactional emails you’re sending could be one of the best opportunities you have to experiment with fresh growth tactics. If you’re thinking that those shipping confirmation, subscription renewal, and receipt emails are a dead end, we hope that you’ll read on… 

These emails are a direct line to your customers at the moment when they’re most engaged with your brand, and that’s pure gold! They offer a unique opportunity to confirm a transaction, sure, but also to cross-sell, upsell, or engage your audience in meaningful ways. Transactional emails often have open rates of 40-50% and click rates at around 10-20%.

You’re probably investing a significant portion of your budget this quarter in trying to stand out in crowded social media feeds, or in the hopes of standing out in email inboxes full of Black Friday promotions. What if you shifted your approach with this thesis: transactional emails are a fresh channel where your message is going directly to willing and interested users. 

Transactional communication offers you a unique platform for success if your goal is to build trust with customers while providing them with genuine value. 

Let’s dive into six examples that are relatively easy to apply to most industries, from B2C to SaaS, from financial services to ecommerce. 

related products
Complementary Products

Imagine you’ve just ordered a state-of-the-art smartphone online, and you receive a shipping confirmation in your inbox. In that email, you can subtly cross-sell related items like premium phone cases, screen protectors, or wireless chargers. It’s the perfect moment to entice the customer with accessories that enhance their primary purchase. Try offering a discount code, or better yet, let them check out directly in your email.

loyalty programs
Loyalty Programs and Subscriptions

A confirmation email can also serve as an opportunity to promote your loyalty program or subscription services. If a customer has just ordered a single item, you could entice them with a “Subscribe & Save” offer, encouraging them to sign up for regular deliveries or join a rewards program that offers discounts, exclusive content, or early access to new products. This is a common example because it works!

product upgrades
Product Upgrades

When a customer makes a purchase, you could experiment with using the shipping confirmation email to showcase an upgraded version of the same product. For instance, if someone ordered a new pair of headphones, you could suggest a higher-tier model with more features and benefits.

Feature Expansion
SaaS Feature Expansion

After a user signs up for your product, use the confirmation email to highlight the potential for feature expansion. You can suggest upgrading to a higher-tier subscription plan with enhanced features, such as advanced reporting, more storage, or additional integrations. Make it clear how these extra features can benefit the customer and help them achieve their goals more effectively. Try offering bundles of extra users or usage packages at a great rate.

annual discounts

Annual Billing and Discounts

Encourage long-term commitment from your users by offering an annual billing option with a discount. In a subscription confirmation email, present the cost savings and the convenience of an annual subscription. This approach secures customer loyalty while also customer lifetime value for your SaaS business.

user training

User Training and Support

Excellent customer support and training are crucial for user success. Use your transactional emails as an opportunity to promote add-on services, such as personalized onboarding sessions, dedicated customer support, or advanced training courses. These offerings can help customers maximize the value they get from your product, improving retention while generating additional revenue.

Do these examples have you convinced that transactional emails represent an underutilized growth opportunity for marketers? Whether you’re in e-commerce or SaaS, you have a direct channel to your customers at the precise moments when they’re most engaged. That makes transactionals a strategic way to drive revenue and build stronger customer relationships.

In a nutshell, don’t underestimate the potential for transactional emails to help you boost growth. I think it’s high time we acknowledge the untapped growth potential of transactional emails and start experimenting to maximize their impact. 

Veronica Best, VP of Product

Voracious reader and self-professed #emailgeek. Passionate about all things product. VP of Product at Dyspatch.

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Tags: Email Design, Email Optimization, Transactional Email
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