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Presentation from Silverpop's April 16, 2009 Webinar on Transactional Email Best Practices. Includes definitions, challenges, good and bad examples, best practices and tips. Intended to show marketers why they should own transactional emails for their company and opportunities to generation greater customer engagement and revenue from transactional messages.
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Transactional Messages: Loved by Recipients, Neglected by Marketers
April 16, 2009
Speakers & Agenda• Whit Lanier
– Product Marketing Manager
• Loren McDonald– VP, Industry Relations
• Agenda– Why Transactional Messages are Special– Current State– Value & Role– Examples– Case Study– Best Practices Checklist– Questions & Answers
Why Transactional Messages are Special
CAN-SPAM defines a "commercial electronic mail message" as "any electronic mail
message the primary purpose of which is the commercial advertisement or promotion of a
commercial product or service."
Newsletter/Promotional
• Obligations for Commercial messages, but not required for Transactional messages:
– An advertisement notation at the top (for non opted in)
– A U.S. Postal Service address– An unsubscribe link Note: This is a discussion of common practices, not
legal advice. Please consult your attorney.
CAN-SPAM defines a "transactional or relationship message" as any email "facilitating, completing or confirming a previously agreed upon transaction."
Transactional
Transactional Message
Marketers: Pick a Door
• Average Open Rate of 47%• Avg Click-through rate of
20%• Recipients receive only 87
of these messages per year
• Customers find this door twice as interesting as door #2
• Average Open Rate of 31%• Avg Click-through rate of
6%• Recipients receive 3,694 of
these messages received per year
Door #1 Door #2
Source: Jupiter Research “US email Marketing Forecast, 2007 to 2012”Source: Quris, Harris Interactive, Executive Summary Consulting, November 2004Source: Forrester Research, September 2003
Marketers: Pick a Door
Door #1 Door #2
Transactional Commercial
• Average Open Rate of 47%• Avg Click-through rate of
20%• Recipients receive only 87
of these messages per year
• Customers find this door twice as interesting as door #2
• Average Open Rate of 31%• Avg Click-through rate of
6%• Recipients receive 3,694 of
these messages received per year
Current State of Transactional Messages
Origin of Transactional Messages
Audio Dial-in: (605) 772-3434, access code 290-690-942
Legacy System Challenges
1) Poor and inconsistent brand experience
2) Typically no email tracking
3) Deliverability problems
4) Ineffective content creates increases customer service contacts
Transactional Email Trends
Source: How top retailers use transactional email, Silverpop, 2006
vs. 98% of promotional
emails are HTML6% of transactional emails also wind up in
the junk folder
Value & Role of Transactional Messages
Customer Stages & Engagement
Awareness
Interest
Trial
Repeat $
$
$$
$
Huge portion of marketing spend
Transactional messages play a big
role in the “trial” experience which determines future
engagement
Role of Transactional MessagesTraditional
“Transactions”
• Purchase confirmations
• Shipping notices• Out-of-stock• Receipts/Charges• Service request
received
Other
• Notifications• Alerts• Updates• Cross-sell/Upsell• Reminders
Marketing Content in Transactional Messages - Benefits
Decreased Burden on Support
Lower Call Center Volumes
Increased Customer Satisfaction
Increased Brand Recognition
Increased Revenue
0% 10%
20%
30%
40%
50%
60%
70%
% of email Marketers
One Silverpop client estimates that email
is 64 X cheaper than a
phone call
Graph Source: Jupiter Research “The Transactional Messaging Imperative,” 2008n=200 email marketers, US
Revenue Impact of Promotional Content
Company Size Large Med Small
Orders per year 986,395 500,000 100,000
Conversion rate 3% 3% 3%
Average Order Size $98 $98 $98
Additional Revenues
$2,900,000
$1,470,000
$294,000
Assumption Source: Jupiter Research “The Transactional Messaging Imperative,” 2008n=200 email marketers, US
Examples & Best Practices
Levels of SophisticationGet Branded
Get Delivered & Tracked
Inform and Educate Customers
Get Human: Usable & Scannable
Not So Good: Subject Line & Copy
Devoid of personality
Vague subject line
Better: Start with the BasicsSubject Line: Remind customers who you
are
Use a recognizable
“from” address
Be polite & show some gratitudeAnticipate
questions: how can recipients
follow up?
Personality: don’t be afraid of it
Personality, Scannability & Calls to Action
Excellent writing for scannability
Action!! Let users know what they
can/should do next
Personalization!
“This sender is DomainKeys
verified” Familiar site navigation
What Happened?
Nice use of HTML
Promotional offer in an appropriate
location
When including promotional content in transactional
messages, make sure the transactional content gets the
prime real estate
Hey, I recognize that logo!
Anticipate & Answer Customer Questions
Two email sequence
Promotional content is below the fold
Promotional Content Doesn’t Have to be Customized
Order details
Great HTML Layout
Same promotional
content reiterated
Including photos =
higher avg click-
through rate (7.1% vs 4.7%)
Silverpop’s 2006 study
“email creative that works”
Main message clearly
communicated in subject line
and top of message
Dynamic Promotional Content Based On Purchase
Customized cross-sell offers
More real estate? More offers!!
Bad Ratio!Pressing Your Luck
Inform me (a second time) that my order has shipped,
but with no details
LOTS of promotional
content
The majority of content in transactional messages should be
non-promotional
Email Acquisition
Order details
One well placed banner accomplishes:1) Call to Action2) List Growth3) Promotion
Location and prominence also pushes the envelope
“Banner image” will not show for 1/3 to ½ of recipients”
Find The “Check-in” Link/ButtonUnited
Check-in Email
- 7 links- But no check-
in
Oops – 2 Images – Link, Logo
Drive Financial Case Study
Extensive use of Transactional Messaging
“Every time an automated payment reminder is sent out, at least 50 customers reply with thanks that we
reminded them”
Customer Service Inquiry Acknowledgement - Improve Accuracy of Data
40% increase in accuracy of customer’s personal
data
SMS Reminders: 2,000 customers registered with no promotion of the feature
Overall customer experiences:• Less phone and hold time• Very positive responses &
ratings from online chat• Better Experiences
Best Practices Checklist
Best Practices Recap/ChecklistOrganizational
Marketing should oversee all emails sent (including transactional)Perform an organization-wide “email audit” to take account of all emails sent out by your organizationTechnical
Use a unique IP address & domain for transactional messages
Use Authentication (SPF, DKIM)
Make sure messages are sent quickly (preferably <1 minute)
Use an informative and easily identifiable “from name” and “from address”Closely track performance metrics like other emails – deliverability, opens, clickDifferent bounce handling(don’t retry soft bounces beyond 24 hours)
Best Practices Recap/ChecklistDesign - General
Use a compelling, relevant and informative subject line
Prominently display the details of the transaction
Write with personality – don’t be a robot
Use “writing for web” best practices - scannability
Include a “personal whitelist” request to improve future deliverabilityEducate customers: anticipate and answer likely questions
Include easy-to-find customer support info
Let design mirror website experience – include navigation elementsDesign - Promotional Content
Keep it secondary – 20% of content
Include photos to increase click-through
If capable, customize based on customer info
Contact Information• Whit Lanier
• Loren McDonald– [email protected]– Twitter: @LorenMcDonald
www.silverpop.comTwitter: @Silverpop
