Would you believe that your IT department might be in charge of what quite possibly is your most powerful marketing channel? Well, it's true. Although transactional emails usually have some of the highest open rates and are typically greeted with enthusiasm, they are often administered by IT departments, which treat them merely as simple text-based confirmations or shipping notices.
To showcase ways marketers can take advantage of the revenue-generating potential of this largely untapped channel, Silverpop studied how 84 top online retailers use transactional email and the types of promotional offers they include. Each transactional email was evaluated for:
- Time span between placement of order and receipt of email
- Subject line branding
- Personalization
- Layout elements
- Up-selling and cross-selling
- Smoothing the way to the inbox
- Administrative elements
One of the key findings in the study is that just one in five transactional emails studied included promotional offers within purchase confirmation notices. But with recipients having just made a purchase and probably thinking favorably about a company or a product, the transactional confirmation notice is an excellent opportunity to improve branding, up-sell and cross-sell to customers.
When adding promotional content to transactional messages, keep in mind that there are certain legal complexities to take into account, especially if you typically don't offer an opt-out in your transactional messages. While in most cases there is nothing prohibiting transactional messages from containing some promotional content, there are certain guidelines you must adhere to, especially in the United States, with respect to the placement of the commercial content and the content of the subject line. Silverpop recommends you consult with your legal counsel with respect to complete regulatory interpretations and compliance requirements.
So few promotional offers may be explained, in part, by the lack of HTML-based emails in the study. Just 58 percent used HTML for transactional messages, which limits not only creativity but also measurability. Another recent Silverpop study found that fully 98 percent of promotional messages used HTML. Using HTML that includes essential branding elements is a powerful way to enhance customer loyalty and increase revenue with transactional email.
Another way to enhance brand loyalty and increase revenue is to include a request to be added to recipients' personal white lists or address books. Despite more than half of email users in an e-Marketer report saying that they always add legitimate and trusted companies to their address books, merely 2 percent of the emails in the Silverpop study contained white list requests. This represents a missed opportunity to ensure deliverability and renderability of subsequent messaging.
There is no doubt that transactional email is rich with opportunity. JupiterResearch, in its May 2005 "Optimizing Transactional Email Messages" report, projects a healthy return on investment when companies include marketing-oriented messages in transactional email. Properly targeted with relevant offers, Jupiter estimates that these emails can generate as much as $500,000 annually in additional revenue for retailers when cross-sell and up-sell messages are included.
To realize the full potential of your transactional email, Silverpop recommends incorporating the following best practices:
- Send transactional messages within seconds of the purchase.
- Include the company name in the subject line.
- Send HTML-formatted messages to enhance branding and showcase other items the customer might consider.
- Personalize messages.
- Include photos, which help sell products and can work well in transactional emails.
- Include a link to your Web site.
- Use transactional messages to cross-sell and up-sell products and services.
For more ways to maximize your transactional email program, click here to download the complete Silverpop study.
