Are you measuring the success of your transactional emails?

Are you measuring the success of your transactional emails?

Posted under Email Best Practices , Transactional Email on August 31, 2016

Transactional emails are emails that are always welcomed by customers/subscribers. These emails give them the information they wanted. Transactional emails include, welcome emails, password changed update, orders placed, payment update, etc. Tracking these emails can be highly beneficial for your business and we’ll tell you why.

Firstly, these are some of the reasons businesses don’t track transactional emails

A. Transactional emails are sent through in-house servers and don’t have a tracking mechanism.

B. It is assumed that the performance of these transactional emails are not so important after all, since they are mostly notification emails.

(If you think latter is true, you might want to read this blog to learn how powerful transactional emails are)

Either ways, you are missing out on the real value of transactional emails.

Inspite of the email overload, your subscribers are always on the lookout for certain emails. How you track and make best of these emails can impact your business greatly. Here are few important ways you can measure and optimize your transactional emails:

1. Inbox Placement Rate:

Your transactional emails don’t always reach the inbox, they could bounce or even land in Spam. Did you know that one in five commercial emails fail to reach the inbox? Whether or not your email has landed in the inbox plays an important role in determining the success of your email program. Most ESPs at large don’t give the inbox placement rate. So how does one track this vital metric?

Every business sends out at least one crucial transactional email that the customer has to take action on. It could be the OTP email to complete the transaction, password recovery email or verification email to create an account. These are all emails that the customer himself initiated. By tracking the open rates of these emails, you will get a fair idea about the inbox placement success of your total email program. That’s because all emails are sent using the same infrastructure.

Another way is to create a seed email list and test your email for delivery across various email clients.

2. Email volumes:

Sometimes, the most important observations come from seemingly insignificant measurement metrics. As a business you must be sending different types of transactional emails for different customer actions (welcome emails, alert messages, password reset, cart abandonment, etc). Analyzing the volume of these emails can drive deep business insights.

Take the case of our own emails. Once a client signs up to Pepipost to send transactional emails, the next step is to add domain. An email notification is sent to the client when his domain gets added. We noticed that the notification email volume when adding a domain was way below the welcome email volume. What went wrong? We analyzed and got to the root of the problem and simplified the whole process (steps) of adding a domain. Results? Our sign up conversions have improved drastically.

Every business can map their transactional emails throughout the customer journey and analyze this important metric to understand business flow and activity. Simplify the complicated process or steps, a customer should not be bulldozed with a heavy volume of emails for something small. You need to stand out in the crowded inbox, so transactional email volumes must be measured and analyzed.

3.Return on investment:

Many think transactional emails are merely notification emails and miss out on giving the right attention it deserves. As industry research goes, it’s not the marketing guys who send are sending these transactional emails. 53% of the transactional emails are managed and controlled by IT, operations and other teams.  Track, test and monitor your transactional emails to derive maximum value.

a. A/B test different versions:

inbox placement pepipost

What’s the best approach to win back your customers, emotional connect or with sense of urgency? Test different templates to see which works better and then you know which transactional emails are more successful and increase subscribers.

b. Create revenue streams by analyzing customer engagement levels at various touch points.

inbox email pepipost

If your welcome emails get the maximum response (highest open rates), convert them into revenue generators by offering a discount code. Monitor the subscribers who made a purchase through this email, this gives you an opportunity to get to know your lists better. This will help you understand what your customers are looking for and serve them better. Keep providing little discounts and offers along the way to keep them loyal to your brand.

4. Bounce Management:

In the world of emails, it’s all about managing your reputation right to make sure your emails to land in the inbox. And one super important aspect to email deliverability is bounce management. Many ESPs like Pepipost have a good bounce management system in place so that all hard bounced email addresses are blacklisted from future mailing.

Measuring your email bounce rate provides wealth of information on your business & process efficiencies. So if one is receiving a high bounce rate, they may want to recheck their data capturing systems, list hygiene practices (single/ double opt-in) and whether there’s a process in place for correcting the wrong email addresses. For example – sending texts to users to confirm and update their email addresses, sending surveys to check if they are still viewing your emails, provide unsubscribe buttons so customers can opt out if they want.

Love your subscribers and unsubscribed customers alike, it’s better to have interested customers than uninterested ones. Manage a healthy and active list of email addresses. Always test, test, test different email styles to keep your customers interested.

What metrics do you consider to measure the success of your transactional emails? Share your thoughts in the comments below.

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Sita Kalluri|Head - Marketing & Branding

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