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

– wlanier@silverpop.com

• Loren McDonald– lmcdonald@silverpop.com– Twitter: @LorenMcDonald

www.silverpop.comTwitter: @Silverpop