Email Marketing terms

Transactional Email

Emails that are triggered by a specific action, such as order confirmations, password resets, or receipts.

What is a transactional email in email marketing?

Transactional email in email marketing refers to a type of email sent to facilitate an agreed-upon transaction or exchange between the sender and the recipient. These emails typically contain information that the recipient wants or needs and do not usually contain promotional material. Examples of transactional emails include password reset emails, purchase confirmations, account notifications, and social media updates.

These emails are triggered by a user's interaction with a website or an app. For instance, when a user makes a purchase, a transactional email is sent to confirm the order. Because these emails are highly personalized and usually expected by the customer, they tend to have higher open rates compared to other types of marketing emails. Therefore, while their primary purpose is informational, they can also be used as a powerful tool to enhance customer engagement and loyalty.

Why is transactional email important in email marketing?

Transactional email is crucial in email marketing for several reasons. Firstly, it helps in building and maintaining a strong relationship with customers. These emails are typically triggered by a user's action, such as a purchase, account creation, or password reset, and are personalized and relevant to the user. This makes the customer feel valued and appreciated, thereby fostering a strong relationship.

Secondly, transactional emails have a significantly higher open rate compared to regular marketing emails. This is because they contain information that the user is expecting and finds useful. Therefore, they provide a great opportunity for businesses to engage with their customers, promote their brand, and upsell their products or services. Lastly, transactional emails help in improving the overall customer experience by providing timely and necessary information, which in turn can lead to increased customer loyalty and retention.

How does transactional email work in email marketing?

Transactional email in email marketing refers to automated, real-time emails sent to individuals based on their interactions or relationship with a company. These emails are typically triggered by specific actions or events such as account creation, password resets, purchase receipts, or order confirmations. They are not promotional in nature, but rather, they provide important information that the recipient needs to know.

The process begins when a customer performs a certain action on a company's website or application. This action triggers an API call to the company's email service provider, which then sends a personalized, automated email to the customer. The content of the email is usually predefined and is specific to the action performed by the customer. Transactional emails are crucial in email marketing as they help to enhance customer experience, build trust, and foster customer loyalty.

What are the benefits of using transactional email in email marketing?

Transactional emails have several benefits in email marketing. Firstly, they have a significantly higher open rate compared to traditional marketing emails. This is because they are typically triggered by a user's action, such as a purchase or account creation, and contain information that the user is expecting or needs, making them more likely to be opened and read.

Secondly, transactional emails can be personalized and targeted, which can improve customer engagement and satisfaction. They can be tailored to each user's actions and behavior, providing relevant and timely information. This can help to build a stronger relationship with the customer and increase their loyalty. Lastly, transactional emails can also provide valuable data and insights into user behavior, which can be used to optimize and improve future marketing strategies.

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