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Transactional email is a method of customer communication in which automated, real-time messages are sent to users through email after a specific action has been performed within an application or website. These types of emails are narrowly focused to facilitate an agreed-upon transaction between the sender and the recipient.
Transactional emails not only validate and assure recipients that an action they have taken within a product or application has been completed, but also strengthen customer relationships by opening up channels of communication with personalized messaging.
Transactional emails are known to have strong user engagement rates as these messages are unique to the actions taken by a user. Open rates, repeated open rates, and click-through rates are typically much higher for transactional emails when compared to other types of emails, making them a great touchpoint for upselling, social sharing, soliciting feedback, cross-promotion and more.
Findings from the 2018 Transactional Email Benchmark Report indicate that businesses leverage transactional email to drive customer engagement, retention, and conversion. Of over 1,800 survey respondents, a majority of email senders see transactional email as important to customer engagement (82%), retention (80%), and conversion (72%).
Transactional emails that are implemented at the right stages of the customer journey can be critical drivers of growth and revenue for any business.
Transactional email use cases
There are many ways in which businesses can leverage transactional email throughout the customer journey to drive positive customer experiences, while at the same time driving revenue.
Welcome / Onboarding
User Invites and Sharing
Two Factor Authentication
Reports / Dashboards
Customer-first businesses pay close attention to the most critical moments of the customer journey and take advantage of business-critical insights to capitalize on increasing product adoption and user engagement. Transactional emails are a great way to notify fans, subscribers, users, and paying customers of important product moments that are fundamental to the success of business relationships.
Research shows that some of the most common types of transactional emails are new user welcome messages, followed by application notifications, password resets, onboarding, and education.
Each business is unique and should invest a significant amount of time and resources into testing and identifying exactly which moments of the customer journey are tied to customer engagement and revenue, and then consider utilizing transactional email as a method of communication.
How transactional emails work
One of the fundamental components of successfully executing transactional emails is the principle of instantaneous delivery. These types of messages often fulfill the expectations of a user after they’ve engaged with a business feature – ensuring top-notch email deliverability is critical to the success of transactional messages. Understanding the functionality of transactional email can open doors of opportunity for product and customer experience programs.
Transactional emails are most commonly generated automatically by e-commerce or other software applications that call an email API to create and send messages. Sophisticated product teams typically configure their product or application to trigger an email API after a certain action has been performed by the user. Thus, messages are sent instantaneously and delivered straight to the user’s inbox at the moment of transaction
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Learn from data-driven benchmarks and best practices that define the state of transactional email in 2018.SparkPost © 2019 All Rights Reserved