March 10, 2023
Reading time: 8 minutes

Transactional Emails: How They Can Hurt Brand’s Reputation

Are you tired of sending transactional emails that damage your company’s reputation?

Signs that you need to change your approach include the following:

  • low open rates
  • high unsubscribe rates
  • low engagement rates

These are key indicators that your audience is not connecting with your content, and it’s time to switch things up.  

So, do you want to learn how to avoid this common pitfall and improve your communication with customers? Look no further! In this blog post, we’ll delve into the intricacies of transactional emails and how they can make or break your reputation.

Get practical tips for crafting effective emails that resonate with your audience. It’s time to transform your transactional emails from bland to grand!

What is a Transactional Email?

A transactional email is an automated message that’s triggered by a user’s action or behavior. It’s an email that is sent in response to a transaction, such as a purchase, a password reset, or an account activation.

Transactional emails are an essential part of any business’s communication strategy. They provide critical information to the customer and keep them engaged. These emails typically have a higher open rate than marketing emails because they contain important information.

Most of the time, the information in a transactional email is specific and about the transaction at hand. The message may include order details, delivery information, and other relevant details. The goal of a transactional email is to provide value to the customer and establish trust in the brand. It’s crucial to get the tone and timing of these emails right because they can significantly impact the customer’s perception of your brand.

While transactional emails may seem straightforward, there are many elements that go into crafting an effective message.

The success of a transactional email campaign can depend on things like personalization, branding, and format. So, businesses need to find a reliable transactional email service provider that can send these messages quickly and effectively.

How a Transactional Email Service Provider Can Ruin Your Business

Here are 11 ways that subpar transactional email services can ruin your business:

1. Brand Loyalty

Your transactional emails are part of your brand and can have a big effect on how loyal your customers are. If your emails are poorly written, don’t make sense, or can’t be trusted, it can hurt how customers see your brand.

For example, if customers receive transactional emails with incorrect information or broken links, they may lose trust in your brand and turn to a competitor.

Also, not keeping up with modern email design trends or offering features like personalization is a problem. It can cause your brand to appear outdated and unprofessional.

Here are some best practices for designing effective transactional emails:

  • Keep it simple and to-the-point
  • Use a clear and concise subject line that accurately reflects the content of the email
  • Use a recognizable sender name and email address
  • Personalize the email using the recipient’s name and other relevant information
  • Use a consistent design and branding across all transactional emails
  • Include a clear call-to-action that encourages the recipient to take action
  • Optimize for mobile devices
  • Use clear and easy-to-read fonts and formatting
  • Provide relevant and useful information in the email
  • Test your email to ensure it displays correctly and functions properly
  • Provide a way for recipients to unsubscribe or manage their email preferences
  • Follow all applicable laws and regulations regarding email marketing and data privacy

By following these best practices, you can send better transactional emails to your customers. This will help you build your brand and promote customer loyalty.

2. Product Development

Transactional emails can also impact your product development efforts. For example, imagine that your email service provider can’t send automatic emails based on customer behavior or preferences. You won’t be able to learn as much about your customers as you could. Without these insights, it can be challenging to improve your products or services to better meet customer needs.

Automation tools can be a game-changer when it comes to streamlining the process of sending transactional emails. These tools can help automate the creation and sending of emails based on predefined triggers. These triggers could be a customer making a purchase or signing up for a newsletter.

By automating this process, you can enjoy the following perks:

  • Save time and resources
  • Reduce errors and inconsistencies
  • Ensure that customers receive timely and relevant communications

Automation tools can also provide valuable insights into email performance. With these insights, you can improve your email campaigns and your email marketing strategy as a whole.

Also, automation tools can help businesses personalize their transactional emails at scale. They use customer data to customize email content, subject lines, and more. This can help build stronger customer relationships and increase email marketing engagement.

Additionally, it helps if your email service can send emails in real-time and at scale. A lack of this feature will hinder your ability to keep up with market demands and stay ahead of the competition.

3. Cross-Selling and Upselling

Cross-selling and upselling are important parts of many businesses. Transactional emails can be a powerful way to promote other products or services. You can send emails to customers who just bought something to tell them about related or better items.

However, your transactional email service provider may not have the necessary targeting features. Hence, your cross-selling and upselling efforts may fall flat.

For example, you send a generic email promoting a product that isn’t relevant to a particular customer. They may lose interest in your brand altogether. Imagine that you send targeted emails based on a customer’s purchase history or browsing behavior. You can increase the chances of making a successful cross-sale.

4. Reactive

When it comes to transactional emails, it’s essential to be proactive rather than reactive. Your email service provider is not capable of detecting issues in real time. Hence, you may not be able to respond quickly enough to customer inquiries or complaints. This can lead to frustration and dissatisfaction among your customers. They may choose to take their business elsewhere.

A good email service provider should have a robust monitoring and alert system in place. This will detect any issues as soon as they arise. It also allows you to take immediate action and provide excellent customer service. Your efforts can go a long way toward building trust and loyalty with your customers.

5. Retail Selling

Transactional emails are a great way to promote retail sales, but only if your email service provider has the right features. For instance, consider a targeted email promoting a sale or a specific product. You need an email service provider that can segment your audience properly.

Additionally, your email service provider should provide robust analytics and reporting. This will help you understand which emails are most effective and which ones are not. You can also use it to refine your approach and make the most of your retail selling efforts.

6. Solution-based Sales

Solution-based sales are an increasingly popular approach. Transactional emails can be an excellent tool here. But if your email service provider doesn’t have the personalization and targeting tools you need, it can be hard to use this method well.

Solution-based sales involve understanding your customers’ needs and offering solutions that meet those needs. To do this, you need to know a lot about your audience and be able to tailor your emails to them.

The wrong email service provider reduces the chance of making a successful sale.

7. Marketing Approaches

Poor marketing approaches could also make transactional emails radioactive for your business. The right email service provider can segment your audience based on their behavior and interests. They then send them timed and targeted marketing emails.

For example, let’s say a customer has recently made a purchase from your online store. You can use Trackmage to send them a link to their shipment tracking page. This tracking page can include suggestions for related products. Any other email they receive will be about the most important parts of their delivery. You never have to cross-sell them via email.

Sending too many irrelevant messages could cause you to violate the CAN-SPAM Act. This will affect your deliverability.

Here are some best practices for ensuring that transactional emails comply with the CAN-SPAM Act:

  1. Clearly identify the sender and provide accurate contact information, including a physical address
  1. Include a clear and conspicuous subject line that accurately reflects the content of the email
  1. Ensure that the email content is relevant to the recipient’s transaction or relationship with the company
  1. Include an opt-out mechanism, such as a link or email address, that allows recipients to easily unsubscribe from future emails
  1. Honor opt-out requests promptly and remove the recipient from the email list within 10 business days
  1. Monitor third-party service providers to ensure that they also comply with legal requirements
  1. Train employees on CAN-SPAM compliance 
  1. Sales Approach

Transactional emails with the wrong sales approach can also be detrimental. Your email service provider plays a significant role here. For instance, if a customer abandons their cart, you can send them an email reminding them of the items they left behind. You can also offer a discount code to encourage them to complete the purchase.

Here are some examples of sales approaches that businesses should avoid:

  • Using high-pressure sales tactics that make customers feel uncomfortable or coerced
  • Focusing solely on the features of a product or service, without highlighting the benefits or value to the customer
  • Failing to understand the customer’s needs or pain points
  • Being too pushy or aggressive in follow-up communications, such as calls or emails, after a sale has been made
  • Neglecting to address customer concerns or questions
  • Making false or misleading claims about the product or service, or promising results that cannot be guaranteed

9. Inventory Turnover

Finally, inventory turnover is a critical factor in any retail business. Transactional emails can help with this as well. You can send targeted emails promoting products that are overstocked or nearing the end of their season.

Let’s say you have an excess of winter coats that you need to sell before the end of the season. You can send targeted emails to customers in colder regions, promoting those coats and offering a discount code.

You can automate this process and increase your chances of selling extra inventory before it becomes a liability.

10. Limited Emotional Attachment

One of the problems with sending only transactional emails is that customers may not feel much of an emotional connection to your brand. Transactional emails are often seen as useful and necessary, not as a chance to connect with your customers on an emotional level.

To avoid this, it’s essential to supplement your transactional emails with other forms of communication. Messages that provide value will build brand loyalty and emotional attachment. We recommend that you leverage social media, content marketing, and personalized experiences.

11. Reduced Profit Margins

Using a transactional email service provider could also affect your profit margins, which could be a bad thing. While using an email service platform can help automate and streamline your communication processes, it does come at a cost.

Monthly fees, pay-per-email charges, and other costs can add up. This reduces your profit margins. The provider you choose should be affordable and effective. You can make up for these costs and maybe even make more money.

In conclusion, poor transactional email services and strategies can affect your business. So, it’s crucial to do your research, choose a reliable email service provider, and make the most out of this essential aspect of your business.

If you run an ecommerce store, shipment updates are some of the most important transactional emails to send. Trackmage offers you the chance to automate the email notification problem.

You can even validate emails, collect feedback, and offer product recommendations with ease.

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