Turn your transactional emails into a standalone sales channel and see repeat business spike.
Leave no stone unturned when it comes to ways of increasing your conversions, especially if they can be processes that tick over nicely all on their own. It used to be that throwing money at your marketing budget for ads and PR was a solid strategy for ramping up business, but in the digital age we have so many options at our disposal that it can be quite overwhelming.
Digital marketing and online retail platforms like Shopify have made it possible to optimise almost all these channels relatively easily, quite affordably, and so that they can run automatically. One of these examples that we’ve found to be possibly the lowest hanging fruit for repeat business is beefing up your transactional and follow-up emails.
What are transactional emails?
All online retailers have some form of transactional emails; their function is to facilitate an agreed upon transaction between the merchant and the customer. They contain information such as details of the order, expected delivery times, and other similar information.
If you’re still not sure what transaction emails are, these examples will help:
- Abandoned checkout
- Contact customer
- Customer account invite
- Customer account welcome
- Customer account password reset
- Delivery notifications
- Draft order invoice
- Fulfillment request
- Gift card created
- New order
- New order (mobile)
- Order canceled
- Order confirmation
- Product review request
- POS and mobile receipt
- Order refund
- Shipping confirmation
- Shipping update
- Social media updates
Why are they considered low hanging fruit for repeat business?
Transactional related emails have very high open rates, on average most transactional emails have an open rate of 80-85% and most marketing emails are somewhere between 20-25%.
The reason for this is quite simple, the information they contain is exactly what the customer wants or needs. So it makes sense that you should leverage this captive audience by customising and personalising campaigns to improve your conversions of new and repeat business. It is also an opportunity to improve customer service and deepen customer engagement.
According to a white paper by Experian, connecting purchase behaviour to email marketing allow transactional emails to have substantially greater revenue per email than bulk marketing campaigns such as newsletters. These emails also have average revenue that is between two and five times greater.
The study also found that certain transactional emails had much higher conversion rates than bulk mailers, such as order confirmations (eight times higher), shipping and return/exchange based emails (four times higher). The graph below shows the conversion rate difference between transactional emails and bulk marketing mailings (commonly referred to as newsletters).
What do we mean by customising transactional emails?
Transactional emails are mostly personalised, due to their very nature, which improves their click-through rates by about 14% and conversions by 10%. When customising these emails with the idea to drive repeat purchases, the general rule of thumb is 80% informational and 20% promotional. After all, these emails are intended to deliver information, and not to sell too hard. Ensure that the information that they need and expect is at the forefront and any other promotional content should be added as a bonus.
Over at Spently, the recommended ratio is 60/40 where 60% of the information is related to the transaction and the rest is promotional content, designed to cultivate repeat purchases.
There are a number of ways to customise your transactional emails, which include offering a discount on their next purchase, free shipping, or cross-selling products that the customer may also be interested based on their purchase or wish list history.
Here are some examples of content features that have high conversion performance:
Leverage your captive audience (merchants who have already purchased from you) to showcase different items sold by your store via product recommendations. You can also filter your recommendations based on different Shopify collections, ie. best selling, newest products or a unique featured collection provided by Spently.
Order status tracking
To enhance the engagement rate (click through rate in this case) as well as the customer experience, ensure that your confirmation or order status tracking email has a link that goes directly to the tracking page for that specific order rather than to any other link to the website. Mails that include order tracking have two times the click rate and 23% higher conversion rates than confirmations without.
Transaction emails can be designed to include some of the website navigation links, including those you would normally find in the navigation on the website and some quick links (order status, returns, etc.). Although the links that pertain to the purpose of the email should take preference and reduced website navigation links have been found to be more effective (higher click rates).
If you have not got the consent of a customer to subscribe them to your mailing list, but have their contact details, include a link to sign themselves up for your newsletter and content that includes the benefits of receiving your regular communications such as specials and new product launches.
According to the white paper by Experian that we referenced earlier, 78% of online adults said they were more likely to open emails that include promotions or coupons - however, counter to what one might believe and despite that high open rate, emails that did not include promotions had up to 11% better conversion rates. Basically, if the content that is presented to the customer is targeted and relevant enough they do not require the addition of an offer to be tempted to make a purchase.
Social media linking
Many brands add the links to their social media sites as a standard to their email footer, this makes it that much easier for your customers to promote your brand on their favourite social media platform. Transactional emails that included links to social media had 55% higher click rates than those with no links.
Customising transactional emails on Shopify
Shopify does enable you to customise your transactional emails by adding your logo or changing the colour scheme for all the templates in one go, however the functionality is quite limited. There are other platforms that are available on the Shopify App Store that can help strengthen the relationship between merchants and their customers by turning standard retail messages into actionable opportunities. One such example, that focuses on driving repeat purchases via transactional emails, is Spently.
Spently is a marketing platform available to Shopify merchants that enables them to transform their transactional emails into marketing opportunities with upsells, personalised discounts, feedback loops, and referrals.
Abandoned carts is one of the biggest issues that Ecommerce merchants are faced with when it comes to losing sales, with an average of 75% of all products added to cart remaining unconverted. This number is also increasing year on year. Spently makes it easier to reconnect with your customers automatically via follow-up sequences that can help recover lost sales.
It also helps to bolster the brand by providing a unified experience across every interaction as visual branding is consistent whether they are on the website, in-store, on mobile, or when receiving a mail. Spently boast a 600% increase in clicks, 125% increase in transactions, and 360% increase in revenue per email when using their platform to enhance transaction emails for up-sell and cross-sell opportunities compared to Shopify’s default emails.
Below is an example of a transactional mail with Shopify’s default emails and an enhanced version using Spently’s Supercharged Store Emails app.
How much does it cost?
As with any investment in life, you want to try something out before you make the commitment to invest your resources, which is why it is so convenient that Spently offers a Starter plan for free. Allowing you to experience the breadth of their application without any financial commitment on your part, along with gauging its efficacy towards driving repeat purchases.
With their Starter plan you can utilise Spently up to 50 monthly orders, including email template themes for all of your store notifications, variable settings for recommended products, discount codes, analytics, and support docs. Thereafter there are three more tiers that cater towards merchants with higher monthly orders and require increased functionality, such as follow-up emails. Spently will also provide a dedicated customer success manager to assist with onboarding, and on-going support. Usage-based plans begin with Essential at $99.99 merchants with upto 500 orders, moving on to Growth priced at $199.99 and upto 1000 orders. Usage-based plans taper off with Premium at the highest tier being recommended for ShopifyPlus merchants, allowing up to 5000 monthly orders — so you never feel like you’re paying too much. There are also unique enterprise plans for merchants above 5000 orders.
Do we recommend it?
It’s important to note that there are a number of marketing platforms available in the Shopify App Store that can do similar customisations and automations of notification emails, such as Klaviyo, and you can actually run Spently and Klaviyo together on one store, but we see little reason to not consider implementing Spently in your store ASAP.
We actually looked into Spently for some of our existing Shopify merchant clients and found it to be a worthwhile inclusion on almost any Shopify ecommerce store. It seems to be a great value investment in terms of what it has to offer in features and functionality. So much so that we have decided to partner up with Spently and have managed to negotiate a 30 day free trial on one of their paid plans.
If you would like to try out Spently on their free tier, or don't mind passing up the 30 day trial, feel free to use our link to install the app, or if you'd like to take advantage of the 30 day trial, please get in touch with us and we'll set things up for you.