How To Create Personalized Transactional Emails That Help Maximize Customer Lifetime Value

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Written by Sal Noorani.

Sal leads growth at Spently, an application that helps merchants turn transactional emails into marketing opportunities. In his spare time, you can find him glued to a screen playing video games.

Fun fact: Sal was ranked top 1% in Overwatch for North America, although he can’t beat his Director of Sales in Mario Kart for SNES

Merchants are constantly looking for new ways to collaborate and interact with their customers. They send promotional emails, eBooks, blog post links and other types of content. While these are all beneficial and can provide good results there’s one type of email that’s often left ignored—transactional emails. Does your store send transactional, or event triggered emails to customers? If not, you’re missing out on a big opportunity to maximize your customer lifetime value and encourage repeat purchases. In fact, the data shows that transactional order emails average $0.75 per open compared to $0.13 for bulk mailings on orders. They also receive 8 times as many opens compared to newsletters and 4x more than the average marketing email. But how can you better utilize them? How can you use them to maximize CLV? The key to sending successful transactional email notifications is to make them more than just the transaction taking place. They’re an opportunity to build conversations, create fast and efficient shopping experiences, upsell your products and showcase your brand’s personality. But what does it take to curate effective transactional emails? Here’s what you need to know:

1. Be consistent with branding, aesthetics and layout

Customers often open transactional emails because they want to confirm whether their order was successful. You can use this opportunity to cultivate brand recognition through consistent use of your logo, fonts, tone of voice, colors, spacing, language and layout.

Take a look at this email from the Dollar Shave Club:

dollar-shave-club
The color palette, logo and tone of voice is unique to the brand. It matches their brand’s aesthetic. The tone is also casual and easy to relate to — which makes it very appealing to customers of all ages. What’s your brand’s aesthetic? Are you relatable or conversational? Would you describe your brand as formal? Whatever the answer to that question is, make sure it reflects in your transactional email. So your customers can engage with your message. You can also utilize a navigation bar within your email to provide a layout consistent with your website.
With a navigation bar you can showcase different sales, or categories — prompting users to return your site and perhaps leading to a repeat purchase.

2. Personalize it to your audience

It used to be when you’ve ordered a product online, you’d get a generic receipt of your purchase. Nothing personal, just business. Not personable at all.

Personalizing your transactional emails can massively boost your sales. Here’s what the data says:

  • Personalized emails can improve click-through rates (CTR) by an average of 14% and conversions by 10%. – Aberdeen
  • 74% of marketers believe targeted personalization increases customer engagement. – Digital Marketing School
  • Only 39% of online retailers send personalized product recommendations through email. – Certona
  • When marketers were asked to prioritize one capability that will be most important to marketing in the future, 33% of marketers answered: “personalization.” – Adage

Personalized transactional emails (i.e. order confirmation emails) include the name of your customer in the subject line or email. It also includes the items that they bought, along with pictures of products purchased.

Here’s an example of a personalized transactional email from Casper:

Casper’s email includes the customer’s name, items ordered and its pictures.

It also wouldn’t hurt to add a referral component, similar to the one Casper has above their footer. This provides an incentive for your customers to share their purchase with friends and family in order to gain mutual discounts — broadening your companies exposure to relevant audiences.

3. Take it a step further with personalized product recommendations

Personalized product recommendations can have a big impact on your customer lifetime value. In fact, a jewelry e-commerce site, reported a 3 percent increase in conversions once it used product recommendations in its emails.

Booking.com includes recommended destinations on their email to encourage customers to book their next trip.

Of course, to maximize the impact of any recommendation you should personalize it based on user data. Find out your customer’s search history, past purchases and interests, then recommend items based on this data – to maximize conversions.

Personalized product recommendations can have a big impact on your customer lifetime value. In fact, a jewelry e-commerce site, reported a 3 percent increase in conversions once it used product recommendations in its emails.

Booking.com includes recommended destinations on their email to encourage customers to book their next trip.

Of course, to maximize the impact of any recommendation you should personalize it based on user data. Find out your customer’s search history, past purchases and interests, then recommend items based on this data – to maximize conversions.

4. How else can you build and customize your transactional emails?

Learning to code just to create or customize an email can be quite tedious. It’s not easy to get started with HTML, but fortunately it’s Spently’s specialty. We’ve developed a template builder to streamline the process of creating and customizing transactional emails for Shopify merchants. The builder comes with a cherry on top as well – can simply use drag and drop functionality to build emails. That way, merchants can create customized emails that include product recommendations, unique discounts, referral codes, and a navigation bar to maximize customer lifetime value and encourage repeat purchases.

You can start with a 14-day free trial, or subscribe to their starter plan to see how their tool can upgrade your emails and increase your customer lifetime value.

5. What's Next?

Transactional emails are just the start to increasing your customer lifetime value.

Smart, personalized email campaigns – whether for one-off campaigns or holiday seasons or powerful automated flows that make you more sales in your sleep – are the cornerstone to successful email marketing strategies. And that’s where Rare.io comes into play.

Try our smart email marketing platform – designed specifically for ecommerce entrepreneurs FREE for 14 days! 

And if you’re one of the thousands of merchants who are already using Rare’s Smart Email Marketing software and want to see how our Customer Success Team can work with your brand to grow your revenue – feel free to book a call at your convenience here.

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