Order confirmations, account notifications, password reset emails — these are all transactional emails. Often overlooked, transactional emails are key to maintaining customer relationships and driving repeat business.
Picture this: you buy a new laptop for $2,000, but receive nothing in your inbox. No order confirmation, no payment receipt — just crickets.
Panic sets in. You start to wonder if you’ve been scammed. That’s the last time I’m buying from them, you tell yourself.
An unpleasant situation like this ruins the customer experience and highlights the importance of transactional emails.
Because even minor errors or delays in your transactional emails can cause a massive loss of trust among your customers, potentially driving them away.
Now that you have an idea of how important these email messages are to your ecommerce or SaaS business, let’s go into details.
Table of contents
- Transactional email definition
- Why are transactional emails important?
- Transactional emails vs marketing emails: What’s the difference?
- Types of transactional emails
- Transactional email best practices
- How to send transactional emails with Brevo
- How to use transactional email for marketing
- Ready to set up your transactional emails?
Transactional email definition
What Is a transactional email?
A transactional email is an automated message sent when you complete an action online, such as making a purchase or signing up for a service.
These emails are automatically triggered by specific actions you took on a website, app or online service, giving you important updates, like order confirmations, ecommerce purchase or password reset request.
Think of them as simple, informative updates providing real-time updates based on what you, the customer needs at that moment.
Here are a few common scenarios:
- You order a new phone online and immediately get an order confirmation with details like price, delivery date, and payment method.
- You forget your password (again) and request a password reset link to get back into your account.
- Your subscription to your favorite streaming service is about to expire, and they send you a renewal notice reminding you to update your payment info.
Why are transactional emails important?
Now that you’re familiar with transactional emails, let’s unpack why they’re important.
1. Reassures your customers
Let’s say you run an ecommerce store. Customers always want to be reassured that their orders went through and when they can expect delivery. This is where transactional emails come in. You send them to give the customer peace of mind.
They also improve the customer experience because users get the exact information they’re looking for without having to chase it down.
2. Build trust with your customers
People trust businesses that communicate well. If a customer buys something and doesn’t get an email immediately, they start wondering if their order was processed. That’s not good for business.
A timely transactional email clears confusion and keeps the user informed, which builds trust.
3. High engagement
Transactional emails tend to get high open rates because they’re highly relevant. You’re not randomly sending out promotions or trying to push new products. You’re delivering information the user actively wants or needs.
Unlike marketing emails, you're not fighting for attention in a crowded inbox. Instead, users are looking for your message. They open it, read it, and sometimes even save it for later.
This makes transactional emails a great opportunity to maintain your customer engagement.
4. It’s required by law
Some transactional emails, like payment receipts or order confirmations, are necessary for compliance. For example, after making a payment online, customers are legally entitled to receive a record of the transaction.
Transactional emails vs marketing emails: What’s the difference?
While both transactional and marketing emails land in your inbox, they serve different purposes and follow different rules.
1. Purpose
Transactional emails. Inform customers of specific actions they’ve taken.
Common examples of transactional emails:
- Order confirmations
- Shipping notifications
- Account activations
- Password resets
- Subscription confirmations
- Security and account alerts
Marketing emails. Promote new products or services, often sent to a broad audience.
Common examples of marketing emails:
- Newsletters
- Promotional emails
- Product updates
- Event invitations
- Vouchers and giveaways
2. Different sending process
There’s a difference in which transactional emails and marketing emails are sent.
Transactional emails are instant automated emails that are personalized and tailored to a specific action. For example, when you reset your password, the email you receive is sent instantly because it’s tied to that action.
Marketing emails, on the other hand, are sent according to a schedule or a marketing campaign plan. They’re usually sent to a large list of subscribers, and the timing is chosen to maximize engagement.
3. Opt-in rules
Transactional emails are automatically triggered, so they don’t require opt-in. Marketing emails on the other hand, can only be sent to people who have opted in.
Data protection laws like GDPR and the CAN-SPAM Act mandate that businesses must have consent before sending promotional emails. If they’re not on your email list, then you have no right to contact them.
These laws also require an unsubscribe link in every marketing email, allowing recipients to opt out any time.
Often asked:Do transactional emails need an unsubscribe option? No, transactional emails don’t require an unsubscribe option because they are sent to facilitate a specific action, like processing an order or resetting a password.
However, some businesses may include an unsubscribe link as a courtesy, with a disclaimer that opting out won’t stop necessary transactional communications related to purchases or accounts.
4. Different emailing software
A transactional email software is big on deliverability. That’s why these emails are sent over a dedicated SMTP server or transactional email API, because of their automated and instant nature
A marketing email is sent using an email marketing software, as it focuses on campaign management, audience segmentation, and performance tracking.
If you're a business using an email service provider like Brevo, you can streamline both marketing and transactional emails within one platform.
Find out the best transactional email services for marketers and the best SMTP servers.
Types of transactional emails
What counts as a transactional email? Common types include;
1. Order and payment emails
These emails deal directly with purchases and payment details, keeping customers updated through each stage of the buying process.
- Order confirmations. Right after a purchase, customers receive a confirmation email. It details important details like what was bought, how much they paid, and sometimes an estimated delivery date. This lets them track their order from the start.
- Payment invoices. Once a payment goes through, customers receive an invoice breaking down the transaction. It’s like a digital receipt they can keep for their records, helpful for future returns, budgeting, or just tracking their spending.
- Shipping notifications. This is the email everyone loves. Once the order is shipped, this email provides tracking information. It helps avoid the dreaded “when will it get here?” anxiety by letting you know exactly when to expect your delivery.
2. Account-related emails
These emails revolve around account setup, security, and updates.
- Welcome emails. After creating an account, you receive a welcome email, often with tips or a quick guide on how to get started. It’s a small touch that makes new customers feel valued and ready to use the platform.
- Account creation emails. Confirm that a new account has been successfully created and may include a verification link to ensure the email is correct. This step adds a layer of security and helps businesses know they’re reaching the right person.
- Security alerts. If something unusual happens, like a password change or a login from a new device, you’ll get an alert. It’s a way for companies to show they’re looking out for you and taking your security seriously.
3. User action/access emails
These emails are triggered by specific actions taken by users, ensuring they can manage their accounts and information smoothly.
- Password reset emails. We’ve all been there — forgot your password, hit the “Forgot Password” link, and wait for that email to come through. They include a secure link for users to reset their password quickly.
- Notification emails. They alert users about important updates related to their account, such as subscription renewals or policy changes, keeping them informed and up to date.
4. Subscription and consent emails
These emails deal with sign-ups, subscriptions, and user consent.
- Double opt-in emails. After a user subscribes to a newsletter or service, they receive an email asking them to confirm their interest. This prevents spam and makes sure the user genuinely wants to receive updates. It’s like saying, “Are you sure you want to hear from us?”
- Subscription notifications. Remind users about an upcoming renewal or changes to their subscription, so they aren’t caught off guard.
5. Feedback and review emails
Once a transaction is complete, businesses want to know how they did. That’s what these emails are for.
- Customer feedback emails. After a purchase or service interaction, customers are asked to provide feedback. Did the product meet expectations? How was the service? These emails not only help businesses improve but also show customers that their opinions matter.
Find more details and examples of transactional emails here.
Transactional email best practices
1. Separate transactional emails and marketing emails
If you send both marketing and transactional emails from the same stream, issues with your marketing emails (like low engagement or high spam complaints) can damage your sender reputation.
This might cause even important transactional emails to land in spam or be delayed.
To avoid this, choose an email service provider that lets you separate your transactional emails from your promotional email campaigns.
With Brevo, you can easily:
- Keep your marketing and transactional email on separate streams (by sender and IP address)
- Track the performance of both, all from the same account — at no extra cost
2. Personalize your transactional email templates
Truth is, transactional emails are often plain and boring. Most companies keep them minimal, almost to the point of being lifeless.
But these are the emails every single customer will see. So, why not make them more visually appealing and recognizable by adding your brand's touch?
Easily customize your transactional emails on Brevo by starting with free, ready-made email templates. Add your logo, use your brand’s fonts and colors, and even tweak the CTA buttons to match your website.
You can add your social media links for good measure, and just like that, you’ve got a branded email.
3. Choose an email provider with good deliverability
Deliverability is a non-negotiable factor for transactional emails.
Emails like order confirmations and password resets need to land in the inbox on time, every time, because people expect to receive them promptly. That’s why it’s important to pick an email provider that’s built to prioritize email delivery.
If your provider doesn’t have a strong track record, your messages could end up in spam.
4. Set up email authentication
Setting up email authentication adds a layer of trust with email service providers like gmail, outlook, yahoo.
To do this, set up three key types of authentication: SPF, DKIM, DMARK. This proves you’re legitimate, preventing your emails from being marked as spam.
With this in place, your important transactional emails like shipping notifications or payment receipts get through without issues.
In detail: Learn how to configure your SPF, DKIM record, and DMARC in just a few steps.
5. Closely monitor delivery and open rates
It’s more likely to monitor email performance for marketing emails than transactional emails. However, transactional emails are also prone to issues. That’s why it’s key to always have a look at the metrics, especially delivery statistics.
If your delivery rates drop, it might mean some emails are getting flagged as spam. If your open rates are low, it could be because your subject lines aren’t doing their job, or your emails are landing in the wrong folder (like gmail’s promotions tab).
How to send transactional emails with Brevo
1. Choose a transactional sending method
Brevo offers three options:
- Email API. Best for developers
- SMTP. A simple protocol for sending emails.
- Webhooks. Notifications that are triggered automatically based on user actions.
2. Automate your transactional emails
Use the automation builder to set up workflows that trigger transactional emails based on user actions, like an abandoned cart, order confirmation, or password reset.
3. Design your transactional emails
Choose from Brevo’s email templates gallery. Specific use cases templates like welcome emails and order confirmations are available and free. You can also customize your own using HTML.
4. Track your performance
Use real-time analytics to track email performance (open rates, deliverability).
Try Brevo’s transactional email service
Free SMTP server for up to 300 emails/day, email API for developers, transactional email templates, and more.How to use transactional email for marketing
Transactional messages are more than just functionality notifications. They also offer a great marketing opportunity that many businesses overlook.
With open rates eight times higher than marketing emails, they surely are a prime spot for some subtle, yet effective marketing.
Here’s how you can make the most of them:
1. Cross-selling and upselling
This simple optimization can increase your sales.Amazon does this brilliantly. They often include further personalized product recommendations in every order confirmation email. This encourages customers to shop more.
Want to do something similar? There are two ways to go about it:
-
Dynamic Content
This sounds tricky, but it’s quite easy. Using a platform like Brevo, you can create the logic that automatically fills in personalized product recommendations based on what each customer has purchased.
It’s a great way to tailor emails to each person without much manual effort.
-
Static offers
If dynamic content isn’t your thing, you can go with a static offer.
This means adding a fixed product recommendation or special offer that gets included in every order confirmation or shipping email. It’s less personalized, but still a good way to encourage repeat purchases.
2. Added value
Transactional emails don’t have to be dull. You can make them more engaging by adding extra value beyond the standard information.
Think about including bonus content, special offers, promo codes, or helpful advice — something that goes beyond the expected information.
Take Uber, for example. After each ride, their email receipts include much more than just the fare details. Here’s what you’ll find in a typical email from Uber:
- A ride summary: start and end address, date, time, and a map of the route
- An option to review the driver
- A chance to leave a tip
- A CTA to download the UberEATS app
- An invitation to apply for the Uber credit card
- Social media links to stay connected
This is a great example of how you can use transactional emails to offer more than what’s expected. By filling that space with useful and engaging content, you turn a routine email into something that offers real value to your customers.
Ready to set up your transactional emails?
By now, you should have a clearer understanding of how transactional emails work and the business opportunities they bring. It’s time to start making the most of them to drive value and strengthen customer relationships.
Sign up for a free Brevo account and start sending professional, well-timed transactional emails. Here’s what you’ll get:
- GDPR-compliance: Multilist subscriber management allows you to send transactional emails as needed but marketing emails only to contacts who consent.
- Automation & dynamic personalization
- Sender reputation that’s carefully monitored for guaranteed deliverability.
- Drag-and-drop email editor for marketers, not coders: Create beautiful transactional email templates and easily update them as needed.
- Transactional retention logs are indefinite: You configure how far back you want to see them.
