Messaging Masters Series
Transactional
Messaging
Best Practices
by Tom Mairs, Director of Client Solutions Engineering, Message Systems
What is transactional messaging?
Within the email community — the world of engineers, direct
marketers and systems operations folks whose day-to-day
work focuses on email, mobile and social messaging —
transactional messaging is widely understood as:
Any kind of message that is generated as a result of
a user action, in direct relation to that user action.
Examples would include opt-in messages, purchase
confirmations or notices of the actions of a fellow user
(xx posted on your wall…).
The U.S. federal government provided a precise legal
definition of a transactional message as part of the
CAN-SPAM Act of 2003. Yet that same law acknowledges
that businesses frequently have cause to send messages
that combine commercial, transactional or relationship
content.
The CAN-SPAM Act of 2003 defines a
transactional message thusly:
The primary purpose of an email is transactional
or relationship if it consists only of content that:
Facilitates or confirms a commercial transaction
that the recipient already has agreed to.
Gives warranty, recall, safety, or security
information about a product or service.
Gives information about a change in terms,
features or account balance information
regarding a membership, subscription, account,
loan or other ongoing commercial relationship.
Provides information about an employment
relationship or employee benefits.
Delivers goods or services as part of a transaction
that the recipient already has agreed to.
2
CAN-SPAM
Rules to play and win by.
Compliance is critical.
Your transactional email program needs to abide by
the CAN-SPAM guidelines set out by the Federal Trade
Commission. Also known as the Controlling the Assault
of Non-Solicited Pornography And Marketing Act of 2003,
CAN-SPAM is an attempt by the U.S. Congress to protect
consumers from unwanted marketing emails. While
enforcement of the law is difficult and its effectiveness
has been debated, its provisions offer useful guidance
for treating consumers appropriately and maintaining a
healthy online reputation.
Leveraging transactional messaging to tap new revenue
streams is a good alternative to bulk marketing—
if you do it well.
Key provisions of CAN-SPAM include:
Don’t use false or misleading header information.
Don’t use deceptive subject lines. Identify the
message as an ad.
Tell recipients where you’re located.
Tell recipients how to opt-out of receiving
future email from you.
$16,000 — Maximum penalty for each message in
violation of CAN-SPAM.
$2.9 million — average amount retailers can generate, on
average, annually, by including promotions in their transactional communications (according to Forrester Research)
1,812 — number of CAN-SPAM violation messages it takes
to lose $2.9 million
Remember this: Bulk messaging is 1: many. Mistakes
can be sudden and costly. Transactional messaging is 1:1.
This close customer relationship gives businesses a more
controlled method for keeping conversations moving in a
positive direction.
Honor opt-out requests promptly.
Monitor what others are doing on your behalf.
3
More transactions online,
more transactional messaging.
With the explosion in mobile smartphone and
tablet computing, more and more transactions are
happening online.
As consumers increasingly use apps to carry on brand
relationships or to access customer services, the nature
of B2C interactions are changing. This is especially so with
ongoing transactions where, say, the business has good
reason to message customers multiple times between
the time a purchase is initiated and when it is completed.
For instance, when you buy tickets to a ballgame a month
ahead of time, or when you buy clothes online that take
a week to deliver. Customers nowadays expect to be kept
informed during the interim.
Where ten years ago most businesses based their customer
messaging strategies on the common practice of sending
non-personalized messages like marketing email, offers
or newsletters, today businesses must think in terms of
ongoing conversations. Transactional messages triggered by
an event or a change in the nature of the relationship (“Flight
293 to San Francisco (SFO) has been delayed 30 minutes”)
are increasingly expected. When successfully personalized,
these kinds of messages present an excellent opportunity
to elevate the value that customer conversations bring to a
business’ bottom line.
4
The game has changed.
So have customer expectations.
Transactional messages used to be “nice-to-have.”
Customers appreciated getting a confirmation email for
their online purchases. Simple text reminders let cell
phone subscribers stay on top of usage and billing.
It’s almost time
for your next
oil change!
Today, relevant and timely messaging is expected in all
aspects of a customer’s daily dealings. This morning one
of them received an oil change reminder from their auto
shop. Just a few minutes ago, a smartphone alert reminded
another that an online auction was ending. This in-themoment style of messaging has simply become a way of life.
How ready are you to evolve?
The online auction
for the Leather Sofa
is about to close!
5
Why do winning business strategies include
transactional messaging in their approach?
The old way isn’t working anymore.
Decline in Email Marketing ROI Per Dollar Spent
Many of the techniques and practices that marketers
have relied on to drive customer engagement have
become less effective in recent years.
The Direct Marketing Association reports that ROI on email
marketing has dropped 25 percent since 2006 (from $52.23
to $39.40 in 2012) and that number is expected to continue
to fall each year, to as low as $35.02 returned for every
dollar spent by 2016.1
Bulk email marketing
Lifecycle messaging
Loyalty programs
Reports from industry authorities Return Path and the
Direct Marketing Association (DMA) show that inbox
placement rates are dropping and bulk email marketing
ROI is in a steady decline.
$60
$50
$40
$30
$20
2006
1
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
mail Remains ROI King: Net Marketing Set to Overtake DM, Says DMA. THe Magill Report. October 4, 2011.
E
http://www.magillreport.com/Email-Remains-ROI-King-Net-Marketing-Set-to-Overtake-DM/
6
New technology is pulling customers
in different directions—all at once.
Transactional messaging is bringing them back. As
consumers rely increasingly on smartphones and social
media, the tried-and-true approaches to customer engagement need to be rethought. Customer communication
methods that were designed for the wired-desktop and bulk
email model of the early Internet era need to be re-crafted
for the mobile wireless world we live in today. Digital
messaging strategies need to be coordinated across the
various channels your customers use:
Email
SMS/MMS text
IM chat
Push notifications
Transactional emails have a higher
open rate than other types of email.2
Transactional
Email
47%
11%
Marketing
Email
What makes transactional messaging so appealing?
Transactional messages take your conversations from bulky
to believable. Like “big box” stores, bulk email has something
for everyone—which used to be the attraction. Now as people
fight the clutter of constant message streams from multiple
technology sources, an “everyone” email, text, or alert is
much easier to ignore than a tailored response to a conversation they’ve already started.
2
MediaPost / Email Insider http://www.mediapost.com/publications/article/104687/#ixzz2SG2IahQW
7
Why Transactional Messaging Works
It’s expected.
It’s seamless.
Transactional messages have higher open rates than
bulk emails because the customer already expects to
hear from you.
Transactional messages are insightful and satisfying.
They’re an effective way to thank customers for an
order, ask them for their feedback, and point them to
additional products and information that meets their
needs—before they ask.
Transactional messages can turn individual
­transactions into a rich conversation.
Transactional messages can be sent to one or many
devices at the same time.
It’s profitable.
Because they are expected, transactional messaging
is a great channel for upsell and cross-sell
opportunities.
It’s personal.
Shipping confirmation emails had a 20.8% clickthrough rate, compared 3.1% for bulk mailing emails
sent by the same companies.
Transactional messages extend a conversation the
client already started when they ordered that product
or asked for that help.
Average revenue per email was $.80 for shipping
confirmations vs. $0.26 for bulk mailings sent by the
same companies.3
Transactional messages build dynamic and lasting
relationships based on closely followed customer
behavior, preferences and data.
3
Experian Marketing Services, “The Transactional Email Report.” (2010)
8
Transactional messaging
is simply good manners.
People have a built-in expectation that you’ll reciprocate
a conversation they’ve begun—that you’ll confirm their
just-placed order with a receipt, that you’ll tell them
when their test results are in, or that you’re sorry they’ve
decided to unsubscribe from your newsletter.
People place a value on personalization—“Dear Greg…”
reminds them that they’re not just a number, “Hi Jane,
we noticed that your account balance is low,” makes them
feel that you value the time, energy and opportunities they
may lose if they were to overdraft their account.
People appreciate those who make their lives easier—
businesses that are quick to adapt to the trend of
API-driven, multi-platform transactional message
workflows have the ability to offer opportunities for
­preference-driven communication—freeing customers
from a single device for on-time messages and alerts.
Additionally, these customers never have to waste their
time explaining themselves, as these organizations are
fluent in each customer relationship at every level.
9
Believability is key.
60%
The goal of embedding promotional material into transactional messaging is not to outsmart readers, but to create
and nurture a believable relationship with your client using
information that is relevant, timely, and genuine.
of all email opens in
March 2013 were on
a smartphone.5
According to David Daniels of The Relevancy Group,
the definition of email relevance is: “The intersection
of content and context that is metered by frequency.”4
80.3%
of consumers
delete an email on their mobile
phone if it doesn’t look good.6
5
4
Consumer Email Behavior. ClickZ. August 13, 2012.
6
Movable Ink “Email Opens, March 2013” (2013)
BlueHornet “2013 Consumer Views of Email Marketing” (2013)
10
Transactional Messages in Action:
Discount School Supply
The benefit: A source for new revenue streams.
Best practices: Straightforward design makes ordering
easy. Promotional offers are secondary to order information.
Creative use of content like free crafts and curriculum activity
ideas to drive recipient back to site. Questions regarding
backorders and items shipping separately are anticipated and
addressed. Customer support information including phone
number and hours is easy-to find. Copy is clean and easily
scannable using type treatment and icons.
Cool. I hate it
when I have to
dig for that.
Good to
know.
Some words of caution: If you’ve got a good thing going, don’t
go overboard. 110% Guaranteed doesn’t match up to the
straightforward language of the piece and distracts the reader.
Include photos to increase click-through. And as always, when
including promotional offers, make sure the transactional
content is given the most room on the page.
Huh. Did
something
not load?
Interesting. It’s nice
to see a company
with values.
11
Transactional Messages in Action:
Redbox
I’ve never been
there. Glad I’ve got
the address to plug
into my iPhone.
The benefit: Encouraging customer loyalty.
Best practices: Logo is prominently displayed for easy recognition. Top of page ”Find a Location” button adds to customer
convenience and encourages repeat site traffic. Additional
movie recommendations add personalization while remaining
secondary to transactional content. Availability of Redbox app
gives preference to customer, reinforcing loyalty.
Some words of caution: Though use of images are encouraged to increase click-through, too many images or poorly
placed images can be distracting. And it’s important to keep
in mind that with so many emails now being viewed on mobile
devices, fat image files can make your messages unreadable
on a smartphone.
You’re
welcome!
Yikes, that’s
a little busy.
The kid’s
will like
this one.
Sweet!
12
What’s that? Free
shipping? Cool!
Transactional Messages in Action:
Zappos
The benefit: Elevating customer care.
Best practices: Customer care information is included, alleviating customer aggravation. Self help features like order
tracking are promoted, reducing strain on customer service.
The subject line clearly states the reason for the message
and the transaction details are prominently displayed.
The majority of content is helpful, not promotional. The
language is playful and puts customer at ease. The mention
of additional product selections is strategically and tastefully placed. Compelling content is included to drive traffic
back to site. Website design elements and navigation is
included for a seamless customer experience.
I can find everything here—
order tracking, their return
policy, and my own account
page. How convenient!
They sell
clothes too?
Nice.
Some words of caution: The tone of your transactional
messages should follow your brand—or can be just a touch
lighter. If your brand leans more towards the serious, then a
silly take like this one would not be believable.
Awww.
I just might
do that.
13
Transactional Messages in Action:
Zoodles
The benefit: Setting the stage for a safe, kid-friendly experience.
Best practices: “Display Image” preference is given at top of
message to allow recipient to opt-out of commercial images
and to reassure them that they have ultimate control over the
relationship. Though not required for transactional messages,
an unsubscribe link is also prominent. Premium membership
upgrade offer is included but carefully placed below the fold.
Some words of caution: Regardless of the value of the upsell or
opportunity to cross-promote, you’ll lose impact if your content is
distracting or isn’t engaging enough. Though an attempt at scannability was made through the use of headers, the treatment,
placement, and spacing of the copy is lacking. By the way, did
you know that a Zoodles premium upgrade starts at just $4.95
and they offer a 100% money back guarantee? You wouldn’t have
unless you decided to follow the upgrade link. These appeals
should be made while you have a reader’s attention.
14
Transactional Messages in Action:
eBay
The benefit: Nicely done for mobile.
Best practices: The subject line clearly delineates
what the message is about: notifying the recipient
that they have won an auction on eBay. Under
CAN-SPAM, the Federal Trade Commission considers
clear subject lines to be a key indicator of whether a
message qualifies as transactional, and this subject
line definitely makes the grade. The short Thank You
paragraph with instructions on next steps and contact
info in case the recipient has questions is all very
helpful. The cash back / $2 bonus banner with thumbfriendly “Click Here” button adds value, providing a
way to extend the relationship with the customer.
Some words of caution: Suggesting other auction
items that the recipient might be interested in is
great, but tightly bunched links as provided here make
it hard to click-through. A grid of items using photos
or buttons that would be easier to navigate using your
thumb would work better on a smartphone.
15
Transactional Messages in Action:
Appointments
The benefit: Using SMS to make setting appointments easier than ever.
Best practices: An appointment reminder or notification isn’t a transactional message in the strict sense, but it is a good example of a
message that follows on from a previous transaction or gets prompted
by a significant change event in an existing relationship.
The use of SMS here rather than email is smart for a few reasons:
Incoming text messages generally set off a sound or vibration
alert on most phones. Whereas emails can get lost in the rush
of daily traffic, a text message gets your attention.
What could be easier than confirming an appointment by
responding with a single digit? The recipient enters “2”
and hits send.
Appointment confirmed!
Some words of caution: While virtually all mobile phones are
SMS-capable, not all users opt for plans that include SMS service.
Just because you get a customers mobile number doesn’t mean you
can reach them via text.
16
To recap…
Surprise your customers by doing more.
Transactional messaging works because the act of
­reciprocation is an expected behavior. I order a product.
You send me a thank you. But, what if you gave them
more than they expected?
Deliver messages in tandem across both SMS
and email.
Vary channels by topic, location or time of day based
on customer preference.
Adjust channels as customer needs and circumstances change.
Use automated, scripted responses guided by structured decision trees to ensure customers receive the
care they need.
60%
30%
10%
Transactional
Notification
Personal
The majority of emails that a normal user receives
a day are transactional. Yup, your most prolific
email sender is probably an automated bot.7
Provide clickable options for follow-up or elevation
Send follow-on messages via email or SMS, direct
recipients to landing pages online, or elevate a
messaging interaction to a phone call.
7
e’re finally getting closer to solving the email problem. The Next Web. Dileep Thazhmon,
W
14 April 2013. http://thenextweb.com/insider/2013/04/14/the-email-problem/
17
Timing is everything.
It’s common sense.
How long would you wait at a fast-food drive through?
On hold with your cable company? For a page to load?
For a password reset?
The rules to follow when engaging customers through transactional messaging are not unlike the rules you follow to find
success in any relationship.
Customers expect that their events (an order, a request,
a subscription) will trigger transactional messages
in literally an instant. Employ a real-time messaging
solution that eliminates delays by combining message
origination and delivery operations on a low-latency
infrastructure.
Be compliant.
Be responsive.
Be relevant.
Be considerate.
Do what’s right for your customers. And just be yourself!
18
Message Systems:
Solutions for Transactional and Event-Triggered Messaging
Message Systems has been a pioneer in the field of
transactional email and text messaging for years now.
We’ve developed key technologies and capabilities that
have broadened what’s possible with transactional email
and text in numerous ways. More importantly, we have
the technology, the vision and the know-how to help
companies in any number of industries harness the
power of transactional messaging to create valuable new
services and products.
Keep Customers Informed & Engaged
Using Message Systems solutions, many of the world’s
largest social networks, banks, publishers and travel
companies are creating message-driven workflows
that tap real-time customer data to create communications tailored to individual preferences. In fact, a large
percentage of the notifications and alerts you receive today
most likely originate through Message System software.
Consider the ways transactional email and text messaging
can help you engage customers more effectively and
advance your business objectives.
Personalize Content and Cadence
Customers love to be able to set their own preferences for
when and why they’d like to hear from you. When you provide
preference-setting capabilities, the contextual relevance of
your outgoing communications goes way up. Your customers
will know when to expect you’ll be reaching out and why.
Monetize Your Transactional Messaging
Create new revenue streams by integrating data from affiliates and partners to add marketing content or offers into
transactional notifications and alerts.
Message-Enable Existing Business Processes
Insurance companies, financial services providers and
healthcare providers have automated many account and
onboarding processes, yet still rely heavily on snail mail
for customer communications. Integrating transactional
messaging into these processes can drive down costs
and boost engagement.
19
Learn More!
Ready to take your transactional messaging programs to the next level?
Contact Message Systems today: call 877-887-3031
or visit us at messagesystems.com
©2013 Message Systems, Inc., all rights reserved.
9130 guilford road suite 100 columbia maryland 21046 tel +1 410-872-4910 toll free usa 877-887-3031 messagesystems.com