Best Practices, Delivery Essentials

Smooth transaction; highly recommended; great sender!

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Earlier this month I attended the Email Evolution Conference in New Orleans for the second year. It was a great event with hundreds of marketers and featuring excellent content, particularly in the Technology and Deliverability track. In addition to the content, listening to the questions asked by marketers during these sessions really helped to illustrate some of the common challenges seen on the sender side.

One particular question that stuck in my mind was regarding transactional messaging. Following a raised hand was a statement to the effect of, “All the best practices on the web are for marketing messages. What about transactional mail? Where are the best practices for that?”

As email experts we often tout separating transactional email from marketing mail, but we don’t often provide tips for optimizing those transactional emails. Today we intend to make that right with 3 key tips on managing your transactional emails.

1. Determine if the mail is truly transactional

The definition of a “transactional” message is likely to vary depending on who’s answering. There are many definitions of transactional – some senders consider anything sent to a member to be transactional, while others strictly limit the category to things like receipts and shipping notices. In their CAN-SPAM Compliance Guide, the US Federal Trade Commission describes a transactional message as one 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 or 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; or
  • delivers goods or services as part of a transaction that the recipient already has agreed to.

All of these types of messages require the recipient to have some sort of commercial transaction with the recipient – either a purchase or membership, but beyond that the waters can get a bit murky. The general consensus is that things like membership renewal notices, legally required notifications, and purchase receipts are considered transactional.

As a side note: if you’re sending to or from Canada, the Canadian Anti-Spam Law’s rules on transactional or relationship messaging are similar to those imposed under CAN-SPAM.

2. Stick to the 80/20 rule

To avoid issues when sending transactional messaging, you always want to be sure the primary purpose of the message is transactional in nature. While the definition of “primary purpose” is subject to some legal interpretation, the most commonly cited guideline is known as the 80/20 rule. This rule indicates that no more than 20% of a given message’s content should be promotional, with 80% or more transactional in nature.

In addition, most email professionals employ the less-scientific “sniff test” to determine if a message is transactional. This test looks at the most prominent elements of the message: subject line, preheader, the content presented first in the message body. If any of these elements is promotional in nature, the message would likely fail the “primary purpose” test. As a good rule of thumb, any promotional content should be presented below the transactional content of each message and should not be the focal point of the email.

In Canada, however, the 80/20 rule is not as relevant. Any amount of promotional content in a message may render it a “Commercial Electronic Message” and likely subject to the consent requirements of CASL. If you’re sending to or from Canada, we suggest avoiding any promotional content in your transactional messages unless you’ve consulted your legal counsel on potential implications.

3. Employ total separation between promotional and transactional streams

You’ll often hear a recommendation to have transactional (and other high-value relationship) messages sent from a separate IP address from your promotional or marketing emails. In theory, this separation prevents any potential issues with marketing emails (spam complaints, high bounce rates) from impacting the highly valuable transactional stream, which typically sees very high engagement and low complaints. However, best practices dictate going even farther and using separate subdomains for each stream.

With the impending flood of IPv6 IP addresses, major mailbox providers are relying more and more on domain reputation. If your transactional and promotional mail streams all originate from yourdomain.com, the reputation of the two streams will intermingle. One of the best ways to manage sending domains is to leave the top-level domain yourdomain.com for your corporate mail system, then use subdomains like promo.yourdomain.com and transaction.yourdomain.com for your marketing and transactional streams, respectively. This will help insulate your transactional traffic from any delivery speed bumps that might occur with your promotional sends.
Transactional emails can be a vital tool for maintaining customer loyalty and consistently see among the highest engagement rates of any email stream. They are also often underutilized. How are you managing your transactional streams? Have feedback on any of these tips, or have some of your own to share? Let us know in the comments!

– BG

 

 

Delivery Essentials

Transactional email and the unsubscribe link

3542845394_68b995ff48_bThere’s been a fairly long-standing debate in the email industry about transactional emails and the unsubscribe link. The main point of contention is whether or not a transactional email should include an unsubscribe link and if so, what types of messages should be stopped when it’s clicked. With the renewed discussion of the Canadian Anti-Spam Law (CASL)* ahead of its pending changes, this topic has made its way back into regular discussions with clients.

You may already know that CASL requires all transactional messaging to include an unsubscribe link, even though transactional messages don’t technically require consent. So in essence, the CASL-compliant unsubscribe link is designed to allow recipients to opt out of other commercial messages from the sender, but not transactional ones. But what if someone really doesn’t want to receive any more transactional messages? As senders, are we concerned with adhering to the letter of the law, or with improving our customer experience? The answer, of course, isn’t always cut and dry.

For starters, not everyone means the same thing when they reference a “transactional” email message. While a receipt for a purchase is considered transactional by most everyone, some other types of messages can present more of a gray area. Under CASL, a transactional message completes a transaction (duh!), delivers a product or service, presents warranty information, distributes legally required notices, or provides information pertaining to an ongoing contract, membership, or subscription. Sounds pretty similar to the US idea of transactional, with one major exception: under CASL, any promotional content in the email makes it a ‘commercial electronic message,’ or CEM, and therefore potentially subject to consent requirements. This differs from the “80/20 rule” that is considered best practice in the US (80% transactional content, 20% marketing).

Whether or not it makes sense to include an unsubscribe link in your transactional messaging depends on a number of factors. Let’s look at some of the most important ones for most senders.

Location, location, location

If you’re based in Canada, or your recipients are, you’ll have to include that unsubscribe link in your transactional messages to comply with the law. You’re only required to remove clickers from your commercial emails, but be sure to remove any promotional content from those transactional messages!

Transactional or transactional?**

One of the biggest factors to consider is just how essential the message may be. If someone purchases a software download and your email provides them the link to the software, or the license key, you’re not ever going to want to allow someone to unsubscribe from that. These are often referred to as triggered transactional messages, and they almost always facilitate or record a transaction involving the recipient.

For messages that are more relationship-based, such as a monthly update on benefits available to members, it may be a good idea to allow recipients the option to unsubscribe. Most recipients won’t unsubscribe, but those that do were only going to drag down your engagement metrics (and your deliverability as a result). If you start to see a swell of unsubscribes from these types of messages, it’s likely a good time to re-evaluate the value they are providing to your recipients.

Your audience

Do you have a receptive audience who opens and clicks on each email with almost religious fervor? Or do you have recipients who only open an email when they want to make a purchase? Analyze your audience engagement and segment based on those recipients who rarely if ever engage. It may be a good idea to provide these non-engaged recipients with the option to unsubscribe from non-critical relationship messaging.

In the end, it’s up to each organization to determine their ideal policy for allowing (or disallowing) unsubscribes in transactional messages. Aside from the mission-critical type triggered messages, the question really boils down to what’s most important: getting your message out, or giving your recipients the choice of what they want to receive?

– BG

*Of course, since we mentioned CASL, we also must mention that nothing in this post is legal advice. I’m not a lawyer, nor do I play one on TV. 

*Everyone who’s ever watched a cheesy mafia movie knows that when you say the same word twice, but with extra emphasis the second time, the distinction is being made between the literal and figurative uses of said word. Capisce?