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What is transactional email?

Posted by Loren on


Well isn’t that confusing: the first link I get from Google for “transactional email” actually contains incorrect information! It’s not really about financial transactions at all, anymore. (Though e-commerce does happen to generate a lot of this kind of email, more on that later…)

Definitions, Synonyms, Examples

So what is transactional email? Coming from a MailChimp state of mind, you might simply think of it as “anything that isn’t bulk“. Basically, it is email sent to an individual based on some action. It could be:

  • an action they took directly
  • an action they were the target of or,
  • perhaps even inaction on their part

A warm welcome sets the tone

For example, if a user signs up for your website, you should probably welcome them with a lovely email. Bam! That’s a transactional email. Signing up is the “transaction” in this case. Simple, right?

An example of an action happening to a user might be the familiar “so-and-so commented on your hooza-whatsit” alerts we all receive from our favorite social networking sites. In these cases the action was taken by other users, but the recipient was the target of the action, so they receive a notification email letting them know something of interest happened.

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MailChimp recently launched Mandrill, its new transactional email product, and I stumbled across some interesting results while dogfooding it with a couple of side-projects. For those of you who don’t know, transactional emails are just one-off emails triggered by some action like signing up for an account or requesting a password reset.

BillMinder and DebtMinder

BillMinder and DebtMinder

Some back story: by day, Drew and I work in MailChimp’s Mobile Lab. In our spare time, we run a little company called R7, and we make a few financial related iPhone apps (BillMinder, and its lesser-known sibling, DebtMinder). Whenever new users downloaded those apps and created accounts, we used Mandrill to send their welcome emails. This post is about how we used Mandrill’s beautiful reporting tools, as well as some design tweaks to our welcome email, to increase unit sales of one of the apps by 57%.

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