Best Transactional Email Services

Email communication has become an integral part of startup operations, and they are at the forefront of this communication. Startups and enterprises use transactional email services to send CRONs, and automated emails to consumers in response to specific actions, such as account creation, password resets, purchase confirmations, and more.

Choosing the right transactional email service is critical to ensure these emails are delivered effectively and efficiently. This guide will discuss what transactional email services are, how they work, their benefits, common use cases, best transactional email providers, challenges, and market trends.

What is Transactional Email?

A transactional email is an automated, business email. The sender uses transactional email software to send the mail to a list of recipients. The software uses SMTP or simple mail transfer protocol to ensure the deliveries. Small, medium, and large-scale businesses use this type of electronic communication.         

It is different from the marketing email due to high-value and customized information. The sender and recipient may agree upon the transaction beforehand. The receiver chooses the type of information he likes to receive. They focus on confirmations, acknowledgments, and information transfer, and are not entirely marketing information. So, the recipient, more often than not, opens his or her mailbox to check the email. Hence, this type of transaction has a very high opening rate.                           

The best transactional email software is not the one with every feature known to the market. You need the right software that facilitates account creation and notifications. The software should also ensure password resets and social media updates by notifying friends and followers. It should also facilitate sales-related communication like purchase receipts. Senders use the transactional email system to extract a response or communicate a piece of crucial and personal information.

What Are Transactional Email Services?

Transactional email services refer to the automated emails businesses send to their customers in response to specific actions. These emails are designed to give customers important information, such as order confirmations, receipts, account creation, and password resets.

Transactional email services are different from marketing emails, as they are triggered by a customer's interaction with a business rather than being part of a marketing campaign.

How Do Transactional Emails Work?

Transactional email services use an API to connect to a business's app or website. When a user does a distinct action, such as creating a new profile, the API triggers an automated email sent to the customer. This procedure is entirely automated; businesses do not need to send these emails manually.

The way any business would set up a transactional email would be to configure the endpoints of a system to send triggers (events) to the transactional email provider like SuprSend, or Mailchimp. After that, these transactional email systems would have an endpoint configured to receive the triggers and feed the dynamic templates with the message contained in the events, which is then sent.

Benefits of Transactional Email Services

Here are the following benefits of transactional email services. Most commonly, these are used for user-triggered notifications like someone requesting OTP, payment confirmation, order confirmation, and more.

1. Improved Deliverability

   Transactional email delivery services use advanced technology to ensure emails are delivered to the customer's inbox and not marked as spam.
   These services use techniques such as DKIM, SPF & DMARC (Domain-based Message Authentication, Reporting & Conformance) to authenticate email senders & prevent email spoofing. This results in improved email deliverability rates.

2. Enhanced Customer Experience

   Transactional emails provide customers with important information that they need to interact with a business. Ensuring that these emails are delivered promptly and accurately can help improve the customer experience, leading to increased retention rates.

3. Regular Communication

   Transactional emails enable businesses to automate routine communication with their customers. This can include sending reminders, news, & updates, which can help to keep customers engaged with a business.
   Many transactional email providers prioritize regular communication over one-time feature updates, which shows the relevance of consistent communication.

4. Increased Brand Recognition

   Transactional emails can be customized to reflect a business's branding, which can help to increase brand recognition. It’s especially important for D2C brands as they face the users directly, where emotion plays a major role in how people perceive your brand. Your logo or creatives can have a direct impact on user behavior.

5. Creates Sales Opportunity

   Transactional emails provide businesses with an opportunity to promote their products and services and increase the opportunities of closing a sale. For example, an order confirmation email can include a call-to-action for related products or services to motivate customers to purchase something and close a sale.

6. Better Email Performance

   Transactional emails provide businesses with detailed analytics and metrics that can help them to improve their email performance. This enables marketers to get a holistic view of how their emails are being viewed by the target audience. This includes key metrics such as open rates, click-through rates, and bounce rates.

7. Scalability

   Transactional emails are highly scalable and can handle a large volume of emails. This is particularly important for businesses that experience sudden spikes in email traffic.
   It’s especially needed for startups looking for global expansion, as they can scale their current notification infrastructure to new regions and serve those customers with transactional email services.

8. Cost Savings

   Transactional emails are cost-effective, as businesses only pay for their emails and no other associated costs. This contrasts traditional email marketing, where businesses pay for every email address on their list. Even you can save time by creating SQL queries to run daily reminders or CRON jobs, which won’t be possible in marketing email campaigns.

Features of Transactional Email Software

The best transaction software sends personalized emails and automated notifications. It is a crucial tool for retaining customers and increasing profits. Its features cover everything from mail security to user interfaces. The best solutions get delivered as a complete suite of tools and features.       

• The sender can preview the email before initiating a transfer.
• The right content is sent to the right recipient using contact lists.
• The best transactional email software has list management features.
• The subscribers' information can be efficiently imported and maintained during migration or transition.
• The recipients' lists can be segmented, and their profiles can be managed
• A transactional email service can tackle high email volumes(thousands)
• Creating personalized emails using new or existing templates.
• Automated email campaigns designed for leads(buyers)
• The top transactional email software can check the delivery status. Good post-sale practices assure the company's online reputation. 
• The email tracking guarantees accurate, real-time delivery
• Automatic reports generation for checking progress and success

The other features include SMTP relay, robust HTTP APIs, and User Interface. The features enable the effective management of contacts, templates, and email campaigns, and integrate with other software applications. They can also be scaled up as the business expands into new territories.

These features include real-time behavioral data analysis. They also facilitate web and mobile channel segmentation. Customers receive contextually-relevant messages using worldwide servers. However, remember that it is not essential to choose the software with every known feature. Choose the one that suits your current needs and can scale.

What are Some Common Use Cases For Transactional Email Services?

Some common use cases for transaction email services are listed below. Most commonly, companies use it to notify users of some actions that they took, like payment confirmation, order and purchase, refunds, OTP, and more.

1. Account Creation and Verification

   Transactional emails are commonly used to verify a customer's email address during account creation. This is a widely used use case for most companies, as every business eyes on customer retention. Creating this first experience and an enjoyable ride for the user is very crucial.

2. Password Resets

   One of the key use cases of transactional email services is to help customers with resetting their passwords. When a customer forgets their password, a password reset email is sent to their registered email address. Again a very important use case for transactional emails as user retention depends on handling errors.

3. Event Reminders and Notifications

   One important use of transactional email services is to gain real-time reminders and notifications. Businesses can send automated event reminders and notifications to customers. Transactional emails also allow running CRON jobs, a sub-segment of event reminders using SQL queries.

4. Order Confirmations and Receipts

   Transactional email services can be used by customers for seamless order confirmations and receipts. They are commonly used to confirm orders and provide customers with receipts. E-commerce websites often use this feature, as it serves as the initial touchpoint in the buying journey.

5. Feedback and Survey Requests

   Transactional emails can be used to request customer feedback & surveys after a purchase or event. This customer feedback can provide marketers with detailed information about customer behavior so that they can take the required actions. Moreover, with certain providers, it is possible to track feedback and associate it with unique users based on their dedicated IP addresses.

How To Choose The Right Transactional Email Provider?

Choosing the right transactional email tools is critical to ensure emails are delivered efficiently & effectively. Here are some elements to consider when choosing a transactional email provider:

1. Deliverability

   The primary goal of transactional emails is to deliver emails effectively. Therefore, choosing a provider with a high deliverability rate is essential.
   Different provider prioritizes different elements of email deliverability, for example, some may prioritize sent rates, and some may look for security and spam rates while delivering.

2. Customization

   Customization options, such as branding and personalization, can help to improve the customer experience and increase brand recognition. D2C companies use this feature widely, as it affects their customer loyalty.

3. Scalability

   Businesses should choose a provider that can handle sudden spikes in email traffic. Look for providers that can allow you to scale the notification infrastructure without errors or server downtime.

4. Support

   Good customer support is essential, particularly when issues arise. Companies should choose a provider that offers different support options, such as IVR phone, quick email, & chat support.

5. Cost

   Transactional email providers have different pricing structures. Businesses should choose a provider with a pricing plan that fits their budget.

Top 5 Transactional Email Providers: Comparison

There are many transactional email providers in the market. Here are the best transactional email providers you can try for your email campaigns. This list covers Sendgrid, Mailchimp, SuprSend, Mailgun, and Postmark, which are cheap transactional email service providers for your business organization.

Name	Free Trial	Demo	Starting Price
SendGrid	30 Day	Yes	$15/month
Mailchimp	30 Day	Yes	$9.99/month
SuprSend	14 Day	Yes	$99/month
Mailgun	30 Day	Yes	$35/month
Postmark	100 email/month	Yes	$10/month

1. SendGrid

SendGrid is a popular transactional email service provider offering various features and integrations. It has powerful email deliverability capabilities and boasts one of the highest email deliverability rates among transactional email service providers. SendGrid is a smart platform for small businesses as it has a range of innovative features and a low learning curve.

Features

• Real-time analytics and reporting
• A/B testing
• Advanced email design tools
• API and SMTP integration
• User-friendly interface

Pros

• User-friendly & can be set up easily, even by those with limited technical knowledge.
• Delivers emails to their intended recipients at a high rate, ensuring your message gets across.
• Comes with extensive documentation & customer support resources, so you can quickly find answers to any questions.
• Integrate with a wide range of other apps, making it easy to use alongside other tools you may already be using.

Cons

• For enterprises, the software cost can be quite high.
• While many users have found customer support helpful and responsive, some have reported issues or difficulties getting the help they need.

Pricing

• Free plan for up to 100 emails per day
• Paid plans start at $15/month for up to 10,000 emails

2. Mailchimp

Mailchimp is a popular email marketing platform that also offers transactional email services. It offers a powerful drag-and-drop template builder where companies can build various transaction email templates without coding. It is especially helpful for small startups whose CXOs do not want to waste their development resources on notification management activities. 

Features

• Drag-and-drop email builder
• Advanced segmentation and targeting options
• Integrations with other platforms
• Marketing automation

Pros

• The interface is intuitive and easy to navigate, even for those with limited experience.
• Includes various powerful email marketing & dynamic automation features, enabling you to create targeted campaigns and automate your workflows.
• Integrate with over 300 other apps & services, allowing you to connect it to other tools and streamline your processes.
• Highly rated customer support, with responsive & knowledgeable representatives.

Cons

• For larger businesses, the software's cost can be a barrier, making it less accessible to some.
• While the software offers an API, some users have reported that the documentation is limited or difficult to navigate

Pricing

• Free plan for up to 10,000 emails per month
• Paid plans start at $9.99/month for up to 500,000 emails

3. SuprSend

SuprSend is a new player in the notification infrastructure category, offering a range of features and an affordable pricing model for transactional messages. You can use their powerful template builder to create an intuitive notification UI and fallback mechanisms. It can integrate with multiple providers to create your fallback systems when you witness failure to send emails from one provider. 

SuprSend gives the option to add email vendors based on the communication category. At SuprSend there are 3 communication categories: System, Transactional, and Promotional. A company needs to make an account with at least one of these providers and provide the API key of these accounts on the SuprSend dashboard. Once this is done, you can send emails to your users via SuprSend.

Features

• Centralized notification infrastructure management with dedicated IP addresses
• Drag-and-drop email builder with cloning
• Advanced segmentation and targeting options
• One-time API integration based on the client’s preferred SDKs

Pros

• The software has an affordable pricing model, as a user can send notifications starting from $0/ month.
• The platform has a user-friendly interface with drag-and-drop functionality.
• It offers a range of features and email templates that can be cloned easily.
• The platform has good and quick Slack customer support.
• It can run other notification channels also, like SMS marketing, push notifications, and Whatsapp.

Cons

• Limited documentation and integrations compared to other providers.
• The platform is a relatively new player in the market.

Pricing

• Free plan for up to 10,000 emails per month
• Paid plans start at $99/month for up to 10,000 emails

4. Mailgun

Mailgun is a transactional email service provider offering various features, including email validation and deliverability tools. Mailgun also provides a unique feature of exporting custom reports of the analytics, which is helpful if you have siloed team functions using Mailgun together. Moreover, their API integration documentation is very intuitive and developer-friendly.

Features

• Advanced email validation tools
• User-friendly interface with pre-built email templates
• Advanced email analytics and reporting
• Custom reports available for analytics

Pros

• High email deliverability rate, ensuring your messages reach their intended audience.
• Offers extensive documentation and customer support, making it easy to get started and troubleshoot any issues.
• Integrate with over 100 other apps and services, enabling you to connect them with tools you may already be using.
• User-friendly and simple to set up, even for those without much technical experience.

Cons

• Using the software can be costly for large firms, making it less accessible to bootstrapped ventures.
• While the software is reliable, it may offer a different range of features or customization options than other providers in the market.

Pricing

• Free plan for up to 5,000 emails per month
• Paid plans start at $35/month for up to 50,000 emails

5. Postmark

Postmark is a transactional email service provider that delivers transactional emails quickly and securely. Concentrating solely on transactional email, Postmark endows enterprises with state-of-the-art features such as real-time analytics, advanced message searching, and customizable templates, facilitating efficient email delivery and tracking. 

Furthermore, Postmark showcases an impressive delivery rate, robust security measures, and a user-friendly interface, making it a prevalent choice among businesses of all magnitudes.

Features

• Advanced email validation tools
• High deliverability rates
• User-friendly interface
• Developer friendly interface

Pros

• The software comes with comprehensive documentation and customer support, making setting up and troubleshooting any issues easy.
• Impressive email deliverability rate, ensuring that your messages will reach their intended recipients.
• Integrate with over 100 other apps and services, allowing you to connect them with other tools and streamline your workflows.
• Provides transactional email templates, making creating and sending automated messages for various purposes easy.

Cons

• While the software is functional & reliable, it may offer a different range of marketing features than other providers in the market.
• For highly scaled startups, the software's cost can be a barrier, making it less accessible to some who may need more advanced elements or customization options.

Pricing

• Free plan for up to 100 emails per month
• Paid plans start at $10/month for up to 10,000 emails

Challenges In Transactional Email Services

Transactional emails are not without their challenges. Here are some of the common challenges that companies may face when using transactional email:

1. Email Content

   Creating effective email content that engages consumers can be challenging, particularly when dealing with large emails.
   You can find the drag-and-drop editor in most email providers. Product managers can use these intuitive drag-and-drop editors to build new email templates.

2. Personalization

   Personalizing email content can help to improve the consumer experience. However, personalization can be difficult to achieve at scale. Personalization also ensures a user feels connected with the brand, increasing the overall CTR rate in every email campaign. Most D2C brands use hyper-personalization to increase the overall tracking metrics of their email campaigns.

3. Technical Issues

   Technical issues, such as email deliverability, can affect the effectiveness of transactional email services. Moreover, you might need to do constant back and forth with the support team to handle any technical issues, which might delay your notification schedule.

4. Compliance

   Transactional emails must comply with various regulations, such as CAN-SPAM. Ensuring compliance can be tricky, particularly for businesses that email customers in different countries. If a company wants to start its transactional email campaigns in the US, they need to follow the GDPR law, which protects the privacy and security of personal information.

Software and Services Related To Transactional Email Services

Transactional email services are similar to marketing ones, as both can have the same capabilities, such as segmentation, template builder, and analytics. Let’s check some services related to transactional email services.

 

1. Email Marketing Software

   Email marketing software is used to build and send marketing emails to users. Although different from transactional email services, marketing software can integrate with transactional email services to provide businesses with a comprehensive email solution.

2. Marketing Automation Software

   Marketing automation software automates marketing tasks, such as lead gen and leads nurturing. Marketing automation software can integrate with transactional email services to provide companies with a complete marketing solution.

3. Email Marketing Services

   Email marketing services provide businesses with a comprehensive email marketing solution, including marketing software and transactional email services.

Market Trends in Transactional Email Services

Transactional email services have become a critical component of modern companies, & stay updated with the latest business trends is imperative for companies to remain competitive. Let's delve deeper into the latest trends that are shaping transactional email services:

1. Automation

   Automation has become a game-changer in transactional email services, enabling companies to send regular customer notifications without manual intervention, for example, CRONs. Automation features like reminders & notifications help businesses save time and resources.

2. Artificial Intelligence

   Artificial intelligence is revolutionizing transactional email services by automating & personalizing email content. Using AI, companies can analyze consumer behavior & tailor email content to match their appeals and preferences, making communication more engaging & effective.

3. Mobile Optimization

   With the steady rise in the use of mobile devices, companies must optimize their email content for mobile viewing.
   Mobile optimization includes creating responsive email UI that adjusts to different client screen sizes & ensuring the email content is concise and easily readable on small screens. Many providers are working on this capability, as email client-side rendering is still largely uncharted territory.

4. Integration

   Integration with other software and services, such as CRM software & social media platforms, has become a critical aspect of transactional email services. Integrating transactional email services with other systems helps companies streamline their operations & improve customer communication.

5. Enhanced Security 

   In the wake of increasing cyber-attacks, transactional email services are using advanced security measures to protect user data. Advanced security features, such as two-factor authentication (2FA) & encryption, help businesses safeguard their customer's sensitive information.

6. Multichannel Communication

   Transactional email services are no longer limited to email only. By integrating other communication channels, such as SMS & push notifications, startups can provide customers with a seamless communication experience.
   Multichannel communication helps companies reach customers on their preferred channel, increasing engagement and customer satisfaction.

Conclusion

Transactional email services are an essential part of business communication. Choosing the right transactional email service is critical to ensure that emails are delivered effectively and efficiently.

When selecting a provider, companies should consider delivery, customization, scalability, support, & cost factors. By keeping up with the latest trends in transactional email services, businesses can remain competitive & provide their customers with the best possible communication experience.