All posts Alsendo Insights: How email personalisation can increase your e-commerce revenue? You're running a fast-growing online store - sales are increasing, orders are being shipped, but something isn’t quite right. Your marketing campaigns aren’t delivering the expected results: email open rates are declining, and advertising costs keep rising. You start wondering if you’re missing a key opportunity. Then, a report lands on your desk, and it changes everything. It reveals that your transactional emails - like shipping and delivery notifications, have an open rate of 60%. That’s higher than any of your marketing emails! What if you could turn these high-engagement messages into a new revenue stream? In this article, we’ll show you how to personalise your transactional emails to drive more sales, without increasing your ad spend. Transactional emails: an untapped asset that can transform your sales performance Before diving into specific strategies, let’s take a look at some key data that sheds light on this opportunity: Average open rate for marketing emails: 15–25%. Average open rate for transactional emails: 40–65%. This data clearly shows that transactional emails outperform traditional marketing emails in terms of engagement – by an average of 25-40%. Why? Customers anticipate these messages because they contain critical information about their purchases, such as order status and delivery times. This natural expectation creates a unique opportunity for businesses. Instead of treating transactional emails as mere notifications, companies should recognize their potential for personalisation and additional sales opportunities, which can significantly impact revenue growth. However, most businesses view transactional emails as a necessity rather than an opportunity. They are often impersonal, lack branding, and fail to leverage their sales potential. Yet, with a few strategic improvements, these emails can be transformed into a powerful revenue-generating tool. Research shows that personalised transactional emails can achieve an open rate up to 70% higher than standard marketing emails. Additionally, businesses that optimise their transactional email strategy can increase their annual revenue by up to 20%. Beyond increasing email open rates, personalisation plays a crucial role in strengthening customer relationships. Let’s explore how it can drive long-term loyalty and boost customer lifetime value (CLV). Building long-term customer loyalty with personalisation Personalised email communication is also one of the most effective ways to enhance Customer Lifetime Value (CLV). When customers receive relevant offers and tailored rewards, they feel valued and are more likely to make repeat purchases. Studies show that businesses using advanced personalisation in loyalty programs experience a 15–20% increase in customer retention. Additionally, repeat customers tend to spend 67% more than new ones. To maximize CLV, brands can use email personalisation to: Encourage repeat purchases – By reminding customers about replenishable items or offering discounts for frequent orders. Provide VIP treatment – Rewarding high-value customers with exclusive deals and early access to new products. Send milestone-based rewards – Offering special discounts when a customer reaches a purchase milestone (e.g., 5th order). Personalisation: the key to increased revenue Modern technology enables businesses to tailor email content to customers’ individual preferences and behaviours effectively. Personalisation goes beyond simply addressing the recipient by name, it involves leveraging data on purchase history, browsing activity, and product preferences. Personalised transactional emails can boost open rates by more than 20% and increase click-through rates by up to 139% compared to standard marketing emails. Moreover, studies indicate that personalised email campaigns generate 5.7 times higher revenue than non-personalised messages. 1. Dynamic product recommendations Transactional emails serve as an excellent platform for cross-selling and upselling, helping to increase order value and improve conversion rates. By analysing past purchases and customer preferences, businesses can incorporate tailored product suggestions into their transactional emails. These recommendations can include: Complementary products (e.g., a phone case or wireless earbuds for a purchased smartphone). Premium versions of purchased items (e.g., suggesting a smartwatch with additional features). Subscription or replenishment reminders (e.g., refills for cosmetics, coffee filters, or pet food). Such strategies can increase average order value by 20–30% and enhance customer retention by 15–20%. 2. Automated abandoned cart reminders Transactional emails are powerful reminders for abandoned carts. A simple incentive – discount, free shipping, or customer reviews – can double or triple conversions. Research indicates that well-designed abandoned cart reminders can double or even triple the cart recovery rate, helping businesses reclaim lost sales. 3. Birthday and anniversary offers Sending personalised emails for birthdays or purchase anniversaries is an effective way to foster customer loyalty. Customers are more likely to engage with offers tailored to special occasions, and exclusive discounts or gifts can encourage repeat purchases. While personalised emails like birthday offers enhance engagement, their effectiveness depends on how well you understand your audience. That’s where segmentation comes in. 4. The power of audience segmentation Not all customers are the same, and a one-size-fits-all email strategy is no longer effective. Segmentation allows businesses to categorize customers based on factors like: Purchase history – repeat customers should receive loyalty-based offers, while first-time buyers need welcome incentives. Browsing behaviour – customers who frequently view a product but haven’t purchased should receive personalised discount reminders or urgency-driven messaging. Demographics – age, location, and preferences shape how customers respond to different offers, so emails should be tailored accordingly. Engagement level – dormant subscribers may need a re-engagement campaign, while active buyers should be rewarded with exclusive perks. Now that we understand the importance of personalisation, let’s explore how transactional emails can be directly monetized in e-commerce. How to monetize transactional emails in e-commerce? Transactional emails are much more than just order status updates – they can become a powerful revenue stream when designed strategically. Personalisation, intelligent product recommendations, and dynamic discounts are just some of the approaches that allow businesses to increase order value and build long-term customer relationships. Upselling and cross-selling opportunities Upselling and cross-selling are among the most effective strategies for increasing order value. Transactional emails provide the perfect moment to implement these techniques, as customers are already engaged with the brand and are more likely to make an additional purchase. Upselling involves offering a higher-tier or enhanced version of a purchased product (e.g., suggesting a premium smartwatch model after a customer buys a standard version). Cross-selling recommends complementary products (e.g., promoting a protective laptop sleeve or wireless mouse after a laptop purchase). A great way to implement these techniques is by adding a “You May Also Like” or “Complete Your Purchase” section to order confirmation emails. Research shows that well-executed recommendations can increase cart value by 20–30% while enhancing the overall customer experience. Loyalty programs: an underutilized revenue driver Transactional emails are an excellent tool for promoting loyalty programs and encouraging repeat purchases. For example, order confirmation emails can inform customers about: Reward points earned – e.g., “You have earned 200 points on this purchase. Redeem them for discounts on your next order.” Exclusive membership perks – e.g., “As a loyalty program member, you’ll receive early access to new collections and special promotions.” Activity-based rewards – e.g., “Make another purchase within 30 days and enjoy free shipping on your next order.” Businesses that implement personalised loyalty programs report a 15–20% increase in customer retention, translating into a stable and predictable revenue stream. Exclusive offers and time-sensitive discounts Personalised promotions and time-sensitive discounts are some of the most effective tactics for driving repeat purchases. Customers who have just completed a transaction are highly likely to act on an exclusive deal if presented with a compelling offer. Transactional emails can include: Dynamic discount codes – personalised, limited-time offers (e.g., “Get 10% off your next order within the next 7 days”). Related product promotions – upsell opportunities like “You ordered shoes! Get 15% off socks and accessories for the next 48 hours.” VIP early access offers – exclusive perks for loyal customers, e.g., “As a valued customer, you get early access to our new collection before anyone else.” Such initiatives not only boost revenue but also strengthen customer relationships, encouraging long-term engagement. Unlock the full potential of personalised transactional emails with Alsendo Business Pro Personalised transactional emails present a powerful opportunity for e-commerce growth, but their effectiveness depends on a well-executed strategy. The key question is: how can you implement personalisation in a way that truly impacts your business results? If you want to maximize the potential of personalised transactional emails and transform them into a revenue-driving tool, leveraging advanced solutions is essential. Alsendo Business Pro offers: Automated, branded transactional emails tailored to your business. Dynamic product recommendations integrated directly into email content. Advanced analytics tools to optimise conversions. Seamless integration with major e-commerce platforms for effortless deployment. Don’t let the potential of transactional emails go untapped. Start increasing your revenue today! Learn more about Alsendo Business Pro and discover how to implement these strategies effectively in your e-commerce business. https://documentation.mailjet.com/hc/en-us/articles/360042753914-What-is-a-normal-open-rate https://porchgroupmedia.com/blog/email-marketing-statistics/ https://www.rebuyengine.com/blog/how-to-increase-average-order-value https://uplandsoftware.com/adestra/resources/report/the-state-of-digital-personalization-in-2016 https://www.campaignmonitor.com/resources/guides/personalized-email/ https://www.rocketcrolab.com/post/boosting-customer-engagement https://printure.pl/jak-programy-lojalnosciowe-wplywaja-na-zaangazowanie-klientow-i-zwiekszaja-sprzedaz