BOULDER, CO--(Marketwire - Jun 29, 2012) - SendGrid today announced the results of a survey exploring the use and function of app-generated, triggered, or transactional email within the web application space. Widely unknown and unused as a form of email marketing prior to the social era, transactional email is booming: according to survey results, web applications are sending an average of 631,000 transactional emails per month.
The very nature of transactional email requires that each of these 631,000 emails is triggered by a user action. Common triggering actions include signups, password changes, check-ins, notifications and friend of follower requests. Transactional emails have the highest open rates and the highest click-through rates of any email category, for the simple reason that each email contains information a user has requested, wants or needs.
According to survey results, web applications are taking advantage of consumer embrace of transactional email. Nearly half (45%) of user actions within a web application now trigger an outbound email. 93% of respondents expect to increase user-triggered email volume in the next year. When asked to evaluate the importance of transactional email to their business, 79% of survey respondents ranked it as 'important' or 'very important' for customer acquisition. 90% ranked it as 'important' or 'very important' for customer retention. 72% ranked it as 'important' or 'very important' for marketing.
Survey participants also provided a look into email trigger rates based on type of user action:
- 85% of web apps support signups or registrations with email
- 77% of web apps support password recovery and changes with email
- 50% of web apps support purchase, order and shipping confirmations with email
- 28% of web apps support friend or follower requests with email
- 19% of web apps support daily deals or offers with email
- 4% of web apps support location-based check-ins with email
Of the 325 web applications that participated in the survey, 38% target a consumer audience, 26% target a business audience and 37% target both consumer and business audiences. A strong majority (77%) of respondents consider email to be the most important channel for communicating with their customers.
"The survey findings we're releasing today confirm what we already know: transactional email attracts new customers and keeps existing customers, plain and simple," said Jim Franklin, CEO, SendGrid. "Web applications that are not taking advantage of transactional email response rates, or that are investing in more regulated forms of email marketing, are likely missing a huge opportunity for driving faster customer growth."
SendGrid is the leader in email deliverability. SendGrid's cloud-based platform increases email deliverability, provides actionable insight and scales to meet any volume of email, relieving businesses of the cost and complexity of maintaining custom email infrastructures. The email delivery platform of choice for 60,000 web application companies and developers, including foursquare, Pinterest, Airbnb, Twilio and Path, SendGrid delivers more than 3 billion emails per month. Founded in 2009 and based in Boulder, Colo., SendGrid is backed by Foundry Group, Highway 12 Ventures, Bessemer Venture Partners and several notable individual investors. For more information, visit www.sendgrid.com.