What is required to customize email templates in Xero?

To customize email templates in Xero, inserting additional placeholders for dynamic information is essential. This process allows users to personalize their emails by automatically populating specific fields with recipient details or transactional data. For instance, placeholders can be used to insert the customer’s name, invoice amount, or due date directly into the template, enhancing the communication and making it more relevant to the recipient.

The ability to use these placeholders is a core feature designed to streamline and improve communication, ensuring that the emails sent are tailored to individual circumstances without the need for extensive manual editing each time. This functionality supports businesses in maintaining a professional appearance and fostering stronger customer relationships.

Regarding the other options, uploading images directly in the email is not a requirement for template customization; while adding visuals can enhance presentation, it does not fundamentally change the template structure. Setting up a database connection is unnecessary for email template customization in Xero, as the platform handles data management internally. Lastly, purchasing a premium plan is not a prerequisite for customizing email templates, as standard users have access to these features as part of Xero's functionality.