What is a Transactional SMS?

A transactional SMS is a non-marketing automated text message that companies send to support their audience along the customer journey. Among the most common transactional SMS types are order confirmations, welcome text messages, and shipping updates.Banks provide a great example of transactional messaging in action. They send one-time pins to their clients making purchases or wanting to access their accounts online. There are many other instances where transactional SMSes are being used to improve processes, like account activations, booking confirmations, order confirmations, account balance notifications, and real-time alerts.

Benefits of Transactional SMS

  • People read it fastAccording to VentureBeat, more than 90 percent of people read a text message within the first three minutes. Besides, their open rate reaches 98%, according to Gartner, which is dramatically more than email marketing.
  • It is a convenient medium. On average, people spend about 3.5 hours a day on their smartphones, as ResqueTime claims. The chances are that you will reach your audience.
  • It helps people. Transactional SMS assists people in various communication touchpoints with your brand. Using SMS, you will build a solid brand image.

Types of Transactional SMS

As a brand, you can utilize transactional SMS for various non-marketing purposes like the following:

  1. Allow checking debit and credit information on bank accounts;
  2. Help to get access to an account with one-time passwords;
  3. Reset passwords;
  4. Confirm orders to ensure everything is OK;
  5. Keep clients informed with shipping and delivery updates;
  6. Confirm or cancel ticket booking.
  7. Schedule appointments to speed up communication with multiple customers without personal contact.
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What can transactional SMS be used for?

Welcome messages
When a user signs up for an account with you (online or in-store), you can send them a welcome text message.

What Makes Transactional SMS so Effective?

They are time-sensitive: Because transactional SMSes are automated, they allow for the prompt delivery of important information. This means that SMSes can be sent instantly in response to a predetermined trigger without the need for any manual input.
They improve customer engagement: Transactional SMSes are more than just notifications or alerts, they help establish a reliable communication channel between businesses and their clients. A client who receives regular updates about an important delivery is a client who feels valued and comfortable using your services.
They are reliable: According to Mobile Marketing Watch, over 98% of SMSes are opened. SMS is one of the most effective platforms available for communicating with customers.
Availability: SMS comes as a standard feature on all mobile phones around the world, which makes it the perfect solution for businesses to communicate important information to clients who don’t have regular access to data.