What is a transactional SMS and why you should use it

  • Transactional SMS

What is a transactional SMS and why you should use it

It's obvious, sending SMS to your clients is a cheap and effective way to inform them of ongoing promotions and special offers that can help your marketing goals. But, there's another use for SMS marketing - transactional SMS. Keeping your customers up to date with their accounts and purchases is a great way to provide exceptional customer service and keep important information right at their fingertips.

Transactional SMS vs. promotional SMS

A transactional SMS is a message to your customers providing up-to-date information on their account balance, travel itinerary, purchase information, tracking of shipments, etc. Unlike a promotional SMS, it provides relevant and useful information for customers already using your product or service. There are only 2 types of messaging, and anything that is not transactional is classed as a promotional message.

Examples:
  • "Dear customer, your current account balance is $560.74. XYZ Bank."
  • "Your order 38268 from abcgoods.com has now shipped and should arrive July 7th."

Uses of transactional SMS

Great customer service is important and keeps your customers coming back. While an email may only be read once a day, most SMS messages are read within seconds, allowing you to reach your customers with important information much faster than traditional communication. These messages are commonly used by banks, credit card companies, airlines, and e-commerce businesses. Transactional SMS are also great for:

  • Updates on order status
  • Scheduling or changing appointments
  • Finding store or branch locations
  • Making or confirming reservations
  • Refilling orders

Checking on account balances

A recent study by Harris Poll found that 64% of people in the US prefer to reach customer service via text rather than waiting on hold for a customer service representative via phone. Businesses are taking notice and providing customers with SMS services that can make their company and/or brand more accessible.

Amazon - one of the biggest global e-commerce retailers provides a wonderful example of the great uses transactional SMS have. In certain geographic regions, Amazon sends an SMS to their customers that have made an order not only as a confirmation, but even with the name of the delivery driver and the delivery frame of the package. Customers can then choose to directly reply to the message to change the date of the package delivery. This has provided brought Amazon even more in touch with their customers and added extra convenience during the buying process.

Transactional SMS is not just a way to reach your customers faster - it's a way to stand out with an exceptional customer service experience. All while stretching your marketing dollar even further.