Transactional SMS

What is a Transactional Text Message?

As opposed to marketing SMS which is designed to show goods and generate interest in what’s on offer, transactional SMS refers to messages that are primarily focused on providing important information to users. These messages are personalized and aim to establish a transparent communication channel between the customer and the company. Unlike marketing and promotional content, transactional SMS is designed to guide customers in their interactions with the services offered. It plays a vital role in keeping customers engaged and satisfied.

Various types of transactional texts exist, fulfilling different purposes. These include messages like one-time passwords and password resets, shipping updates, booking confirmations and cancellations, and general notifications. By delivering such crucial information, transactional SMS maximizes security and provides reassurance to customers. It helps build trust and credibility for the brand, as customers walk away satisfied with the quality of information provided.

One of the key benefits of transactional SMS is its ability to streamline services and automate communication with customers. Through an SMS API platform, companies can easily implement transactional SMS campaigns. This allows for customization of the message content and sender ID, making them more representative of the products or services being offered. The ease and affordability of sending transactional SMS further contribute to its appeal as a communication tool.

SMS marketing and transactional SMS have proven to be highly effective in engaging consumers and driving results. For example, nearly half of consumers consider promotional coupons received via SMS to be the most effective messages they receive. SMS coupons also have a redemption rate that is 10 times higher than coupons sent through other channels. In addition, over half of customers prefer using transactional SMS over other customer support channels. Including a call to action in SMS marketing messages increases their usefulness, with half of such messages being deemed effective by consumers. Furthermore, a significant 78% of mobile users actively engage with SMS messages from businesses they have subscribed to, showcasing the impact of this communication channel.

Understanding the differences between promotional, transactional, and conversational messages is crucial in effectively communicating with customers. Each type serves a distinct purpose, with promotional messages aimed at generating interest in goods, transactional messages focused on providing important information, and conversational messages designed to engage in two-way communication. It is also essential to recognize that obtaining consent is paramount when sending messages to customers. Failure to do so can result in severe penalties, as outlined in regulations like the TCPA (Telephone Consumer Protection Act).

Types of Transactional Texts

Customers have busy lives and won’t mind the convenience of what information can be provided through just an SMS text message.  It all accomplishes the same objective of providing customers with critical information when they need it.  There is a variety of information to be sent to customers whether they recently requested it or not such as:

One-time Passwords (OTPs) and Password Resets

To maximize security on a platform, just having a single password is never enough nowadays.  Because users will typically have a smartphone or some device on hand capable of receiving SMS messages, one-time passwords are sent as a second layer of security to ensure it is definitely that specific user attempting to gain access to that account.  By that same thread of logic, should a user forget their password or potentially have their account compromised, SMS can be used as a means of alternatively logging in to bypass the login long enough to establish a new password.  Do be careful of how this can be abused by attempts to hijack customer credentials.

Shipping Updates

For shipping purposes like eCommerce, customers like reassurance that their purchased products are being delivered on time.  This can include payments, shipping status, tracking numbers, and other details.  If at any point something goes wrong in shipping, customers can be kept apprised of what has happened.  Potentially, information can go both ways where customers can return information to the company as to if the package arrived and what condition it arrived in so that the company can get feedback.

Booking Confirmations and Cancellations

Sending alerts can greatly help in streamlining the services a company aims to deliver.  A prominent example would be banks and financial institutions and their capacity to keep tabs on customer actions.  Customers can request specific banking information and account status.  If a specific set of transactions comes across as suspicious, banks can forward such information forward to customers and summarily refund any transactions and suspend further purchases until the user verifies that their account has been secured.

General Notifications

Sending alerts can greatly help in streamlining the services a company aims to deliver.  A prominent example would be banks and financial institutions and their capacity to keep tabs on customer actions.  Customers can request specific banking information and account status.  If a specific set of transactions comes across as suspicious, banks can forward such information forward to customers and summarily refund any transactions and suspend further purchases until the user verifies that their account has been secured.

How to Implement

This requires a SMS API platform such as ourselves to conduct.  CloudContactAI is incredibly flexible to work with and is easily integrated into existing systems, streamlining the pipeline between the company and customers.  Since transactional SMS messages are completely automated, it starts with establishing a trigger event for the SMS that has a set response prepared for the outcome.  Because the outcome is determined, companies will have to establish a preset workflow for customers to follow for the automated process to continue using similarly predetermined messages.  Companies can further modify the message they send and the sender ID to be more directly representative of the products being offered.  Before getting started, don’t forget some countries will require the sender ID to be registered locally.