Transactional SMS [Explained]

Manage your communications with Transactional SMS

In 2021, customers have a higher level of expectation from the companies they buy from. They expect to receive updates and confirmations from businesses throughout the customer lifecycle journey.

From the sign-up process to purchases and delivery, transactional messages are best practice for customer communication; and SMS is the perfect channel for this.

Transactional SMS facilitates timely updates, making it ideal for delivery and order status notifications, appointment confirmations, and other customer service functions.

What is transactional SMS?

Transactional SMS refers to any text message sent from a business to a customer that provides valuable information about their product, service or processes. Marketing messages and promotional SMS campaigns are not considered a transactional SMS.

Transactional text messaging is most commonly automated; reducing the required human resources while delivering a higher level of customer service.

How does transactional SMS work?

To send transactional SMS, businesses must use a web SMS platform or integrate SMS functionality within their existing software using an API key. Online SMS software, like MXT, offers a simple way to send SMS communications, whilst API integration can complete more complex solutions and automation.

Transactional SMS occurs when a user completes a specified action. The action then triggers a pre-determined message to be pushed to the customer. The pre-crafted templates sent to customers often utilise Merge fields, whereby personal details or order numbers are automatically inserted by SMS software.

How do businesses use transactional SMS?

Transactional SMS can be implemented for many different functions throughout the entire customer journey:

Welcome messages - When a user signs up for an account (online or in-store), you can send them a welcome text to open the SMS communications channel.

Order confirmations - “Did they receive my order?” “Did my payment go through?” These are common questions that come up when consumers make a purchase. Keep your customers out of the dark by pushing instant order confirmations via SMS.

Shipping updates - There are not many things in life that rival the excitement of receiving an online order. Help build anticipation and create a seamless delivery process by sending regular SMS shipping updates.

Appointment confirmations - After someone makes an appointment with your business, instantly send out a confirmation via SMS that provides the booking time and location. SMS confirmations avoid confusion and help reduce costly no-shows.

Booking reminders - We can be all be forgetful sometimes. Help your customers remember their bookings with a friendly reminder text. This simple notification will also increase your ROI by reducing no-show rates.

One-Time Passwords - The security of your business and your customers’ data has never been more critical. Send automated one-time passwords (OTPs) via SMS to your customers to verify account sign-ins, payments, and more.

Related: “SMS Update: OTP API and recurring SMS for connection in 2021”

Benefits of sending transactional messages via SMS

It’s fast - Transactional SMS can be sent in just a matter of seconds, and they’re read on average within 90 seconds. The contents of these text messages are often time-sensitive, making sense to send them via a direct and efficient channel.

Convenient - It’s no secret we love our mobile phones. So much so that 90% of adults keep their mobile device within arm’s reach at all times. Transactional SMS makes life easier for your customers by communicating essential updates on their most-used platform.

Streamlined - SPAM filters have almost killed off email as an effective business communications channel. Avoid these pesky filters and reach consumers directly in their palms via SMS. With open rates up to 98%, it’s clear that SMS is the best channel for transactional messages.

Low cost - Sending bulk transactional SMS can cost as little as 5 cents per message. The returns generated from improving your customer service will more than account for the low price of sending your messages.

Integration capabilities - Our web SMS platform can be integrated within your existing software or CRM using our advanced suite of APIs and plugins. Construct your own custom triggers for transactional SMS using one of our powerful integrations.

Final thoughts

Transactional messages are a must-have for successful business in 2021. Amplify your customer experience journey and start sending transactional SMS today.

Sign up for your free SMSGlobal account now and test transactional SMS with 25 free credits, on us. If you’d like help setting up transactional SMS, get in touch with our dedicated SMS experts. They’re available 24/7 to assist you.