Transactional SMS
A transactional SMS is typically an automated SMS message sent in response to an event or action triggered by a customer. 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 fast. According 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 smart phones, as Rescue. The chances are that you will reach your audience.
- It helps people. Transactional SMS assists people in various communication touch points with your brand. Using SMS, you will build a solid brand image.
Types of Transactional SMS
The primary objective of transactional SMS is to deliver critical transactional information to your clients at the right moment. However, there are different types of transactional SMS based on the end goals it serves.
- One-time passwords: To enhance the security of interactions with customers, businesses send OTP messages to clients. Automated OTPs can verify customer actions, such as sign-ins, payments, and more.
- Reservation status: Sending transactional SMS messages to consumers is an excellent method to notify them of their booking confirmations/ cancellations for a hotel stay, airline, or other services.
- Informative updates: Transactional SMS allows you to send any important information about your products or services to your clients. For example, if you own an e-commerce firm, you can send these messages to your clients and keep them up to date about their order status, shipment update, delivery status, and payments. This will allow you to keep your clients informed throughout.
- General warnings: Sending transactional SMS to your consumers as alerts for specific activities will ensure better customer service. You can keep your consumers informed about significant events, whether it’s for an appointment or a financial transaction, is critical for maintaining a successful business-client relationship.