Do you the difference between Promotional SMS vs Transactional SMS? The most practical way to communicate with your customers that is straightforward, easy to use, and actionable is through short messaging service (SMS). It also produces excellent results; according to Gartner, SMS triggers response rates of 45% and open rates of at least 98%. (Source: Gartner) It is far superior to what is offered by any other marketing channel.

Let’s take a closer look. The two main categories of business SMS are transactional and promotional. Let’s examine them from the perspective of how your company can benefit most from them. The purpose of this article is to provide you with a general overview of how SMSs are categorized as either transactional or promotional. It also highlights the impact it has on how your clients engage with them. Lets learn more about Promotional SMS vs Transactional SMS:

Promotional SMS vs Transactional SMS: Whats the Difference?

Transactional SMS messages are mostly used to deliver alerts about orders and reservations. Additionally, they are provided to registered clients as informational messages. Nonetheless, marketing and sales communications are sent via promotional SMS. Only opt-in and non-DND numbers receive these messages.

What is a Promotional SMS?

The purpose of a promotional SMS is to encourage new or recurring business. When you are promoting new offers, discounts, or deals, it informs your clients and prospects. When employed with the appropriate message and frequency around important promotional activities, you can be guaranteed of strong engagement and response rates.

In relation to response rates, an SMS typically receives a response in 90 seconds as opposed to 90 minutes for an email.

This is the ideal channel for marketing teams executing campaigns that call for prompt consumer action, such as inviting pre-bookings prior to the debut of a consumer device.

Why are promotional SMS used by businesses?

1. Encourages quick action: SMS notifications often display the full message, preventing consumers from delaying reading it.

2. High ROI: When it comes to generating substantial sales, SMS marketing can provide nearly the best cost-benefit returns of any medium.

3. Customisable: Use user-friendly platforms to send distinct messages to various audiences.

When should promotional SMS campaigns be launched?

1. Cashback or discount days: Inform your audience about exclusive offer times to build brand loyalty.

2. Flash sales or clearance sales: To reach your audience, use the power of urgency or lower prices on out-of-season inventory.

3. Category marketing days: To sell specific product categories, use any calendar events or make your own calendar.

4. Seasonal buying periods: When promotional SMS is sent at the appropriate moment, it informs your audience of enticing offers.

5. Product giveaways: An additional strategy for drawing large crowds, particularly for expensive goods that the winner may keep

6. Loyalty point promotions: These are typically given to current customers in exchange for a free loyalty program membership or additional points when they buy a product.

What is a Transactional SMS?

Time-sensitive information and updates about a product or service that your clients utilize are shared via transactional SMS.

However, it doesn’t stop there. Transactional SMSs are any messages that are not promotional in nature, such as sudden alerts like software outages or revisions to corporate policies that may affect the company’s connections with its consumers.

These messages are typically sent in response to specific actions that you have determined and set up in the dashboard of your SMS provider or through their API with your program.

Why is transactional SMS used by businesses?

1. Specialized SMS routes: To guarantee constant delivery rates

2. Trackable: View our real-time stats, including response, open, and delivered rates.

3. Can Reach DND numbers: TRAI-mandated DND regulations are not applicable.

4. Value for money: Throughout the customer journey, it is possible to deliver numerous messages at a minimal cost.

When should transactional SMS marketing be run?

1. Communication on product orders or services: Verifications, postponements, changes, etc.

2. Know Your Customer (KYC) and 2-Factor Authentication: OTPs for service confirmations, ID verification for monetary transactions, etc.

3. Notifications of deliveries or outages: updates on the progress of shipments or service maintenance, notifications of outages

4. Internal correspondence with partners or business: Updates on business continuity

How do I pick an SMS provider for promotional and transactional messages?

1. Trackability: The more information you have regarding the progress of your campaign, the better for lead generation. In order for everyone to perform at their best, your provider should provide room for SMS users and CRM connectivity.

2. Reliability: Since it is still difficult to attain 100% delivery rates, the company’s services will always be in jeopardy.In comparison to the industry standard, the provider should ensure that delivery rates and uptimes are flawless.

3. Scalability: It’s likely that your SMS volume may rise during vacations and festivals. Your SMS campaign provider should be able to grow with you as the volume of messages increases.

In the end, SMS is a cost-effective, mobile-friendly, and quickly deliverable channel. You can use it to send your consumers transactional or promotional information, which can help you expand your business more quickly and effectively. if you are looking for Promotional SMS vs Transactional SMS, We can assist whether your company is new or well-established. Get in touch with us.