What is Transactional SMS? And The Text Message Revolution

Do you ever get weird SMS messages from firms stating that your order is ready for delivery? Maybe a text message telling you when your hotel reservation has been confirmed? Congratulations if you have! You know a lot more about commercial SMS than you believe.

Almost 98% of individuals who receive alerts read them. Given this, it's no wonder that transactional SMS from bulk SMS providers has become the preferred means of client engagement for many businesses and organizations all over the world. It is non-marketed and targeted on improving customer relations by building a healthy relationship between the firm and its intended audience.

What is Transactional SMS? and How Does It Work?

Bulk SMS Broadcast is a method of sending transactional SMS. It is a sort of pre-programmed SMS that a company or organization sends to its users or customers in order to provide important information on how to utilize the company's products or services directly. Transactional Text messages sent by bulk SMS service providers are frequently non-marketed and non-promotional, suggesting that the text message was triggered by the customer's choices and provides individualized details of a business-to-customer transaction.

If your organization undertakes online financial transactions, for example, you may send your customers an e-receipt via transactional SMS. The notion of utilizing SMS to sell items has changed tremendously throughout the years. Even a few years ago, most businesses depended only on advertising SMS to promote their products and services in front of their customers.

Instead of focusing on promotional marketing, the emphasis has shifted to informative communication that helps customers through the customer lifecycle. As a result, the mechanics of business-customer relationships have altered drastically.

How You Can Grow Your Business with Bulk SMS Service

When items are shipped, up to 80% of customers prefer to track their orders through text. Furthermore, almost half of potential consumers opt to establish a company brand after receiving an SMS from them, allowing them to engage on a more personal level.

If three out of every four consumers express interest in your product and contact you about it, it is apparent that mass communications is effective in increasing sales. With this in mind, it's no wonder that both small and large organizations rely heavily on Bulk SMS services to ensure continuous client care.

Transactional Apart from being more engaging for clients, text messages are also more time-sensitive and trustworthy, ensuring that essential information and upgrades are delivered to them swiftly and securely over a secure connection.

Types of Transactional SMS

While the core goal remains the same, sending vital transactional information to clients at the right time, there are multiple types of transactional SMS used for various purposes. You may use transactional SMS with bulk SMS services in a variety of ways, depending on your goal and the type of purchase, and regardless of the products and services you sell.

Purchase confirmations, shipping and arrival alerts, OTPs, and e-receipts are some of the most prevalent forms of transactional SMS.

One-time passwords (OTPs): To secure the security of your system, transactional SMS may be used to send OTPs to customers. Automatic OTPs can be used to validate consumer behaviors such as sign-ins, transactions, and other activities.

•Transactional SMS allows you to deliver critical information about your products or services to your customers. For example, if you own an online business, you might send these alerts to your customers to keep them up to speed on their purchase status, shipping updates, delivery information, and payments, among other things. This will help you to keep your clients updated throughout the process, from beginning to end.

•Reservation confirmation or rejection: Customers can be notified of their reservation status for a hotel stay, travel, or other activity by sending transactional messages using a bulk sms service provider.

•Basic alerts: Sending transactional SMS to your customers as notifications for particular activities might help your business deliver better customer service. It is crucial to keep your customers informed about important events, whether it be an appointment or a business transaction, in order to preserve fruitful working relationships.

Transactional v/s promotional SMS

To advertise their goods and services, businesses text prospective clients with promotional texts. Delivering marketing SMS is largely used for advertising and marketing goals, with investment being the main draw.

Additionally, transactional texts are used to send clients non-marketed communications and to deliver important transactional data. Only transactional SMS can be sent to business subscribers, informing them of events and modifications that have no connection to promotional activities at all.

Alternatively, transactional SMS focuses on delivering advantages to clients through personalized and distinctive text messages as opposed to just promoting your goods and/or services. Contrary to promotional SMS, transactional SMS is triggered by the client's actions.

A transactional SMS can only be sent after the consumer has finished the transaction, however you can send a promotional SMS to potential customers at any time about a price reduction your business is offering.

The Impact of SMS on Business

Each type of SMS, whether transactional or marketing-focused, has a distinct function that depends on the type of company sending it. As a result, your goals and the efficiency with which you employ each Message will decide the impact that each type of SMS will have on your company.

Promotional SMS is the way to go if you want to enhance website traffic, client loyalty, and purchase rates. The promotional messages outline the discounts, special offers, and other things that your business provides. They may also help you sell your products and services and have a positive influence on the economy by using classic marketing techniques in a faster and more efficient way.

Transactional SMS is a powerful tool for increasing user engagement since it gives users access to information, builds brand trust, or helps businesses build relationships with consumers by sending important information about their goods or services.

Examples of Transactional SMS

Depending on the purpose and goal, transactional texts can be applied in a variety of ways.

• Greetings messages

As the name suggests, invite messages are personalized SMS that you could send to new customers once they sign up for one of your company's services.

• Details on the status of orders

When clients order products from your online business, you may provide them with regular updates on the status of their orders.

• Invoices and reimbursements repeatedly

You can keep your customers up to date on all of their financial transactions using transactional SMS. Through an online SMS service provider, you may inform your customers about purchase due dates, accomplishments, billing due dates, and e-receipts if your business offers subscription plans or an automated monthly subscription option.

• Transaction receipts on your phone

You can provide e-receipts or phone proofs to your consumers once they buy a product, much like account information.

• Alerts of delivery

One may easily inform their consumers that their bought products were safely delivered and on schedule to their designated locations.


To conclude, transactional SMS is essential for companies aiming to improve their customers' experience by using rich communication methods. If your company lacks the requisite expertise and connectors to automate transactional SMS, you can turn to specialist bulk SMS API ecommerce platforms for assistance. They'll assist you to combine and implement better bulk SMS service techniques using the correct technologies and equipment, allowing your company to grow at a faster pace.


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