Promotional vs. Transactional SMS: All About SMS Marketing


promotional SMS vs. transactional SMS

The most practical method for having immediate, easy-to-understand, and useful client communication is the short messaging service, or SMS.

In the United States, SMS is preferred over phone calls for customer support.

It produces excellent results as well; according to Gartner, promotional SMS has response rates of 45% and open rates of at least 98%. It surpasses the results provided by any other advertising tool.

The two most common forms of SMS marketing are promotional SMS and transactional SMS:

What Exactly is a Promotional SMS?

AnA promotional SMS is employed in order to encourage new or repeat business. When businesses are marketing new deals, offers, or discounts, promotional SMS keeps the prospects and consumers informed.

When utilized in conjunction with the proper message and at the proper frequency during major promotional SMS campaigns, one can be guaranteed excellent engagement and response rates.

What Exactly is a Transactional SMS?

Transactional SMS is used to provide customers with updates and time-sensitive information about a product or service they are using. But things don’t stop there.

Transactional SMS refers to any message that is not promotional in nature, such as changes to corporate policies that may have an influence on how consumers interact with the firm or unexpected notifications like software outages.

What Distinguishes Transactional SMS Tactics From Promotional SMS Strategies?

Each form of the message has a distinct function, and the compliance regulations governing each vary significantly.

The Telephone Consumer Protection Act (TCPA) specifically mandates that firms adhere to various regulations depending on whether they are delivering transactional SMS or promotional SMS communications.

What Differentiates Transactional SMS From Promotional SMS, and Why?

Simply said, anytime one conveys a message to the audience, they should think about the kind of response they are looking to elicit. What course of action is one urging them to pursue, if any?

Set the message’s business objectives and decide which metrics you believe it will help to enhance. One may use this to pick what kind of message to send as transactional SMS or promotional SMS.

For instance, the message would probably fall into the promotional SMS category if one is looking to enhance website traffic, subscriber engagement, client retention, or purchase rate.

Transactional SMS could be a fantastic option if one is looking to establish a brand reputation, promote a great shopping experience, or notify customers with important purchasing information.

In fact, for support-related issues, more than 50% of consumers choose transactional SMS over other forms of contact.

Both of these SMS marketing techniques are widely used by companies, especially e-commerce ones.

Online retailers frequently send promotional SMS communications about new product debuts, coupon codes, or sale notifications to specific consumer groups or subscribers.

Timing of Transactional SMS vs Promotional SMS

Whatever promotional SMS tactics one uses, it’s crucial to remember that companies cannot simply send promotional SMS whenever they choose.

While each nation has its own rules on SMS scheduling, the Telephone Consumer Protection Act is followed in both Canada and the United States (TCPA).

This set of rules states that the recipient must express written agreement to receive promotional SMS from a business.

Additionally, companies are not permitted to send promotional SMS messages before 8 a.m. local time or after 9 p.m.

On the other hand, transactional SMS is exempt from these rules. There are no time constraints on when firms can send these communications because they are not intended for marketing or promotional objectives.

It is also possible to send transactional text messages to all recipients, independent of their DND (do not disturb) settings.

Sender ID

The company has to have a sender ID regardless of the kind of communication you’re delivering.

Every time a company sends a subscriber a transactional SMS or promotional SMS, this specific name or number appears.

One may maintain brand consistency with the promotional SMS marketing activities by setting up your sender ID.

Regardless of whether one selects a long number or short code, the sender ID has to be connected to the local country address and appear in each  transactional SMS or promotional SMS sent by the company.

Examples of Transactional SMS

1. Order status

Some of the most frequent transactional text messages that online shoppers receive are order status texts. Customers who opt to get shipment updates will receive transactional SMS.

2. Delivery notification


A delivery notice is sent when a customer’s shipment is out for delivery or has been delivered, as the name implies.

This particular transactional message is sent upon the customer’s receipt of all pertinent shipment updates.

So, despite the similarities between order status and delivery alerts, transactional text messages are always sent after order status updates.

For an instance, a company may SMS you to inform you that your shipment would be delivered in one hour. Then, they could text you one more transactional SMS to confirm delivery.

3. Receipt

eCommerce businesses commonly send receipts by email or transactional text messages because customers aren’t making purchases in a physical store where they could get a paper receipt as soon as they conclude a transaction.

4. Recurring billing

Businesses can use transactional SMS to inform clients about recurring invoices. For instance, Affirm finance services send transactional SMS to their lenders at the same time each month to remind them of an impending payment.

Promotional SMS Examples

1. New product warning

Promotional SMS is a wonderful technique for informing clients about recently introduced items because 98% of promotional SMS are read by the end of the day.

This tactic will assist businesses in making speedy purchases, especially from their most devoted clients.

2. Promotional code

Sharing exclusive discounts and coupon codes is a fantastic additional promotional SMS tactic.

Nearly 35% of customers prefer to get discounts and discount codes through promotional SMS from merchants.

Transactional SMS, or promotional SMS, is a quick-delivery, cost-efficient, and mobile-friendly method.

One may expand the business more quickly and effectively by utilizing transactional text messages and delivering consumers’ information with promotional SMS or transactional SMS.

Exabytes can assist any startup or existing company that wants to get bulk SMS marketing solutions automated.

To know more about Exabytes bulk SMS marketing solutions, contact us now.

Bulk SMS Marketing

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