Bulk SMS Service, Informative, Technology

Transactional SMS Vs Promotional SMS: Key Trends You Need to Know

You must have received various text messages for offers and sales or when you place an order, you must receive your order details and tracking details.

Have you ever wonder what type of messages these are?

Any idea?

Who is sending these messages?

How these messages are sent?

Well, majority of people doesn’t know the answer to these questions. These messages are Transactional SMS and Promotional SMS messages. The next segment explains what these messages are and who sends them and how.

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What are Transactional SMS Messages?

The Transactional SMS are those messages;

• Sent as a response to users who have triggered an action.
• Bank messages are the best example of a transactional SMS as they provide users OTP’s (one-time-passwords/pins) for a transaction or to access their account.
• There are many other cases where transactional SMS is sent to people. These cases include order/shipment details, bank account being credited or debited, booking confirmations, account activation, etc.

Examples:

• Your account is debited by INR **** on (the date and time). Your new balance is INR *******.
• Order shipped: Hi (customer name), order **** from the company is on its way. It will reach you by (the date). Track your order here ****.
• The OTP to verify you as a buyer is *****. This OTP is valid for next 15 minutes.

What are Promotional SMS messages?

Promotional SMS is a type of message;

• Use to promotes your company.
• Efficient and cost-effective marketing tool to promote your products and services directly to the recipients’ mobile.
• To increase sales and maintain customer satisfaction, promotional SMS gateway is used as a primary marketing channel by B2C organizations. It is an effective and a reliable measure to keep the customers in loop of all the discounts, offers, sales etc.
• Promotional SMS help increasing sales and keep the customer interaction maintained. These are easy to read and are sent at times relevant to the customers.

Examples:

• Get 50% off on your next 3 orders. Use code: **** on your next orders. Offer valid till (date), Order now.
• Mega Freedom Bonanza: Flat 40% off beauty and wellness solutions. Walk into your nearest stores on (dates) to avail. Or call/text ***** now for booking.
• Hi (customer name), Last day to order (product name) Flat 60% Off Sale. Luxury Watches and more. Hurry!

Key Difference between Transactional SMS and Promotional SMS

Now that we know what Transactional SMS and Promotional SMS are, let’s get to know the differences between these two types of messages. Following table shows the key differences:

Features	Transactional SMS	Promotional SMS
Purpose	The messages that are sent contain material like alerts, order details, as well as sensitive information.	These messages have order details, coupons, sale offers, discounts etc.
Customers	The customers that are registered only receive these types of messages. These are not used for marketing purposes.	Such messages are advised to be sent to customers who have opted to be in a certain marketing campaign.
Recipients	The SMS are sent to the registered customer no matter what their DND status is	This type of SMS is sent to recipients that have a non-DND status
Timings	The text SMS can be delivered at any time of the day. It is capable of being delivered 24*7 without any restrictions.	These SMS are usually delivered between a timing of 9am to 9pm as per the practice in given jurisdiction.
Sender ID	SMS are delivered with an assigned ID of 6-alpha characters of choice. Usually these ID’s correspond to the business or product name	SMS are delivered with an ID of 6 random digits which is assigned by the telecom operator.

 

Table 1: Transactional Vs Promotional SMS Report

Pros and Cons of Transactional SMS

Pros –

• Messages can be sent to DND numbers
• Contacts can be updated with latest information
• Private conversation to create a trust factor between the customer and the sender
• Generate a data of regular and fixed customers

Cons –

• Messages are only sent to registered customers
• Sending promotional updates to customers is not possible

Merits and Demerits of Promotional SMS

Merits –

• Possible to send messages to any number
• Promotional updates and offers can be sent through text to the customers
• Conversations and leads are generated to businesses

Demerits –

• Messages are not allowed to be sent to DND numbers
• Capable of sending messages only from 9am to 9pm

In Short

Transactional SMS are basically sent to alert people or share sensitive information. Whereas, Promotional SMS are sent to promote business or a product by offering sales, discounts, coupons etc.

The key differences between these two are timings, sender IDs, recipients, and customers. As these are pretty great approaches, there are a few merits and demerits of both the types of messages. All the information is mentioned in this article.