What’s the difference between transactional SMS and promotional SMS?

Transactional SMS messages pass on information necessary for using your product or service. For example, they could be helpful to:
● Send a message to an account holder about his/her available account balance
● Deliver an update to a client about an invoice amount
● Send a message confirming an online subscription
● Deliver an acknowledgment of a call to your sales/support number
● Remind airline customers about flight and gate information

On the other hand, the goal of Promotional SMS is to promote your product or service. This could be any sales or marketing message. For example, you can:
● Give customers offers and discount codes
● Notify your clients about sales that are going on
● Message customers about items that are going out of stock or selling fast
● Remind customers about upcoming events

Other key differences between transactional SMS and promotional SMS

● You can only send promotional SMSes from 9:00 AM to 9:00 PM. And, only to numbers that are not on the NDNC registry (DND numbers)
● You can deliver transactional SMS messages at any time. Also, this includes phone numbers that have Do Not Disturb (DND) services activated on them

Benefits of transactional SMS

Transactional SMS messaging keeps your brand top of mind with your customers. This can reduce your dependence on marketing messages to maintain a connection. Also, it’s a way for you to provide customers with peace of mind. Acknowledging their actions can go a long way in building brand loyalty and trust.

One of the biggest benefits is that you can send information to customers without any delay. And, this is important when urgent immediate information needs to reach customers.

Benefits of promotional SMS

Firstly, a promotional SMS creates awareness and has a wide reach. This could be about newly introduced products or service updates. Also, brands can send relevant information to a specific group of customers in just a few clicks.

What’s more, promotional SMS can increase sales and generate repeat sales with great returns on investment. So, it increases the exposure of brands. This also allows you to send customized messages to the selected or group of customers.

Where the similarities lie

Transactional and promotional SMS messages have different purposes. But they enjoy some of the same features. For example, they both have high open rates. The global open rate of text messages is an incredible 94 percent. Thus, both strategies also lead to better engagement and brand loyalty.

Ready to get started?

The experts at Routee will help you with your SMS strategies. And, we have the knowledge, tools, and resources to create better brand experiences. So, contact us today to start reaching your customers when and how it matters most.