Benefits of Transactional Text Messaging

Unlike promotional text messages, which are advertisements attempting to sell a product or service, transactional text messages are notifications, reminders, alerts or receipts sent to customers whose behavior triggered them. In most cases, the customer’s behavior triggers an immediate response: making a purchase triggers a text message receipt, or changing a password triggers a text message verification code, for example.

Other times, the transaction triggers one or more text messages at a later time. Registering for a conference call might trigger a reminder the morning of the event, or an online purchase might trigger shipment tracking information two days later.

Here are six benefits to using transactional text messaging:

1. Impressive reach:
Unlike other types of marketing, transactional text messages can be sent to do not disturb (DND) numbers. That’s because the recipient has essentially initiated the conversation with the business. In other words, they’ve “opted in” and can be contacted with transactional texts only. This is true whether you’re sending the transactional text to an American customer or an Indian customer.

2. Integration with triggered behaviors:
Transactional texts can be integrated with software or websites to be sent automatically to a customer based on a behavioral trigger. Xfinity, for example, uses triggered text message confirmations when customers pay their bill. It’s an added courtesy that builds trust and cuts down on customer service calls.

Triggered Transactional texts

3. Rapid reach:
Ninety percent of Text messages are opened within three minutes of being sent. That’s not just good for businesses, but also for customers seeking vital information, such as password reminders, in a timely manner. Airlines needing to reach its passengers—or those picking up passengers—regarding late arrivals, gate and baggage changes, use transactional text messages to communicate in real time for a better customer experience. Here’s an example:

Flight Delay Rapid Reach SMS

4. High open rate:
According to Mobile Marketing Watch, SMS messages have a 98% open rate. It’s not surprising, as a survey by Vibes Marketing found that 70% of customers prefer to receive service-based messages on their mobile phone. This high open rate allows businesses to connect with customers without relying on marketing messages that can come across as nuisances if sent too frequently.

5. Bulk messaging capabilities:
Transactional messages aren’t limited to one recipient. For example, AT&T uses bulk SMS to contact multiple users on one account when they hit their shared data limit. At the tipping point, the company launches a transactional text alerting the account users of the overage charge.

Transactional Text Alerting SMS

6. Two-way SMS capabilities:
Research by Vibes Marketing found that 67 percent of consumers feel that the ability to turn a notification into a two-way dialogue is extremely important. Businesses can use transactional text messages to elicit a response by using key phrases like “Reply YES to confirm” for appointments. It can mark the beginning of a conversation.

Do transactional text messages actually give businesses an advantage over their competition? Considering 84 percent of consumers stated that service-based messaging has an impact on their decision to choose one company over another, yes. Transactional text messaging is a key differentiator for businesses looking to improve customer loyalty and satisfaction, save time and increase profits.