What is a Transactional SMS: Definition and Guide

HomeBusinessWhat is a Transactional SMS: Definition and Guide

Customers today want personalised and engaging messages. To match customers’ expectations, marketers must develop a mobile strategy that ensures the most direct message delivery. For appointments, payment reminders, promotions, or any other information, 75% of customers prefer businesses to get in touch with them via a transactional SMS provider.

What is a Transactional SMS?

An automatic SMS message sent in response to an event or customer-initiated activity is known as a transactional SMS. Transactional messaging in action may be seen quite well in banks. For instance, customers are sent one-time pins when they make purchases or attempt to access their accounts online. Transactional SMSes are also utilised for various purposes, such as account activations, booking confirmations, order confirmations, account balance notifications, and real-time alerts, to streamline procedures.

Why Should You Use Transactional SMS?

Transactional SMS are personalised, pertinent, and timely, based on triggered events. As a result, they are well-liked by consumers. These messages are designed to increase brand loyalty, ward off lapsed clients, and re-engage your most valuable clients.

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Account Activation and Verification

Users can receive transactional SMS updates on account activation or verification options. When users sign in or register, they are given a special code that they must authenticate by clicking an activation link or entering a verification code on a mobile device. SMS identity confirmation is a low-cost, highly reliable, and practical method for ensuring security and peace of mind.

Reminders Specific to Time

Lost sales possibilities result from missed appointments. Decreased no-shows are crucial because of this. You may ensure customers don’t forget their scheduled appointments by using time-triggered text messaging. For instance, you might immediately contact customers who bought consumable products when it’s time to refill.

Real-Time Notifications

The best way to inform clients is by SMS, especially when the information is critical. Due to the ease with which calls and emails might be forgotten, customers don’t always respond to notifications promptly. Clients can take immediate action by receiving critical information via text notifications in real-time. For instance, if customers receive a real-time SMS informing them of a flight change, a table is ready, their credit card activity, or their data usage, they will feel valued and informed. Their satisfaction will rise as a result, and they’ll be more likely to use your services again.

What Makes Transactional SMS Effective?

Time Sensitive

Since transactional SMSes are automated, they make it possible to transmit urgent information on time. As a result, SMS messages can be quickly sent in response to a set trigger without requiring any manual input.

Improved Customer Engagement

Transactional SMSes are more than simply alerts or notifications; they aid in creating a trustworthy line of contact between companies and their customers. A customer who feels valued and at ease utilising your services receives regular updates on an essential delivery.


SMS is the ideal way for businesses to reach customers who don’t frequently have access to data as it is a basic function on all mobile phones worldwide.

Transactional SMS Vs Promotional SMS

Promotional SMS messages have a high opt-out rate, despite the benefits of letting your clients know about all the amazing items you offer and any interesting deals you want them to know about. On the other hand, a transactional SMS provider offers ease to customers rather than just being another marketing message to wade through because it is highly tailored and action-driven. 

Companies that prioritise improving the client experience through advanced communication techniques should use transactional SMS. It is more effective, speedier, dependable, and useful for communicating with clients than other methods. Additionally, it provides a clearly defined client engagement plan that puts the company one step ahead of the competition. A bulk transactional SMS provider like Mtalkz helps businesses increase client engagement and customer retention rates by implementing an efficient transactional bulk SMS solution.

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