What is Transactional SMS and Promotional SMS: Why Does it Matter?

SMS marketing strategies have proven their benefits across different business and service domains through their amazing 98% open rate. Many types of SMSs are used to attain various organizational goals, some of the most crucial types of SMS strategies are Transactional SMS and Promotional SMS. In this article, we will cover the meaning or definition of these SMSs and how they are important for different organizations and services.

Transactional SMS

The SMS is sent to the consumers or customers to inform the activity of transactions made by them or the status of a service or product purchased by a business. These types of SMS or messages are known as Transactional SMS. Most of the Transactional SMS comes with no reply option as the main objective of these messages is to be aware of the status of the transaction made by the customer.

Benefits of Transactional SMS

Transactional SMS is beneficial in many ways for an organization as well as consumers, some of the key benefits of these SMSs are:

• Real-time update – The transactional messages are useful for consumers to get or receive real-time updates from the businesses or organizations from which they have availed services. It helps them to track the activity of the purchase product and services or receive the notifications related to transactions made.

• Secure – The transactional messages are highly secure in nature. It ensures no security breach or malicious activity can happen while or after sending these types of messages to the targeted consumer.

• Reliable – These messages are reliable due to their real-time message delivery approach. Consumers can rely on the information provided in transactional messages.

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Promotional SMS

The SMS is sent to the consumers or the targeted audience to promote various services, products, and newly launched offers or schemes. These types of SMS or messages are known as Promotional SMS. These messages are meant to trigger and launch various marketing or promotional related activities within tight deadlines across different regions. Most of the Promotional SMS comes with reply options as the main objective of these messages is to be aware of the promotional and marketing activities to dedicated customers or targeted audience.

Benefits of Promotional SMS

• Easily trackable – Promotional messages are easy to track and enterprises can easily track the performance of promotional SMS via SMS metrics: CTR, open rate, bounce rate, and more.

• Return of Investment – When compared to other SMS campaigns or other Enterprise SMS campaigns, the Return on Investment (ROI) is the highest in Promotional SMS marketing campaigns.

• High open rate – Promotional messages have high open rates due to their marketing and promotional nature. People tend to perform and complete Call to Action (CTA) mentioned in the Promotional SMS or Enterprise SMS.

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After going through the write-up, you might have got insights into the difference between Transactional SMS and Promotional SMS and their importance in the market. So, as the next steps, plan the SMS marketing strategies well, either promotional or transactional SMS strategy, to engage with the targeted audience or loyal customers in a more professional way. - ValueFirst's

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