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 The What, Why, & How of Transactional SMS
SMS Marketing 101

The What, Why, & How of Transactional SMS

Customers expect frequent and timely updates, which means transactional SMS. The benefits of transactional SMS include: increased engagement, timely communication, establish brand trust & loyalty, and reduced support inquiries.

November 16, 2022

Consumers today expect frequent and timely updates on the status of their purchases, which means SMS is perfect for the job. Incorporating transactional SMS into your marketing strategy will keep your consumers informed throughout their entire customer journey and increase overall customer satisfaction.


What is Transactional SMS?

If you’ve ever placed an order and then wondered what the status of it is, or ventured to the “check order status” page of a brand’s website, then you likely understand the demand for transactional SMS. Transactional SMS keeps you aware of all updates related to your order, alleviating the need for manual monitoring or searching through your clogged inbox for a tracking number.

Transactional SMS are automated, non-marketing text messages sent from a business to a consumer that provide important information regarding the consumer’s purchase. These messages work to guide and support shoppers throughout their entire customer journey. Any information pertaining to the customer's purchase, such as order confirmation, shipping updates, delivery notification, and order cancellations all fall under the category of Transactional SMS.

By sending transactional SMS messages, you are providing your clients with a new method to engage with your brand. And with an average open rate of 98%, it’s no surprise that transactional SMS is the most effective way to provide your customers with necessary order updates; which ultimately saves you time and revenue on fielding unnecessary customer service inquiries.


Transactional vs. Promotional SMS

Transactional SMS is used for non-marketing purposes and to help consumers stay well-informed throughout their full purchase cycle; whereas promotional SMS, is used for the opposite—as a marketing tactic to share coupon codes, VIP sales, special offers, sweepstakes, and more.

While the use of transactional and promotional SMS is different, so are the compliance guidelines. The Telephone Consumer Protection Act (TCPA) has regulations around specific time windows for when promotional messages can be sent and consumers must opt-in to receive promotional messages. However, transactional messages are considered necessary and informational and can be sent any time of the day, regardless of do not disturb (DND) or opt-in status. The ability to deliver transactional messages at any time of the day means that the information is not only immediate but 100% up-to-date and accurate.


The Benefits of Transactional SMS

There are many advantages to incorporating transactional SMS into your brand’s marketing strategy. Here are a few of the key benefits:

🥰 Increased Engagement

Did you know that 70% of consumers believe SMS marketing is an excellent way for companies to capture their attention? Consumers want to receive information that is personalized, efficient, and relevant, but also in a format that is most convenient for them. With a high open rate and easy-to-read format, transactional messages keep your brand top of mind for the customer.


⏱️ Timely Communication

Ensure prompt delivery of critical information, regardless of quiet hours. Transactional SMS works 24/7; therefore, no matter what time of day a consumer completes a purchase, they will receive the transactional message in real-time. Voyage's multi-message automations work to ensure that transactional messages are always delivered on time.

🤝 Establish Brand Trust & Loyalty

Consumers appreciate being well-informed and transactional SMS will make them feel at ease when it comes to tracking their purchases. Good customer service builds brand loyalty, increases customer lifetime value (CLTV), and helps ensure repeat purchases.


🤔 Reduced Support Inquiries

With transactional SMS, you are proactively updating your consumer on their purchase and putting a halt to any calls that would be directed to the customer service line. These automated order updates become especially important during peak seasons, such as Black Friday, Cyber Monday, and holiday shopping.


Transactional SMS Best Practices

Now that we know the ins and outs of transactional SMS and how these messages help to achieve customer satisfaction while building brand loyalty, let’s look at some of the best practices to keep in mind before deploying your messages.

Stay Relevant 

Make sure your transactional messages are clear and have a purpose. Transactional messages should be useful and contain accurate information so your consumer is in the know and doesn’t need to reach out with additional questions. Voyage's cutting-edge SMS platform works in tandem with a group of skilled eCommerce founders and top-tier technical product managers to ensure that the appropriate message is delivered to the right person, at the right time.


Be Concise

No one wants to receive a text message that looks like a novel, so keep your transactional messages brief. Provide your consumers with all the information they would want to know with short, clearly comprehensible communication.


Incorporate Your Brand Persona

While direct and to the point, you still want your brand’s personality to shine through in your transactional messages. Strike the appropriate balance between being knowledgeable and entertaining to showcase your brand’s tone of voice and resonate with your customer.


Personalize Your Messages

Show your customer that you know who they are by including their first name or other identifying information that relates to their customer journey. By personalizing your messages, you allow your consumers to connect with your brand on a more personal level and avoid coming across as spam.


Request a demo to learn more about how you can start sending transactional SMS to your customers today with Voyage.

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