What Is Promotional VS Transactional SMS?

The age of aggressive marketing has ensured that every mobile subscriber is aware of the numerous promotional SMS messages that are occupying their inbox. SMS advertising is a widely used low-cost marketing technique that is helping businesses to reach out to millions of existing and prospective buyers. Sources have suggested that approximately 90% of the population of the world is likely to have a mobile subscription by 2020. More users are likely to check their mobile phones regularly thereby making SMS advertisingthe preferred channel for marketing.

Because of its universality that click-through rate of SMS advertising is lower when compared to other forms of Internet-based marketing. This simply indicates that promotional messages are not as effective as they used to be earlier. In this article, we will be looking at how to leveraged transactional SMS for securing better impressions as well as click-through rates in our SMS advertising campaigns.

Despite their popularity and ubiquitous nature, most enterprise messages are usually piling up in the unread section of the user’s inbox. This is because of the content of the SMS which is forwarded. Before we review this matter let us understand the definitions of promotional and transactional SMS messages.

Promotional SMS

SMS advertising is primarily used by B2C enterprises for executing promotions through SMS messages for promoting their products or services. Use cases primarily include lead generation for services such as insurance, bank loans, app downloads, and others. They may also include special promotions, food, retail, electronics, seasonal offers apparel, et cetera.

Transactional SMS

These are text messages that businesses send to their customers as a response to an action or to send an update. Transactional SMS messages usually include one-time passwords, customer invoices, order confirmation, delivery details, account balance updates, confirmation codes, password resets, feedback, et cetera.

As numerous companies are sending a series of promotions and deals via SMS messages the frequency of the messages can eventually put off the customer. Most promotional messages reach the user regardless of the time and context. These messages are likely to be ignored by the customer because he or she wouldn’t want to look at a lunch offer at 9 AM in the morning because it would be irrelevant to them. At the same time, if the message were to reach the customer at the appropriate time it would gain more attention.

It is common knowledge that B2C messaging is occupied by push marketing their businesses are attempting to send numerous promotional messages without paying heed to the interests of the customer. This has led to the customer becoming aware that they can ignore the information they receive via promotional messages.

Transactional SMS has always been in the background when it is related to the matter of customer interaction because they are generally considered for the operational functions of an enterprise. However, transactional and SMS messages are the most valuable component for customer engagement. It is essential because leveraging a relationship with the client to establish trust even before the customer decides to make a purchase.

Transactional SMS messages have a higher click-through rate compared to promotional SMS and they contain personalized information about the transactions of the client’s account. Messages which contain feedback links also tended to have higher response rates which can result in better customer retention.

Would Enterprises benefit if they could use a solution which could help them to leveraged higher impression and mind share for transactional SMS and use them for promotional messaging? They certainly would benefit from a solution if it was available to them because more people would view promotional messages with the transactional message giving the brand better visibility and effective communication. Enterprises should be looking forward to a solution which can combine promotional SMS along with transactional SMS messages because it would be a better option for them to interact with their customers effectively.