How to Use Transactional SMS for Your Business

how to use transactional SMS

Businesses need to use all forms of communication to reach their customers in the digital era we live in today. Transactional SMS is one technique that is frequently disregarded. An effective tool for boosting customer engagement and loyalty is Transactional SMS.

The use of transactional SMS is advantageous to almost all businesses. Since these texts are typically sent in response to a customer action, they differ from marketing or promotional texts.

Transactional SMS is a well-liked new method of communicating with clients, connecting the dots when recipients are out of the office or away from their inboxes. Text messaging has become the upcoming big thing in omni – channel interaction due to customer preference and business recognition. Customers frequently find it a more direct and convenient way to get your important updates.

Transactional SMS addresses this by sending messages and updates directly to recipients’ phones. In addition to expanding your audience, it also gives you a chance to enhance customer satisfaction and boost customer engagement.

What is transactional SMS?

Similar to transactional emails, Transactional SMS is automatically generated and contains vital, urgent details about an account or a transaction. A user-performed action, an event connected to the action, or another account activity sets them off. For instance, a notification of a subscription renewal or a shipping notification in connection with a recent purchase. You require clients’ sign-up consent to send transactional messages via SMS.

Why you should be using transactional SMS?

There are many advantages for businesses using transactional SMS service. You’re not just communicating with your customers on a platform that they frequently use; you’re also doing it in the manner that they find most appealing. Actually, compared to phone calls or emails, 75% of mobile users prefer sending texts.

Beyond simply having more customers, using SMS as a communication tool has many other advantages. Transacting via text message:

1. Has high delivery and open rates: The average open rate for SMS is 98%, and its delivery rate is almost 100%. This is because SMS is incredibly convenient for recipients—the majority of us always have access to a mobile device.

2. Is extremely quick: Transactional SMS messaging places a high value on speed, particularly for messages like requests for password resets. With the majority of recipients opening the message within the first five minutes, SMS messages can be sent and received in a matter of seconds.

3. No 5G: Internet-dependent? No issue. Important updates can be sent with confidence because recipients can still receive messages without an internet connection.

4. Provides channel possession: Just like your mailing list, the opt-in SMS recipients are yours, and you have total power over your forum and texting. None of the dangers related to using social media or other third-party communication tools exist.

5. Boosts operational effectiveness and customer satisfaction: More customers will read more of your crucial messages when delivery and open rates are high.

6. Integrates with your favorite apps and CMS: Transactional SMS services like Msg22 can connect to thousands of apps to send SMS messages in conjunction with email triggers for a fully automated, seamless experience.

7. Is simple for users to sign up: Include a simple opt-in checkbox during registration or in the user’s account profile.

How your business can use transactional SMS?

Every stage of the customer journey is covered by a variety of SMS types. Since they seamlessly integrate into the customer experience, you probably receive Transactional SMS regularly without even noticing. Let’s look at a few of the most well-known instances of transactional SMS.

1. One Time Passwords (OTPs)

Many websites and apps are choosing to use OTP SMS as online security is becoming a top concern for both businesses and consumers. OTPs are best delivered via SMS because they can be sent immediately and without the user having to open their email inbox.

2. Two Factor Authentication (2FA)

By transferring an authentication code to a confirmed email address or phone number, two-factor authentication enables you to increase the security of the users’ sign-in process. 2FA text messages can be instantly received on their mobile device, eliminating the need for a time-consuming or cumbersome extra step and allowing them to carry on with their experience without interruption.

3. Reservation confirmation and cancellation

A confirmation message is crucial whenever a customer makes a reservation or booking to foster trust and allay any concerns about whether the action was successful. The same holds for canceled reservations or bookings. Additionally, their text message inbox makes it simple for them to access information about their booking if necessary.

4. Payment and billing alerts

Nowadays, there is a subscription service available for almost anything, making it difficult to keep track of all of your bills. Your customers can know precisely when their account has been charged with the help of payment and billing alerts delivered via Transactional SMS, or they can be informed if the payment has failed and take immediate action.

5. Appointment confirmation and reminders

Reminders for appointments are beneficial for both you and your clients, as well as for your customers. You can potentially save your company money and time by sending automated messages to customers to remind them of upcoming appointments. By doing this, you can reduce lateness and no-shows.


SMS is a highly monitored sector, so sending texts in bulk involves multiple inspections and verifications. Using a Transactional SMS service like Msg22, which has advanced features to personalize your messages and improve customer communication, will ensure you have high deliverability and can send SMS quickly and in bulk. 

Transactional SMS are a fantastic way to communicate with your clients and expand your business. Customers can receive crucial account updates or stay informed about the status of their orders using this simple, convenient service. They’re also a fantastic way to remind clients of upcoming appointments or sales events. We recommend giving transactional SMS messages a try if you haven’t already. They can be very effective at expanding your company, which may surprise you.


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