Why Businesses Are Moving to Transactional SMS?

Businesses Are Moving to Transactional SMS

Businesses are shifting to transactional SMS because it is helping them in many ways. This type of communication resource is cost-effective, reliable as well and rapid. Several industries are availing the advantage of text messaging services. 

In this article, we’re going to uncover the details of this SMS service, how it builds trust among customers, real-life success stories, and many more informative details.   

Understanding Transactional SMS

Customers receive transactional SMS texts automatically depending on their account activity or behaviors. Important details regarding their transactions, such as order confirmations, shipment updates, as well as account notifications, are sent to clients via it. 

In comparison to promotional SMS messages, transactional SMS messages are opened and read more frequently since they are usually urgent as well as necessitate prompt response.

Here we’ve shown some differences between transaction and promotional SMS

Criteria Transactional SMSPromotional SMS
Purpose Informational, AlertsMarketing Offers
Content Order Confirmation, alert, OPTsPromotions, Ads
TimingAny Time, Rapid Delivery Restricted hour
Opt-In RequirementNo Opt-in RequirementOpt-in mandatory 
DND NumbersDelivered to DNDNot delivered to DND

How Transactional SMS Builds Trust Among Customers by Providing Reliable and Essential Information

Transactional SMS

Here are some of the important factors on which we could determine how it builds trust among customers:

  • Transparency: Customers can receive all the information they require about their transactions from transactional SMS messages, which are succinct and easy to understand. Showing clients that the company is open and honest and has nothing to conceal, promotes trust.
  • Accuracy: Transactional messages have a high degree of accuracy because they are generated automatically. Demonstrating to customers that the company is trustworthy as well as dependable when offering accurate information, promotes trust.
  • Timeliness: Customers receive the information they require fast and at the most convenient moment because transactional messages are sent right away following a customer action or account activity. Demonstrating to clients that the company is receptive as well as considerate of their needs, fosters trust.
  • Convenience: Transactional SMS messages are simply accessible from anywhere at any time due to the fact that they are sent straight to customers’ mobile phones. Making it simple for clients to keep themselves informed about their transactions, promotes trust.

Real-life Examples of Transactional SMS Success Stories

These are two real-life examples of successful transactional SMS messages:

Case 1: After using transactional SMS, a major e-commerce company observed a 20% boost in consumer satisfaction. Order confirmations, shipping updates, as well as delivery alerts were sent by the organization by SMS service. The simplicity with which customers were able to get precise and up-to-date data regarding their orders was much appreciated.

Case 2: After introducing transactional SMS, a bank experienced a 15% decrease in fraud. The bank sent out OTPs for two-factor authentication via transactional SMS. This reduced the likelihood of illegal access to accounts belonging to clients.

Transactional SMS was implemented in the accounts of customers and gave them important details in every one of these cases. 

In the end, this enhanced customer experience as well as minimized fraud by establishing a sense of confidence as well as loyalty.

The Role of Transactional SMS in Various Industries 

Transactional SMS plays a vital role in a variety of industries. In almost every sector this method is being used by several companies in order to make their tasks easy and provide customers or clients with essential details, updates, or alerts. We’ve mentioned some of the major sectors in which Transaction SMS plays a crucial role.

Role of Transactional SMS
  • E-Commerce: In order to send order confirmation and delivery updates, e-commerce companies send transactional SMS.
  • Travel and Tourism: To send notifications regarding the boarding pass, flight updates, hotel reservations, and confirmation travel and tourism companies use the service of Transactional messages.
  • Banking and Finance: For sending account alerts, 2 Factor Authentication, and alerts regarding the transaction they preferred to use transaction SMS. 
  • Healthcare: Hospitals or dispensaries uses it in order to send appointment reminder, lap reports, or prescription notifications.

Choosing the Right Transactional SMS Provider

A few essential factors to think about while choosing a transactional SMS service provider are as follows:

  • Coverage by industry: Verify if the provider has coverage in the countries to which you need access.
  • Reliability: Select a provider who has an outstanding history of trustworthiness as well as uptime.
  • Pricing: To discover the best offer for your needs, compare prices offered by many different businesses.
  • Features: Think about the features that are essential to you, which means the capacity to plan messages ahead of time, send customized messages, as well as monitor delivery rates.
  • Customer service: Verify if the provider provides polite, quick-responding customer service.

Implementing Transactional SMS in Business Operations

You will need an SMS gateway service or API that supports transactional messaging in order to turn on transactional SMS. Obtain API credentials, set up your sender ID, and create an account. Create code in your favorite programming language to make use of the API to send SMS messages while adhering to legal requirements. 

Tailor your messages to provide transaction-specific details as well as initiate SMS delivery (e.g., order confirmations, and account notifications) as required. For efficient collaboration, keep an eye on and continually improve your transactional SMS system on a regular basis.


Businesses of all sizes could avail the be various benefits. It is a rapid as well as cost-effective method to reach a wide audience at the right time. 

When choosing a service provider, you must consider essential factors such as coverage by industry, reliability, features, pricing, as well as better customer service. These factors could make you arrive at a good decision for choosing a service provider. 


Connect on Social Media