What is Promotional and Transactional SMS

by Kenneth Momanyi December 26, 2017

SMS Marketing is by no doubt one of the effective digital marketing channel that will help in growing your business with less expense. To better answer your question, its best to understand the difference between promotional and transactional SMS? In general, the content of the text message will determine the category of SMS. A very good example is the text messages from the Banks or Creditors whom are eligible to send transactional SMS. However, note that although they have consent to send transactional sms, they can can not send any promotional content to their registered customers through transactional channel.

1. Transactional SMS: This can also be referred to as Service messages. Basically, These are messages you send to your customer regarding important information necessary for using your product or service.

Examples of Transactional SMS:

  • Dear %first_name%, here is your account balance $ 45.32. Regards. Zero Bank! Text STOP to end
  • Dear %first_name%. Credit Bank: Your credit card account is past due. Please make a payment today. Visa-xxxx Text STOP to end

Here are the precautions, requirements for sending Transactional SMS

  • To avoid costly legal Fees, always keep a clean database of your opted-in clients and you can produce as evidence in case a complain is filed by recipient
  • Don’t send any promotional message to any of your transactional channel
  • Advantage is that since these SMS are not for marketing & promotional, therefore even the numbers that are included in the National Do Not Call list get these messages.
  • Delivering bulk urgent information to people eg -Alert SMS, urgent notifications to students and parents.
  • Transaational SMS can be sent at anytime, without any time constraint.

2. Promotional SMS: As the name states, these are SMS messages which are sent with the objective of marketing, advertising or promoting one’s products or services. This category includes any sales & marketing messages which may or may not be solicited by the recipient.

Examples of promotional SMS:

  • Hi %first_name%, [Insert Sale Info] – [Company Name] Hurry the sale starts at [Time] and ends in [Time]. [Insert Promo Code] and/or [Website Link]!Text STOP to end
  • TextWik’s SMS – %first_name%, don’t miss out 40% off all 1 year subscriptions. The deal ends Dec 31 at 12pm, Sign Up before the deal expiration date. Text STOP to end

Here are the precautions, requirements for sending promotional SMS

  • To avoid costly legal Fees, always keep a clean database of your opted-in clients and you can produce as evidence in case a complain is filed by recipient
  • Messages are only delivered to Non-DND and Opt-In numbers.
  • Messages are sent only on hours of 9am>9pm on the recipient timezone.

To find the right messages to engage your target audience takes time and lots of experimentation (trials and errors). But by following the best practices, you can start seeing results faster. Contact an SMS Marketing Specialist today if you have any further questions

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Kenneth Momanyi

Founder of TextWik, an interactive text messaging & integrated email marketing automation software. I help companies increase their customer engagement, retention, attract more clients and boost their profits through the power of text messaging. My fortes include but not limited to planning and implementation, list segmentation, strategizing, analyzing and targeting audience. As an expert, I share my knowledge through blogs, trainings, videos to help companies dig deep into SMS marketing channel, guide them learn and apply best practices for better results and to avoid costly TCPA litigation.

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