Transactional SMS

Loyal customers are increasingly looking for personalised attention. It is a challenge for companies to build customer loyalty, so knowing when to send relevant content is key. Transactional SMS is one of the most used channels for companies and organisations to communicate efficiently with their subscribers. This type of text message is integrated into mobile marketing strategies and is sent from A2P SMS platforms (application-to-person).

Text messaging is a key communication tool for businesses. Their use at a professional level continues to grow. Statistics indicate that more than 91% of users accept receiving text messages from a brand rather than downloading an app.

What is a transactional SMS?

A transactional SMS is a text message that a company sends to its users with relevant information about its brand. Transactional SMS are not promotional, nor for direct sales purposes. It is trigger when a user completes a specific action. It is a text message triggered by the user's action that provides valuable and personalised information about a transaction between the company and the customer.

These text messages are often automated and personalised, which means less human resource expenditure and more optimisation of the company's schedule.

Over the last decade, the use of SMS has evolved considerably. As most brands or organisations used to get only promotional SMS with the aim of generating a direct sale. Now text messages integrate into the Inbound strategy, shifting the focus from promotional communication to informative communication with the aim of guiding along the customer's journey.

Difference between promotional SMS and transactional SMS

Promotional SMS aim to promote products and services. The main purpose of sending promotional SMS is to generate interest and exclusively to marketing and advertising purposes.

Transactional SMS send non-advertising messages, containing transactional information of value to subscribed users, informing them about events and updates that are not related to promotional activities. Unlike promotional SMS, transactional SMS triggers by customer actions.

How does a transactional SMS work?

To send a transactional SMS, it is necessary to use an SMS platform or SMS gateway. This software allows you to send SMS from pc or send SMS from an app. There is also the option of using an SMS API or implementing it within a company software such as CRM or ERP.

The first step is to register with your company details, set up your user account and upload a customer database. Within an SMS gateway you will be able to send bulk SMS or individual SMS, schedule the sendings and have the reports of each campaign.

Different uses

There are different uses of transactional SMS depending on the purpose or customer's action. Although the basic objective is the same, to convey transactional information to the user at the right time. The most common uses are the following:

  • Order confirmations: This is a text message detailing an order placed, lik delivery time, order status and updates. These messages usually include a URL to access a website where you can track the order or make the necessary changes.
  • Booking confirmations: these text messages indicate the time and place of the booking. This is a way to optimise the agenda and avoid losses due to absence costs.
  • OTP and 2FA: Transactional SMS can be used to send one-time passwords (OTP) or two-factor authentication (2FA). These are security methods for user actions on registrations, payments or transfers.
  • Alerts: These text messages inform of a critical and/or urgent situation for the user. We can find different examples such as: warnings on risky weather changes, home alarms, etc.

Benefits of transactional SMS

  • Transactional SMS aim to improve customer engagement and support service. This type of text message helps to build customer loyalty by establishing a secure, reliable and personalised communication channel.
  • SMS has a high open rate and can be delivered anywhere in the world. It is an easy to use, flexible and scalable service for any type and size of business. It is a fully automated service that requires minimal effort. By minimising manual involvement in your communication system, customer service costs and expenses are significantly reduced.
  • Around 48% of the world's population owns a smartphone, whether it is the latest model or an older one. SMS reaches every mobile device in the world.
  • Using an SMS platform adds advanced capabilities in business communication. Through the use of APIs and SMS plugins, you can integrate other management software.


Regardless of the sector to which your company belongs, maintaining fluid communication with your subscribers is vital. No matter the size of your brand, the goal is the same: loyalty.

If you need to implement a mobile marketing strategy, transactional SMS will help you deliver the relevant content your users need. At Afilnet we can help you implement an efficient service that fits your business model. Contact us in order we can advise you and get to work together.

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