Short message service SMS is considered one of the most reliable and efficient ways of communication in today’s time. It allows users to have a better and uninterrupted communication experience in a text format. With 98% open rakes and a 45% response rate, SMS is considered the most feasible channel for communication. It efficiently beats what any other marketing channel claim to deliver.

Today in this article, we will discuss two primary forms of business SMS and how you will differentiate between both forms of messaging. Also, you will get to know the significant difference between promotional and transactional SMS and how they differ in their working functionality. 

Let’s dive deeper and get to know how both forms of messaging affect the way you communicate with your customers.

What Is The Major Difference Between Transactional Sms And Promotional SMS? 

Businesses use transactional SMS to send order details, booking alerts, and tracking product IDs. They also use transactional SMS for sending informational messages to their registered customers. 

However, Organisations send promotional SMS to their customers as a part of their marketing and sales strategies. With the help of these messages, companies not only inform customers about their products and services but also provide timely updates. It is the most effective way to strengthen the bond of trust with the customers. 

With the help of promotional SMS, businesses help customers to know about their product and service status. Organizations send these messages only to registered customers and Non-DND numbers.

What is promotional SMS? 

With the help of promotional messages, businesses, promote their services, deals, offers, and the latest discount on their products. Promotional SMS ensures higher engagement and a better response rate when used with the right promotional strategy. From a marketing perspective, promotional SMS is considered one of the most effective and reliable channels for communication that effectively promotes business and its services. 

How Does Promotional SMS Help Businesses? 

Promotional SMS assists businesses in multiple ways. They ensure a higher open rate and prompt action.

Some Of The Benefits Of Using Promotional Sms For Businesses Are Listed Below.

  • Induce Prompt action: Whenever a customer receives any SMS notification, it shows the entire content of the message instead of focusing on one point only. That way, consumers have complete information without going through the entire text.
  • High ROI: SMS marketing is the most effective and successful activity that ensures the best returns that any platform can claim to deliver
  • Customizable: Promotional SMS is easily customizable. Businesses can target different messages to different audiences via user-friendly platforms.

When To Run A Promotional SMS Campaign? 

  • If you want to inform your audience about the latest discount on your product and services, Then running a promotional campaign would be helpful. 
  • You can run a promotional SMS campaign to clear your stock holdings or inform your audience about cost cutting in your product and service.
  • With the help of promotional SMS, You can inform your audience about upcoming events that will help you to sell your product from particular categories efficiently and quickly. 
  • Promotional SMS allows you to conduct crowd-pulling tactics to offer product giveaways and effectively promote your products and services. 

What Is Transactional SMS?

Businesses use transactional SMS to share updates and time-sensitive information about products and services used by customers. Any message not promoting any product or service is considered transactional SMS. Businesses usually float these SMS for announcing sudden alerts like software downtime, update, etc.

Why do Businesses use Transactional SMS?

Businesses Use Transactional Sms For Multiple Purposes. Some Of Them Are Listed Below: 

  • Transactional SMS Ensures Uninterrupted Delivery Rates
  • These messages are easily trackable and help companies to know about SMS delivery, open rate, and response rate in real-time.
  • These SMS are easily reachable to DND numbers. TRAI-mandate DND rule does not apply to these SMS 
  • Businesses can send multiple transactional messages to their customers throughout the customer journey as they are highly affordable.

When To Run A Transactional SMS Campaign?  

Product details or service communication: Businesses that want to send order confirmation, delay, and modification messages to their customers use to run transactional SMS campaigns.

Two-way factor authentication & know your customer (KYC): With the help of transactional SMS, businesses can send OTP service confirmation, and conduct KYC and ID verification for financial transactions. 

Delivery or downtime notification: Transactional SMS is quite useful for sending shipment alerts or service maintenance, update, downtime & notifications.

How To Select An SMS Provider For Transactional And Promotional SMS Services? 

Transactional and promotional SMS service is quite beneficial for businesses. With the help of these services organizations not only connect with their customers but update them about their services and product in a timely manner. If you are running a small-scale business and want to avail of transactional and promotional SMS service then before picking a service provider for the same, figure out whether the service provider is capable enough to deliver what he claims, and what makes his services unique from others.  

Also, You Can Check The Authenticity Of The Service Provider Based On The Points Given Below: 

Trackability: If your service provider is willing to provide accurate details of your campaign and its performance, then you can trust his services. Lead generation is the prime goal of campaigns, and if your service provider provides everything about what’s going on with your campaign, then it will help you to understand whether you are getting appropriate results or not.

Reliability: Your service provider should guarantee 100% delivery rates. However, it is impossible to achieve but still, there should be no failed deliveries from his end.

Scalability: Businesses usually ask for higher SMS volume during festivals and holidays. Your SMS campaign provider should be able to complete all your requirements and be willing to deliver the required SMS volume.

Frequently Asked Question:

How Do Promotional SMS Services Help Businesses To Gain The Trust Of Their Users? 

Promotional SMS are sent to users for brand awareness and promotion. These SMS helps businesses connect with their targeted audience and improve and ensure higher customer engagement and response from the customers. Brands use promotional SMS as part of their marketing strategy and make customers aware of their products and services. Sending messages to customers regarding discounts & upcoming sales on products, stock clearance updates, new launches, upcoming events, etc. All come under the promotional SMS activity

What Are The Benefits Of Using Transaction Sms For A Business? 

Businesses use transactional bulk SMS for multiple purposes, and with the help of these SMS, companies make an urgent announcement about their products and services. Transactional SMS don’t follow the TRAI DND rule, meaning businesses can easily float important information and updates to their customers without difficulty. Also, Transactional SMS ensures delivery of the messages without any failure. These SMS are easily trackable and help businesses to know whether they can connect with their targeted audience. 

What Are The Two Primary Forms Of Business SMS? 

There are two forms of business SMS mentioned below: 

  • Promotional SMS 
  • Transactional SMS

By Jack

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