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If you had to pick up your phone right now and scroll through your text messages, you’ll likely have a few messages from your bank or a one-time code from your Gmail account; one or two marketing texts from your favourite store, and a thank you message from your local coffee shop. Some of these texts are transactional in nature, and others are promotional. But what exactly is the difference between a transactional and promotional message?
Typically, a transactional SMS is an automated message sent in response to an event or action triggered by a customer. Banks provide the perfect example of transactional messaging in action. They send one-time pins to their clients making purchases or wanting to access their accounts online. They also send balance updates when a customer withdraws or transfers money. Transactional SMSes are also used to improve processes, like account activations, booking or order confirmations, account balance notifications, and real-time alerts.
A promotional SMS is most commonly used to drive new, or repeat, business or sales. These texts are used to let customers know about any new deals, offers, or discounts or simply to thank customers for their continued support.
Here we show you what type of consent is needed when sending a transactional vs promotional message.
Source: Adapted from the CTIA Messaging Principles and Best Practice
So now that you know the difference between promotional and transactional messages, you can start setting up your campaigns and get ready to send! Sign up today and you’ll reach your customers in no time!