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What Is a Transactional SMS and Why You Should Use Them

Almost 98% of SMS recipients open the messages they receive. Given this, it is not surprising that transactional SMS has become a standard method of customer communication for numerous businesses and organisations all over the world. It is not advertised and is geared towards customer support, to enhance customer satisfaction by fostering open lines of communication with its target market.

What are Transactional Messages?

An automated SMS message sent in response to an event or customer-initiated action is known as a transactional SMS. An excellent illustration of transactional messaging in action comes from banks. Customers receive one-time pins when they try to access their online accounts or make purchases.

Transactional SMSes are also used for other purposes, such as account activations, booking verifications, order confirmations, account balance alerts, and real-time alerts, to streamline processes.

Why is SMS such a successful method for transactional notifications? The reason so many businesses use transactional messages to simplify their procedures is that text messages by their very nature are the solution.

Why Use Transactional Messages?

People skim it: 

Over 90% of people read a text message within the first three minutes, according to VentureBeat. Additionally, according to Gartner, their open rate is 98%, significantly higher than email marketing.

It’s a useful medium: 

According to ResqueTime, the average person uses their smartphone for 3.5 hours per day. Your chances of engaging your audience are good.

It benefits people: 

Transactional SMS helps customers communicate with your brand at various touchpoints. Using SMS, you can create a distinctive brand identity.

They raise client engagement: 

Transactional SMSes are more than just alerts or notifications; they aid in creating a trustworthy line of communication between companies and their customers. A customer who feels valued and at ease using your services receives regular updates about an important delivery.

They are trustworthy: 

Over 98% of SMS messages are opened, according to Mobile Marketing Watch. When it comes to platforms for customer communication, SMS is one of the best.


SMS is the ideal method for businesses to inform customers who don’t frequently have access to data because it is a standard feature on all mobile phones throughout the world.

Transactional SMS: How Does it Operate?

Businesses must utilize a web SMS platform as well as integrate SMS functionality into their current software using an API key to send transactional SMS. While API integration can complete more complex solutions and automation, online SMS software like MXT offers a straightforward way to send SMS communications.

A user sends a transactional SMS after finishing a specific task. A pre-planned message is then sent to the customer as a result of the action. Merge fields, which allow SMS software to automatically insert personal information or order numbers, are frequently used in the pre-made templates that are sent to customers.

How is transactional SMS used by businesses?

Transactional SMS can be used for a variety of purposes throughout the entire customer journey, including:

Welcome texts: 

These can be sent to users who register for accounts (online or in-person) to start the SMS communications channel.

Order acknowledgements:

 “Did they get my order?” Has my payment been received? These are typical inquiries that customers have when they buy something. Push instant order confirmations via SMS to keep your customers informed.

Booking confirmations or cancellations: 

Notifying customers via transactional SMS messages of their booking status for a hotel stay, flight, or other activities is a great way to keep them informed.

One-time passwords (OTPs): 

To increase platform security, you can send OTPs to customers using transactional SMS. Automated OTP transmissions can be used to verify customer actions such as sign-ins, payments, and more.

Mobile receipts for transactions: 

You can send electronic receipts or mobile receipts to your customers after they make a purchase, just like you can with payment information. You can use mobile receipts to give your customers purchase information whether you run an online business or a physical store.

Final Words

In addition to being essential for providing an impactful customer experience, creating an interactive communication channel that offers value to the customers is also essential for building a strong customer-business relationship from the outset.

In 2023, transactional messages will be essential for a company to succeed. Improve the way your customers interact with you by starting to send transactional SMS right away. A sophisticated SMS gateway platform is available at Guni for sending transactional SMSes.

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