Transactional SMS

Service SMS is divided into two categories: Implicit and Explicit. Service Implicit is exclusively for sending SMS such as OTPs and alerts to registered users. In contrast, Service Explicit can be utilized to send promotional messages to existing customers, provided you have obtained their consent.

What is Transactional SMS?

Transactional SMS refers to text messages sent by businesses to provide essential information to their customers. These messages are usually non-promotional and are intended for communicating important details such as account notifications, order confirmations, OTPs (One-Time Passwords), alerts, reminders, and other similar updates.

Benefits of Transactional SMS

  • Instant Delivery : Transactional SMS messages are typically delivered instantly, which is critical for time-sensitive information like OTPs, order confirmations, or alerts.
  • 24/7 Availability : Unlike promotional SMS, which is often restricted to certain hours, transactional SMS can be sent and received 24/7, ensuring customers get important updates whenever necessary.
  • Higher Open Rates : Transactional SMS has a much higher open rate (around 98%) compared to emails, making them highly effective for critical communication.
  • Improved Customer Experience : By providing real-time updates and necessary information, businesses can enhance customer trust and satisfaction.
  • Cost-Effective : Compared to other forms of customer communication, such as phone calls or physical mail, SMS is relatively inexpensive.
  • Compliance-Friendly : Transactional SMS services typically comply with telecom regulations as they are considered non-intrusive and necessary for customer service.
  • Global Reach : SMS has a wide reach and can be sent to customers anywhere, regardless of internet connectivity.

How Transactional SMS Works

  • Customer Interaction : A customer initiates an action that requires a response or confirmation. For example, making a purchase, requesting an OTP, or booking a service.
  • Trigger Event : The business's software or system identifies the action as an event that requires a transactional SMS. This could be an OTP request, order confirmation, or any other predefined trigger.
  • SMS Gateway Integration : The business’s system is integrated with an SMS gateway provider. The software sends the message details (like the customer’s phone number and message content) to the SMS gateway.
  • Message Routing : The SMS gateway processes the request and routes the message to the appropriate telecom operator based on the customer’s mobile number.
  • Message Delivery : The telecom operator delivers the message to the customer’s phone instantly.
  • Delivery Receipt : The SMS gateway receives a delivery receipt (DLR) from the telecom operator, confirming whether the message was delivered successfully or not. This information is then communicated back to the business.

Examples of Transactional SMS

Order Confirmation : "Your order #12345 has been confirmed and will be delivered by [date]."

Account Notifications : "Your account balance is low. Please add funds to continue using our services."

OTP Messages : "Your OTP for the transaction is 123456. Valid for 10 minutes."

Appointment Reminders : "Reminder Your appointment with Dr. Smith is scheduled for tomorrow at 3 PM."