Promotional vs. Transactional Texts

In the event that you were to access your phone immediately and examine your SMS inbox, it’s probable that you would find a mix of messages including alerts from your bank, a verification code from your Gmail account, marketing texts from a store you like, and a gratitude note from a coffee shop you frequent. These texts can be categorized into two types: transactional and promotional. However, what distinguishes a transactional message from a promotional one?

What distinguishes a Promotional vs. Transactional Texts?

Transactional SMSs are automated texts triggered by a customer’s action or event. A classic example is banks sending one-time pins for online access or purchases, along with updates on account balances after withdrawals or transfers. These SMSs streamline processes like account activations, booking confirmations, balance alerts, and real-time notifications.

What Defines a Transactional SMS?

Understanding Promotional SMS

Promotional SMS messages are primarily aimed at generating new business or encouraging repeat purchases. They inform customers about the latest deals, offers, and discounts, or serve as a gesture of appreciation for their ongoing patronage.

This section will guide you through the necessary consent requirements for sending transactional versus promotional messages.

Transactional Messages (Conversational)	Promotional Messages (Informational)	Promotional Messages (Marketing)
Description:	Description:	Description:
Conversational messaging entails a two-way SMS conversation, typically initiated by the customer.	Informational messaging is a one-way communication where the business responds to a customer’s request for information or provides a single response to a customer’s action.	Promotional messaging consists of one-way messages promoting sales or marketing, usually containing a call-to-action.
Initiation:	Initiation:	Initiation:
The conversation starts with a customer sending a message in response to a specific request.	The message can originate from either the customer or the business, containing valuable information.	The business sends the message to a list of customers who have opted in, promoting a brand, product, or service.
Example:	Example:	Example:
A customer messages an advertised number, prompting a manual or automated response from the business, leading to a conversation.	An example includes a business sending an appointment reminder to an existing customer. Another instance is sending a one-time password (OTP) when a customer logs into a platform.	An example is a business conducting an awareness campaign during a sale, sending promotions to their opted-in customer base, along with opt-out instructions.

Reference: This information has been modified from the CTIA Messaging Principles and Best Practices.

With an understanding of the distinctions between promotional and transactional messages, you are now prepared to organize your messaging campaigns. Register now to swiftly connect with your audience!