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eCommerce glossary

All the terminology you’ll ever need, together in one place. We can even let you know when new terms are added.

Transactional SMS

Transactional SMS is an automated text message that a business sends its customers during or after a transaction. The message is typically non-promotional and triggered by customer actions. Companies typically use transactional SMS to deliver helpful information regarding the use of their products or services.

Transactional SMS exists in various forms. The most common types in use currently are:

  • Bank transaction notifications and authorizations
  • One-time password or two-step authentication confirmations
  • Password reset methods
  • Shipping and delivery updates
  • Ticket booking and cancellation options
  • Scheduled appointment reminders
  • Order confirmation updates

Transactional SMS can play a pivotal role in improving your post-purchase customer experience. Research reveals around 45% of potential customers prefer to select a business after receiving a personalized text message from them. Using SMS, you can assist customers along various touchpoints and foster trust in your brand.

If you want to improve customer retention, consider using transactional SMS alongside promotional messages for maximum impact. Promotional text messages convey discounts and sales your brand offers, while transactional SMS provides regular updates about critical events such as shipping and order status. Combining both approaches makes for a superior customer experience and maximizes the retention rate for your business.

Create a world-class post-purchase experience