5 Reasons to use SMS for Transactional Messaging
There are lots of good reasons businesses are adding SMS to their customer communications. Surveys show that many people prefer to be contacted on their mobile device rather than their laptop or desktop. And email on their computer is actually considered by customers to be one of the slowest methods of getting information, which they no longer like.
Transaction related information is one of the primary touch points between customers and businesses. And like it or not, people have come to expect their information will arrive quickly.
For example, when I order from Amazon, I expect to see an order confirmation email within a few seconds. I expect to get notified via email and SMS when items ship and when they are delivered. If I don’t get a confirmation, I get nervous. Did I actually hit the “Place your order” button? Did I leave the items in my cart? I imagine many people are similar, though perhaps not as paranoid about their confirmations.
Transactional messages aren’t just retail and shipping related. The messages could be about any interaction your customer has with your business or services. The point is, SMS is becoming the best way to send these types of messages. Here are the top five reasons why.
1. People Check Their Phones 150-200 Times a Day
That’s according to Forrester. Other studies and sources say it ranges from 81-112 times a day. Using that information, it means people look at their phones every 7.2 -17.8 minutes (200 and 81 times a day respectively). At that rate, there isn’t much they will miss on their phone. Even if they don’t hear the little SMS notification sound, they’ll see your message within minutes on their notification screen.
Chances are, if they are waiting for information – order confirmations, bank balances, or OTP authentications for example – they will be looking even more frequently. SMS messages are delivered within seconds, and are the fastest way to get your customers their transaction related information.
2. Open Rates for SMS Messages are Over 90%
Receiving the message fast is only one part of the issue. The other one is whether your customer actually sees and reads it. SMS has the highest read rates, often quoted as high as 98%. Email, on the other hand, has open rates much lower. The average rate for transactional emails is around 45% (but can vary by industry). Some sources put the open rate as high as 72%, but that is still lower than 98%.
With SMS messaging, you’re almost guaranteed the message will be opened and read – fast.
3. It's Appropriate for All Types of Transactions & Businesses
While the most obvious use of SMS has been for retail and order related messaging, it can work for any industry and any type of transaction. Here’s a short list of examples:
- Account deposit/withdrawal confirmations
- Delivery notifications
- Pick-up alerts for private hires
- Claims processing for insurance or healthcare
- Confirmations for car or home repair services
- Scheduled appointment details/confirmations
- Real-time alerts for time sensitive transactions
4. 70% of Consumers Want Service-Based Messages on Their Mobile
In a study by Education Research (ER) they found an overwhelming number of people wanted to get service-related or transactional information on their mobile. The 70% actually dwarfed the next closest option which was 12% for their laptop computer.
People’s preferences have changed thanks to the advent of mobile devices. Businesses need to take note, and take action by using SMS messaging.
5. Using SMS for Transactional Messages Impacts Consumer Buying Decisions
The ER study also revealed that 84% of consumers say “service-based messaging has an impact on their decision to choose one company over another”. I interpret that to mean sending these types of messages to a mobile device is a differentiator. If you can make things more convenient for the consumer by using SMS, then they are more likely to use your services, or to make a purchase from you.
It isn’t rocket science to understand why that is. Consumers want to stay informed and will choose companies that take the time to do so. Find out how easy it is to get started using SMS messaging for your transaction related communications by signing up for your free account. Click on the green Sign Up button or grab us on live chat. We’re happy to answer any questions you have.
Related Articles
3 Reasons Your Customers Want You to Use SMS Messaging
In my last blog I looked at five reasons you want to use SMS messaging in your business. In this blog we're looking at the same topic, just from the consumer's point of view. For example, how do you really know your customers want you to send them messages via SMS? Isn't email or a phone call good enough? Is it worth your time to learn how to use SMS messaging in your business?
SMS Marketing for Delivery-Centred Businesses
If you run a delivery-based business, you'll know that communication with your customer is key. Whether it's keeping them informed about their delivery's status and expected arrival time, or tempting them with discounts and offers on future orders, there are plenty of reasons to keep in touch. But a key communications challenge in the digital age is choosing the appropriate channel to use to get your message across. Forms of marketing like emails and phone calls are still forces to be reckoned with, but the success of many communications from delivery-based businesses rely on near-instantaneous reading. That's where SMS marketing comes in.
How To Use SMS Messaging To Fill Your Health Club And Keep It Full
At the end of every year, people all over the country will be making resolutions to get fit, lose weight, eat healthier, or start practising yoga. In January, health club memberships will soar before mid-February when an estimated 88% of resolutions fail. SMS can help you keep more members, here's how...
5 Reasons to use SMS for Transactional Messaging
People rely on their mobiles for everything these days. They check them up to 200 times a day! Any business that communicates with customers can take advantage of that by using SMS messaging for transactional information. Read on to see the top 5 reasons why.
Public Sector – SMS Services to Inform and Alert
Unlike many other forms of mass communication - particularly printed letters to constituents - SMS offers opportunities to personalise messages, making recipients feel that their attention and response really counts for something. It can also inspire far more responses and gather data in an extremely efficient way, increasing participation by the public.
5 SMS Messaging Ideas for the Print Industry
SMS messaging is not just a powerful marketing tool for reaching and engaging with consumers; it is also immensely valuable to companies operating in both the B2C and B2B sectors. With some imagination and creativity, SMS messaging can work well for any business, whatever the sector and is highly attractive not just because of its exceptional open and response rates, but also the low costs, high ROI and ease of use. If you are looking to build your market penetration in the print industry, SMS messaging has a lot to offer. Read this article from the team at Fastsms to see how your print business can help keep its competitive edge and stay profitable with SMS messaging.
Schools Turn to SMS Messaging for Contacting Parents
SMS messaging is proving to be an essential tool for communication between schools, students, parents and staff. SMS messages can be broadcast from schools to parents notifying them of sudden school closures for bad weather, changes of schedule for sporting events or transport delays. And much more too!
3 Reasons SMS Messaging is the Best Choice to Contact Everyone on Your List
One of the many benefits of SMS messaging is that it's personal. It can feel like a one on one communication or even conversation. But it's also one of the best ways to reach 10, 100, or even 100,000 people all at once. So even "one to many" communication feels like "one to one" to the receiver.
Proof SMS Messaging Gets Results: Customer Service
All sorts of companies are finding SMS messaging works much better than traditional customer support channels like phone calls and emails. In this post, you’ll see examples of how businesses are keeping their customers happy and seeing great results with SMS.
5 Ways to Personalise Your Next SMS Marketing Campaign
There are always ways in which SMS marketing can be optimised further. One such way is through personalisation. This may seem like an insurmountable challenge when you are trying to communicate with so many people at the same time. The last thing you want to do is have to send out one message at a time to thousands of numbers. Yet this isn't necessary - in fact, it is more than possible to add several layers of personalisation to your SMS marketing.