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
Help Patients Stay Healthy with SMS Reminders to Take Their Prescriptions
Last year, over 1 billion prescription items were dispensed in England. There were, on average, 19 prescription items per person in England, almost half the population is taking prescription medications. It's safe to assume some people are finding it hard to keep track, enter SMS.
How to Use SMS Messaging to Keep Your Club Members Healthy
In a report released last week by Nielsen, it turns out people want more than just to see a lower number on the scale. In their study, 75% of people worldwide plan to lose weight by changing their diet. And another 72% plan to exercise – that’s where your health club and SMS comes in.
Can Travel Agents Use SMS Messaging to Stay in Business?
“European travel agents don’t like it”. That’s a statement made by one of the gentleman at my table during the mCommerce Summit earlier this month. He is from Cruise America, a successful RV (camper) vacation rental company based in Arizona, but with 123 locations around the US. We were talking about his company and their online and mobile reservation options.
SMS Messaging for Personal Injury Solicitors
Since the withdrawal of legal aid for personal injury claims in 2000, a lot has changed in the legal claims industry. Not only are the funding options for claims completely different, the marketplace has also become increasingly competitive, making it harder and harder for companies to stand out from the crowd. With most claimants now settling for fixed scale payments in order to reach a quicker resolution, customer service is quickly becoming the biggest differentiating factor in today’s market. Read on to learn how SMS Messaging can help personal injury specialists win customers time and again and increase their market penetration.
8 Ways Veterinary Practices Can Use SMS Within Their Business
Although SMS services are usually associated with retail marketing campaigns, you can also use these communication tools across many other industries. SMS text messaging can be used to provide a perfect veterinary patient/clinic communication tool, and because of this it is becoming increasingly popular within the specialist animal care sector.
3 Golden Rules for Sending Your SMS Messages at the Perfect Time of Day
Have you struggled to find the right time to send your SMS messages? Have you gotten complaints because customers found your messages too annoying? You might be sending them out at the wrong time of day. Follow these three simple rules and discover the perfect time for your messages.
An SMS alert message could have helped Farah and other athletes
How Wayne Dyer Inspired SMS Messaging
If you’re tuned into the self-help industry at all, you know who Wayne Dyer was. He spent decades writing transformational books to help people improve their lives and find happiness. He died summer 2015 at his home in Maui at the age of 75. It’s probably an understatement to say he inspired millions of people. So when I came across an article about a publisher using SMS messaging to let people know about a new book discussing his legacy I wasn’t too surprised. Not at first anyway.
What Political Parties Can Teach Us About Great SMS Campaigns
SMS marketing has come to be a crucial element of most businesses’ marketing strategies, and there is plenty of received wisdom within the marketing world as to how to get the most out of your SMS messages. So it might seem like there is not a lot that the world of politics can teach the world of business about SMS. But then again, there probably is.
SMS Messaging Can Make Employee Relations Easier, Faster, and More Efficient
Managing employee relations is possibly one of the hardest aspects of a corporation's day to day activities. There’s usually a ton of paperwork, regulations, checklists, and procedures to follow for each employee. This is especially true when new employees join a company. How can SMS help?