Promotional vs transactional SMS: the difference

The three categories

Under the DLT framework, every commercial SMS belongs to a category, and the category, not your intention, decides the rules that apply. There are three you need to know:

Promotional SMS

Marketing messages: offers, discounts, new-product announcements and festival wishes. Promotional SMS can be sent only to non-DND or opted-in numbers, only between 10am and 9pm, from a promotional (-P) header. It is how you reach your audience with deals and campaigns.

Transactional SMS

One-time, time-critical messages tied to a transaction the customer is doing right now, primarily OTPs and core banking alerts. Transactional SMS reaches all numbers including DND, 24x7, from a transactional (-T) header, because it is essential and not marketing.

Service SMS

The category many older transactional messages now fall under. Service-implicit covers updates on an existing transaction (order shipped, payment received, ticket booked) and reaches all numbers. Service-explicit covers messages a customer opted in to receive that are informational rather than promotional. Service uses a service (-S) header.

Side by side

Example DLT templates

Each template is registered on DLT with variables written as {#var#}, and must contain your brand name. Here are typical examples for each category:

Transactional (OTP):

{#var#} is your OTP to log in to MYSHOP. Valid for 10 minutes. Do not share it with anyone. - MYSHOP

Service (order update):

Dear {#var#}, your MYSHOP order {#var#} has been shipped and will arrive by {#var#}. Track it here: {#var#} - MYSHOP

Promotional (offer):

Flat {#var#}% off at MYSHOP this festive season. Shop now: {#var#}. T&C apply. - MYSHOP

Which route should you use?

Use transactional for OTPs and banking, service for updates tied to an order or account, and promotional for anything that sells or markets. When in doubt, ask whether the message relates to something the customer is already doing (service or transactional) or is something you want to tell them about (promotional).

Every category needs DLT registration first. See the DLT registration guide and how to choose a sender ID, then send on our promotional and transactional routes.