Digital Communication offers two types of text messaging; Marketing and Operational/Transactional texts.
Marketing Text Messaging
These are designed to drive behavior and can include promotions and account offerings, information on community events, financial education resources, etc. These texts require Opt-In and Opt-Out options.
What defines them:
- Not tied to a required account event
- Sent to influence or prompt action
- Require explicit opt-in consent
- Can be personalized, segmented, and campaign-driven
Common examples:
- Credit card promotions
- CD rate campaigns
Operational/Transactional Text Messaging
These are triggered by a transaction, account activity, or service event such as balance drops, purchases made, branch closures, etc. These require only an Opt-In option.
What defines them:
- They are tied directly to a customer/member action or account status
- They are expected by the customer/member
- They are typically required for service, compliance, or security
- They are not promotional (this is key legally (especially under TCPA rules)
Common examples:
- Fraud alerts
- Low balance notifications
- Payment confirmations
- Password reset codes
Implementation
The primary distinction between implementing both types of text messaging is around how opt-ins are handled. Opt-ins are an important part of text messaging and the regulations that govern them (e.g., TCPA) and their carriers require that a person has opted in to receive text messages even if it's transactional. This is different from emails where CAN-SPAM allows you to email without the person having to opt-in as long as you have a opt-out option for marketing email, and doesn’t require an unsubscribe for transactional/operational messages.
With Marketing Text Messaging, you decide the type of information you would like to text and you define a word (keyword) that the individual would use to opt-in or opt-out of messages. Most of our clients only use one keyword and use this for all Marketing text messages. However, some prefer to segment the communications. Examples of keywords include:
- Rates or Offers – used to give information about bank product promotions.
- Note: The carriers have forbidden the use of text messaging for loan marketing, so this would be deposit product promotions, new services that are not loan related, etc.
- Events – used to give information about community events, classes/webinars, etc.
- You have a client who is a sponsor for a sporting team in their community. They use a keyword related to that sports team (e.g., Bears, basketball, etc.), and they notify people of promotions related to the team.
- ClientName – this is an example of a broad keyword you might use to represent anything for that Client.
When you use a keyword, you would let your customers/members know about this through signs in the branch, information on your website, email to your customers, members, etc. This would essentially say: Text “<keyword>” to <888.555.1111> to receive text messages about <x>. Message rates apply.
An individual would text the keyword “Gateway” (or whatever keyword you decide) to your mobile toll-free number that Marquis would assign. They would get a confirmation of being enrolled and then the next time you send a text to the people enrolled in that keyword, they would get the text. Each keyword would be paired with an opt-out keyword allowing the individual to un-enroll from the text notifications for that keyword.
With Operation/Transactional Text Messaging, you would handle the opt-ins through a process outside of the text messaging service. Some examples of the how the opt-ins can be gathered are:
- Online Banking interrupt page asking if they want to enroll in operational text messaging.
- New Customer/Member/account opening process that has a opt-in for text messages.
- New loan documentation has an opt-in for late payment reminders, etc.
For information on what is needed to initiate the texting process, please refer to our Text Messaging Implementation Overview.
Training
Learn how to build and launch Marketing (SMS) Text Messages by clicking below.
Learn how to build Operational Text Messages and automate them through Digital on Demand by clicking below..
Article Reference: DCP11A, DCP11B