Promotional vs. transactional vs. conversational text messages: Why do definitions matter?

The uses for text messages are diverse. We’ve seen businesses use our platform to:

• Promote sales to their contacts
• Remind customers of their appointments
• Provide one-on-one customer service by answering customer questions

It makes sense that more and more businesses are turning to SMS to connect with their customers.

However, texts are regulated by the U.S. Federal Communications Commission (FCC) and the Telephone Consumer Protection Act (TCPA).

As part of their regulatory measures, the TCPA and FCC draw a distinction between promotional messages, transactional messages, and conversational messages.

Therefore, any business using texting as part of their communication strategy should understand these important differences.

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⚠️ This advice is for informational purposes only and is neither intended as nor should be substituted for consultation with appropriate legal counsel and/or your organization’s regulatory compliance team.

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Promotional messages are sent with the purpose of increasing sales, promoting your product, or raising awareness about your business. You may have heard promotional messages referred to as marketing or advertising messages. In the eyes of the TCPA, these are all synonymous.

Examples of promotional text messages

Any text message that is intended to promote your organization is considered promotional, including the following:

• Coupons, discounts, and offers
• New product announcements
• Sweepstakes
• Fundraising requests

Promotional messages require express written consent

Promotional text messages are a great addition to any business’s marketing plan under one condition. You must have permission from your contacts before you text them. Specifically, express written consent is required to send promotional texts.

Express written consent can never be implied or assumed. It must be written electronically, on paper, or in a recorded verbal agreement.

Transactional messages contain information that is necessary for your customers to use your product or service. The important term here is necessary.

Examples of transactional text messages

Transactional texts usually contain additional information that customers have requested. Customers consent to transactional texts when they provide their number.

For example, if during a checkout process customers are given a prompt that says, “Provide your mobile number for shipping and delivery updates,” they provide consent by entering their numbers.

Think of the following:

• Order confirmations with tracking numbers
• Two-factor authentication
• Password resets
• Reservation confirmations (With prompt to reply Y/N to confirm)

Informational messages require express consent

The CTIA defines three message types: Promotional, informational, and conversational. Transactional messages fall within the informational messages category, therefore requiring your contacts’ express consent before you text them.

Here’s how the CTIA defines informational messages:

“Informational messaging is when a Consumer gives their phone number to a Non-Consumer and asks to be contacted in the future. Appointment reminders, welcome texts, and alerts fall into this category because the first text sent by the business fulfills the Consumer’s request. A Consumer needs to agree to receive texts for a specific informational purpose when they give the Non-Consumer their mobile number.”

You should never assume express consent.

For example, if a patient provides their number for verification purposes when picking up a prescription, they’re not automatically consenting to prescription refill reminders. While some consumers may find prescription reminders helpful, they’re not necessary and therefore don’t constitute a transactional message.

This exact scenario occurred in the case of Kolinek v. Walgreen Co. back in 2015. Walgreens eventually settled for $11 million.

This hefty fine shouldn’t scare you away, but it should highlight the importance of always complying with and keeping in mind TCPA regulations. This story is another reason we always advocate getting express written consent for all contacts in your list.

Conversational messages happen when someone texts your number and you respond quickly on behalf of your business.

Examples of conversational messages

A conversational message must be initiated by the contact and not by a business. In these situations, the business is responsive.

Conversational messages often occurs when a person asks you a question via text and you answer it, like customer service.

• When do you open?
• Do you have the new Hoka Cliftons in stock?
• Do you have an opening at 3 p.m. tomorrow?
• I ordered the new Cliftons but haven’t received them yet. Could you help me figure out what happened?

Conversational messages require implied consent

Implied consent occurs when the contact initiates the conversation. When your business receives the text, you can then respond with only relevant information.

In the end it comes down to consent. You always need to have permission to text your customers.

What constitutes permission varies based on whether the messages you’re sending are promotional, transactional, or conversational. And remember, if someone consents to transactional messages, they’re not by default consenting to promotional messages, too.

Penalties for TCPA violations are steep, so it’s best to always err on the side of caution and make sure you have express written consent before sending any texts — even if you think yours are transactional.

Seeking some legal advice can be helpful and the small cost associated with this may help to save you from big fines in the future.

Review the text messages below and determine whether they would be considered promotional or transactional.

Order number 31415 is on its way. Visit example.com/31415 to track your shipment.

Answer: transactional

Thanks for shopping with us! Based on your purchase, we think you’d love this product: example.com/productrecommendation

Answer: promotional

Please confirm your appointment with Dr.Fridel tomorrow at 7 a.m. Reply Y for Yes or N for No.

Answer: transactional

Your haircut appointment with Larissa is confirmed for tomorrow at 1 p.m. As a thank you, you can book additional services at 50% off here: example.com/services

Answer: promotional

• Promotional messages are sent with the purpose of increasing sales, promoting your product, or raising awareness about your business. They are the TCPA’s main focus.
• Transactional messages contain information that is necessary for your customers to use your product or service, and see less TCPA regulation.
• Conversational messages are started by the contact and allow the business to respond quickly with only relevant information to the inquiry.
• You always need to have permission to text your customers. What constitutes permission varies based on whether the messages you’re sending are promotional, transactional, or conversational.
• If someone consents to transactional messages, they’re not by default consenting to promotional messages, too.

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⚠️ This advice is for informational purposes only and is neither intended as nor should be substituted for consultation with appropriate legal counsel and/or your organization’s regulatory compliance team.

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Nathan Ellering contributed to this piece.