Text Alert: How It Works, Applications, Benefits and Challenges

Text Alert - How It Works, Applications, Benefits and Challenges

Text alerts are automated messages sent directly to customers’ mobile devices. They serve various purposes, such as reminding recipients of essential events, informing them about upcoming events or emergencies, or providing valuable information. Text alerts are widely used across different industries because they are convenient, easy to set up, and advantageous for businesses.

Text message alerts serve various purposes depending on the situation. One of the most prevalent applications is in the banking and credit card industry. Account holders can receive timely notifications regarding withdrawals, deposits, or payments. Similarly, credit card companies often send alerts whenever the account is used for in-store or online purchases. Text alerts benefit businesses concerned about identity theft, especially those processing credit card payments. They provide a reassuring way to prioritize customer security and instill confidence.

Text alerts are not limited to financial institutions or retail stores. Let’s delve deeper into this essential service and explore why it is valuable for private businesses and institutions.

What is a Text Alert?

A text alert, also known as a text message alert, is a short message, typically under 160 characters, sent to a recipient’s mobile device. These electronic messages are dispatched automatically to deliver essential, time-sensitive information. They are employed for various reasons, including, but not limited to, communication of urgent news, reminders for appointments or deadlines, delivery updates, promotional offers, and transaction confirmations.

Text alerts have several advantages, making them a preferred communication method for various sectors. They provide immediate, direct contact with the recipient, increasing the likelihood that the information is read and acknowledged promptly. This immediacy is particularly valuable when urgent notifications, such as emergencies or critical updates, are required. Text alerts also offer a considerable benefit in terms of accessibility, as most people carry a mobile device at all times, ensuring that the messages reach a broad audience quickly.

Text alerts offer an efficient way for businesses to maintain customer engagement, strengthen their brand presence, and improve customer service by providing real-time updates and immediate responses to queries or concerns.

How does Text Alert Work?

A text alert system operates on a relatively simple principle. The first step involves the initiation of an alert, which could be triggered manually by a system user or automated based on specific events or conditions. Once the alert is initiated, it is dispatched through a messaging gateway, essentially a service that provides a pathway for the message to travel from the source system to the recipient’s mobile device. This process is accomplished using standard protocols such as SMPP (Short Message Peer-to-Peer) or HTTP (Hypertext Transfer Protocol).

To use a text alert system, users must first subscribe or opt-in to receive messages. This process typically involves texting a keyword to a specific number or completing a form on a website. Once the user is subscribed, they are added to a list of recipients who will receive future alerts. When an alert is to be sent, the sender creates the message content, selects the list of recipients, and sends the message. The alert system then ensures the message is delivered to all recipients on the list.

A robust text alert system will provide features like group segmentation (allowing different messages to be sent to different groups of users), scheduling (enabling messages to be set up in advance and sent at specific times), and analytics (providing data on message delivery and read rates). It’s important to understand these features when selecting and using a text alert system to ensure it meets your organization’s needs.

What are the Best Applications of Text Alerts?

Text alerts are more than just tools for SMS marketing. It has diverse applications, making them valuable for businesses and institutions in various industries. Some of the best applications of text alerts include:

1. Emergency Services

Emergency services often use text alerts to disseminate urgent news to the public. These can include natural disaster warnings, critical weather updates, and other emergencies that warrant immediate attention. For instance, the Red Cross sends text alerts to inform people about impending natural disasters. The National Weather Service uses SMS alerts to provide real-time updates on weather conditions. In critical situations, the local police department might also use text alerts to warn residents of imminent threats.

Examples:

  • Red Cross: “Tornado warning for [area]. Seek immediate shelter. Stay safe.”
  • National Weather Service: “Severe thunderstorm warning for [area]. Avoid outdoor activities.”
  • Local Police Department: “Active shooter in [area]. Stay indoors and report any suspicious activity.”

2. Banking and Finance

Banks and credit card companies use text alerts to inform customers about account activities. These alerts can include notifications about withdrawals, deposits, payments, and potential fraudulent activities. For instance, Wells Fargo sends text alerts to notify customers about suspicious account activities. Citibank uses SMS alerts to confirm transactions and bill payments. Chase Bank sends text alerts to remind customers about upcoming payments.

Examples:

  • Wells Fargo: “Unusual activity detected on your account. If you did not authorize this, please call us immediately.”
  • Citibank: “Your credit card payment of [amount] has been received and processed. Thank you for using our services.”
  • Chase Bank: “Reminder: Your mortgage payment of [amount] is due in three days. Please ensure sufficient funds are available.”

3. Healthcare

Healthcare facilities, including hospitals and clinics, use text alerts to communicate with patients regarding appointments, prescriptions, and health updates. These messages can also remind patients of follow-up appointments or upcoming procedures. For example, Mayo Clinic uses text alerts to provide updates on lab results and appointment reminders. CVS Health sends text alerts for prescription refills and pickup notifications.

Examples:

  • New Brunswick Medical: “Your appointment with Dr. Smith has been scheduled for [date and time]. Please confirm your availability by replying YES within 24 hours.”
  • CVS Health: “Your prescription for [medication] is ready for pickup at your selected CVS location.”
  • Brothers Chiropractic: “Reminder: Your follow-up appointment with Dr. Jones is tomorrow at 2 PM. Please arrive 15 minutes early.”

4. Retail and E-Commerce

Retailers and e-commerce businesses use text alerts to engage with customers, promote sales and offers, and update them about order statuses. These messages can also be used for customer service inquiries or to collect feedback. For example, Amazon sends text alerts for order confirmations, shipping updates, and delivery notifications. Sephora uses SMS alerts to promote new products and sales.

Examples:

  • Amazon: “Your order #123456 has been shipped and will be delivered on [date]. Track your package here: [link]”
  • Sephora: “New arrivals alert! Check out our latest skincare products and enjoy 20% off your first purchase with code NEW20.”
  • Old Navy: “Did you enjoy your shopping experience with us? Reply with a rating from 1-5 to let us know! 5 being the best.”

5. Education

Schools, colleges, and universities use text alerts for various communication needs. They can notify students and staff about school closures, emergencies, schedule changes, event reminders, etc. For instance, Harvard University uses text alerts for campus safety notifications and emergency communication. Local public schools might use text alerts for snow day announcements and transportation updates. Universities may also use text alerts for registration deadlines and exam reminders.

Examples:

  • Harvard University: “Safety Alert: Report of suspicious activity in the Library. Stay alert and report any concerns to Campus Police.”
  • Ecole de St Rosarie: “Snow Day Announcement: Due to severe weather, all schools will be closed tomorrow.”
  • NBCC Admissions: “Registration Alert: Deadline for course registration is [Date]. Ensure to register on time to secure your classes.”

6. Transportation

Transportation services such as airlines, trains, and public transit systems use text alerts to inform passengers about schedules, delays, cancellations, and other critical information. Delta Airlines might use text alerts for flight status updates and gate changes. Amtrak may send out SMS alerts about train delays or track changes.

Examples:

  • Delta Airlines: “Flight DL456 to New York is delayed. The new departure time is 10:30 AM. We apologize for the inconvenience.”
  • Amtrak: “Train 456 to Chicago is now on Track 2. Please proceed to Track 2 for boarding.”
  • Cebu Pacific Air: Calling all passengers of flight 5J 239, your boarding gate has changed from B3 to A2. Please proceed to the new gate for boarding.

7. Marketing

Businesses of all sizes use text alerts as a marketing tool to reach customers directly and promote products, services, or events. SMS messages can also include links to websites or coupons for special offers. For example, Coca-Cola might send text alerts for new product releases and promotions. A local pizza shop might use text alerts to notify customers about limited-edition pastries or flash sales.

Examples:

  • Coca-Cola: “Introducing our new flavor! Get your hands on the refreshing taste of Orange Vanilla Coke now by clicking here: [link].”
  • John’s Pizza: “Today’s Special: 20% off on all takeout orders. Use code TAKE20 at checkout.”
  • Popeye’s: “Happy National Fried Chicken Day! Show this text for a free biscuit with the purchase of any entree.”

8. Human Resources

Human Resources (HR) departments use text alerts to communicate essential information to employees quickly and efficiently. Text alerts can notify staff about policy changes, company updates, training opportunities, or employee benefits. For example, Google may send text alerts to inform employees about changes in work-from-home policies. Small businesses might send text alerts to notify employees about upcoming team-building events. HR departments can also use text alerts to send reminders about benefits enrollment deadlines or other critical HR-related dates.

Examples:

  • Google HR: “Work-from-Home Update: Remote work is now extended through the end of Q2. Stay safe.”
  • Shaw & Co: “Team Building Alert: Our annual team-building event will be held on [date] at [location]. Please confirm your participation.”
  • Marriott HR: “Benefits reminder: Open enrollment ends on [date]. Don’t forget to update your selections for the upcoming plan year.”

9. Public Services

Public Services often use text alerts to inform the public about essential community updates or emergency information. This can include notifications about road closures, public health updates, or local events. For instance, a city government might use text alerts during a significant storm to update residents on road conditions and public safety. A public library could use text alerts to remind members about due dates for borrowed items or upcoming events.

Examples:

  • City of Austin: “Road Closure Alert: Main St. is closed due to flooding. Please use alternative routes and drive safely.”
  • New York Public Library: “Reminder: Your borrowed items are due in 3 days. Please return or renew them to avoid late fees.”
  • San Francisco Health Department: “COVID-19 Vaccine Update: Appointments are now available for ages 12 and up. Schedule yours at [website].”

10. Utilities

Utility companies like water, electricity, and gas providers may use text alerts to inform customers about service disruptions, maintenance schedules, or billing information. For example, a power company might send text alerts to notify customers about planned power outages due to maintenance work. A water company could use text alerts to inform residents about water quality tests or boil water advisories.

Examples:

  • Gaspe Energy: “Power Outage Alert: Scheduled maintenance will result in a power outage in your area from 10 AM to 2 PM tomorrow.”
  • City Water Company: “Water Quality Update: Annual water quality tests have confirmed that our water remains safe and clean for consumption.”
  • Con Edison: “Billing Alert: Your latest bill is now available for review. Please login to your online account.”

11. IT and Security

IT and security departments use text alerts as an immediate and reliable form of communication to notify users about critical updates, breaches, system downtime, and password changes. This quick communication is essential for maintaining the security and functionality of IT systems. For instance, Microsoft may send out text alerts if they detect unusual activity on your account. Small businesses may use text alerts to inform employees about planned system maintenance or unexpected downtime.

Examples:

  • Microsoft Security: “Unusual Activity Alert: We’ve detected unusual sign-in activity on your account. If this wasn’t you, please change your password.”
  • ABC Corp IT: “System Maintenance Alert: Our servers will be down for scheduled maintenance between 2 AM and 4 AM ET.
  • XYZ Tech: “Password Update Reminder: It’s time to update your password as part of our regular security measures. Visit [link] to change your password.”

12. Weather Services

Weather services use text alerts to give subscribers real-time updates about severe weather conditions, natural disasters, and other emergencies. These alerts can be critical in helping people prepare for and respond to these events. For example, NOAA’s National Weather Service sends out text alerts for severe weather warnings. Local news stations might send out text alerts for daily weather updates.

Examples:

  • NOAA Weather: “Severe Thunderstorm Warning: Strong storms expected in your area. Stay indoors and avoid travel if possible.”
  • ABC News Weather: “Heatwave Alert: Temperatures are expected to exceed 90 degrees today. Stay hydrated and limit outdoor activities.”
  • National Weather Service: “Flood Warning: Heavy rain forecasted. Possible flooding in low-lying areas. Be prepared.”

13. Entertainment

The entertainment industry uses text alerts to update fans about new releases, concert dates, ticket sales, etc. This direct communication helps boost engagement and ensures fans get all the essential news. For example, Netflix might send text alerts about new show releases. A concert venue might send text alerts when tickets for a highly anticipated concert go on sale.

Examples:

  • Netflix: “New Show Alert: Your favorite show, ‘Stranger Things’, just dropped a new season! Start watching now.”
  • Live Nation: “Ticket Sale Alert: Tickets for the Ariana Grande concert go on sale tomorrow at 10 AM. Don’t miss out!”
  • HBO: “Premiere Reminder: ‘Game of Thrones’ final season premieres tonight at 9 PM. Tune in!”

14. Hospitality

The hospitality industry leverages text alerts to enhance customer service by providing timely updates and personalized offers. Hotels, restaurants, and travel companies can send text alerts for booking confirmations, room readiness, reservation reminders, or special promotions. For instance, a hotel might use text alerts to let guests know when their room is ready for check-in. A restaurant could send text alerts to confirm reservations or provide special offers for loyal customers.

Examples:

  • Hilton Hotels: “Room Ready Alert: Your room is now ready for check-in. Enjoy your stay!”
  • RestoBistro: “Reservation Confirmation: Your table for two is reserved for 7 PM. We look forward to serving you.”
  • JetBlue: “Flight Update: Your flight B6 789 is delayed by 2 hours due to inclement weather. We regret the inconvenience.”

15. Customer Support

Customer support teams use text alerts to inform customers about their inquiries or complaints. This can include updates about a support ticket status, product recalls, or software updates. For example, an electronics company may use text alerts to keep customers informed about the status of their repair. A software company could send text alerts to inform clients about new updates or bug fixes.

Examples:

  • Apple Support: “Repair Status Update: Your iPhone repair is complete and ready for pickup.”
  • Microsoft: “Software Update Alert: A new update for Windows 10 is now available. Please update at your earliest convenience.”
  • Amazon Support: “Your query has been resolved. If you have further questions, reply HELP. To unsubscribe, reply STOP.”

16. Non-Profit Organizations

Non-profit organizations use text alerts to inform members, volunteers, and donors about their activities, campaigns, and urgent needs. For instance, a charity organization might use text alerts to inform members about an upcoming fundraiser. A volunteer group could send text alerts to coordinate volunteer activities or urgent needs.

Examples:

  • Red Cross: “Fundraising Alert: Our annual charity run is scheduled for next Saturday. Sign up now and help us make a difference.”
  • Habitat for Humanity: “Volunteer Alert: We need volunteers for our weekend build project. Please register if you’re available.”
  • Local Food Bank: “Urgent Need Alert: We urgently need canned goods. Please consider donating.”

17. Personal Use

Individuals may also use text alerts for personal reminders, family updates, or group coordination. For example, you might use text alerts to remind yourself about appointments or tasks. A family could use text alerts to coordinate activities or share important updates.

Examples:

  • Personal Reminder: “Don’t forget to pick up groceries after work today.”
  • Family Update: “Reminder: Grandma’s birthday dinner is at 6 PM tonight at Olive Garden.”
  • Group Coordination: “Alert: Our hiking trip is rescheduled to next Saturday due to weather conditions.”

What are the Benefits of Text Alerts for Companies?

Text alerts offer several benefits for businesses and organizations, including:

  • Fast and Direct Communication – SMS text messaging is the quickest and most direct marketing channel. With an opt-in subscriber service, customers willingly receive immediate updates. Whether reaching customers or employees, text messages provide a quick solution. They are sent and delivered instantly, enabling real-time communication. SMS alerts are ideal for time-sensitive information like PIN code notifications, payment or appointment reminders, and emergency alerts.
  • High Read Rate – SMS alerts grab attention. According to RescueTime research, people only go up to 1 hour and 43 minutes without touching their phones. So, the chances of missing a text are incredibly slim. Despite being one of the oldest mobile phone features, SMS is still widely used and appreciated. In an Android Authority poll, 72.3% of respondents said they still send text messages despite the rise of alternative messaging apps.
  • Excellent Reach – Text alerts have a broad reach. Almost everyone has a mobile phone. According to Statista, in 2020, the number of smartphone users worldwide is projected to reach 3.5 billion, with over half of the world’s population owning a smartphone by 2021. This high penetration makes text alerts an excellent channel for businesses and organizations to communicate with customers.
  • High Deliverability Rate – SMS alerts have a high deliverability rate, with around 98% of text messages being delivered compared to only 20% for email. Almost all recipients will receive the message, increasing the chances of being read and acted upon.
  • High Engagement Rate – SMS achieves 8x the response rate of email. You can include a URL or phone number and actionable text in a text message to guide customers or employees to the next step. For example, a retail company could send an SMS alert to inform customers about a flash sale and include a link to the website or store for easy shopping.
  • Cost-Effective – Text alerts are an affordable communication channel. Compared to other marketing channels like traditional print ads or TV commercials, text alerts are significantly more cost-effective. With a low per-text cost, businesses can reach hundreds or thousands of customers without breaking the bank.
  • Personalization – Text alerts can personalize your messages based on the recipient’s name, interests, location, and other factors. Personalization creates a more personalized and intimate connection with customers, increasing their engagement and response rate.

What are the Challenges of Text Alerts for Companies?

Despite their many benefits, there are also some challenges that companies may face when using text alerts:

  • Privacy Concerns – With the rise of data privacy concerns, customers may hesitate to provide their phone numbers for opt-in text alerts. Companies must comply with data protection regulations and keep customer information secure.
  • Opt-Out Requests – Customers can opt out of receiving text alerts anytime. Businesses must constantly monitor and update their subscriber list to ensure they are not sending messages to those who have opted out. Failure to do so could result in legal consequences and damage the company’s reputation.
  • Limited Text Space – SMS has a limited character limit, typically 160 characters per message. It means that companies must be concise and strategic in their messaging, which can sometimes limit the amount of information they can convey.
  • Technical Issues – Text alerts rely on a stable network connection and may experience technical issues or delays in delivering messages. It could lead to delays in meaningful communication, which could negatively impact customer satisfaction.

What are the Best Text Alert Practices?

Text alerts are a powerful communication tool, but only if used effectively. Here are some best practices to keep in mind when using text alerts:

  • Use the proper format – Text alerts should be brief, precise, and to the point. Use proper grammar, punctuation, and capitalization to make your message understandable.
  • Be mindful of timing – Consider your recipient’s time zone and schedule when sending text alerts. Avoid sending messages too early in the morning or too late at night.
  • Segment your audience – Segmenting your subscriber list based on demographics, interests, and other criteria allows you to send targeted and personalized messages. It will increase the relevance of your alerts and improve engagement.
  • Include a clear call-to-action – Each text alert should have a clear call-to-action that directs recipients to take a specific action, such as clicking a link or making a phone call.
  • Limit frequency – Keep your subscribers manageable with enough alerts. Sending too many messages can lead to opt-outs and negative customer experiences.
  • Monitor and analyze results – Regularly monitor and analyze the success of your text alerts. It will help you make improvements and adjustments to ensure the best results.

Which Companies Use Text Alerts?

Many companies employ text alerts to engage with their customers effectively. It includes restaurants, retailers, small businesses, schools, airlines, delivery services, etc. Notably, numerous renowned examples of companies successfully utilizing SMS marketing strategies exist.

  • Domino’s Pizza: Customers can sign up for text alerts for order updates and exclusive deals.
  • Starbucks: Customers can opt-in for SMS alerts to receive personalized offers and announcements.
  • Sephora: The beauty retailer sends text alerts about new product launches, promotions, and reward program updates.
  • Walmart: Customers can subscribe to SMS alerts for order pickup notifications and exclusive deals.
  • Uber: Riders can receive text alerts for ride updates, promotional offers, and safety information.

Find out the big brands and companies using SMS marketing in their daily business operations. 

How to Send Text Alerts?

Sending text alerts becomes a breeze when equipped with the right tools and an SMS marketing service provider. Even without technical expertise, you can effortlessly set up the process. Here are three fundamental steps to follow:

1. Select a Textword

A text word is a unique keyword that customers will use to subscribe to your text alerts. It should be simple, relevant to your business, and easy for customers to remember.

2. Build Your Subscriber List

Promote your text through various marketing channels like social media, email campaigns, or in-store signage. Encourage customers to opt in by offering exclusive deals or valuable information.

3. Create and Send Text Alerts

Using an SMS marketing service, you can easily create and schedule text alerts to be sent to your subscriber list. You can also personalize the message or include a call-to-action to increase engagement.

What Should You Know About Text Alerts?

Before implementing text alerts into your communication strategy, one must understand some key points:

  • Text alerts are subject to the Telephone Consumer Protection Act (TCPA), which regulates commercial text messages and requires businesses to obtain customer consent before sending them texts.
  • Companies must also comply with the CAN-SPAM Act, which sets guidelines for commercial messages sent via SMS.
  • It is essential to have an explicit opt-in and opt-out process for customers to manage their preferences.

How Much Does a Text Alert System Cost?

The cost of a text alert system can vary depending on the service provider and the package options available. Prices typically range from $79 to $139 per month or more. The desired features and the chosen provider determine the specific cost of a text alert system.

Generally, text alerts incur a monthly fee and charges for each sent message. It is crucial to conduct thorough research and compare prices before selecting a provider. Also, free trials help evaluate whether the services meet the organization’s needs.

Is Text Alerts Legal?

Yes, sending text alerts is generally legal, but it comes with several conditions and regulations that businesses must strictly adhere to to avoid legal repercussions. The Telephone Consumer Protection Act (TCPA) mandates that companies obtain explicit consent from individuals before sending them commercial text messages. This means an organization can only send text alerts to someone if that person has opted to receive them. 

Similarly, the CAN-SPAM Act sets specific requirements for commercial messages sent via SMS, including a clear explanation of how to opt out of future messages. Violations of these regulations can lead to substantial fines. Therefore, while text alerts can be a powerful tool for businesses, it’s essential to remain compliant with all relevant laws to mitigate legal risks.

Can People Respond to Text Alerts?

Yes, people can respond to text alerts if the system sending the alerts is configured to receive responses. This feature enhances interactive communication and allows users to engage directly, ask questions, provide feedback, or even opt out of further messages.

To allow for responses, businesses must use a two-way text messaging platform to receive, manage, and respond to incoming messages. Selecting the option to enable responses is crucial when setting up the text alert. For example, you should use an SMS marketing service to ensure the platform supports two-way messaging.

What Types of Numbers Can I Use for Text Alerts?

Typically, three types of numbers can be used for sending text alerts:

  • Short Code: Short codes are special 5- or 6-digit phone numbers shorter than a full phone number and used for mass marketing. They’re easy to remember and ideal for high-volume sending, making them perfect for text alerts. However, obtaining a short code can be lengthy and more expensive than other options.
  • Toll-Free: Toll-free numbers start with a three-digit code (800, 888, 877, 866, 855, 844, or 833). They are “toll-free” because callers are not charged for calling these numbers. Toll-free numbers are considered more professional and are also capable of high-volume sending. They also allow for two-way communications, meaning recipients can respond to your messages.
  • 10DLC: 10DLC stands for “10 Digit Long Code,” a standard, 10-digit local phone number. These balance the high sending limits of shortcodes and the local feel of a standard phone number. They also allow for two-way communications. However, they may have lower delivery rates than short codes and toll-free numbers.
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