As more companies switch to digital strategies, it’s expected that they will communicate more with their customers through digital channels. With the increase in mobile subscribers, there is a growing demand for text-based messages (or SMS). As compared to business emails, text messages have a higher open rate of 98%. What’s even better is that 9 out of 10 mobile users open and read their text messages.
These are some of the factors driving the adoption of Application-to-person (A2P) SMS in 2023. According to Juniper Research, A2P business messages are expected to reach 3.5 trillion in 2023. Grand View Research values the global market for A2P messaging at $66.84 billion in 2022. This is expected to grow at a CAGR of 4.9% till 2030.
Latest Trends in A2P SMS Marketing in 2023
In simple language, A2P SMS is any form of text message sent by an application to a subscribed mobile user. Users can opt to subscribe to text messages from business applications.
What makes A2P marketing useful for business enterprises? Besides being cost-effective, A2P messaging is useful for sending different types of messages, including:
- Marketing messages or campaigns
- Appointment or subscription renewal reminders
- Alerts or notifications
- Surveys and voting
- One-time passwords (OTPs) as part of two-factor authentication
Thanks to technology trends like the emergence of shortcodes, enterprises can now send out a larger volume of A2P messages to their subscriber base. For telecom operators, A2P SMS is beneficial as they know immediately if the message has been delivered or not. This helps them maintain and refresh their database of active mobile numbers.
How can A2P SMS services benefit businesses in 2023? Let’s discuss that next.
Benefits of A2P SMS in 2023
In 2023, enterprises across industry verticals like healthcare, travel, and eCommerce will send A2P SMS messages to build customer relationships. To this end, here is why A2P messaging is beneficial:
SMS-based messaging is among the most cost-effective modes of communicating with customers. Besides, enterprises can now send the same promotional offers or campaign-based messages to thousands of customers simultaneously.
2. Immediate Delivery
With A2P SMS, digital marketers can now send important messages immediately to their consumer base. On average, 90% of mobile users read their messages within 3 minutes of receiving them. On the other hand, email users can take hours or days to read & respond to their email messages.
Besides, customers are 4.5% more likely to respond or act upon brand SMSes than emails. On average, it takes them 90 seconds to respond to an SMS and 90 minutes to respond to an email.
3. Secure Access
In recent years, issues like data breaches have prompted the development of better security standards for enterprises. As online transactions increase, businesses realise the importance of one-time passwords or transaction alerts for their customers. Due to time sensitivity, OTPs or password resets delivered through A2P SMS mode are most effective.
Besides, methods like two-factor authentication and OTP encourage more mobile users to switch to digital transactions – thus generating more business revenue.
4. On-time Alerts and Notifications
Healthcare and insurance companies are also using the A2P SMS system to automatically send out reminders for medical appointments and payment of insurance premiums.
Likewise, with the growth of OTT platforms, subscribers no longer must check out their subscription renewal date. SMS notifications provide them with ample time to complete the renewal if they wish to.
Challenges Facing A2P SMS in 2023
Despite increasing competition from other marketing approaches, SMS is still the preferred tool for most enterprises. However, the A2P messaging service also has its share of challenges, which make it difficult to realise its complete potential in today’s competitive environment.
Here are some of the challenges that enterprises face with A2P SMS service:
1. SMS-related Frauds and Malpractices
As is the case of any digital medium, A2P SMS messaging also has its share of “bad” actors and fraudulent intermediaries. For instance, intermediary companies do find a way to send fraudulent messages to genuine customers. Besides, bad actors indulge in SMS-related malpractices like grey routing, masking, and SIM farming.
2. Extreme Variations in Price
Global enterprises have to deal with challenges like country-specific regulations and price variations. Depending on the country, local partners can charge different rates, thus making it unsustainable to maintain SMS services.
3. Poor Customer Experience (CX)
Illegitimate SMS traffic can lead to poor CX, which is another challenge in A2P SMS services. Also, a legitimate A2P SMS from an unknown sender can create customer fatigue. Often, mobile users have to deal with issues like poor-quality text and below-par messaging.
The Globe Teleservices Advantage
Despite advanced digital marketing tools, enterprises continue to rely on the SMS medium as a fast, cost-effective, and reliable form of marketing. As outlined in this article, in 2023, A2P SMS offers a host of benefits as compared to business email marketing.
- Global or international coverage
- Compliance with local or regional industry regulations
- Enhanced CX by eliminating any grey routes
- Faster and reliable message deliveries
Want to know how to leverage A2P SMS for your business success? Get in touch with us.