Recently, the caller identifying app Truecaller released detailed statistics about spam on the telecom networks. It revealed that Indians received a whopping 8.5 billion spam messages in 2019 alone. To thwart the attempts of spamming the users, the Telecom Regulatory Authority of India (TRAI) issued a strict regulation that bars companies from sending unsolicited commercial bulk SMS to users. They have asked companies to register their sender IDs and SMS templates in centralized DLT portals to improve end-user experience and eliminate spam and fraudulent messages.
The decision is a stark reminder that companies must be careful about the Application to Person (A2P) SMS they send. They can no longer send bulk messages or overtly promotional content to their customers. While this might spell bad news for companies that unreasonably rely on A2P messages, the good news is that it is not the end of A2P SMS. A2P SMS has come a long way. The new features such as Rich Communication Services (RCS) and personalization can enable companies to balance between complying with regulatory guidelines and continuing the communication with their customers. In fact, the smarter and evolved SMS can be a powerful tool for companies if used in the right way.
Let’s look at how A2P SMS has evolved and is benefitting companies.
How Has SMS Become Smarter And More Effective?
Better communication
Whether it’s an upcoming appointment with the doctor, an OTP for a transaction, delivery status of the product ordered product, or a reminder to pay the bills, companies rely on their ability to send SMS’ to communicate with their customers. This holds across all types of transactions. For instance, studies reveal that 90% of leads prefer to be messaged rather than called. SMS formats have also evolved and become more engaging. Unlike the earlier formats of SMS, the current ones give companies the option to send rich text. Companies have been using RCS to send images, videos, website links, QR codes, etc. RCS will help in improving engagement. The other advantage is that SMS’ are generally kept shorter. So, customers can assimilate the message faster and more effectively. Keeping the message short, simple, and clear will help companies gain more engagement and eventually lead to better conversions.
Better and quicker reach
Although smartphones are popular, everyone does not own them yet. Also, internet connectivity is still weak in remote areas. So, push notifications, and OTT messaging apps might not deliver messages to those customers on time. SMS is also more likely to be opened than an email. For instance, research shows that an SMS has an open rate of 99% compared to an email that has just 36%. In fact, 97% of the receivers read the message within 15 minutes of receiving it. This proves that SMS is more effective, and has better reach than other messaging modes. Companies must consider using SMS to ensure that their customers receive their messages immediately. It is also convenient for customers. For example, a customer can immediately access the generated OTP sent via SMS and use it to complete a transaction. They don’t have to worry about low internet connectivity, or delays in delivery, and “timed-out” transactions as they wait to receive the message.
Personalized communication
One thing that customers detest is the lack of personalization in messages. They hate being the target of spammy, generic, bulk messages and they especially hate being sent messages repeatedly. They want the messages to be short, relevant, and personalized. The new form of A2P messaging allows companies to add personalization to their SMS. For example, an airline company can send personalized SMS to the customer reminding them of an upcoming trip. They can also send links to hotels close to the destination they are visiting, or send special promotional codes that they can use to avail discounts or special benefits. By creating segmented marketing campaigns and personalizing the messages according to intelligent segmentation, companies can improve their engagement and reach with the customer. It will also save them from being tagged as spammers by the TRAI.
Cost-effectiveness
SMS is more cost-effective than emails or any other forms of communication. The cost per SMS send is low, and given the high response and engagement rates, we can safely say that A2P SMS can improve the ROI in marketing. It is one of the best channels for doing direct sales marketing. Companies can also avoid other logistical issues such as email delivery failure or missing postal, etc., due to A2P messaging.
Conclusion
One cannot deny that SMS is still a strong communication tool for companies despite the growth of instant messaging platforms and push notifications. The A2P SMS market is expected to reach a value of $101 billion by 2030. Clearly, A2P SMS is still crucial to the future of messaging for customer engagement. However, companies need to ensure that their messaging strategy complies with TRAI’s regulatory guidelines and follows privacy and customer norms. On the operational front, they must also avail of solutions that allow them to send messages at a cost-effective rate to avoid burning through mountains of cash.
At Globe Teleservices, we help companies send personalized and rich messages to multiple customers in a single instant. Companies can avail benefits such as:
- API connect to send transactional or promotional messages
- Leverage our direct interconnection with more than 100+ carriers and leading operators for direct SMS termination in more than 35+ countries
- Leverage high-quality routes along with direct routes to meet the various market requirements
- Send push notifications to social media platforms
- Send engaging messages such as geo-targeted text, photo and video notifications to customers
To know more about sending A2P SMS securely and cost-effectively, contact us.