5 Key Drivers for the Rise in Enterprise Messaging

5 Key Drivers for the Rise in Enterprise Messaging
December 10, 2020 / Blog / posted by Harshita Kapoor

The first-ever SMS in the world was sent on 3rd December 1992 by Neil Papworth, that said, “Merry Christmas.” For the convenience they provide, messaging services have been used for various purposes since then. The 2000s saw the growth of person-to-person (P2P) messaging while the 2010s have seen a surge in the growth of application-to-person (A2P) messaging. Though P2P messaging has been taken over by OTT platforms like WhatsApp, enterprise messaging continues to be an important tool for communication for businesses.

To keep up with the aggressive adoption of smartphones, businesses are utilizing digital platforms. A2P messaging, for its mature technology with a simple interface, is deemed ideal for communication between businesses and their client base. Till date, A2P SMS messaging is a highly reliable channel preferred by consumers when communicating with enterprises. According to research by the Mobile Ecosystem Forum, SMS is the most trusted of all enterprise communication channels, with nearly double the trust levels seen for email and OTT platforms. Businesses are utilizing messaging services for various customer engagement purposes such as: –

  1. Payment confirmation
  2. One-time password message
  3. Incident reporting
  4. Status update
  5. Mini statements by bank account
  6. Crucial service alerts
  7. Speculated fraud notification
  8. Balance enquiries
  9. Appointment reminder
  10. Travel reservation confirmation
  11. Promotional offers and coupons

5 Reasons Why A2P Messaging is on the Rise

Industry analysts expect continued growth in the enterprise messaging industry bearing in mind that it grabs the attention of a consumer faster than any other medium of digital communication.  Let us look at the 5 key reasons for the continual rise in A2P SMS messaging.

A2P Messaging has a Higher Reach Than Email

For years, companies have used email to send important messages to their customers as it is considered a formal platform for communication. However, with time the rates of open and response on emails have been particularly low, and most messages end up in the trash folder. On the other hand, the retort of customers to text messages from businesses is completely different. According to a research by Gartner, text messages have a 98% open rate and a 45% response rate compared to emails with a rate of mere 20% and 6% respectively.

A2P Messaging is a Cost-effective Method

Marketing an enterprise can be steep for SMBs. By investing in enterprise messaging solution, businesses can get a return on their investment. Messaging services allow you to save up on mailing costs and high-priced marketing campaigns. Thus, an enterprise messaging platform can be a relatively economical marketing channel that businesses can employ for growth and engagement.

A2P Messaging is Faster, Effective and Reliable

The major strength of A2P SMS is that it has a worldwide reach, is faster and is accessible on every handset. Customers and clientele can receive text messages from businesses even in the absence of an internet connection. It is also a well-established technology, and the most trusted channel by consumers while contacting organizations.

Evolved Consumer Behaviour Due to Smartphones

It has been established for a decade that consumer behaviour has witnessed a transformation since the penetration of smartphones. The major impact has been witnessed in the way consumers communicate. This has resulted in a change in consumer expectations regarding the medium to communicate with enterprises too as two-way communication has become a preferred choice. Customers today ask for more accurate and timely notifications on crucial updates like when a package will be delivered, and what is the balance remaining in their bank accounts.

SMS Latency is Low

Latency for SMS is the time at which an SMS is initiated by the sender to the time it is received which must take not more than a few seconds. These text messages are effective for businesses especially when their user is requesting a two-factor authentication code to verify their identity, as it takes just a second to receive the code. Also, with credit/debit card updates, notifications of new purchases can be received almost immediately after the completion of the transaction.

Deliver a Seamless and Integrated Experience with Enterprise Messaging

Consumers today demand a smooth transition from smartphone to the physical store while looking for their desired products and services. They do not use websites that are difficult to navigate or are too slow to load. With A2P messaging, you can deliver a seamless experience where your customer does not have to surf for a long time to find available coupons, link to the website and their shipment status.

Broadband Telecom offers A2P Messaging on the widely used SMPP protocol to send messages anywhere across the globe, providing 0Hop, and Direct Marketing Routes. The company’s A2P Messaging solution works in real-time and is backed up with accurate reports to help you in tracking your development and use the data to formulate future plans.

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Harshita Kapoor

Harshita is a Content Writer at Bankai Group. Having pursued MBA in HR and Marketing, she found her calling in Content Writing. She has explored writing in different styles of content including coffee table books, website content, blogs, newsletters, e-books, and media. In her time of leisure, she finds happiness in binge-watching classics and practicing yoga.
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