Digital transformation through crisis – SMS dispatch in companies increases

A2P SMS sending is growing even more than expected

SMS dispatch in companies increases more than expected – according to a study by Mobilesquared, approximately 1.3 million businesses have started sending A2P SMS in 2020. That is actually 20% more than the previous year. The number of messages sent has also increased more compared to previous years. While the A2P industry has been experiencing a boost for years, the actual increase last year was higher than was generally expected.

In this post, we’d like to take a look at how A2P SMS sending has changed and the reasons why SMS dispatch in companies increases.

The development of A2P SMS dispatch

Until 2020

A2P SMS messaging in enterprises has been steadily increasing for several years now, but the increase in traffic has usually been in the single digits and low double digits percentage-wise. There were forecasts from 2016 that predicted a decline in messages sent around 2019. This decline never happened.

A2P SMS are SMS that are sent to people via an application. They are used in many different use cases.

In the past year

In 2020, the numbers exceeded previous years’ forecasts and expectations. In a report on the rise in the number of companies sending A2P SMS, Mobilesquared writes:

The Pandemic, lockdowns, and the new normal […], have forced businesses to expedite their digital transformation, and adapt their communications strategy, including the adoption of messaging as a core channel.

(Source: Article by Mobilesquared)

Thus, they confirm the industry-wide assumption that the use of SMS will continue to grow, especially during the ongoing digitalization.

It goes on to say about the increase in traffic:

But if we just look at the growth of traffic in isolation, it shows that the actual growth increased by 18.2% between 2018 and 2019, but it grew 68.4% between 2019 and 2020.

(Source: Article by Mobilesquared)

As Mobilesquared points out, this particular increase means that sending has also increased in those companies that were already sending SMS before the pandemic started. Again, this makes it clear that the fact that A2P SMS are on the rise in companies is not exclusively an attempt to introduce a new medium – demand increased in all companies, not just in those that only implemented SMS in 2020.

A leap in digitization during the crisis

The great need for digital and readily available solutions during the Corona crisis contributed in large part to the surge in SMS sent by businesses. 
Given the circumstances, this sharp increase in SMS sending is not surprising. Especially during the crisis, companies needed a reliable, readily available and flexible communication channel that was as easy to use as possible.

A2P SMS is a perfect fit for these needs, especially because it can be integrated into various applications easily via a gateway. During the Corona crisis, for example, companies implemented solutions to send test results or appointment reminders, but also to inform customers about last-minute changes.

On the way to conversational marketing

It is not only the advancing digitalization that will continue to lead to an increase in the use of A2P SMS in the coming years. For some time now, there has been a clear trend toward conversational marketing, in which customers engage in conversations with companies to ask specific questions or seek advice. This conversation can be either synchronous or asynchronous, depending on the customer’s preference, and it is more than appropriate to let your customers choose what they prefer. Synchronous communication takes place on the phone or in live chat, for example, while asynchronous communication takes place via email, SMS or in letters.

Why are companies turning to SMS?

It is no coincidence that in the course of digitalization, SMS in particular are being chosen to expand a company’s communication options. The most important reasons pleading for SMS are:

  • Customers do not have to install a separate app to receive messages from a company.
  • SMS are read faster than any other message and have a significantly higher open rate than emails.
  • Skepticism about messengers is growing as more and more people are aware of the privacy issues involved.
  • With SMS, companies are taking advantage of a channel that customers already use in their everyday lives.
  • Thanks to SMS gateway providers, sending SMS can be integrated into various systems flexibly.

These reasons are no different from those that make SMS a valuable tool outside of crisis situations. The fact that many people needed to be contacted in an uncomplicated way merely brought SMS more into the public focus. Therefore, it is clear that SMS offer enough advantages to remain part of the communication strategies in companies for a long time.

SMS dispatch in companies increases for good reason

Even if we would have liked to do without the crisis: We are pleased that so many companies are putting their trust in A2P SMS to implement their projects and achieve goals in the course of their digitization processes. The fact that SMS dispatch in companies increases so strongly shows that SMS will remain an effective communication medium as digitization continues, and that it will be with us for many years to come.

Do you have questions about the use of SMS in your company? We look forward to hearing from you.

All the best
Your sms77 team

Header picture by LNLNLN via pixabay.com

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