Application-to-Person Short Message Service, also known as A2P SMS, continues to grow organically as a messaging channel all around the world.
In fact, according to our research at Mobilesquared, we’ve found that the amount of businesses using SMS to communicate with customers has increased by 9.78% by the end of 2022 compared to 2021.
But how does A2P SMS actually work?
In short, A2P SMS works by using a software application to send text messages to mobile users as well as respond to text messages.
Oftentimes, a business will employ an SMS API (application programming interface) to programmatically send and receive messages, track delivery status, as well as manage interactions on a global scale.
That said, businesses can also use a bulk SMS service which involves uploading their customer’s mobile numbers on a manual basis. From here, they can send text messages in batches to their customers for everything from promoting services to appointment reminders.
Reasons To Use A2P Messaging
At Mobilesquared, our research suggests that only 5.3% of large businesses currently use SMS, yet they accounted for a remarkable 55.1% of total A2P SMS spend in 2022.
That said, there are numerous reasons why an increasing number of businesses of all sizes are using A2P messaging.
Reasons to use A2P messaging as a business include, but are not limited to:
- SMS has the highest open rate
- A2P SMS is highly cost-effective
- SMS can be easily tracked and measured
- A2P SMS has a higher response rate than other messaging channels
1. SMS Has The Highest Open Rate
In this modern age, SMS has the highest open rate as SMS messages are next to impossible to ignore.
Unlike other popular communication channels such as Messenger and WhatsApp which can easily be muted, SMS notifications on the home screen of a smartphone can easily capture your audience’s attention.
Our research at Mobilesquared supports this, suggesting that ‘55% of all SMSes are read [while] 100% of SMSes are viewed’.
This, paired with the fact that ‘5 million people send and receive SMS messages every day’, highlights the popularity of SMS as well as the opportunity it presents for businesses as a critical messaging channel.
With 65% of the world’s population sending and receiving SMS messages on a daily basis, then, it’s not surprising that SMS has the highest open rate.
2. A2P SMS Is Highly Cost-Effective
A2P SMS can be very cheap, especially when sending these messages in bulk, meaning they’re cost-effective for businesses.
The costs associated with sending A2P texts can vary depending on the method in which you decide to send them.
That said, their cost-effective nature makes A2P SMS a highly attractive option for businesses that are just starting out and don’t have the largest budget.
3. SMS Can Be Easily Tracked & Measured
Another reason to use A2P SMS is that SMS can be easily tracked and measured.
Through the use of links in SMS texts, businesses have an efficient way of collecting SMS data to determine the exact number of customers visiting their websites.
The amount of time people spend on their devices also emphasises the opportunity provided by SMS, highlighted by the fact that ‘the world [spends] around 40% of their day — [or] 6 hrs 37 mins to be precise, on a computer or mobile device’.
A2P messaging thus provides a wealth of data on who out of your audience has opened and read your SMS message, as well as who has responded or ignored it.
With so many people spending just under half of their day using an electronic device, then, it’s never been easier to measure the effectiveness of SMS and your return on investment.
4. A2P SMS Has A Higher Response Rate Than Other Messaging Channels
Lasty, one of the biggest reasons to use A2P SMS is that it has a higher response rate than other messaging channels.
In fact, ‘SMS has eight times the response rate of email’, emphasising just how useful it can be to collect customer data in order to prioritise the customer experience.
We at Mobilesquared recognise that even with a 55% read rate, the performance of A2P SMS reigns supreme in comparison to every other channel, including email, direct mail, banner ads, and more.
We hope that this article has given you a wider understanding of how A2P SMS works, as well as some of the reasons why an increasing number of businesses are choosing to incorporate A2P SMS into their way of working.
We are Mobilesquared: mobile engagement specialists delivering the very best independent mobile market intelligence to our clients. We are the established #1 global authority on business messaging and CPaaS, with our data shaping business plans, strategy, and customer engagement modelling, for some of the world’s leading brands, mobile operators, and messaging providers.
To learn more about our services, including the Messageverse, be sure to get in touch via telephone (01182149 777) or email (email@example.com) to learn more about what we do and discover how we can help your business.
Written by Jemima, for Mobilesquared.