SMEs are now warming up to this messaging solution to digitally connect with consumers | The Financial Express

SMEs are now warming up to this messaging solution to digitally connect with consumers

Technology for MSMEs: A2P messaging is referred to traffic flowing from an application to a person such as marketing messages, bank alerts, order confirmations, appointment reminders, notifications, OTPs etc. 

SMEs are now warming up to this messaging solution to digitally connect with consumers
The global mobile business messaging market is expected to grow by 63 per cent from $48 billion in 2022 to $78 billion by 2027.

Technology for MSMEs: Among many ways in which Covid has accelerated the adoption of technology among small and medium enterprises (SMEs), the application-to-person (A2P) messaging is also witnessing growing interest from the small business community in the world. According to a whitepaper on A2P messaging released by market research firm Juniper Research on Wednesday, while the A2P form of text has traditionally been confined to large enterprises, there has been an increase in the number of SMEs using it to communicate with their consumers.

“This shift has occurred as a result of rapid digitalisation, following the Covid-19 pandemic, and has resulted in an increasing interest in the adoption of CPaaS (Communications Platform-as-a-Service) solutions amongst SMEs,” the research noted. The motivation for smaller enterprises to adopt A2P messaging is expected to have originated from consumer demand as users have become accustomed to interacting with brands on their preferred messaging channels.

A2P messaging is referred to traffic flowing from an application to a person such as marketing messages, bank alerts, order confirmations, appointment reminders, notifications, OTPs etc. 

However, for SMEs to adopt more of this platform, messaging aggregators and CPaaS providers will have to ensure that their platforms are easy to use. According to Juniper Research, vendors offering low-code or no-code solutions will be best suited to serve SMEs as they often do not have an in-house developer or specialised technology department.  

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While brands and enterprises have formed strategic partnerships in the past with different messaging aggregators to cover all required channels of communication, there is an increasing trend now among enterprises to form one partnership with a single messaging aggregator capable of covering a vast variety of channels and different verticals, the whitepaper added. Hence, in order to capitalise on this trend, messaging aggregators will have to cover the widest range of messaging applications possible. 

Nonetheless, the exception to this trend of having a single messaging aggregator is chatbot deployment and development. This is because it is much harder for a single chatbot player to demonstrate specialisation across all necessary verticals. “For this reason, the chatbot market remains incredibly fragmented and enterprises will be forced to partner with different vendors for chatbot development tools if they wish to deploy chatbots on different messaging channels.” 

The global mobile business messaging market is expected to grow by 63 per cent from $48 billion in 2022 to $78 billion by 2027, on the back of enterprise adoption of RCS (Rich Communication Services), with businesses harnessing the end-to-end encryption and verified sender identities RCS provides to reduce messaging fraud, the whitepaper noted. RCS is the new protocol for sending SMS with videos, audios, images, and other rich content beyond text. Moreover, the total number of SMS business messages sent is likely to reach 1.7 trillion in 2023 from 1.6 trillion in 2022 led by usage in the retail sector.

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First published on: 23-11-2022 at 13:54 IST