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What SMS message contributes to the growth of business depends on two elements; technical and practical ones. This article is peeling off the factors that will hopefully increase your understanding about the role of the communication tool.

As the name suggests, Short Message Service (SMS) facilitates the delivery of brief texts up to 160 characters. The messages are exchanged between mobile devices, telephone, internet by previously undergoing specific protocols.

The technical aspect

For the first aspect, let’s dig deeper on how SMS works. The first phase is translating your message into data and sending it across a web of interconnected carrier networks. This happens after you click the “send” button from mobile phone, app or other devices.

After that, the message will travel across some paths to reach the targeted recipients. Upon the delivery, the data is turned into a message and is sent to the device. What needs to be taken into consideration is that each SMS is limited to 160 characters only. Given the attribute, brand owners and marketers have to be clever in SMS composing.

At the same time, the SMS is sent so quickly within a few seconds to a bulk of recipients. That opens up chances for reaching out to as many recipients as possible. The brand owners or marketers need to firstly collect the contacts to ensure the contents are read by a lot of targeted recipients.

The economical aspect

The second aspect within this what SMS message means refers to the follow-up steps after fully understanding the workflow of SMS. As it was briefly mentioned above, the brand owners or the marketers need to formulate strategies to optimize SMS.

Let’s discuss one by one. The first point refers to the 160 characters. To maximize the attribute, firstly determine which goals your company wishes to attain. Will the SMS promote certain products or services? Will the SMS inform the latest transaction? Will the SMS offer a lifetime customer program?

Once the element is wrapped, select words that meet attention-grabbing and call-to-action points. You can include a link that will lead to your company’s website for further information.

The second point refers to the possible reach to a lot of contacts. This urges the brand owners and the marketers to come up with as many potential recipients as possible. The more, the higher chance the marketing campaign meets the target.

Our company, PT Triple One Global (TOG), is a leading A2P Company in Indonesia that widens its services for international clients. The core of our business takes advantage of the platform’s growing roles to enrich customer and brand communication.

As the name suggests, A2P Company means a firm that works on an Application-to-Person platform. It centres on delivering one-way business texts (SMS) from websites to recipients. The use of SMS itself remains popular and in fact, becomes more diverse as the tool for creating rich customer experience through their mobile phones.

Enhancing the communication quantity and quality

By using our service, SMS becomes much richer and meaningful. As marketers or brand owners, you can create diverse types of SMS then send it to customers depending on their buying journey steps.

On the other hand, you can customize the budget for SMS marketing by consulting with us. Given the attribute of SMS, you can deliver a bulk number of SMS in the real-time. They can reach a lot of recipients regardless of their current residences.

Delivering one-time or several times of SMS despite the quality contents are not enough. Stuck in the same old and usual SMS content despite sending it a million times will not help much to instil your brand into their minds.

The availability of A2P platform with our first-rate service will facilitate the two goals.

Driving business growth

As you can engage in a deeper relationship with customers, it will only be a matter of time that your business grows on its own. This particularly will happen when they turn into your loyal ones.

It’s worthy to note here that driving business growth doesn’t merely refer to increasing sales and ultimately, profit. Moreover, the long-term advantage will come from the product research and evaluation will be contributed by your customers.

A2P protocol refers to a set of regulation systems to enable connection, communication, and shift of SMS between two computers or more. The concept helps to facilitate a good and smooth communication between the sender and the recipient.

In terms of Application-to-Person (A2P), the A2P protocol contains the mechanism for carrying business texts from brands or business owners to subscribers. The qualified system will determine how successful or not your business texts later.

Brief Explanation on the A2P Protocol

Generally, the protocol involves technical aspects, such as client database, mobile number, Application Programming Interface (API), web interface, and Mobile Network Operator (MNO).

The stages of the protocol typically run as follows. Client database and mobile number will be sent to the Client Connectivity segment. This covers API, SMPP, and Web Interface. The next stage is HTTP XML that handles message content and mobile numbers and connects them to the A2P provider’s platform. The provider then examines which route that will best deliver the message. It later forwards it to the Mobile Network Operator before ending at end-users.

How A2P Method Helps Your Business

The A2P method utilizes an application, usually web-based, to send messages to a mobile user. It acts as a one-way delivery technique that requires no replies from the recipients. It is often said as the Enterprise Messaging Solution.

Brands or business owners include the A2P solution as part of their marketing campaigns. As most of today’s customers use cellular phones, the A2P method accommodates for the marketers to reach their customers instantly.

Moreover, the A2P solution allows for sending a bulk of SMS thereby saves operating expenses as compared to Person-to-Person Messaging. The business texts can deliver messages on customer service tools, activation and authentication mechanisms, and product or service promotion.

For example, banking transactions, travel updates, product or service discounts, financial confirmations, and loyalty programs.

The attributes of the A2P method allows for quick delivery while the subscribers conduct their activities. SMS remains top choice for marketing campaigns because it has a high open rate level. Moreover, an SMS brings comfort for the recipients because it contains important points given the 160-character limitation.

Brand or business owners can customize their SMS to create a personal and complete customer journey. This is made possible with the cost of the A2P platform that can be adjusted with marketing budget.

Probably much to your surprise, SMS messages remain popular for meeting individual and corporate requirements. The technology that surrounds Short Message Service firstly appeared in 1984 and maintains its relevance until today.

German engineer Friedhelm Hillebrand with his fellow researcher Bernard Ghillebaert experimented with a system that would enable message delivery through the telephone network using GSM standards. Six years later, their research succeeded, breeding the SMS technology that has been operational until today. GSM network under United Kingdom’s Vodafone became the first that delivered the first-ever SMS in history.

How SMS still prevalent for individuals

Today’s individuals become busier and more dynamic than ever. With smartphones at their hands, they can perform various tasks at once. SMS messages or technically termed as Person-to-Person (P2P) messaging remains popular for two reasons.

Firstly, SMS messages offer concise and straight-to-the-point messages. The rise of Over the Top (OTT) does breed significant growths for apps, such as WhatsApp and Telegram. However, the extreme message volumes may tire some types of people that prefer SMS messages that value a message's importance.

Secondly, SMS doesn’t require Internet connection. The fact helps those living in remote areas to keep in touch with the latest trends. They, too, can still communicate with their friends or family members anywhere in the world.

In terms of brand communication, consumers prefer to receive SMS messages to emails. SMS messages have lower spam rates as compared to emails. In addition, subscribers will find the messages more personal. The Cellular Telecommunications Industry Association conducted a study which revealed SMS texts have a 2.8% spam rate, much below email’s 53%.

How enterprises can tap into the potentials

Application-to-Person (A2P) technology allows brands and organizations to create a better and richer customer communication. The nature of SMS messages creates personal and instant impressions for the subscribers. The brand voice can reach out to their subscribers regardless of their residence and cellular phone types.

SMS remains the most effective communication tool because it can be read anytime. On the other hand, people don’t find email reading as part of their daily lives. Phone calls can annoy some of the subscribers.

To create a complete customer journey, companies need to form interesting and effective SMS messages. Make one that best delivers the brand value while at the same time respects the subscriber’s privacy. Group the subscribers into several levels of brand experiences. Companies can start by classifying them into potential, new, medium and long-term buyers. Compose business texts accordingly.

How does A2P messaging work? The question seems inevitable for laymen who firstly hear Application-to-Person (A2P) from the industry practitioner and user like you. The article is explaining briefly about the system that will make sense for most people.

By definition, A2P SMS stands for Application-to-Person Short Message Service. It is also called a commercial or business text platform. It’s a one-way communication channel that delivers SMS from a software program. Brands, organizations, companies select the platform for engaging to their subscribers via the automated software prior to compliance of rules or conditions.

Quick guideline on how does A2P messaging work

The system of A2P messaging begins with the Short Message Peer-to-Peer Protocol (SMPP) which functions to relay communications between two entities. The SMPP regulates the interaction of the entities for either sending or receiving messages. In addition, it handles the package of the messages.

One entity will start an SMPP session using the SMPP to decide where it is delivering the message. Afterwards, a Short Message Service Centre (SMSC) takes or declines the message then forward it to the other entity.

The A2P messaging also requires Internet of Things (IoT) devices that can be linked to wireless networks, just like cell phones. These IoT devices determine how the A2P messaging will connect messages to end-users. Most of today’s well-known IoT applications utilize cellular connectivity. They further utilize a software application by which they can communicate like an SMS.

In the A2P work scheme, the SMSC works like a mediator because it decides what their interactions will look like then transmit messages. While the application functions as the extra mediator that brings messages to and from the SMS in the name of the IoT devices.

Samples of the A2P messages

You can deploy the A2P messaging for sending password reset, two-step authentication, and product promotions, to name a few. The platform suits best for enriching internal communication and diversifying outbound marketing channels. The A2P technology with IoT suffices for improving tasks, such as abnormal water usage detection in a smart water meter system.

Work with PT Triple One Global for top SMS services

A2P monetization refers to gaining benefits from untapped A2P SMS service potentials. A2P operators are up for this opportunity to make up losing traditional revenue streams.

A2P monetization will utilize A2P SMS service that may not be fully monetized for all operators. When fully implemented, the strategy will provide new income to offset declining revenue from voice and P2P messaging.

Why operators need to monetize 

A2P operators will gain a lot of benefits from monetizing their platform. They will obtain a termination fee for every SMS sent to their subscriber networks. They, too, will have chances to drive their profits from wholesale opportunities and roaming partners.

As the strategy works out well, they will have complete control over network traffic then have better business decisions. As for their subscribers, the operators will have improved chances to build a safe environment. In turn, the subscribers will undergo an improved customer journey with their services.

The keys to the monetization

There are three critical aspects that will lead to effective A2P monetization.  The first one is SMS Firewall that mixes hardware and software for checking and blocking unpaid SMS traffic. The element is greatly needed when the traffic will infiltrate the traffic then influence the subscribers.

The second element is Tracking and Reporting that enables the operators for examining and administering SMS traffic in the networks thus making the reports. A real-time monitoring will produce type of traffic, traffic volumes, delivery routes, and applicable fees. Apply the Administration module for operating the functions of SMS Firewall.

The last aspect is implementing Requirements and necessary steps. We can break it down into the following considerations. Number one is Infrastructure that leaves us with a fully local implementation or local and cloud-based solution combination.

Number two is Legal factor which requires the operators understanding the local regulations on filtering practices. Make sure that the monetization meets all rules as set by the intended area administrations.

From the Business side, the operators will have to lay out a clear business plan for generating the targeted income.

More specific tasks will take place after completing the steps. At this Commercial stage, a new pricing policy is required for enlarging profits and market share. Avoid any actions that will cause a destabilized market related to A2P SMS. Set an agreement with corporations under legally binding contracts about new partnerships.

As more and more people are being held at home, A2P communication finds better and wider ways to flourish during the COVID-19 pandemic. A growing number of companies and organizations prove the platform helps create better customer digital experience.

A2P communication means the use of application-to-person (A2P) technology for improving communication with customers. The broad goal takes in various channels, such as SMS, email, social media and OTT apps (WhatsApp, WeChat, and Telegram). Below highlights how the pandemic has changed the landscape of the A2P market in the world as taken from a research by analysysmason.com.

How demands have shifted during the lockdowns

At least in the past year, social distancing and lockdowns caused offline businesses suffering from a decreasing number of visitors. Other activities that became less frequently happened were in-store visit and in-person customer support.

The enterprises have turned to digital platforms for keeping their businesses running. One inevitable way is reaching out to their customers. It’s also part of their digital transformations which started quicker than had expected. Some selected cloud services for enabling effective and productive work-from-home schemes. This, in turn, has contributed to the increasing demand for A2P services.

Despite so, the demands have changed because of the pandemic. Traditional sectors, such as the retail sector, reduced the number of A2P messages for sending promotional campaigns and in-store payment notifications. Instead, the A2P services rose for e-commerce, online services, logistics, and home-delivery services.

The hospitality segment painted a mixed fact as seen in the airlines, hotels, and public transportation services. In the first weeks of the pandemic, the businesses mostly used the A2P platform for sending cancellations and rescheduling.

A2P communication worked well for the healthcare, government and non-profit industries. The enterprises and hospitals used the platform for conducting telehealth services. With the service, patients can easily ensure their appointments and ask for information on health services.

A new trending demand probably came from distance learning that facilitated a lot of people spending time indoors for positive activities. This sector will stand as the new favourite for A2P communication in the near future.

The last sector was the Small and Medium Enterprises (SMEs). In the United Kingdom, the sector was quickly hit by the outbreak which included food service and arts, entertainment and recreation industries. The A2P communication helped the sector players to keep engaging with their customers who were still active during lockdowns.

Global A2P SMS market will continue soaring until 2027 although COVID-19 outbreak hits the world economy, a latest survey on A2P revealed. The market will attain US$86.3 billion by that year.

On Dec. 7, 2020, Reportlinker.com released “Global A2P SMS Industry” that examined the condition of the A2P market for this year and seven years ahead. The A2P SMS market will reach US$65.7 billion in 2020. The market will grow at a Compound Annual Growth Rate (CAGR) of 4% between 2020 and 2027.

Country and Service Segment in More Details

The report especially brought up the results of global A2P SMS market in the US and China markets, the two economic superpowers. The A2P SMS market in the US will reach US$19.3 billion in 2020. On the other hand, the same market in China will attain US$15.4 billion in 2027. The CAGR of the analysed period will be 3.8%. Other important markets are Japan and Canada which will grow at 3.7% and 3.3% CAGR, respectively. From the European market, Germany will grow at 3.9% CAGR.

The report also broke down several segments that mostly use the A2P SMS platform. For Pushed Content Services, the survey predicted it will book a 3.5% CAGR and attain US$23 billion at the end of 2027.

For the Customer Relationship Management Services sector, the survey projected the growth will be at 6% CAGR. The data included the pandemic impacts on the international economy.

The A2P SMS mostly influences the promotional campaign sector. The survey predicted the Promotional Campaigns segment to grow at 3.7%. The statistic will be propelled by the segments in the US, Canada, Japan, China, and Europe.

The markets in the countries will enhance the combined market size of the A2P SMS of US$8 billion in 2020. By the end of 2027, the market will have to attain US$10.4 billion in the countries.