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OPINION Enabling the ‘last mile’ of DX: advanced messaging that optimises CX for enterprises

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Advanced messaging combined with cloud technologies gives businesses a competitive advantage when communicating with customers. Nobuhara Masatoshi explains

By mid-2020, it is estimated that approximately 3.5 billion people across the globe were now using a smartphone, which equals to roughly 45% of the world’s population. Furthermore, it is estimated that by the year 2025, 72% of all internet users will solely use smartphones to access the web.

A primary driver of mobile technology remains its text message functionality. In the US alone, it is estimated that 76% of consumers are actively receiving some sort of text messages from businesses. What’s more, 68% of companies expect advanced mobile messaging apps to play a highly important role in online consumer marketing within five years.

The leading businesses of today and tomorrow will go beyond just a series of messaging apps. The true leaders will leverage an advanced messaging offering through a complete end-to-end digital transformation strategy that is cloud-based with a fully customizable platform.

The dawn of ‘advanced messaging’

What is ‘advanced messaging’, how is it different from the traditional SMS text messaging we’ve grown to use on a daily basis, and how will it change the way businesses connect, engage and communicate with their customers?

Advanced messaging, also known as ‘omnichannel messaging’, creates a more mobile-centric engagement opportunities for businesses. Messaging providers are increasingly offering multiple communication channels, including apps such as WhatsApp, Facebook Messenger, Telegram, WeChat, along with the integration through traditional email. Through Rich Communications Services (RCS), a specific messaging technology, businesses can connect with consumers like never before.

How can advanced messaging benefit businesses?

Consider your average hotel in this scenario. With traditional SMS text messaging, the hotel was limited to simply texting a booking confirmation to a guest for a future stay.

With advanced messaging and RCS, the same hotel can do so much more. As guests pull into the hotel’s vicinity, they could receive a message on their smartphone device with check-in instructions. They could receive rich media images of their chosen room and also receive images and details of additional upgraded rooms if they’d be interested. They may also receive downloadable coupons to the hotel’s restaurants, or nearby restaurants that engage in co-marketing opportunities.

With advanced messaging, businesses such as hotels have a plethora of opportunities to connect, engage and communicate. However, many businesses are also realizing that advanced messaging is still somewhat limited unless they have the ability to leverage the cloud and digital platform in order to fully customize their messaging experience.

Cloud technology and digital transformation

In order to achieve a fully advanced messaging offering for their customers, businesses must first embrace a digital transformation strategy that involves moving their data and communications infrastructure to the cloud.

Large enterprises and mid-level companies in sectors such as financial, customer service, insurance, hospitality, and travel are all seeking these types of advanced messaging opportunities through digital transformation. This omnichannel service is built on their ability to find the right partner to provide data center and network services in order to move to the cloud so they can ultimately provide a more engaging level of communication services and experiences, such as through the Internet of Things (IoT).

Businesses that have access to the right digital platform, provisioned hybrid (private/public) cloud infrastructure through a Windows environment and API connection will be in prime position to offer this advanced messaging engagement to their customers.

In order to see the full benefits of this business strategy, these organizations will need to combine an end-to-end digital transformation strategy, a customer experience platform, network services, systems integration, cloud services along with advanced messaging. This way, organizations can leverage an API to provision their own services on top of the communications platform to truly extend their omnichannel messaging in front of end-user customers.

The future and growth of business messaging

Today’s omnichannel messaging offerings are also known as Application-to-Person (A2P), and this market is expected to grow significantly in the coming years.

According to Ovum’s Mobile Messaging Traffic and Revenue Forecast: 2017-22, global revenues from A2P will exceed revenues from person-to-person (P2P) SMS by 2022, totaling $43 billion. Furthermore, it is estimated there will be approximately 3.5 trillion A2P messages delivered by 2023, a 40% growth rate from 2.5 trillion delivered in 2019. The GSMA estimates the market for RCS will be worth $74 billion by the end of 2021.

Businesses in every industry are looking for new ways to connect, engage and communicate with their customers, especially via mobile and smartphone devices. With an advanced messaging offering through a complete end-to-end digital transformation strategy that is cloud-based with a fully customizable platform, businesses can ensure they will have a significant competitive advantage for years to come.

Author

Nobuhara Masatoshi is CEO of KDDI America, a leading provider of international IT and communications services with locations throughout the world. KDDI America is a one-stop solutions provider, from the supply of a single cable to comprehensive office, data centers, and factory configurations. For more information visit www.KDDIAmessaging.com

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