Nearly three decades ago, the first short message service (SMS) was sent in the UK. That moment forever changed personal communication, and eventually, A2P messaging was born.
Application-to-person (A2P) messaging is rapidly growing within the world of business. If you’re looking to revamp your current marketing strategy, now is the perfect opportunity to leverage this communication technique.
Data shows that the A2P messaging market was worth nearly USD $13 billion in 2015, reaching over USD $62 billion in 2020. However, the A2P SMS market is predicted to reach a valuation of USD $72.8 billion in 2025.
If you wish to engage consumers and keep them engaged, A2P messaging may be an excellent addition to your ongoing marketing strategy.
Mobile Sales Continue to Rise
Across many industries, pushing products and services on mobile platforms continues to be an effective strategy. After all, mobile commerce sales were expected to reach over $4 trillion by 2020, and in 2021, mobile sales are anticipated to account for 54 percent of eCommerce sales.
If your company is strategizing for the year ahead, it’s important to explore one of the most prominent methods at the moment—SMS marketing. This form of direct communication has already shown to be successful, as it allows businesses and marketers of all sizes to send short, often personalized messages. Since these messages tend to have a high open-rate, this channel can be both powerful and profitable.
What Is A2P Messaging?
A2P is an application-to-person messaging service that may also be referred to as professional SMS or enterprise SMS. This strategy allows a text message to be sent from an application to mobile users, as opposed to person-to-person messaging (P2P).
For example, these texts can offer a coupon, an appointment reminder, one-time password codes, an alert or any other form of notification. Based on the versatility of this marketing technique, A2P messaging is used across many industries. From financial institutions to retail stores, A2P messaging helps companies achieve a wide spectrum of goals.
For example, A2P messaging can help companies communicate with their target market in order to improve consumer engagement. This form of marketing will also effectively deliver alerts, and can even support the authentication of online users. Regardless of the purpose of the communication, in all cases, communication is initiated from a business application, not an individual’s mobile device.
Why Does A2P Messaging Matter to Business Owners?
A2P messaging allows businesses and institutions to connect with their customers through immediate notifications and personalized content.
Although many companies already have an email marketing strategy in place, organizations across are several industries are beginning to recognize the benefits associated with text marketing.
For example, when a business wants a timely response, wants to send a critical alert, or simply wants to keep their customer in the know, on average, people respond to texts 60 times faster than email. This is one of the reasons banks have been leveraging A2P SMS for over 15 years. This allows them to send fraud alerts, payment reminders, balance statements, and more.
Based on the benefits associated with A2P messaging, this form of mobile marketing is now the desired choice of communication among brands within industries such as healthcare, eCommerce, and entertainment.
Just some reasons your company should consider A2P messaging this year is:
- A2P continues to thrive, growing steadily year over year. It is estimated that the number of A2P messages sent in 2022 will reach 2.8 trillion.
- Again, A2P is even more effective than email. SMS has an open-rate as high as 98 percent.
- A2P messages can automate various processes to reach people without any fuss (i.e. personalized appointment reminders).
- A2P is a cost-effective approach, particularly based on its return-on-investment potential.
- A2P messages can be delivered fast. Research shows that 90 percent of people read a text within the first three minutes of receiving it.
Perhaps one of the most critical advantages of investing in A2P messaging is that this approach can be an incredibly valuable differentiator in regard to customer experience. This can give you a competitive edge.
How to Benefit From A2P Messaging
Many industry leaders believe that A2P marketing is the future. While the 2000s are when P2P messaging saw exponential growth, the 2010s gave way to the growth of A2P messaging.
Although there is still a place for email automation and SEO optimization, A2P offers immense potential in terms of engagement and higher conversion rates.
To begin, focus on what it is you want to communicate with your audience. Are you a retail store that would like to offer 50% off coupons for a select day when customers shop in-store? Perhaps you’d like to remind your clients about their upcoming appointment? Either way, work your A2P messaging strategy into your current marketing strategy.
Here are some tips to consider:
- Focus on what it is you wish to achieve—Make sure your A2P messaging strategy is aligned with your broader business.
- If possible, segment your audience for a more personalized experience. This will also help you reach your target market with greater purpose. Enhancing personalized engagement will encourage higher conversion rates.
- Include a call-to-action to invite your audience to take action.
- Offer value, such as a sale announcement, coupon, or the convenience of an appointment reminder.
- Track your metrics to leverage your data. This will help you make more informed decisions moving forward. For example, some top metrics to track include list growth, churn rate, and redemption rate.
What Does the Future Hold for A2P Messaging?
As for what’s next for A2P messaging, there are several trends within this landscape.
Currently, A2P is a one-way SMS process in which recipients are not expected to respond. In the near future, two-way SMS may be something that select businesses opt to explore. Of course, there is expected to be further growth of A2P, as well as the development of Rich Communication Systems (RCS). RCS is expected to enhance SMS communication, making this process more versatile.
If you plan on altering your marketing strategy this year, A2P messaging is something to consider — especially if your goal is to enhance the relationship you have with your customers.