RCS: SMS with a Face-lift or a Revolution in Digital Marketing?
What is RCS?
RCS (Rich Communication Services) was supposed to be the next generation for SMS and MMS with more capabilities and no reliance on mobile data. However, with the advent of messaging applications such as WhatsApp, Facebook Massaging, Snap Chat, and many more, there was much reluctance to go forward with the project.
Getting such a project started required collaboration between phone companies, such as Apple and Samsung, with cell companies that provided cellular services worldwide. However, nothing happened until 2019 that Google took matters in hand and started a unified system that runs on RCS called Chat. In 2020, RCS was available through 88 operators in 59 countries, and this number is expected to grow steadily until RCS is as widespread as SMS is.
Why use RCS?
SMS has remained unchanged for the last 25 years. This is a long time for a piece of technology to stay the same. Therefore, an update was long overdue. One of the first great features of RCS is that you won’t need to install a third-party application to start messaging. The application, much like SMS, is getting pre-installed on more and more phone models.
What’s more, RCS does not come with the limitations of SMS in terms of the number of characters you can type or the size of the image you can send. With RCS, you can send and receive full-resolution photos, make group calls with your contact list, and even send videos. This is a considerable upgrade from old plain SMS that had only 160 characters that you could send.
What does RCS do for digital marketing?
Message advertisements
Since SMS was one of the most widespread messaging apps globally, using it for advertisement was a logical step for marketers. Naturally, with RCS, you can send high-quality images, logos, and videos introducing and promoting your brand.
Additionally, RCS enables you to design and send interactive business cards to your customers. These business cards include your contact information and some useful links. These links allow your customers to perform simple tasks on the RCS platform without being redirected to a website or application. For instance, you can provide a link for your customers to reserve a table, or a ticket, confirm delivery, and book a flight.
Chatbots
Another cool feature of RCS is that it allows companies to create their chatbots. These chatbots use a simple framework to show customers the products and services they are offered. Customers can start the chatbots by merely taping the chat button on their phones. When they enter the chat section, they can see the company’s name and logo in an elegant format with the company’s colors.
The next step for the customer is to toggle the different options offered to him/her. Whatever choice they tap, they are directed to either the subsections of that option or the company’s website related to what the customer tapped.
In 2019, 67% of customers worldwide used chatbots. This number has increased considerably since then. RCS chatbots make getting information so much easier since the customers had to visit the website to use the chatbot previously.
Quick Updates
RCS messaging contains the flexibility and diversity of e-mails as well as the popularity and versatility of SMS. Therefore, it can be an excellent tool for sending a quick update to current customers or customers who visited the company once a while ago.
These quick updates can contain a promotional tool such as a coupon, a discount code, or a special offer based on what the customer has already shown interest in. Companies previously used SMS to send their updates. However, RCS offers a much more attractive alternative to direct text SMS.
Customer Interaction and Feedback
Using RCS as advertisement messages or chatbots increases the customers’ interaction with the brand. This interaction gives the brand much-needed information about the customers’ preferences and expectations. Companies can use this information to send customers targeted ads and offers.
Furthermore, the advertisements can go with a question that customers are encouraged to answer. The feedback received through RCS can provide the company with invaluable feedback. Yet again, this feedback, and the comments that come with it, can help companies solve their problems and optimize their services.
Who are some of the most prominent players in RCS?
Google (GOOGL)
As mentioned before, if Google hadn’t taken matters into its hand and started the CRS messaging as the default messaging service for Android phones, RCS would be just an idea right now. So, naturally, this company is the biggest name in the RCS business. Also, it has successfully integrated CRS with its business communications platform. Therefore, the companies using Google Business and RCS as their messaging services have experienced a 72% increase in the likelihood of online purchases and a 74% growth in customers’ engagement with the brand. What’s more, customers are 35% more likely to read an RCS message than they are to read an e-mail.
AT&T (T)
As mentioned, there are more than 88 operators that support RCS services all around the world. One of the biggest among such operators in the United States is AT&T which has been delivering phone and internet services since 1983. It is even considered the world’s largest telecommunication company.
The services that AT&T provides include landline and cellphone services, 4G and 5G internet, cable TV channels, and recently RCS messaging. This company has had a revenue of 41 billion dollars in the first quarter of 2021. What’s more, AT&T stock is currently sold for $28.09 per share, which is expected to grow by 3% in the next year.
Vodafone (VOD)
Vodafone is the leading telecommunication company across Europe and Africa. Today, more than 42 million people are using the services that Vodafone provides. These services include mobile and broadband services, Tv subscription services, 5G network, and RCS messaging. Additionally, Vodafone had the most extensive Internet of Things (IoT) network in Europe.
Vodafone network can be accessed in 22 countries across Europe and Africa. Also, this company provides telecommunication and IT services to corporate clients in 150 countries globally. Vodafone had about 45 billion dollars revenue in 2020, and the stock for this company is sold for $17.44 per share. With the advent of 5G and RCS technologies across Europe, analysts believe that this price will increase by 25% in the next five years.
How large is the market for RCS messaging?
RCS messaging, especially for marketing purposes, is not without its limitations. One of the most significant limitations that this ever-growing trend is facing these days is the limited coverage around the world. However, more and more operators accept RCS as their default messaging platform, and this problem will be solved shortly.
Another challenge that RCS is facing is the lack of cooperation that Apple is showing. Currently, RCS messaging is not supported on iPhones. Apple has announced that the company is not going to change its policy towards RCS. iPhone users cannot send or received RCS messages, and they have to stick to iMessage to communicate with their favorite brands.
Despite all these challenges, the RCS messaging market is predicted to grow from $5.2 billion in 2020 to $11.7 billion by 2025 (globenewswire.com). This means that this market is expected to grow by more than 17.5 percent in the next four years. This number would go even higher if more businesses discover the advantages of RCS marketing.
