14 August 2013

5 Reasons Why Instant Messaging Apps Do Not Kill Business SMS

by Triin Linamagi

Business SMS

Smartphone messaging apps like WhatsApp and WeChat have started to offer additional features like voice messages to retain customers. At the same time, SMS continues to deliver high revenues.
According to Portio Research global SMS revenues will reach $133.8 billion in 2013. Does it sound like the days for SMS are numbered?

Digital marketing consultant Melinda Krueger has given three distinct advantages SMS has over instant messaging apps, proving that SMS is more than alive.
We will add our thoughts and give you five reasons to demonstrate why mobile apps will not kill SMS yet:

1. For SMS to die, the majority of the world’s population must have a smartphone in combination with a mobile data plan from their carrier

Firstly, there are around 6 billion mobile phones in the world, out of which only 1.5 billion are smartphones. The number of smartphones will certainly have increased by the time this post is finished but not everybody has a smartphone yet.
According to mobiThinking only 16% of mobile phones in use worldwide today are app-enabled.

2. SMS has a huge impact on businesses in terms of notifications, alerts and mobile campaigns

Of course more messages are sent using free mobile messaging apps than over SMS (they are free messages, after all) but have you ever received any notifications or alerts from businesses through instant messaging apps? Instant messaging apps might affect private users, but not business users.

There will always be SMS reminders, notifications, alerts and confirmations that need to be sent out to customers. And if you are using only apps for marketing, you will probably miss 70-80% of your customers.

3. SMS is typically bundled – the prices are very low and almost cost nothing when sending in bulk

With the rise of instant messaging apps, operators have changed their pricing structure. Private users can practically send SMS texts for free, only paying monthly fees. Businesses send messages in bulk, in which case they get lower prices and guaranteed delivery.

4. Smartphone limitations

There are still many countries in the world where data plans are too expensive and not everyone can afford smartphones. But instant messaging services rely on users having a smartphone with a pricey mobile data plan. As mentioned previously smartphones remain outnumbered by feature phones 5:1 worldwide.

5. Carriers control the overall data charges

At the end of the day, carriers have full control over data charges. It might not be easy to get all the telecom companies, hardware makers and software developers to agree on a new standard but ultimately it is likely that telecom companies will need to step up and create a new way of messaging themselves or put restrictions on data transfers.

Despite the rumours, SMS has been the king of communication for half a decade now, and it is not giving up its crown anytime soon.
The numerous ways that you can use SMS for your business are the proof.
We at TextMagic are focused on business SMS, so that you can increase your operational efficiency using our SMS software to communicate with your customers and employees.

Let us know what are your thoughts about the battle between SMS and instant messaging apps!

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One Response to “5 Reasons Why Instant Messaging Apps Do Not Kill Business SMS”

  1. August 29, 2013 at 7:19 am, Tim Martin said:

    This is a really great article. It is for people who think that instant messaging has killed business sms. Instant messages are great source for any business organization.

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