While person-to-person (P2P) text messaging is decreasing due to the growing IP-based messaging market, companies are turning to the benefits of Application-to-Person (A2P) messaging to reach their target group via SMS in a fast, secure and direct way. The A2P SMS market is on the rise, enabling companies to directly reach consumers via a two-way interactive application. By 2018, some 1.7 trillion A2P SMS messages will be sent worldwide, according to Portio Research.
DIMOCO, a leading A2P SMS provider that offers outbound messaging products to enable clients to communicate from their enterprise application to billions of consumers across the globe, today announces the key trends that will foster the A2P message market growth in 2017, including:
- 2-factor SMS authentication will address security needs – Recent data breaches have raised concerns about user information and data security. To combat this issue head on, businesses will turn to A2P SMS for 2-factor authentication. This second layer of user and account authentication is the most cost-efficient and easiest way for companies to securely share notifications, login confirmations, password resets and updates on status or content shares with users.
- A2P SMS and IoT – a winning combination – With IoT adoption on the rise, the great value of connected devices and sensors will be in real-time information and alerts. A2P SMS will be adopted as one of the best channels for IoT devices and technologies to communicate with consumers.
- A2P messaging growth to come from specific markets – Specific markets such as transportation, utilities and even government will interact more actively with customers in 2017. Some of the key verticals to emerge as drivers of A2P message adoption will include:
- Retail: There is strong opportunity to easily communicate with customers and offer them exclusive vouchers and promo codes, provide updates on product availability or alert them of product recalls.
- Financial services: As more consumers are opting for paperless communication, companies use A2P SMS to alert customers about billing cycles, transaction alerts, payment notifications, among other uses.
- Travel: Expect to see more companies adopting A2P SMS to inform clients about booking confirmations or updates to itineraries, to offer simple options for check-in, as well as having this channel to offer promotional and marketing messages targeted to existing customers.