RCS vs SMS: what’s the difference between the two for businesses?
Few other means of communication have as much reach as SMS. While we may only sporadically check emails and instant messages from our WhatsApp groups and other channels, the simplicity and universal nature of SMS means it has a wide range of use cases for businesses. Communicating about appointments, bookings or the delivery status of an order, the personal nature of messages (and the fact that we all have a device in our pocket to receive them) has long made it a powerful tool for brand-customer interactions.
Many consumers like SMS because they know it works on any smartphone their family and friends use. GSMA estimates that we will have 6.3 billion mobile subscribers by 2030 – and because phones are so essential to many of our lives, this opens up billions of opportunities for businesses to connect with consumers wherever they are.
But even though the first text message was sent in 1992, little has changed in the technology in that time. Although we had MMS – ‘multimedia messaging service’ – as an evolution of SMS, users couldn’t send these messages particularly cheaply, so it didn’t take off in the same way as their online messaging platform successors. SMS is still resolutely text-oriented and is hampered by several restrictions and a 160 character limit – hence the name ‘short messaging service’.
Therefore, despite SMS messages having very high open rates (up to 98%), they may lack the marketing sophistication of other platforms, which impacts their engagement rates. With little room for experimentation, businesses need an SMS alternative to make such marketing messages more useful, personalized and engaging.
So, what comes next?
VP Marketing for EMEA at Twilio.
RCS: a revolutionary format
It all changed with the rise of RCS – or ‘rich communications services’. As the name suggests, these advanced messages are rich in additional features, building on the original SMS format. RCS has been around since 2008, but only relatively recently has it been adopted by the major mobile platforms, finally making it mainstream.
For example, Apple adopted RCS in Messages with iOS 18 in September 2024, while Google also supports the technology through Android, even if a user’s phone company doesn’t. With 1 billion RCS users through Google Messages alone and a whopping 2.5 billion monthly active users, and rising according to Omdia, RCS traffic is expected to increase by more than a trillion messages year over year. Now is the time for brands to seriously consider this channel, especially given its advanced capabilities.
Interactive, shoppable moments: What sets RCS apart from SMS is its ability to deliver more visually appealing content. For example, RCS allows you to send much larger media files such as high-quality photos, videos and GIFs, while the format supports longer messages without the 160 character limit of SMS, or splits them into segmented texts. All this provides a more extensive form of communication.
RCS messages also support dynamic features such as buttons, carousels and other interactive elements. This includes options for suggested answers and call-to-action (CTA) buttons that streamline customer interactions. This creates a seamless shopping experience with few barriers to purchase, significantly improving customer interaction and conversions. An example of a paint brand that moved one of their SMS campaigns to RCS saw their sales increase by 115%, while their click-through rate increased from less than 3% with SMS to 21% with RCS.
Safety and trust: With scams on the rise, consumers are increasingly skeptical of text messages from random numbers that entice them to click on unknown links. This uncertainty and perceived risk are a thing of the past with RCS, thanks to brand messaging (such as attaching logos and slogans) and verified sender IDs. In addition to allowing consumers to verify the legitimacy of the sender of a message, RCS is also supported by encryption between sender and recipient. By establishing such high security and privacy standards, brands can create a trusted relationship and form of communication with customers while increasing brand credibility. This in turn leads to higher response rates and better customer engagement.
A broad reach: With RCS there are no barriers to entry. Unlike many other forms of digital communication, users don’t have to download a new app or create a new account; they can receive an RCS message just like any other text message. Even if a user’s device does not support RCS, the message will be automatically sent as an SMS.
This allows companies to upgrade their messaging and innovate an already existing, ubiquitous communications channel, but with the confidence that they can still reach the exact same audience.
Improved deliverability: RCS also has improved deliverability compared to SMS. The latter is sent at a lower priority compared to other types of traffic that have much lower tolerances for latency (such as voice and data) by mobile carriers. RCS, on the other hand, can be sent over any internet connection, which means a much lower chance of missed deliveries and delays between messages being sent and users opening them.
Analytics and insights: RCS puts marketers in the driver’s seat, providing businesses with detailed delivery and read receipts among other analytics. This means brands can remain agile, allowing them to track and analyze the effectiveness of messages and optimize communication strategies. It also represents another touchpoint (and opportunity) for brands to better understand their customers and their preferences, leveraging first-party data shared consensually by customers.
The next wave of marketing
As a powerful communication tool with an already established target group, RCS is expected to reshape the current SMS marketing landscape. This effect will only increase as more countries expand their support for it, beyond the 17 countries that currently have it (as of October 2024). According to Juniper Research, 60% of mobile subscribers will be eligible for RCS by 2024. By using RCS, brands can increase engagement, efficiency and trust, while delivering a more dynamic experience that truly impresses customers. And in a landscape full of competitive digital noise, RCS offers an opportunity to stand out from the crowd.
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