And why do we think the SMS still has lots of potential?
Emerging Countries and Limited Internet Access SMS will continue to be a strong factor wherever there’s not a broadband Internet connection or where people have feature phones. These markets are still growing, with billions of consumers using no WhatsApp, but SMS.
Accepted Standard SMS will not be replaced by App solutions such as WhatsApp because the thing that makes SMS so successful is its universal availability. You have a cell phone and you have SMS. Some alternate providers are voluntarily stretching “island” solutions, which means they exclude the majority of people in ordert to grant exlusivity to their target groups. But this means a standard protocol like SMS will continue to play an important role in direct peer-to-peer messaging.
Potential for Growth in Business-to-Business Even if Peer-to-Peer-Messaging Revenues and Profits are likely to decline,SMS is guaranteed to win over ground in commercial contexts. Especially in m- and e-commerce there are many use cases where integration of SMS really help set new standards of customer communication. A shipping confirmation, a delivery notification, these are things that serve customers. And they cannot be run through WhatsApp because that would limit their scope.
Security Issues SMS has no such problems that we’ve read about in connection with IP Messaging and WhatsApp. That’s the reason why it has been implemented by many banks to generate secure transactions. It is also a go-to-technology where systems administrators need to log in in very sensitive systems and receive temporary access codes to log on. Here SMS is the ideal tool.
Marketing Power Even though the overly optimistic predictions about SMS as a marketing tool never became true, today SMS plays a new role for brands that understand how to create positive communications and bind customers. If the marketing message is targeted well and the consumer has a positive relationship with the brand advertised, there’s hardly a nicer way to reach the audience directly than SMS. Ideal for special deals following up on prior interactions.
A Reliable TechnologySMS is a proven technology. It is secure, it works universally. Senders can check whether or not their messages have arrived, which is important to track messaging spend and performance. Messages can be timed, which is also essential to make sure that information will not be outdated when it arrives.
So all in all, it is safe to say that, despite all the Obituary-like coverage, SMS will habe a bright future.