RCS: Telcos, banks, get new tips to recoup lost revenues

Forum 1 year ago

RCS: Telcos, banks, get new tips to recoup lost revenues

The rapidly changing user behavior is compelling Nigerian brands to rewrite the way they connect and engage with their customers.

In the post pandemic years, researches have shown that consumers want brands to become more empathetic, be accessible anytime, anywhere, and deliver personalized experiences every time.

However, doing this at scale, with millions of consumers, in real-time, is a huge challenge for brands. In mobile-first markets like Nigeria, messaging is the key digital backbone for brand-consumer connectivity. Although the short message services, SMS is popular, and many brands are leveraging it for marketing, commerce, and support, it however has limitations which some other popular, new-age messaging platforms like WhatsApp, are capitalising on.

But, a new technology, Rich Communication Services, RCS, is giving SMS a major upgrade, enabling a richer conversational experience between brands and consumers. The technology is said to be the next-generation of SMS.

Business benefits of using RCS

Businesses can leverage on RCS Business Messaging (RBM) to reach more consumers and improve customer experience, leading to increased Return on Investment, ROI. Messaging experts say that using RBM, brands can send rich and interactive messages. These can include images, GIFs, videos, carousels, suggested replies, and suggested actions. All these are delivered to customers from a verified sender identity with a trust mark, improving trust and convenience in the process.

How it works

Users don’t need to download another app. RCS leverages Google’s Messages app, the default SMS app on Android devices, and offers end-to-end encryption for advanced security. RCS is the default messaging standard for 5G networks, though it continues to support 3G and 4G networks.

For Nigerian businesses, particularly telcos and banks, RBM can come handy in engagement across the entire customer life cycle – from marketing to completing sales, and then providing support. Statistics shows that more than 15 million people are already experiencing the benefits of using RCS in the country, and the number is growing rapidly, as all new Android devices are shipped with RCS built into the Messages app. With over 225 million mobile subscribers in total, Nigeria is in a unique position to take the lead in using RCS and set an example for other mobile-first markets in Africa as well as across the world.

Interestingly, global cloud communications platform, Infobip says this is where its expertise comes handy. Speaking to a select technology reporters recently, officials of the company said its platforms presents a new lease of life for brands which the growing new digital channels have eaten into their revenue and customer bases.

Regional Manager, Infobip West Africa, Olatayo Ladipo-Ajai said with Infobip, telecom companies, for instance, have a unique opportunity to drive awareness and adoption of Rich Communication Services to recoup their SMS market share from Over the Top, OTT platforms like Whatsapp, twitter and Instagram among others.

He said: “Over-The-Top (OTT) platforms such as WhatsApp, Viber, and Telegram are gaining popularity, which is resulting in SMS messaging to lose relevance as a Person-To-Person (P2P) communication channel.

“This leaves MNOs with few means to compete in this segment, because OTT channels are becoming dominant in the enterprise communication space due to their prevalence, rich media capabilities, and large-scale person to person,P2P adoption

“However, Rich Communication Services (RCS) can provide a solution for MNOs to compete with OTT players and regain some of the revenue they have been missing out on in both the P2P and the lucrative Application-To-Person (A2P) messaging space”.

For the banking industry, Senior Manager, Operator partnership, Infobip West Africa, Martin Effiong: “Nigeria’s banking sector is becoming increasingly more competitive.

This is especially the case within the digital banking space where traditional banks not only have to compete against each other in the use of cutting-edge technology to deliver better financial services, but also having to contend with emerging fintechs driven by the need to accelerate financial inclusion.

“For financial institutions to maintain a competitive edge, it is becoming crucial to embark on a deeply rooted customer engagement strategy that will enable them to create strong and long-lasting relationships with their customers. Today, modern customers have various options at their disposal and are willing to switch to another bank should they feel dissatisfied with the Customer Experience (CX) at their current financial institution.

“However, RCS will help the sector create a customer-focused enterprise, move to new operating models and drive operational efficiency”.

Meanwhile, Customer Growth Manager Africa, Infobip, Isaac Akanni, explained that the main value of incorporating an RCS channel is that it yields better customer engagement, increases trust and builds long-term customer relationships. By sending RCS messages, banks can ensure that customers gain higher visibility of their brand, while also presenting new offers and campaigns in a more effective way, such as information about loans, changing interest rates or new credit cards. Banks can also use RCS to send notifications or useful reminders about card activations or payment instructions.