Research from global cloud communications platform Infobip shows the global popularity of Short Message Service (SMS) within customer communications, 30 years after a software programmer sent the first message on 3rd December 1992.
Infobip’s analysis shows that despite the rise of new communication channels, SMS remains popular, with a 75% increase in use in 2022 compared to 2021.
Infobip analyzed more than 153 billion communications interactions on its platform from the first half of 2022 compared to the same period in 2021.
It shows that SMS remains a top three channel in every region worldwide, including Europe, Eurasia, North America, Latin America, Middle East & North Africa, Africa, India, and Asia-Pacific.
With the highest open rates and return on investment, Infobip’s analysis shows that businesses and brands continue to use SMS for timely alerts and security solutions, including two-factor authentication.
What’s more, highlighting the versatility of the channel, the data also shows that SMS made up 16% of total customer engagement and marketing interactions.
Ivan Ostojić, Chief Business Officer at Infobip, said, “As we reach the 30th anniversary of SMS, our data shows that it remains as popular as ever. SMS has evolved from a personal messaging platform to a key tool for business-to-consumer communications.”
“Infobip has played a critical role in this evolution, enabling businesses and brands to deliver billions of messages every year through our 700 direct telecom operator connections.”
“As one of the most reliable and practical ways for brands to ensure their message reaches their customers, it is the go-to channel for time-sensitive alerts and security notifications.”
“With its global reach and no reliance on internet connectivity, we expect SMS to continue to play a key role in future business-to-consumer communications,” he added.
Infobip also finds that many sectors continue to rely on SMS. For instance:
- Banking and finance saw 68% more SMS interactions, where firms use SMS for timely alerts
- Retail and eCommerce recorded 22% more SMS interactions, where brands use it for retail marketing automation
- Telecoms saw 48% more SMS interactions, where firms rely on SMS for reliable, secure messaging with an international customer base
Even though the data above reflects trends and customer behavior globally, Pakistan is not an exception.
Safder Merchant, Country Manager at Infobip Pakistan, reflected on a situation in the local market, saying, “SMS is still considered a key channel for customer interaction in several industries. Hence, companies always prefer this channel to reach the mass and engage them.”
“With the recent revision in government regulation, the SMS market is still evolving in Pakistan, and there’s tremendous potential for companies to grow further. Pakistani customers count on SMS as a simple and reliable way of getting relevant information.”
“In several industries, there are strict government regulations, due to which SMS is the only allowed communication channel for delivering sensitive information. Infobip’s built-in compliance engine ensures that messages businesses send comply with local law,” he added.
Ivan Ostojić, Chief Business Officer at Infobip, continued, “The original SMS message sent 30 years ago by 22-year-old software programmer Neil Papworth helped forge a path to global connectivity.
“That connectivity has evolved and rapidly grown in recent years, and Infobip now handles hundreds of billions of messages every year, reaching 75% of mobile phones globally.”
“We look forward to continuing to be at the forefront of innovation and transformation in omnichannel communications, delighting customers on any channel, anywhere in the world.”
