Find out how the mobile messaging market has changed over the last year and where we expect future revenue growth to come from.
Did you know that Forrester forecasts that spending on mobile engagement automation (MEA) in the United States will top $1.2 billion in 2020, with a projected growth rate of 27% over the next three years?
Why is Mobile Engagement Automation growing so significantly?
Companies have been increasingly adding to their digital presence with the inclusion of mobile messaging across customer service, marketing, and operations use cases. This has been part of an effort to improve customer relationships and satisfaction and as a result, Forrester has estimated that MEA solution providers revenue to reach $2 billion in 2022.
Due to Covid-19, industries from banking to healthcare have all seen a surge in the use of mobile messaging, resulting in every digital channel from push notifications, emails, in-app inboxes to mobile wallets growing in size throughout 2020. So why is this industry seeing such a boom? Here are 3 reasons:
1. COVID-19 Pandemic
Enterprises began to use mobile messaging more frequently due to the pandemic as it is more efficient than the time-consuming methods used in the past, such as letters, calls or emails. Instead, a quicker and more direct approach was taken with these digital channels by many sectors, including governments and educational institutions. Direct SMS messaging proved effective for its reach and speed in delivering essential communications regarding the pandemic. The lack of in-person contact last year also furthered the need for improved digital customer attention to enable better user experiences through methods such as texts and chatbots. This is furthered by the fact that buying online or reserving instore meant that customers needed more information like stock, order status and delivery options, which was met with an uptake in MEA as part of the consumer’s journey.
2. High Confidence and reach
MEA has been tried and tested for some time now, meaning that the years of experience and trust has helped it continue to grow. According to Forrester’s 2020 Global Emerging Technology Executive Survey, 80% of firms are using or piloting SMS, and 83% are doing so for push notifications, which is fuelled by the younger generations which use these channels on a daily basis. Therefore, there is a large market and reach for this technology which as a result will allow brands to capture consumers’ attention, drive demand, collect customer data, and build loyalty. In the US alone, 250 million consumers use smartphones and each looks at incoming messages up to 200 times per day.
3. Brands are using more digital channels types to engage their customers
Newer channels such as Push notifications, SMS, In-app inboxes, mobile web messaging, In-app messaging, MMS and mobile wallets are growing the fastest. As firms evolve into virtual assistants, they will pose simple questions or suggestions to consumers through interactive messaging such as rich communication services (RCS) or interactive push messages.
So why is MEA so efficient?
Marketers are increasingly using mobile messaging to target consumers and gain their attention. It is considered a top marketing option for retailers that already interact with their consumers on a mobile device due to the low barriers to entry, as the process is relatively straightforward. Furthermore, many companies have even tripled the number of messages they send out due to their speed and efficiency. Also, marketers have an opportunity to be helpful and handy through mobile if they are careful not to overstep.
Threats to MEA Growth
While most MEA solution providers were on target to grow their revenue in 2021, many admitted that they had lost a few customers in industries hardest hit by the pandemic and have offered price cuts to others. Although we are still likely to see an increase in the growth of companies using this technology, here are some of the factors that must be taken into consideration whilst doing so.
- It takes time. Running successful messaging campaigns includes avoiding mistakes like over-messaging or abusing trust. This can cause customers to revoke their permissions.
- Notifications must be sent out in an effective manner in order to capture customer data and insights by choosing the correct channels, content, audience, and triggers. Eventually real-time data such as location or sentiment needs integration.
- Talent to build strategies and execute internally. Enterprises need dedicated staff to build and run ongoing engagement programs.
Future growth through innovation
As MEA and similar technologies in the form of marketing campaigns become more common, it becomes more difficult for solution providers to price based on value. Instead, solution providers must depend on product innovation and driving adoption of more sophisticated services to optimize campaigns to maintain and grow contract value across their customer base.
Enterprise’s value and will pay for campaign analytics, insights, and tools to design, run, and optimize messaging programs. This includes applying real-time or streaming data, offering an intelligence layer with smart insights and allowing for multichannel communication. We are likely to see less “NO REPLY” messages, but an increase in back-and-forth communication to help customers complete simple tasks such as send payments, check inventory, make appointments, and purchase goods and services carried out and carefully planned with the help of AI.
If you would like more information on how Strands helps banks to transform complex data into relevant customer insights in real time and enables agile digital interactions in real time for maximum ROI, please don’t hesitate to get in touch.