Retail taps mobile messaging to enhance business

Mobile business messaging traffic will increase by 10 percent to 2.7 trillion in 2020 from 2.5 trillion last year, according to Juniper Research.
Retail customer image by Motorola SolutionsThe mobile business messaging market includes three main messaging protocols: SMS, RCS (Rich Communication Services), and OTT (Over-the-Top) messaging applications.

The substantial growth in mobile business messaging traffic will be driven by the retail sector, with rising e-commerce sales during the Covid-19 pandemic leading to an increase in the number of messages sent to customers.

Within retail, mobile business messaging is used to issue order confirmations, dispatch notifications, tracking information and delivery updates.

SMS has proven resilient during the pandemic; owing to the messaging format’s ubiquitous nature; estimating that SMS will comprise 98 percent of all mobile business messaging traffic in 2020.

Investment into alternative protocols, including RCS and OTT messaging, has slowed due to the Covid-19 pandemic and anticipated further economic downturn.

Mobile business messaging traffic attributable to the retail sector will grow by 20 percent this year, with volume increasing from 336 billion in 2019 to 408 billion in 2020, the report said. Consumers’ increased reliance on online retail service has been the primary cause of growth this year.

Retailers will be early adopters of media-rich messaging services, with brands embracing rich media to provide interactive elements, such as real-time order tracking, to its users.

Covid-19 pandemic has accelerated digital transformation in the retail sector, as footfall in physical locations is predicted to remain stunted by public concern. Brands must create personalised retail experiences through rich media content, subsequently driving consumer loyalty and increasing profits, Research author Scarlett Woodford said.