RCS vs SMS: Which is Better for Your Business?

Introduction

Since the beginning of mobile phones, the usage of SMS marketing has been a consistent and steady medium for business communication. As technology evolved, so too did the expectations for communication.

Rich Communication Services (RCS) came to the fore. It enabled large and high-quality attachments, snippets, images, videos, and voice files. On one hand, SMS remains a widely used standard, although RCS services have gained significant traction, with its user base exceeding one billion.

Now, in this modern world, where you need a medium to constantly connect with your customers, you need to understand the benefits of both worlds before successfully implementing it. Let’s walk through the pros and cons of both SMS and RCS and find out which one suits your conversational messaging strategy more!

The Workhorse SMS- How it Shapes the Business

As mobile phone adoption grew, companies quickly realized its potential for marketing and customer service. From its inception, SMS offered a direct, immediate, and personal channel to reach consumers, bypassing the noise of other marketing methods. 

With its nearly universal accessibility and high open rates, SMS became a go-to tool for promotions, updates, and transactional messages.

No Internet needed for a text: The best part of SMS marketing is that it is virtually omnipresent, reaching almost everyone with a mobile phone. Besides, the statistics by SMS Comparison say that text messages have 8x higher open rates than email, making it 45%. Guess, how many audiences you can convert, regardless of their location or internet access.

Bulk messages: SMS allows you to send highly targeted messages to specific customer segments based on demographics, purchase history, and preferences, and it has a high success rate. Messages are typically delivered within seconds, ensuring timely communication.

No cost needed: Compared to other communication channels, SMS is a budget-friendly option for marketing and customer service. You can tailor your messages to individual customers, making them feel valued and appreciated.

Can quickly be integrated into your system: SMS is a straightforward and user-friendly communication method. You do not have to be a tech junkie to integrate SMS marketing into the existing systems and send messages with just a few clicks. There’s no complex setup or technical expertise required.

How SMS is shaping a business?

The market for text messaging is projected to expand in a volume of US$0.87 billion by 2029, claimed Statista. This means, an SMS can do more for your business than you can imagine, such as:

Notifications and alerts

Beyond everything, we all know how versatile SMS marketing is. The order is shipped? Send the link. Do they have an appointment scheduled at your store? Share all the details. New arrivals? Give them a discounted code. Even in case of emergencies or service disruptions, you alert your customers with a notification sent via SMS. 

Marketing campaigns

Marketing messages covering exclusive deals, product launches, and discount codes are sent via SMS marketing. It comes as a bonus to you if you are planning to engage this conversational messaging strategy in your enterprise.

Customer service

With SMS API’s conversational messaging strategy, you can not only give immediate answers to customer inquiries or complaints. But also gather customer feedback through short SMS surveys. Besides, while the customer pays for the purchase, an extra layer of security can be added by sending verification or two-factor authentication codes to customers’ phones.

For example, a notable case of an integrated hospital service should be highlighted here. When they chose to send 250,000 appointment reminders to their patients via SMS, 73% of the recipients showed up to the appointment on time, except for 66% of patients who did not receive an SMS.

The Next Generation Messaging with RCS

RCS lets you do things you cannot do with regular SMS. The evolution from a flip phone to a smartphone brought us Rich Communication Services or RCS for short, which is designed to make texting more interactive and engaging.

Here are a few features of RCS that have taken the world by storm:

Rich cards: Rich cards allow you to add buttons, carousels, and other interactive elements to make your conversational messaging strategy more engaging.  As per a Google-shared case study, a quick-served global restaurant joint’s RCS messaging resulted in a 140% higher conversion rate for the two-sandwich deal and a 51% higher conversion rate for the $20 meal deal compared to SMS.

Better Analytics: Ever wondered if your promotional messages are being opened and read by your customers? With RCS messaging, track read receipts, click-through rates, and response times to gain a deeper understanding of how your messages are being received and what actions customers are taking.

The business advantages of RCS

As much as RCS services offer a wide range of benefits, look for the use cases that are perfectly suited for your field of business. The advantages are:

Perfect for P2A journey

Say goodbye to switching from apps to apps with RCS messaging. The Person-to-Application journeys let your customers interact with applications directly from within a messaging app, streamlining the user experience and reducing friction. Take the example of a popular app-based financial company. Adapting to RCS messaging, this Mexcio-based company achieved 2.5x more conversions than SMS. 

Rich media and engagement rates

RCS helps you stand out from the crowd and get people to click, tap, and respond. The ability to send and receive PDF documents directly within a messaging app simplifies file sharing and collaboration. For example, a reliable travel brand’s RCS campaign achieved a 7% higher open rate, 4x greater CTR, and a 2.7% increased conversion rate compared to email. 

Reduces app switches

Integrating QR code scanning functionality allows your customers to quickly access information or perform actions by simply scanning a code with their phone’s camera. Just like, a Mexican telecommunication company used the RCS campaign to increase customer response rates by 78% and bill payment collection rates by 65% compared to SMS.

Engages with Google ecosystem 

RCS can integrate with Google services like Google Calendar, Google Maps, and Google Wallet to provide a more cohesive and personalized experience for users. It helps you develop a conversational messaging strategy and your customer stays organized, efficient, and connected.

Apple support for RCS 

The recent introduction of Apple support for RCS brought the benefits of rich messaging features to a wider audience, including improved features like rich media, interactive elements, and read receipts.

Comparing RCS and SMS

Now comes the real question- which is better? While SMS marketing remains a reliable and widely used option, RCS API offers a more advanced and engaging experience for businesses that prioritize interactive features, personalization, and higher engagement rates. 

The choice between RCS and SMS will depend on your specific business goals, target audience, and technical capabilities. Here is the comparison between these two technologies:

Choosing the right option

Taking the reference to the above-mentioned chart, you can take note of which is better between these two. But, the actual question is- which should you integrate into your business?

In such cases, where you are desperately looking for a solution, Gupshup, the pioneer in conversational messaging platforms, stands by you. We offer both RCS messaging and SMS services, providing businesses with the flexibility to choose the best option for their needs. 

With a global reach and a focus on innovation, Gupshup has helped numerous businesses achieve their messaging goals. Our expertise in RCS services includes unmatched reach, timely and relevant messages, deep analytics, and managing campaigns easily across all carriers. It also features Apple support for RCS with a reach to a larger customer base.

On the contrary, the SMS API has pre-defined templates, thorough analytics, proven quality, and scale. As an example, you can look at the success story of our happy client, Citibank. While they were looking for a smart and conversational experience, our SMS messaging API and direct communication via WhatsApp helped them to run successful targeted cross-selling campaigns across various channels. 

Wrapping Up

SMS, a tried-and-true technology, is particularly well-suited for time-sensitive messages and cost-effective campaigns. According to Worldmetrics, every day 26 billion SMS s are sent worldwide, which has a 98% open rate. On the other hand, RCS provides a more immersive and interactive experience, enabling businesses to share richer content and capture customers’ attention in more meaningful ways.

Ultimately, the best choice between SMS marketing and RCS messaging depends on your specific business needs and goals. For businesses seeking a reliable and cost-effective solution for basic messaging, Gupshup can bring in a useful solution. 

If you want your customer engagement to be expanded, provide a more connecting experience with Gupshup SMS marketing. Similarly, for interactive features and visual appeals, RCS services by Gupshup are likely the better option. 

Contact us today to analyze the strengths and limitations of each technology and effectively communicate with your customers.

FAQs

1.Which is better for businesses, RCS or SMS?

The best option depends on your business goals and target audience. RCS is ideal for businesses seeking higher engagement, personalization, and interactive features, while SMS is suitable for basic notifications and transactional messages.

2. Can I use RCS and SMS interchangeably?

Yes, you can use both RCS and SMS interchangeably, allowing you to reach a wider audience and choose the best option for each message.

3.Can I use RCS for international messaging?

Yes, RCS can be used for international messaging, but compatibility may vary depending on the countries involved.

4.How can I get started with RCS?

To get started with RCS, you will need to partner with a messaging platform that offers RCS services. They can help you integrate RCS into your business systems and create effective messaging campaigns. You can choose Gupshup for that.