THE FUTURE OF MOBILE MESSAGING:

How RCS
is Redefining Business
Communications
www.infobip.com Version: 1.1
Contents
Welcoming a New Era of Communications 3

What is RCS 5

RCS Functionality 6

RCS in Practice 8

Ways to use RCS to Reach Customers 11

How can RCS Work With Other Communication Channels 11

Important Facts About RCS 13

Conclusion 15

Getting Started with RCS and Infobip 16

The Infobip Advantage 18

How RCS is Redefining Business Communications 2

Welcoming a New Era of Communications
The next generation of SMS is here. Rich Communication Services (RCS) is becoming the go-to
messaging technology for enterprises who are looking for the most effective touch points to engage
customers and promote their brands.

RCS is a new, visually appealing messaging channel that offers rich functionalities to enable more
engaging customer journeys. Businesses are using RCS to build strong relationships with their
customers through branded two-way communication.

Retailers, major airlines, and ride-sharing services are just a few of the industries already using RCS
and garnering impressive results for customer experience.

This white paper will help you get started on maximizing RCS opportunities for your brand by
answering the following questions:

• What is Rich Communication Services (RCS)?

• What new functionalities are available with RCS and how do they impact
customer experience?
• What are the benefits of RCS in comparison to other communication channels?
• How are companies across a wide variety of industries already using RCS to enhance their
communications?
• How can you get started with RCS for your brand?

Partner Connect Program – Consulting & Technology 3

A 2019 survey conducted by Harvard Business Review found that nearly half of the enterprise
marketers surveyed rated mobile messaging as highly important today, and this response rate
climbs to more than two-thirds when asked about its importance in the next five years. The survey
also showed that enterprise marketers rely more on messaging apps over mobile apps in every
communication category including:

Answering customer 58%

questions 39%

Improving customer 56%

engagement 45%

Creating a direct 57%

marketing channel 36%

Building brand 46%

recognition 48%

Cultivating customer 47%

loyalty 38%

Distinguishing from the 40%

competition 10%

Messaging Apps Mobile Apps

The study also found that the capabilities that enterprise marketers value most with advanced
messaging apps are:

Better metrics and analytics, 82%

including read receipts

Verified sender information 81%

Seamless transactions, such as 74%

easy-to-use payments

Time-saving suggested actions 69%

for URL, map, calendar, dialer

Rich media 69%

Easy replying with suggested 67%

replies customized by brands

How RCS is Redefining Business Communications 4

What is RCS?
RCS is an IP-based messaging service provided to mobile phone users through mobile operator
networks. It is used for both Person to Person (P2P) and Application to Person (A2P) communications
and incorporates the global reach of SMS with the rich features of chat apps (such as WhatsApp,
Viber, and Facebook Messenger) to deliver more interactive, compelling experiences to users.

RCS-enabled A2P communication is known as RCS business messaging, and it’s used to deliver
branded, interactive mobile experiences that improve and empower how people and businesses
communicate. For the remainder of this paper, when we refer to RCS, we mean RCS business
messaging.

Through a rich feature set that allows the creation of branded messages incorporating multimedia,
suggested reply buttons, barcode delivery, click-through options and more, brands now have a new
way to develop relationships through two-way communication.

Go2Airlines

What’s more, this ability comes native on customer phones, Show this boarding pass on
check in. Have a great flight!
not as individual apps that must be downloaded. More 9:00 PM

phones will have their default messaging apps, which

come pre-installed, support RCS straight out of the box – PAR
Paris
JFK
New York
PAR JFK

leading to further adoption of RCS. Flight no: 84684 WED, Nov 13, 2019
Flight no: 84684 | WED, Nov 13, 2019

John Doe
Seat: 18A | Gate: 6 | Class: Economy

Passenger Seat Class

As RCS is not a completely new communication channel,

John Doe 18A Economy

Boarding Gate Boarding Arrives

but rather the evolution of an existing one, the progression

11:00 AM 6 11:30 AM 18:30 PM

to it is seamless. According to research by GSMA, monthly CONFIRM CALL AGENT

active users has already surpassed 300 million. By the year

2021, the total market value of RCS services is expected
to reach $74 billion. Several industries have already found
success using RCS to engage customers. Some notable
examples include:

Subway
Subway’s use of RCS allowed customers to place and customize sandwich orders – which increased
conversion rates for the fast food retailer by 140% in 2018. Following their successful campaign,
several global brands across various industries are adopting this growing communication channel to
market their brands.

Best Buy
Best Buy uses RCS to improve the experience of their customers. In their RCS demo video, you can see
how they use rich features to send details about products, including the price, location, and an image
of the product to give customers confidence in their transactions.

Best Buy also uses RCS to upsell customers, and purchases can be completed directly within
the platform.

How RCS is Redefining Business Communications 5

 Transportation
Virgin Trains uses RCS to let passengers know of any
upcoming disruptions or closures that may affect their
journey before they reach the next station. This gives
customers an opportunity to replan their journey if they
need to.

With RCS they can deliver a branded experience

communicating everything customers need to know. This
new method of communication has been well received by
customers - everyone who reviewed it gave it five stars.
Virgin Trains also noted a 0% opt-out rate!

RCS Functionality
Let’s take a closer look at the unique features that
businesses are using to improve customer experience.

1. Rich Features
Rich features make it easy for companies to create app-like experiences within a native mobile
messaging application. This allows brands to create a more memorable experience and build a deeper
emotional connection with customers through:

• Rich media – upload photographs, video

Verified
sender Go2Airlines Branding and audio files, rich cards, or carousels that
feature multiple rich cards that users can swipe
Jey Jim, through
spring is coming! Plan your
spring break with us. Check out
our Last-minute offers! • Improved location functionality - location
9:00 PM

sharing, view map, etc.

Rich
Media
• Configurable buttons - embed clickable,
customized buttons that will enrich your
Los Angeles Amsterdam communications and make it easy for your
399€ 199€
MORE DETAILS MORE DETAILS
customers to respond - such as suggested
Suggested Suggested
replies and suggested actions
NEW SEARCH CALL AGENT
Replies Actions
• Open URL button – opens the link in a web
browser or inside an app
• Create calendar event – uses pre-specified
details to populate a message template
• Longer messages - RCS is not limited to 160
characters, enabling the message content to
be more robust

How RCS is Redefining Business Communications 6

2. Branding Opportunities
With RCS, communications can be branded. You can use your company name, logo, and colors to
brand your messages and keep them aligned with the rest of your marketing efforts. This makes your
messages much more visually appealing, and something customers are likely to notice, as seeing their
favorite brands right there on the screen generates greater trust in the message.

Go2Shop
3. Chatbot Feature
Hi Jill, great news!
Your package will be delivered
Great customer support is the key to building long-lasting today! 9:00 PM

relationships with your customers and increasing their

loyalty to your company. Through RCS-enabled chatbots,
you can use conversation automation to give your
customers relevant and timely notifications and digitalize
repetitive communication patterns:
If you want to make changes to
Chatbots make it possible for you to have meaningful the delivery time or address
click YES. 9:00 PM
conversations with customers, anywhere, any time.
YES CALL AGENT
They can clarify any doubts customers may have during
the buying process and also effectively resolve complaints.
However, for more detailed customer queries, always make
sure there is a click2call button available so customers can
choose to talk to a real person.

Additionally, operators are introducing chatbot directories that list the chatbots of different
companies by category. This adds value for Consumer-to-Business communications in that customers
can be proactive in reaching out to their favorite brands – when it’s convenient for them, and when
the need is immediate.

4. Real-time Analytics
What if you could have a better understanding of what messages are working to reach your audience?

With RCS, you can get detailed information about how your customers behave so you can tailor your
campaigns to achieve better results.

RCS technology provides access to real-time analytics such as ”messages delivered” and “messages
seen” reports, and on-screen event tracking, giving you insight into exactly how consumers are
interacting with your messages and which communications are effective. This can help you to improve
conversion rates over time and optimize future communications.

How RCS is Redefining Business Commnunications 7

5. Trustworthy Channel MyBank

How secure is RCS? According to Universal Profile Hi James, here are the latest
transactions on your account. If
standard (see “Important Facts about RCS”), any of these weren’t made by
you, please get in touch
all senders need to be registered and verified by the RCS immediately. 9:00 PM

service provider assuring authentication, fraud prevention CURRENT ACCOUNT **5674

and reliable communication for brands and their Sushi Party -$ 54.88

customers. Share-A-Ride -$ 12.36

Sneaker Zone -$ 125.00

This makes RCS an attractive alternative for industries that Ultimate Coffee -$ 7.56

send a lot of documentation to their customers, such as Sports Flex -$ 29.99

legal firms, banks, and travel companies.

YES, ALL FINE FLAG TRANSACTION

For example, people are more comfortable exchanging

their confidential banking information over their mobile
devices due to stringent security standards they know are
in place.

RCS in Practice
With RCS, you can get detailed information about how your customers behave so you can tailor your
campaigns to achieve better results.

Club Comex
With 5,000 locations, Comex, a paint manufacturer and distributor, is the second largest retailer in
Mexico. Club Comex is the company’s loyalty program. Customers can accumulate points for every
purchase they make using their Club Comex card. They can then exchange the points for prizes listed
in the prize catalog.

Before RCS, Comex was promoting to customers by sending hyperlinks through SMS messages. They
wanted a platform that was similar to SMS, but more attractive, and that’s how they found RCS.

Their first RCS campaign, “Regalon Regalitro” offered members of Club Comex a discount of 10%-
20% on house paint, and the addition of 1 liter of paint as a free gift. The campaign included images
and web links and was activated nationwide for 3 days.

How RCS is Redefining Business Commnunications 8

Results
Club Comex continued to use RCS as a way
to promote to Club Comex customers. When RCS had brought an impressive
comparing the RCS campaigns from 2019 with 115% increase in revenue.
their SMS campaigns from 2018 they found that
RCS had brought an impressive Clickthrough rate went from
115% increase in revenue. 2-3% with SMS to 20.8% with
The “Regalon Regalitro” campaign led to more RCS. That’s an increase of
sales interactions, with the clickthrough rate almost 10x!
growing from 2-3% with SMS to 20.8% with RCS.
That’s an increase of almost 10x!

For Club Comex, RCS, has been a new experience of communication to our end-
customers, and gave them clear ideas of inspiration, color and product, through photos,
videos and interactive buttons so that our Club Comex customers can easily understand
our value proposition.

Rebeca Gonzalez Huerta,

Senior Marketing Manager Loyalty and CRM at Club Comex

How RCS is Redefining Business Commnunications 9

Utel University
Utel is one of the top 5 online universities in Mexico. They aim to bring quality education to any place,
and they currently have alumni in 32 countries.

The university is always looking for impactful ways of engaging their students and keeping them
updated on new online classes and curriculum changes, and through this, they found RCS.

The objective of their first campaign was to generate new leads from users that had registered
but never enrolled for any academic programs. The campaign included a promotional bot flow
(predefined conversation options), and used images, carousels, and buttons to increase sales.

Infobip’s enablement of RCS allows for responsive 2-way communications imperative

to our students and prospects. Being an online university, our students may be time
zones apart, and it is important communicating over the channels our students use and
prefer. We take advantage of RCS to publicize, in an innovative way, the new academic
programs that we incorporate into our offer to boost their professional development.”

Ana Gabriela Barrera Garcia,

Inbound Marketing Coordinator at UTEL University

How RCS is Redefining Business Commnunications 10

Ways to Use RCS to Reach Customers

Notify Engage

• Purchase confirmations • New product offerings

• Delivery notifications and updates • Sales or discounts, especially to loyal
• Contract expiration reminders customers

• Changes in service terms and conditions • Product and/or service ratings

Support Secure
• Interaction with an agent about products • One-time PINs to authenticate users
or services (real time or interactive) • Password reset flow
• Automatic replies to customer queries • Suspicious account activity notifications

How Can RCS Work With Other

Communication Channels
There are plenty of options available for reaching customers, and in many cases, RCS can complement
your existing efforts.

RCS and SMS

RCS is sometimes called “SMS 2.0.”. It takes everything that users and companies already love about
SMS - 100% reach, reliability, ease, security - and builds on this to create an even better method of
communication. RCS takes SMS to the next level by providing richer communications, longer message
lengths, usage analytics, chatbot features, customizable branding and the ability to verify the sender
of the message - a key differentiator in an age of consumer distrust.

RCS provides a universal messaging ecosystem in which it’s possible to send a message to any user as
long as they have a mobile phone number.

This is important during the transition phase from SMS to RCS, when not all users will have a phone
enabled with the RCS native app.

Native messaging applications that come preinstalled on all new Android phones, or can be
downloaded from Google Play store, have one shared inbox for both RCS and SMS messages.
Therefore, both RCS and SMS are supported, easing messaging communication in case of fallback
from RCS to SMS.

How RCS is Redefining Business Commnunications 11

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In accordance with the Universal Profile established by the GSMA (see “Important Facts about
RCS”), all new devices will contain one native messaging app that will support RCS. However, in
communications where one phone is RCS-enabled, and another isn’t, messages will default to SMS

RCS and Chat Apps

Even though chat apps also deliver rich content capabilities, RCS comes natively installed on
users’ devices (as opposed to an app they have to download). Also, not all chat app providers allow
promotional traffic, while RCS is being used by marketers to engage users using their own branding.

Like SMS, RCS can work with chat apps when defining fallback options if the recipient of the message
is not able to receive it as RCS.

RCS and Voice

Voice is a complimentary service to RCS in a range of use cases. As part of an RCS flow, users can have
the option of a click-to-call button to initiate a call with a live agent.

Still, messaging is one of the preferred communication channels across virtually every generation.
Laws are going into effect globally to limit people’s use of their smartphones while driving or crossing
the street, and what are they using them for? Messaging. According to Flurry Analytics (as reported by
Salesforce), messaging and social media apps have been the leading uses of smartphones in
recent years.

How RCS is Redefining Business Commnunications 12

RCS and Mobile Applications
RCS technology is accessed through a native app for smartphone users, which can take the place of
proprietary smartphone apps, making it more accessible to customers. Having all communication in
one app is convenient for customers, as it makes messaging with brands as comfortable and familiar
as messaging with friends.

Customers are fickle, and they have high expectations of apps. One native app, as opposed to several
downloaded apps, helps to make applications easier to manage and save storage, which is becoming
increasingly important to users.

RCS is opening opportunities for small and medium enterprises who can now engage in an “app-like”
user experiences, without the development time or investment required to build their own proprietary
app. Similarly, larger enterprises can also benefit from adding this channel to their existing efforts,
and lower the maintenance costs involved in frequently updating their own apps.

Important Facts About RCS

As RCS adoption increases, businesses should be aware of the following:

Established Standards
Since many stakeholders are supporting the implementation of RCS on a global scale, the GSMA has
taken steps to standardize RCS usage worldwide. The set of standards adopted across industries is
called the Universal Profile, which guarantees a uniform experience across all devices, networks, and
regions. In addition to mobile operators (MNOs), brands, and consumers (mobile subscribers), there
are many key stakeholders in the RCS ecosystem:

• RCS Network Providers to MNOs

• RCS Business Messaging Platform Providers to MNOs
• RCS Aggregator / Messaging Services Provider to Brands
• RCS Hub Providers to MNOs
• RCS Client Providers
• Handset Manufacturers

Coverage, Reach and Global Rollout

Mobile operators have to enable RCS technology in their networks in order to offer RCS to their
subscribers. Global RCS rollout is gaining traction with many operators already live with RCS on all
continents, while others are engaging on RCS enablement projects. As of November 2019, RCS is
available through 81 operators in 55 countries, and this number is projected to increase to well over
100 by the first quarter of 2020.

81 operator
launches 55 countries
worldwide 300M monthly
users

How RCS is Redefining Business Commnunications 13

Country-wide and global technology adoption is key to the success of this new messaging channel. In
addition to manufacturers of telecom equipment making RCS possible, Google is also offering RCS
enablement in the cloud as a quick go-to-market option, which will speed up RCS technology uptake.

According to MobileSquared, the total volume of A2P and P2A RCS messages sent by brands and
businesses is forecast at 16.31 billion for 2019, rising to 80.61 billion in 2020, and 1.55 trillion in 2023.

With regards to devices, only Androids are currently supporting RCS. According to Mobilesquared,
there are around 1.4 billion Android devices that are capable of receiving RCS messaging, and
Samsung alone is shipping approximately 300 million new devices each year.

To be reachable to brands for RCS business messaging, a subscriber needs to have their Android
device equipped with an RCS enabled messaging application. This application can either be
preinstalled (native messaging app) or downloaded from the Play Store. The most widely used
messaging applications with RCS capabilities are Android messages and Samsung messages, whereas
some MNOs provide their own applications that even have the iPhone version, which is available at
the Apple Store.

At the beginning of this process, certain device interoperability challenges arose as not all
stakeholders were aligned on the same version of the Universal Profile Standard. Thanks to joint
efforts between GSMA, Google, Samsung, and other players, an agreement was achieved, and the
device challenges are being resolved with a software upgrade; which will significantly increase the
number of users that can be reached by RCS in specific countries and mobile networks.

The industry is watching very closely to see what role Apple will play in the evolution of RCS.

Pricing
Like the platform itself, RCS pricing models are evolving based on the assumption that pricing
should be reflective of the value brands receive from its use, as well as how and to what degree
the technology can be integrated for each use case. Multiple pricing options are being considered
including per message, per session, per monthly active user, per click, and per impression.

Regulation
GDPR and other recent legislation have placed privacy restrictions on how businesses can
communicate with customers and prospects.

Mobile users need to opt in to allow messaging from businesses. Android customers who have already
opted in to SMS messages from a business will automatically get the upgraded experience of RCS.
So there is no further consent required, other than to receive SMS messages. However, the final word
on this is expected to come from national regulatory authorities.

How RCS is Redefining Business Commnunications 14

Conclusion
Customers have come to expect genuine, personalized, meaningful, and transparent communications
from companies. With RCS, you can develop stronger relationships with your customers through
branded, engaging two-way conversations.

Early RCS case studies suggest that sales results (as measured by conversion rates or revenue) can
more than double with relevant, visual, and engaging communication over RCS
as a channel.

The GSMA has seen RCS generate increased market potential with a significant number of consumers
being exposed to what RCS Business Messaging has to offer.

We are seeing real momentum with multiple markets launching enhanced RCS
messaging services for their subscribers which continues the current trend for launches
around the world. We are also seeing numerous live marketing campaigns from multiple
global brands based on RCS Business Messaging. They set to benefit from not only the
huge commercial opportunity but also the opportunity it presents to engage more
closely with consumers.”

Henry Calvert,
Head of Future Networks programme, GSMA

As RCS evolves, businesses should keep track of feature developments, pricing models, and consumer
usage trends to ensure they take advantage of all the rich opportunities available for communicating
with their consumers.

How RCS is Redefining Business Commnunications 15

Getting Started with RCS and Infobip
RCS has arrived, and it enables new and innovative communications between brands and consumers.
Here’s how Infobip can help you embrace new opportunities with RCS:

1. Easy-to-use Integration Options for RCS

Campaign Creation
You can easily craft customer journeys with automated workflows using our visual (drag and drop)
interface.

RCS
One-time audience
Thank you for your confirmation, firstName..
1 100%
1 100%

RCS
Hi firstName! Home credit is now on...
1 100%
100%

RCS
CARD Evaluate inbound RCS
1 100% to infobipDemoRcs
1 100%

RCS Keyword is get

If no response until end of flow

0%

Create rich customer profiles for personalized, contextual communication—with or without coding
skills. If you have coding expertise, you can also use a single unified REST API to integrate various
programmable communication channels easily. Either way, we provide consultancy services to help
clients onboard RCS and other channels fast.

How RCS is Redefining Business Commnunications 16

2. Omnichannel Communication Platform
Infobip enables omnichannel communication with your customers from one single platform
to address the complexity of communication between brands and customers, making your
communication efforts more efficient, streamlined, and targeted. Now, Infobip supports RCS as part
of our CPaaS (Communication Platform as a Service) solution, complementary to all of our other
channels (SMS, email, voice, chat apps, mobile app messaging). This combination of channels gives
multiple options when defining RCS fallback.

3. A Wealth of Experience
Infobip has many years’ experience with all communication channels. Since 2006, our mission has
been to create seamless mobile interactions between businesses and people, and we are continuously
adapting to include new technologies. 67% of the world population has interacted with our
communications platform.

For the past three years, Infobip has been voted the #1 A2P SMS Messaging Vendor among mobile
network operators (MNO’s) by ROCCO Research. For the first time in 2019, ROCCO has included an
award by enterprises, which also rated Infobip top A2P messaging vendor.

How RCS is Redefining Business Commnunications 17

 The Infobip Advantage
Global Reach and Local Own Infrastructure
Presence
• Locally available services
• 600+ direct-to-carrier connections
• Compliance to local regulations
• Connect with over 7 billion people and
• 28 data centers worldwide
things
• Strong enterprise client base 60+ offices
Our worldwide infrastructure easily scales
on 6 continents
horizontally, leveraging the hybrid cloud
Our local presence enables us to react model to never run out of resources.
faster and have everyday interactions with Our built-in global compliance engine
our customers, providing solutions in-line is constantly updated with the latest
with their needs, local requirements and in-country regulations and operator
based on proven global best-practices. requirements.

Scalable, Fast and Remarkable Customer

Flexibile Solutions Experience

• Best-in-class delivery rates • Technical expertise

• High speed and reliability • Solutions consultancy
• Low latency • Customer success management
• In-house developed platform • 24/7 support and network monitoring

Our solutions are created to adapt to We will help you to get up and running
the constantly changing market and in no time, whether it’s assisting with
communication trends at speeds and integrations, messaging best practices or
levels of precision and personalization solutions consultancy.
that only an in-house solution can offer.

TO FIND OUT MORE ABOUT RCS, VISIT OUR WEB

OR TO GET RCS FOR YOUR BUSINESS, TALK TO US.

VISIT OUR WEB TALK TO US

How RCS is Redefining Business Communications 18