At the recent CPaaS Acceleration Summit in Amsterdam (CASA23), Asa Larsson from Infobip discussed an exciting collaboration with Deutsche Telekom to enhance their marketing campaigns via Rich Communication Services (RCS). The results were nothing short of impressive. Let’s dive into the highlights of this presentation.
The Problem Statement
Deutsche Telekom, Germany’s largest mobile operator, realized a significant decline in their SMS-based campaigns’ conversion rates. Traditional SMS was their staple, but dwindling engagement rates signaled the need for change.
The RCS Advantage
The solution came in the form of RCS – an Android-centric messaging channel that adds rich content to messages, much like modern apps. Approximately 50% of Deutsche Telekom’s customer base used Android devices compatible with RCS, making it an ideal platform to test the waters.
The approach was straightforward:
- Replace or augment SMS.
- Drive higher engagement.
- Reduce customer churn.
- Improve the overall customer journey.
The messages were immersive. They included brand colors, rich media carousels, akin to browsing through profiles on Tinder. What made RCS particularly appealing was the clickable Call-To-Action (CTA) buttons, encouraging user interaction. This not only showcased the brand’s offerings but also initiated two-way communication.
Deutsche Telekom wanted to pitch an offer to their churned customers: a three-month free trial of Spotify Premium. They replicated this campaign two months later for their existing clientele.
The content was demographic-specific to ensure optimal engagement, and the results were astonishing. Compared to earlier SMS campaigns, the RCS campaign drove:
- 2x performance conversion rates.
- 26% higher open rate.
- 66% increased engagement.
- A mind-boggling conversion rate surge by 120%.
Moreover, the fears around RCS cannibalizing the SMS market were unfounded. Deutsch Telecom found that while RCS grew, SMS did too. The two messaging forms were complementary, not competitors.
- Trust Factor: One of the standout features of RCS is sender verification. In an era of rampant scams and phishing attempts via messages, a verified sender logo can significantly increase user trust.
- Engaging the Apple Audience: There was a palpable interest in the audience about iPhone’s exclusion from the RCS fold. As per Larsson, this stems from the fundamental difference between Android (phone-number based) and iPhone (Apple ID based). For now, Apple is sticking to its iMessage and Apple Business Chat.
- RCS Penetration in Germany: While the exact split between Android and Apple in Germany was not specified, the efficacy of RCS campaigns largely depended on the currency of Android devices.
- The AI Connection: On the topic of AI, Asa emphasized its integral role in product development. Brands need to implement AI thoughtfully, ensuring its alignment with the end goal.
- Diverse Use Cases: From a pizza brand offering discounts for World Vegan Day to an electricity company in the UK simplifying their payment reminders, RCS’s applications seem boundless. The flexibility and richness of RCS allow brands to be innovative, bridging the communication gap more effectively.
In conclusion, Infobip’s collaboration with Deutsche Telekom underscores the power and potential of RCS in the realm of marketing. The case study offers valuable insights for brands seeking to rejuvenate their customer communication strategies. With technology evolving at breakneck speeds, the early bird indeed catches the worm.
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Watch Asa’s full presentation here: