RCS vs SMS: What is the difference between the two for businesses?
RCS delivers greater engagement, efficiency, and trust as a more dynamic version of SMS.
Few other communication tools have as much reach as SMS. While we might only sporadically check emails and instant messages from our WhatsApp groups and other channels, the simplicity and universal nature of SMS means it has a wide array of use cases for businesses. Communicating about appointments, bookings, or an order’s delivery status, the personal nature of messages – and the fact we all have a device in our pocket to receive them – has long made it a powerful tool for brand-customer interactions.
Many consumers like SMS because they know it will work on any smartphone their family and friends are using. GSMA estimates we’ll see 6.3 billion mobile subscribers by 2030 – and with phones so integral to many of our lives, this represents billions of opportunities for businesses to engage with consumers wherever they are.
But while the first SMS was sent in 1992, little has changed about the technology in that time. Although we had MMS – ‘multimedia messaging service’ – as an evolution of SMS, users couldn’t send these messages particularly cheaply, so it didn’t take off in the same way as their online messaging platform successors. SMS is still resolutely text-oriented, and held back by various restrictions and a 160-character limit – hence the name ‘short messaging service’.
Despite SMS messages having very high open rates – as much as 98% – they therefore can lack the marketing sophistication of other platforms, impacting their engagement rates. With little scope for experimentation, businesses need an SMS alternative to make such marketing messages more useful, personalized, and engaging.
So, what comes next?
RCS: A revolutionary format
It all changed with the emergence of RCS – or ‘rich communication services’. As the name suggests, these advanced messages are rich with additional features, building on the original SMS format. RCS has been around for as long as 2008, but it has only been adopted by the main mobile platforms relatively recently, finally bringing it into the mainstream.
Apple, for example, adopted RCS in Messages with iOS 18 in September 2024, while Google also supports the technology via Android, even if a user’s phone carrier doesn’t. With already 1bn RCS users via Google Messages alone, and as many as 2.5 billion monthly active users and rising according to Omdia, RCS traffic is forecast to increase by more than a trillion messages year on year. Now is the time for brands to seriously consider this channel, especially given its advanced capabilities.
Interactive, shoppable moments: What differentiates RCS from SMS is its ability to deliver more visually compelling content. For example, with RCS you can send far larger media files, such as high-quality photos, videos, and GIFs, while the format supports longer messages without the 160-character limit of SMS, or splitting them into segmented texts. This all makes for a more expansive form of communication.
RCS messaging also supports dynamic features like buttons, carousels, and other interactive elements. This includes options for suggested replies and call-to-action (CTA) buttons that streamline customer interactions. This creates a seamless, shoppable experience with little barriers to purchase, significantly improving customer interaction and conversions. One example of a paint brand that moved one of their SMS campaigns to RCS saw their revenue increase by 115%, while their clickthrough rate rose from less than 3% with SMS, to 21% with RCS.
Security and trust: With scams rife, consumers are increasingly skeptical of texts from random numbers that prompt them to click unfamiliar links. This uncertainty and perceived risk becomes a thing of the past with RCS, thanks to branded messaging – such as attaching logos and taglines – and verified sender IDs. Alongside consumers being able to verify the legitimacy of a message’s sender, RCS is also backed by encryption between sender and recipient. By establishing such high security and privacy standards, brands can create a trusted relationship and form of communication with customers, while enhancing brand credibility. This in turn leads to greater response rates and improved customer engagement.
A broad reach: With RCS, there are no barriers to entry. Unlike many other forms of digital communication, users don’t need to download a new app or set up a new account; they can receive an RCS message just as they would any other text message. Even if a user’s device doesn’t support RCS, the message will automatically be sent as an SMS.
This allows businesses to upgrade their messaging, refreshing a pre-existing, ubiquitous communication channel, but with the reassurance they can still reach the exact same audience.
Improved deliverability: RCS also has improved deliverability compared to SMS. The latter is sent on a lower priority compared to other types of traffic which have much lower tolerances for latency – like voice and data – by mobile carriers. RCS, on the other hand, can be sent over any Internet connection, which means far lower chances of missed deliveries and delays between messages being sent and them being opened by users.
Analytics and insights: RCS puts marketers in the driving seat, providing businesses with detailed delivery and read receipts alongside other analytics. This means brands can stay agile, allowing them to track and analyse message effectiveness and optimize communication strategies. It also represents another touchpoint – and opportunity – for brands to better understand their customers and their preferences, leveraging first-party data consensually shared by customers.
The next wave of marketing
As a powerful communication tool with an already established audience base, RCS is expected to reshape the current SMS marketing landscape. This effect will only increase as more countries expand their support for it, beyond the 17 countries currently with it in place (as of October 2024). According to Juniper Research, 60% of mobile subscribers are already RCS-capable as of 2024. By using RCS, brands can boost engagement, efficiency, and trust, while offering a more dynamic experience that truly leaves an impression on customers. And in a landscape filled with plenty of competing digital noise, RCS represents an opportunity to stand out from the crowd.
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