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Future of Messaging Guide Contents Mef Future of Messaging Guide Contents A2P to OTT, chat bots to smart machines … how the world’s most powerful communication medium is PREDICTINGPREDICTING THETHE shaping up for tomorrow FUTUREFUTURE OFOF PREDICTIVEPREDICTIVE TEXTTEXT WHATWHAATT HHAPPENSAPPENS HOWHOW A SIMPLESIMPLE WWHENHEN MMACHINESACHINES TEXTTEXT MAKESMAKES TTEXTEXT ‘‘HELP’?HELP’? CANCCAAN A BOTBOT SHOPPINGSHOPPING SAFERSAFER TTEACHEACH YYOUOU A LLANGUAGE?ANGUAGE? CANCCAAN YOUYOU CHATCHAATT WITHWITH THETHE NEWS?NEWS? SUPPORTEDSUPPORTED BYBY MEF FUTURE OF MESSAGING GUIDE CONTENTS MEF FUTURE OF MESSAGING GUIDE CONTENTS 1. INTRODUCTION 3. MACHINE MESSAGING Mobile messaging now: stats, trends, challenges ..................................08 A new SIM for machines that text: CLX..........................................................40 The glittering future of A2P: OpenMarket.....................................................10 Post-human messaging: SAP Mobile Services .......................................42 Enterprise messaging: SAP Mobile Services...............................................12 Pegg is your bot accountant: Sage...................................................................44 SMS – still best for 2-factor authentication: CLX....................................14 Bots for learning a language: Duolingo...........................................................46 Ask a bot about your spending: Mastercard ...........................................48 Can you chat with the news? Quartz..............................................................50 2. USE CASES Bots to help people work smarter: Slack .....................................................52 Text-based crowd control: Virgin Trains .........................................................18 How real time SMS alerts are tackling card fraud: FICO..................20 4. WHAT’S NEXT Machines that send ‘help me’ messages: Philips Healthcare.......22 Texting for better schoolwork: Behavioural Insights Team..............24 Is messaging the new runtime? Andreessen Horowitz.....................56 Getting smarter with ‘text to donate’: Cancer Research UK........26 Network insights will make messaging smarter: Telefonica............58 Text is driving the drivers: Uber............................................................................28 In-house OTT messaging for every app: Layer .......................................60 Rich messaging for feature phones: iTouch................................................30 Conversational commerce – the future? Operator............................62 How chat made payments fun: Venmo.........................................................32 Payments and messaging apps: Consult Hyperion..............................64 Towards secure and private chat apps: Wire...........................................34 Google, the operators and SMS v2.0:.............................................................66 OTT messaging in South Africa: WeChat......................................................36 AI and predictive messaging: Swiftkey...........................................................68 02 03 MEF FUTURE OF MESSAGING GUIDE FOREWORD Welcome to the future of messaging eople say that the digital age is destroying our this trusted, reliable and cost-effective channel. Now, ability to communicate. We’re staring at screens, an exciting third trend is emerging: messaging by Pavoiding conversation. But what are we doing machine. Here, smart devices send alerts to signal when we’re on our phones? Well, mostly conversing. their status, saving firms money and time. Then there are chat bots - virtual machines that could be the The truth is, people love to communicate. And mobile future of customer engagement. messaging is how billions choose to do it. We’ve seen this in the rise of SMS, which grew ten-fold from 2004 So in this guide, we reveal the power of messaging in to 2014. And now there is a similar explosion in the all its forms. Inside, you’ll learn how companies use use of chat apps like WhatsApp and WeChat. messaging to solve real business problems. We look at emerging platforms, and explore what’s next for But it’s not just people who are chatting and texting. the medium. Businesses also choose mobile messaging. With good reason. According to Mobile Marketing Watch, text The guide been commissioned by the global trade messages have a 98 per cent open rate (email is 20 per body Mobile Ecosystem Forum. It is supported by cent). And most are opened inside five seconds. As a members of MEF’s Future of Messaging Programme, result, the A2P (application to person) market is which promotes best practice and innovation across booming across all sectors – as enterprises embrace the messaging ecosystem. “Text messages have a 98 per cent open rate. And most are opened inside five seconds. This is why the A2P market is booming.” 05 Person to person messaging via SMS has peaked, but ‘OTT’ chat apps are attracting billions of users. Meanwhile businesses are discovering the power of text as the world’s most direct form of communication. In this section, we look at the current state of INTRODUCTION messaging and analyse its key challenges and 01 opportunities. 06 07 MEF FUTURE OF MESSAGING GUIDE INTRODUCTION MEF FUTURE OF MESSAGING GUIDE INTRODUCTION Companies derive huge value from the simple ability to contact customers in a timely fashion. This guide reveals some apposite examples. Consider Uber. It’s hugely complex business that couldn’t The mobile phone was function without real time texts between riders and invented for voice. But * The A2P messaging market will be worth drivers. Or FICO, helping banks reduce fraud by texting the people saw it $58.75 billion in 2020 (Mobilesquared) customers at the moment of purchase to discover differently. Text whether a flagged transaction is genuine. triumphed, and now * Banks, retailers and OTT providers will account for 60 per cent of A2P traffic by More to come the medium is ready 2017 (Telefonica Text Economy Report) Businesses across all verticals already leverage A2P for its next phase. messaging. But there’s immense potential for more * 44 per cent of people prefer product and companies to explore the channel. The MEF study marketing messages via SMS (Direct revealed that almost one in four respondents has yet Marketing Association) to receive an SMS from any of the verticals listed. * Businesses will send over 1.7 trillion A2P Meanwhile, new possibilities are emerging such as Personal, universal... messages in 2016 (Portio Research) messaging inside machines. Connected things need a way to talk to each other and cellular networks offer *Developers built 30,000 bots in six months a better route than wi-fi for example. Operators’ new The unstoppable on Facebook Messenger networks will consume less power and potentially connect billions of devices simultaneously. They will * People sent 8.3 trillion texts in 2016 enable machines to send diagnostic messages for years without battery issues. And dynamic SIMs will rise of text * By 2018, the number of chat app users let them connect wherever they are shipped. worldwide will reach two billion (eMarketer) Chatbot cometh The other big change coming to messaging concerns n 2012, Austin Wierschke successfully defended To repeat, text has triumphed. According to a 2015 SMS channel is over 20 years old, and is beginning to a different kind of machine – a virtual one. The huge his US National Texting Championship crown. The study by Infomate, Americans spend 26 minutes a day be eclipsed – in the person-to-person space at popularity of messaging has led many to ask the I17 year old texted 149 characters in 39 seconds texting against six minutes on voice calls. So why is this? least – by the so-called ‘OTT’ apps, which let users following question: if people like texting so much, why with no spelling or punctuation errors. Impressive. Part of it may be social reserve. But there are practical send messages over IP. The apps – WhatsApp, not make it the option for ‘talking’ to digital services. But how long would it take to speak 149 characters? advantages too. The asynchronous nature of text may Facebook Messenger, WeChat, Viber and others – Actually, about five seconds. be the most significant. A text does not demand to be give people the ability to send video and photos, and For example, say you want to find out a train time. You answered immediately like a call. It sits there easily set up closed groups. These are features that could open an app, click on a menu, find a drop down In many obvious ways, voice is better than text. It’s unobtrusively, waiting for a response. are not available via SMS. list of destinations, click on a departure time etc. Or certainly faster. And yet 20 years since people sent you could go to Facebook Messenger and just ask an SMS messages from user-unfriendly numeric People like that. And so does business. Indeed, the Over to over the top artificially intelligent bot. And it would answer quickly keypads, text is clearly the dominant force in mobile. benefits of text to firms are even more compelling. It’s A 2016 study by the Mobile Ecosystem Forum because it would know so much about you anyway. ubiquitous: anyone with a phone can use SMS – no revealed OTT apps are now favoured by a majority of Look at the numbers. According to Telefónica, mobile matter what handset, operator, OS or country. It’s end users. For example, 56 per cent of people say This is happening now. Facebook has opened its bot users currently send around 8.3 trillion text (almost) always on because messages
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