RCS: Game Changer for CXRCS: Game Changer for CX

SMS once ruled mobile messaging, but several OTT apps became preferred due to more advanced features. In some parts of the world, SMS has been largely abandoned. The result is a highly fragmented world of messaging, limiting its commercial appeal.

We only have a few universal addresses. Our mailing address, email address, phone number for calls, and mobile number for texts. Every other address is limited to like users. You can only send someone a message on Facebook, Slack, Teams, WhatsApp, and most other services as a member of each specific community.

RCS Took A While

RCS has been the planned successor to SMS for well over a decade. It not only offers more features, but it also supports richly formatted content. In the past few years, it has been available to Android users, and with imminent support from Apple in iOS 18, it’s about to become universal. 

Its decade+ journey has been a comedy of errors, and it’s not over yet. The weakness and power of RCS is that it isn’t owned by one company. Getting the device makers and carriers to agree has been challenging. While the carriers quarreled over how to implement RCS, over-the-top apps such as Meta’s WhatsApp, Facebook Messenger, and Instagram (along with Apple and many others) built powerful messaging islands that positioned SMS as an antiquated service. 

For example, it’s not uncommon for an airline to send an SMS with a link to a boarding pass, but why not just send the boarding pass? It’s because SMS doesn’t support the rich formatting needed to make a barcode. Instead, the SMS text directs a user to the web, a 30-year-old concept, which can display barcodes.

RCS: The New CX Channel

Most of the RCS/iOS18 excitement is about Android and iOS users getting better interop. This is nice, but the real excitement is how brands will soon interact with customers. Over the new few years, we will see RCS rise as a powerful digital channel for brand-customer interactions. 

RCS features such as message reactions, read receipts, and typing indicators that will provide a richer experience than SMS could. The standard also supports large files, interactive buttons, and multimedia. We take all these features for granted in email and OTT messaging apps. Now they are about to be available as a universal digital channel. 

Today, to send a barcode via text, the provider and carrier must be part of the same closed network such as WhatsApp. It might sound simple, but barcodes support a variety of services including boarding passes, coupons, and tickets. RCS can be used for interactive messaging and even supports carousels of images, suggested actions, and even direct booking links. RCS will transform brand interactions, and likely boost engagement and conversion rates significantly.

I referenced “mobile” several times above, but RCS isn’t limited to mobile phones. For SMS to work, the carrier, number, and device need to support it. RCS only requires support from the carrier and device. That’s because SMS was designed only for mobile numbers, but RCS works with any number. 

One of the standout features of RCS is its verification process. Businesses must be verified to send RCS messages. This means less spam and more trust. Consumers will know that the message from their favorite brand is legitimate. When customers see that a message is from a verified sender, they’re more likely to open it and take action. This trust may translate into higher cart values, more conversions, and ultimately, better customer relationships.

A Few Wrinkles Remain

There are still several details to work out as not all carriers yet support RCS (but will), and business/commercial uses still have some unknowns. First, though Apple agreed to support the full RCS specification, its intent to support application-to-person (A2P) was not clear. (A2P is when a person receives a message from an application.) Cisco Webex reported successful testing of A2P in the US and Canada on the iOS 18 beta and expects support to roll out on a carrier-by-carrier basis. Also, Apple is not supporting end-to-end encryption (E2EE) on RCS initially but is generally expected soon. 

Apple needs to find balance between enabling RCS and protecting its other services including iMessage and Apple Business Chat. Apple’s support of RCS is Apple’s second big strike at Meta. In 2021, Apple upset Meta’s business by giving users greater control of their privacy. This had an immediate impact on Facebook’s revenue. With Apple’s support of RCS, many of the features of Meta’s WhatsApp will be less compelling. 

For example, RCS is a comprehensive platform that offers businesses a wealth of new opportunities to engage with customers. RCS's built-in analytics provide valuable insights into message performance, helping businesses fine-tune their campaigns for better results. RCS messaging supports callbacks for actions selected within a conversation, such as share location, open URL, and suggested replies. The result? More targeted, personalized marketing that resonates with customers and drives action.

Moreover, RCS is heading to a contact center near you. Cisco Webex Connect has advanced RCS services such as using its low-code no-code CPaaS platform to build enterprise grade RCS use cases. Also, they offer SMS customers the ability to upgrade to a branded text experience that leverages RCS and gives consumers a secure and verified experience.

Twilio just announcedthat its branded sender identification is now globally available, and cited a recent study by Futurum Research, that businesses using RCS have experienced a 32% increase in customer engagement and conversion rates compared to traditional SMS. Sinch reported that RCS usage has been growing exponentially in markets like the US, Brazil, Mexico, India, and the UK.

The shift to RCS represents a monumental change. It’s a new standard that promises to redefine how we communicate and how customers interact with brands. As the digital landscape continues to evolve, those who recognize the power of RCS now will likely be the ones leading the charge into a new era of communication.

Dave Michels is a contributing editor and analyst at TalkingPointz.