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How Apple’s RCS adoption will boost customer engagement

iOS 18 brings RCS compatibility to Apple devices, opening up ‘SMS 2.0’ to the whole market. Robert Gerstmann takes a look at what that might mean for consumer and business messaging.

As Apple gets closer to releasing the iOS 18 update in September, for the first time, it will adopt Rich Communications Services (RCS). Up until today, RCS has only been available on Android handsets, which prevented brands from reaching global ubiquity when using this channel.

Apple’s adoption of RCS has the potential to ultimately change the way businesses and customers communicate. Eventually, every handset worldwide will support RCS. Users will not need to download a specific app and as soon as the mobile operator activates RCS in their network, the new technology will be available by default. With RCS, the powerful next-generation of SMS, the text-only, one-way limitations of business messaging will be lifted, allowing users to immerse into the next level of interactive engagement.

This will certainly benefit brands who want to expand their reach and elevate user experience for billions of customers worldwide. Data backs this up - our research found that RCS generates a 74% higher engagement with brands compared to SMS, currently the largest business messaging channel.

Another piece of good news

is that SMS opt-ins that brands might already have will also apply to RCS, eliminating the need for a fresh round of user consents. While Apple hasn’t officially confirmed RCS business messaging (distinct from consumer-toconsumer RCS), it is present in the iOS 18 beta version. At Sinch, we’re confident this indicates Apple support is on the horizon, so brands should prepare to seize this opportunity.

A NEW ERA OF MESSAGING

RCS is a next-generation messaging protocol that significantly upgrades the features of traditional SMS and MMS. Initially, SMS was designed for simple text notifications, and while it became globally popular, it falls short of today’s marketing demands. MMS added multimedia functionality but never gained widespread traction. RCS was developed to address these shortcomings, providing a more robust and interactive communication platform that aligns with modern business needs and user expectations. It was proposed to the GSMA in 2007 as a successor to SMS and MMS. At first, due to the early complexity of coordinating numerous carriers and manufacturers, RCS struggled to gain traction. However, Google revitalised interest in the technology by rolling out RCS messaging features for all Android phones. Unlike SMS, which is restricted to 160 characters and doesn’t support rich content and complete message tracking, RCS includes the ability to send videos and images, view read receipts and see real-time typing indicators. Additionally, RCS supports branding, verified sender identities, and interactive elements such as call-to-action buttons and carousels. This makes messaging more dynamic, secure and engaging.

For consumers, Apple’s support of RCS builds a bridge between iPhone and Android users, enabling more seamless twoway conversations. Regardless of which device consumers use, RCS helps to prevent group chats from breaking and enables the sending of high-quality images.

ENHANCING CX WITH REAL-TIME COMMUNICATION

To illustrate how RCS works in practice, imagine a passenger who just booked a flight online. Instead of a simple confirmation, the airline can use RCS to send an interactive message confirming the flight and offering personalised options like nearby hotels, local attractions, and car rentals at their destination. The traveller can book these directly from the message, without leaving the conversation. This tailored approach makes the customer feel understood, which in turn enhances their experience and builds loyalty.

Our survey results highlight the effectiveness of this style of engagement, with 71% of UK buyers open to the idea of messaging retailers about their orders.

Through RCS, brands can meet these expectations, providing instant responses that solidify trust and drive purchase decisions.

For Sinch’s client Picard, the adoption of RCS marked a major improvement in customer engagement. The French gourmet frozen food brand saw a 42% increase in engagement after integrating RCS into their customer interaction strategy. This surge is largely due to RCS’s rich, interactive features, which enabled Picard to provide a more immersive and responsive experience. With the ability to facilitate real-time interactions and incorporate multimedia content, the messaging experience became more engaging and informative for customers, leading to greater satisfaction and increased brand loyalty.

RCS FOR SECURITY

Embracing RCS will become increasingly essential for brands looking to establish trust and security in their communications. Thanks to the stringent verification processes employed by mobile operators, RCS ensures that messages genuinely originate from the intended brand, significantly reducing the risk of phishing and spam. This added layer of security is crucial in today’s digital landscape, where 77% of users favour verified messaging over standard SMS, and 71% feel more assured when interacting with businesses through RCS.

For companies aiming to strengthen customer relationships, RCS offers a distinct advantage. The protocol’s ability to deliver rich, interactive content while maintaining a high level of security helps businesses build trust and loyalty among their customers.

The recent integration of RCS by Apple marks a grand moment in the evolution of digital communication. This move enables brands to tap into a more reliable and feature-rich messaging channel, facilitating real-time interactions and immersive content sharing. With Apple now on board, businesses have an opportunity to reach a global audience more effectively, driving deeper customer engagement and forging stronger relationships.

What’s in it for MNOs, brands and telemedia companies?

According to Mobilesquared, Rich Communication Services (RCS) is expected to experience significant growth by the end of 2024. The number of RCS users is projected to reach over 3 billion, representing a growth rate of 294%.

This expansion positions RCS as the largest enhanced messaging platform globally, offering new revenue opportunities for mobile network operators (MNOs). The report highlights that RCS will generate revenues of $8.3 billion by 2024, primarily from the traditional telco A2P SMS model, emphasising the importance of RCS in the future of business messaging.

Revenue uplift: MNOs stand to gain a 240% revenue uplift over the forecast period by launching a native RCS solution, thanks to the increased user base that it will deliver, as well as through RCS becoming a key platform connecting brands with consumers, joining mainstream marketing channels like TV, internet, and social media. RCS will also enable new revenue opportunities through conversational commerce interactions between brands and consumers.

By migrating subscribers to RCS, MNOs can consolidate legacy messaging and capitalise on continued growth and nextgen technology synergies. Having a robust RCS messaging platform can also improve subscriber quality of experience and reduce churn, enhancing MNO competitiveness.

By developing native RCS offerings, MNOs can ensure they remain at the centre of the next major messaging platform for both consumers and brands.

These opportunities highlight the importance for MNOs to evolve their messaging services from SMS to RCS to capture new revenue streams and maintain their relevance in the rapidly changing mobile messaging landscape.

Adding Apple’s embrace into the equation and it looks likely that RCS is set to create not only new opportunities for MNOs, but the whole telemedia value chain around them. Better marketing means more engagement, leads to more sales.

Likewise, a richer delivery mechanism for marketing messages that can also include payment options to buy-from-ad will not only enhance sales for brands marketing through RCS, but is likely to also see a surge in use of DCB and other alternative payment mechanisms

Robert Gerstmann is Chief Evangelist and Co-Founder of Sinch