Vonage Launches Rich Communications Services to Transform Business Messaging Globally

Rhea-AI Summary

Vonage, part of Ericsson (NASDAQ:ERIC), has launched Vonage RCS (Rich Communications Services) to transform business messaging globally. This new solution offers:

1. Branding capabilities with encrypted, verified messages
2. Rich content and functionality including videos, images, and interactive features
3. Conversational marketing and commerce tools for improved customer service and sales

The global RCS market is projected to grow from $317M in 2024 to $4.2bn by 2029, a CAGR of 68%. Vonage RCS is available in 10+ countries across EMEA, North America, and South America, accessible through the Vonage Messages API or Vonage Conversational Commerce.

Positive

• Launch of Vonage RCS, offering enhanced business messaging capabilities
• RCS market projected to grow from $317M in 2024 to $4.2bn by 2029 (68% CAGR)
• Vonage RCS already available in 10+ countries across multiple continents
• Integration with existing Vonage products (Messages API and Conversational Commerce)
• Potential for improved customer engagement and sales conversion rates

Negative

• None.

Insights

Financial Analyst

The launch of Vonage RCS represents a significant strategic move for the company in the rapidly growing RCS market. With projections indicating the global RCS market could reach $4.2 billion by 2029, growing at a 68% CAGR from $317 million in 2024, Vonage is positioning itself to capture a substantial share of this expanding market.

While specific financial impacts aren't disclosed, the potential for revenue growth is substantial. The rich features of RCS, including branding capabilities and enhanced functionality, could drive higher engagement rates and potentially lead to increased customer acquisition and retention for Vonage's clients. This, in turn, could translate to higher revenues for Vonage through increased API usage and service subscriptions.

Investors should monitor adoption rates and revenue contribution from RCS in future earnings reports to gauge the success of this strategic initiative.

Tech Expert

Vonage's RCS offering represents a significant technological advancement in business messaging. By integrating features like branding capabilities, rich content support and conversational marketing tools, Vonage is addressing the growing demand for more interactive and secure communication channels.

The inclusion of carrier-supported verification status and encrypted messaging addresses critical security concerns in digital communications. This could be particularly appealing to enterprises in regulated industries or those handling sensitive customer data.

The integration with Vonage Conversational Commerce, powered by AI, positions the company at the forefront of the convergence between messaging and e-commerce. This could potentially open new revenue streams and use cases for Vonage's technology stack.

However, the success of this initiative will largely depend on widespread adoption of RCS by mobile carriers and end-users, which remains a key challenge in the fragmented messaging landscape.

Market Research Analyst

The launch of Vonage RCS aligns well with current market trends in customer engagement. With consumers 72% more likely to purchase online if they can ask questions in real-time and 74% more likely to engage with a brand through RCS, this offering addresses a clear market demand for more interactive and personalized communication channels.

The statistic that consumers are 35 times more likely to read RCS messages than emails is particularly noteworthy, suggesting a potential shift in effective marketing channels. This could drive significant interest from businesses looking to improve their customer engagement and conversion rates.

However, the success of Vonage RCS will depend on factors such as user adoption rates, compatibility across different mobile platforms and the ability to deliver measurable ROI for businesses. The initial availability in 10+ countries across multiple continents provides a solid foundation for growth, but global expansion will be important for long-term success in this rapidly evolving market.

Vonage RCS to redefine businesses communications, creating secure, memorable customer engagement experiences

HOLMDEL, N.J.--(BUSINESS WIRE)-- Vonage, a global leader in cloud communications helping businesses accelerate their digital transformation and a part of Ericsson (NASDAQ:ERIC), has announced the launch of Vonage RCS (Rich Communications Services) through the Vonage Messages API and as a low-code turnkey option. Vonage RCS is a new business messaging solution set to revolutionize how brands interact with customers by offering rich, engaging, secure and verified real-time communications capabilities on their preferred channels.

Vonage RCS provides:

Branding capabilities - Businesses can share reliable, encrypted RCS messages that are branded with the company name, logo and a user interface indication to designate the carrier-supported verification status. This enables businesses to secure their communications, safeguarding against fraud and other security threats, and inspiring customer trust and confidence.

Rich content and functionality - Vonage RCS enables conversational capabilities and the seamless and secure transmission of enriched content like videos, images and audio files directly to customers which help make communications more personalized and engaging.

The channel also offers practical functionality like typing indicators, carousels, rich cards, and location sharing, as well as time-saving interactive buttons such as suggested replies.

Conversational marketing and commerce - With richer communications, businesses can improve customer service efficiency, streamline transactions, and boost sales transactions and conversion rates of marketing campaigns with more engaging, two-way conversations. Personalized RCS campaigns can be run at scale from Vonage Conversational Commerce, powered by Jumper.ai, Vonage’s powerful conversational commerce application, with notifications turned into two-way conversations using AI-powered bots and AI-assisted live chat. Consumers are 72 percent more likely to purchase online if they can ask questions in real-time and 74 percent more likely to engage with a brand through RCS. Further, they are 35 times more likely to read RCS messages than emails¹.

Colin Brown, Head of API Product Management at Vonage, comments, “We are excited to announce the launch of Vonage RCS which will enable businesses to deliver more dynamic and engaging content directly to a user’s preferred messaging app. In today’s digital age, customer expectations are constantly evolving and demanding more interactive and immersive communications solutions. Businesses need to pivot their approach to delivering enhanced engagement experiences for their customers -- and they need to do it faster and easier than they have in the past.

“Vonage RCS enables businesses to engage customers in a superior manner that enhances their interactions and satisfaction while ensuring that they stay ahead in the changing landscape of customer communications and future-proofing their communications strategies.”

Dan Garner, Chief Product Officer at Confer With, said, “Our live one-to-one video shopping platform revolutionizes retailer customer interactions, bringing the in-store experience online. RCS enhances this with an interactive digital touchpoint that provides a seamless app-like experience out of the box. Perfect for engaging through marketing or in-store QR codes, it ensures intuitive access to real-time connections with live experts and continuous re-engagement. We’re excited to collaborate with Vonage to bring this to our clients.”

Charlotte Palfrey, Senior Analyst at Omdia, said, “Omdia recognized Vonage as a leader in its Omdia Universe: CPaaS Platform Providers 2023-24 for its innovative, comprehensive platforms which help businesses enhance their interactions with consumers. RCS will enable improved customer engagement over SMS with rich messaging features like interactive menus, media content and chat bot support. Most importantly, brands can use RCS to send verified messages to their customers. Vonage RCS will help enterprises fully realize the business benefits of RCS, to drive memorable customer journeys and build long-lasting customer loyalty.”

Adapting to emerging trends and technological advancements in the mobile ecosystem and driven by the increasing demand among mobile users for dynamic, multimedia experiences, together with the rise in mobile data consumption, the RCS market is projected to experience significant growth and maintain relevancy as a communications service. The global RCS market was valued at USD $317M in 2024 and is estimated to reach $4.2bn by 2029, a CAGR of 68%². The expansion of high-speed mobile networks further fuels this adoption, facilitating broader access to RCS capabilities.

Vonage RCS is currently generally available (GA) in 10+ countries across EMEA, North America and South America and can be embedded into a business’s applications with Vonage Messages API for customized conversations. RCS communications can also be powered with Vonage Conversational Commerce, to enhance engagement efforts across the entire customer journey.

Vonage RCS will be showcased at CASA24 in Amsterdam, the Netherlands, on September 16-18, Digital X in Cologne, Germany, on September 18 and 19, as well as in Munich on October 9 and Berlin on October 10. Visitors to the events will also have the opportunity to learn more about how Vonage is extending its market-leading Communications Platform as a Service (CPaaS) platform, to enable developers to build advanced secure, reliable and innovative applications by exposing 5G capabilities as network APIs.

For more information, visit www.vonage.com.

¹ Google for Developers newsletter

² "RCS User, Traffic and Revenue Forecast: 2024 - 2029" by Charlotte Palfrey, Senior Analyst, Advanced Messaging and Communications from Omdia, published September 2024.

About Vonage

Vonage, a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage's Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging, AI and Verification into existing products, workflows and systems. The Vonage conversational commerce application enables businesses to create AI-powered omnichannel experiences that boost sales and increase customer satisfaction. Vonage's fully programmable unified communications, contact center and conversational commerce applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or remotely - providing the flexibility required to create meaningful engagements.

Vonage is headquartered in New Jersey, with offices throughout the United States, Europe, Israel and Asia and is a wholly-owned subsidiary of Ericsson (NASDAQ: ERIC), and a business area within the Ericsson group called Business Area Global Communications Platform. To follow Vonage on X (formerly known as Twitter), please visit twitter.com/vonage. To follow on LinkedIn, visit linkedin.com/company/Vonage. To become a fan on Facebook, go to facebook.com/vonage. To subscribe on YouTube, visit youtube.com/vonage.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240916959413/en/

Vonage Media Contact:

Nicola Brookes, +44 (0)207 785 8888, nicola.brookes@vonage.com

Source: Vonage

FAQ

What is Vonage RCS and how does it benefit businesses?

Vonage RCS (Rich Communications Services) is a business messaging solution that offers branded, rich content and conversational marketing capabilities. It benefits businesses by enabling more engaging, secure, and personalized customer interactions, potentially improving customer service efficiency and sales conversion rates.

In which countries is Vonage RCS (ERIC) currently available?

Vonage RCS, part of Ericsson (NASDAQ:ERIC), is currently generally available in over 10 countries across EMEA (Europe, Middle East, and Africa), North America, and South America.

What is the projected growth of the global RCS market according to the Vonage (ERIC) press release?

According to the press release, the global RCS market is projected to grow from $317 million in 2024 to $4.2 billion by 2029, representing a compound annual growth rate (CAGR) of 68%.

How can businesses integrate Vonage RCS into their existing systems?

Businesses can integrate Vonage RCS through the Vonage Messages API for customized conversations or use it with Vonage Conversational Commerce for enhanced engagement across the customer journey.