Twilio Expands Access to Rich Communication Services to Enhance Branded Messaging and Build Customer Trust

Rhea-AI Summary

Twilio (NYSE: TWLO) has announced the global availability of Rich Communication Services (RCS) messaging via its Programmable Messaging and Verify APIs. This enhancement allows businesses to send branded, verified messages without code changes, incorporating features like business logos, taglines, and trusted sender verification by Google. RCS automatically upgrades SMS messages on capable devices at no additional cost for basic messages up to 160 characters.

Key benefits include increased customer trust and engagement, with a 2024 Twilio survey showing 75% of consumers reported increased trust in branded texts. The technology also enables rich content and interactive features like call-to-action buttons and carousels. Twilio manages carrier registration, onboarding, and capability checks, ensuring seamless delivery across RCS and SMS platforms.

Positive

• Global availability of RCS messaging through Twilio's APIs
• Automatic upgrade of SMS to RCS at no additional cost for basic messages
• Increased customer trust and engagement with branded messaging
• No code changes required for businesses to implement RCS
• Rich content and interactive features to drive higher engagement and conversion rates
• 75% of consumers reported increased trust in branded texts according to Twilio's survey
• 40% of consumers made repeat purchases with trusted communication channels

Negative

• None.

Insights

Market Research Analyst

Twilio's global rollout of Rich Communication Services (RCS) messaging is a significant development in the customer engagement landscape. This move addresses a important market need, as evidenced by their 2024 consumer survey showing 75% of consumers reporting increased trust in branded texts. The timing is particularly strategic, coinciding with Apple's announcement of RCS support on iPhones, which dramatically expands the potential user base.

From an investor's perspective, this positions Twilio favorably in the competitive messaging market. The no-code implementation lowers barriers to adoption for Twilio's 300,000+ customers, potentially driving rapid uptake and revenue growth. The reported 32% increase in customer engagement and conversion rates for RCS users, cited by Futurum Research, suggests a strong value proposition that could translate into increased market share and customer retention for Twilio.

Tech Expert

Twilio's RCS implementation stands out for its seamless integration with existing systems. The ability to upgrade SMS to RCS without code changes is a significant technical achievement, reducing friction for adoption. This approach aligns with modern DevOps practices, allowing for rapid deployment and iteration.

The addition of rich content features like interactive carousels and call-to-action buttons brings messaging capabilities closer to those of dedicated apps, potentially reducing the need for businesses to develop and maintain separate mobile applications. However, it's worth noting that while RCS offers enhanced features, it still operates within the constraints of carrier networks, which may impact delivery speed and reliability compared to over-the-top (OTT) messaging services.

Financial Analyst

While Twilio doesn't provide specific financial projections for RCS, the market potential is substantial. With over 300,000 customers able to access RCS at no additional cost for basic messages, Twilio is positioning itself for increased usage and potential upsells to premium features. The trust factor highlighted in their consumer survey—49% increased trust with branded messages—could lead to higher engagement rates and, consequently, higher message volumes.

Investors should watch for metrics on RCS adoption rates among Twilio's customer base and any impact on Average Revenue Per Customer (ARPC) in upcoming earnings reports. The no-code implementation could accelerate adoption, potentially leading to a near-term boost in messaging revenue. However, the full financial impact may take time to materialize as businesses integrate RCS into their customer engagement strategies.

RCS Powers Branded and Verified Messages for More Than 300K Twilio Customers with No Code Changes

SAN FRANCISCO--(BUSINESS WIRE)-- Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, announced the global availability of Rich Communication Services (RCS) messaging via its Programmable Messaging and Verify APIs. RCS enhances traditional messaging by introducing branded sender identification in their default messages app, ensuring customers can immediately recognize and trust the source of their messages. With this update businesses will be able to send branded, verified messages that build trust and drive customer loyalty—all without the need for code changes.¹

Specifically, Twilio RCS provides:

• Branded Messaging: Twilio’s RCS offering automatically upgrades SMS messages to RCS on capable devices at no additional cost for basic messages up to 160 characters. Features include the incorporation of business logos, tagline, business name, trusted sender verification by Google, and read receipts. This ensures that customers always know who they are communicating with, enhancing trust and engagement—key factors in driving repeat purchases and first-time transactions.
• Rich Content and Interactive Features: RCS messaging allows businesses to create compelling and interactive experiences with call-to-action buttons, interactive carousels, location sharing, and quick reply options². These features empower users to take immediate actions within the message itself, driving higher engagement and conversion rates, while reinforcing brand authenticity.
• No Code Changes: One of the key advantages of RCS with Twilio is the ease of adoption. Businesses can configure their RCS brand and sender verification through the Twilio Console, allowing them to start sending trusted communications without any code changes. Twilio also manages registration and onboarding with carriers, capability checks, and provides tools to ensure messages are delivered over SMS when RCS is not available.

In today's evolving landscape, it's crucial for businesses to build and maintain trust with consumers, especially as they get inundated with notifications and texts. According to a 2024 Twilio consumer preferences survey³ 75% of consumers who received a branded text said it increased their trust in the message, with nearly half (49%) stating they would trust brands more if a logo or check mark was present. This trust translates into action: 4 in 10 consumers made a repeat purchase, and 1 in 4 made a purchase for the first time when brands used trusted communication channels. RCS is a key part of Twilio’s broader offering that enables trusted, branded communications across all channels, including branded caller ID and support for Brand Indicators for Message Identification (BIMI) for email. Twilio’s suite of APIs empowers businesses to create trusted, engaging communications that stand out in a crowded market and can drive ROI.

“At Twilio, we believe building engagement with your customers should be as seamless and trusted as possible,” said Inbal Shani, Chief Product Officer of Twilio Communications. “RCS makes this a reality by delivering richer interactions, improved deliverability, and most critically, building trust in your brand, without changing a single line of code.”

For businesses looking for a more dynamic and interactive communication channel, RCS offers a secure, trusted, and enhanced alternative to SMS and MMS. While SMS remains a vital tool for many use cases, RCS provides a standardized, feature-rich platform that bridges the gap between traditional messaging and the interactive experiences offered by over-the-top (OTT) channels like WhatsApp. Branded communications ensure that businesses can deliver seamless, engaging experiences that resonate with customers and build lasting trust.

“According to a recent study by Futurum Research, businesses using RCS have experienced a 32% increase in customer engagement and conversion rates compared to traditional SMS. Twilio's latest announcement makes sense focusing on RCS solutions to help drive value for their customers,” states Paul Nashawaty, Practice Lead, Application Development and Modernization at Futurum. “This is likely due to RCS's ability to deliver richer, more interactive content, such as images, videos, and buttons, which can enhance the customer experience and drive higher ROI.”

Availability

Twilio’s RCS messaging is available in public beta globally to all businesses in Programmable Messaging and generally available in Verify.

Previously, the adoption of RCS was limited by its availability only on Android devices. However, with Apple’s recent announcement that RCS will be supported on iPhones starting this month, the stage is set for widespread adoption of this technology. For more information and to request access, please visit https://www.twilio.com/en-us/messaging/channels/rcs.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which involve substantial risks and uncertainties. Forward-looking statements contained in this press release include, but are not limited to, statements about the future availability of features and functionality in certain Twilio products, including RCS features in Programmable Messaging and Verify, and potential benefits to customers.

You should not rely upon forward-looking statements as predictions of future events, the outcome of which are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including those more fully described in our most recent filings with the Securities and Exchange Commission.

Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made and we undertake no obligation to update any forward-looking statements, except as required by law.

About Twilio

Today's leading companies trust Twilio's Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. Across 180 countries, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers. For more information about Twilio (NYSE: TWLO), visit: www.twilio.com.

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¹ No code changes required for most businesses using Twilio Messaging Services
² Rich Media and Interactive Features will be available early next year
³ Results are based on a 2024 Twilio sponsored survey of 3,900 global consumers

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909981118/en/

Press@twilio.com

Source: Twilio

FAQ

What is Twilio's new RCS messaging feature?

Twilio has launched Rich Communication Services (RCS) messaging globally through its Programmable Messaging and Verify APIs, allowing businesses to send branded, verified messages with enhanced features like logos and interactive elements.

How does RCS messaging benefit businesses using Twilio (TWLO)?

RCS messaging on Twilio (TWLO) enhances customer trust and engagement by providing branded sender identification, rich content, and interactive features. It also increases conversion rates and requires no code changes for implementation.

What are the key features of Twilio's RCS messaging?

Twilio's RCS messaging includes branded messaging with business logos and taglines, trusted sender verification by Google, rich content like interactive carousels, and automatic upgrades from SMS at no additional cost for basic messages.

How does RCS messaging impact consumer trust according to Twilio's survey?

According to Twilio's 2024 consumer preferences survey, 75% of consumers who received a branded text reported increased trust in the message, and 49% stated they would trust brands more if a logo or check mark was present.