The global A2P SMS market has been steadily rising over the past years.
This is great news for brands as they have an additional channel which they can reach their customers on, however, how does a company select a supplier from the countless of options out there on the market?
According to Statista, the size of the A2P market worldwide will grow from 37 billion USD in 2013 to 78 billion USD by 2022. Undividable a large market brings a large array of suppliers to the table. So how does one select?
We are living in an era in which the customer is the central focus of all companies’ strategies.
Almost all decisions are based on the customers’ needs & wishes and expectations must be managed accordingly if they are to gain their loyalty. Different components are essentials to the success of a company. Having a good product and/or service to offer the market is one thing, but in addition to this, there must be a great team of passionate people in the background who are driving this success.
The above-mentioned are all-important elements that can definitely give your company a competitive advantage, however on top of all this, success very often hinges on the way you choose your suppliers. Suppliers nowadays need to be considered as your partners, as they are the ones who can help grow and stabilize your business.
The right partner is the one that provides you with the most fitting products and services at the right prices, at the right time and with the right quality.
Depending on the industry, type of product and environment, the supplier selection process might vary, however, below are some important criteria that you should take into consideration when choosing your partners:
You should be the one driving the decision and not just buy what your partners have to offer. Get a clear picture, of your customers’ needs and make sure to share these requirements fit accordingly with your potential future partners. This step will help them to work more efficiently and to be in line with your long-term strategy. Especially in the A2P SMS market where the features, the latency and the type of solution you are looking for are of paramount importance.
Price is definitely a major factor of your selection process, but it does not always mean corresponding quality. In order to get better prices without affecting the quality of your product and/or service, you need to work closely together with your partners and give them the chance to optimize their costs as well. If your supplier has a low margin while you are making an overall high return, it will either affect the overall quality of their service or put their entire business at risk. In the end, it will make you lose much more than you can earn by lowering their prices.
It is actually a combination of several different things, such as your partner’s margins, your joint volume of business and your joint relationship. Finding the right balance in-between will guarantee you a high level of quality at an affordable price. The objective is not to have a large amount of partners but to reduce these to an appropriate number and make sure to select the most reliable ones. SMS is a highly competitive business that drives companies to search for new partners to unfortunately often compete at the expense of quality.
Criteria are different from one individual to another; it can be at emotive and on a personal level. It always seems easier to collaborate with somebody who shares your interest or you can have a leisurely fun chat with. Ease of cooptation and reputation should be top of mine in the selection process, but remember, do not let anyone or anything alter your judgment, as selection will be subjective and completely personal.
Aggregators are acting globally and need to constantly adapt to the changing environment, something they wouldn’t be able to do without the help of their trusted partners.
The important point to remember is that you always need to make choices in your company’s interest and therefore make the best selection to be in line with the overall business strategy.
“I started off in the A2P SMS business back in 2016, coming from a completely different industry. My daily tasks involve procuring the most reliable routes at the most affordable prices. I’m constantly challenged and excited by this dynamic market as I need to be on top of as much information as possible regarding global SMS sending as possible. The exciting part is that once I’m done I start again, as this business is in constant evolution and I work daily to support the needs of DIMOCO and our customers”
Strategic Partnership Manager, DIMOCO Messaging
DIMOCO’s global SMS network allows for worldwide SMS sending. We enable you to reach your customers no matter where they are in the world. If you are wondering how SMS can be used as part of your Omnichannel marketing plan, please drop us an email at email@example.com.
Head of Corporate Communications
DIMOCO Corporate Headquarters
Tel: +43 1 33 66 888-2059