A2P Messaging: Mitto’s Regional Director Shares Insights for Argentine Companies

By May 2, 2023

A recent study revealed that about 69% of users abandon their online shopping carts and three-quarters of these return to complete their purchase thanks to a reminder message from the store, an A2P (application to person) text message.

A2P SMS are text messages sent from businesses to individuals, which have varied employability such as bank transaction notifications, security alerts, package delivery updates, medical appointment confirmations, authentication codes and discount promotions. This is a powerful method to connect companies in sectors such as banking, healthcare and e-commerce, among others, more efficiently with their customers. 

In Argentina, the practice has gained traction due to the demand for personalized and automated messaging solutions and is expected to continue to expand in the near future.

A2P messages are a widely accepted and cost-efficient form of communication. They can be sent quickly and efficiently to a large number of recipients. Recipients value the SMS they receive as they know they are relevant, and as a result, 90% of recipients open the SMS within the first 3 seconds of receipt.

Argentina Reports spoke with Carlos Manuel Losada, an Argentine entrepreneur and the Regional Director for the Americas at Mitto, a Swiss omnichannel services provider  operating in Argentina, to gain insight on how Argentine firms can better implement A2P into their commercial strategies.  

Argentina Reports: What opportunities does A2P messaging present for businesses in Argentina?

Losada: One of the main opportunities offered by A2P messaging is the possibility of sending personalized and relevant messages to customers at the right time; you can’t imagine the value behind that promptness. For example, an online store or retailer can send a message to a customer to remind them about a product they have forgotten about in their shopping cart, or a message with special discounts for a product they have purchased in the past.

Another opportunity offered by A2P messaging is the ability to automate communication with customers, allowing businesses to save time and resources. Instead of having to send messages individually to each customer, companies can schedule automated messages that are sent based on customer actions.

In general, the typical Argentine consumer’s relationship with stores is characterized by an appreciation of the quality of products and services, a prioritization of price comparisons among various options, and a sensitivity to the country’s economic situation. Companies that understand these characteristics and offer quality products and services at competitive prices, through omnichannel sales channels, can be successful in the Argentine market.

AR: How can companies take advantage of this trend to grow and expand?

Losada: I think that to take advantage of this trend and grow, companies in Argentina should ask themselves the following questions:

  • Are the customer touch points identified? Companies should identify the key moments in which their customers interact with them, such as buying online or by subscribing to a service or visiting a physical store.
  • Are A2P messaging tools being used? Retailers can use them to automate communication with their customers and send them personalized and relevant messages at the right time.
  • Is segmentation being leveraged? Segmentation can be used to send personalized messages to different groups of customers, such as those who have purchased in the past, those who abandoned a shopping cart, or those who have interacted with the company on social media.
  • How are the results being measured? The outcomes of A2P messaging campaigns should be quantified to identify which messages work best and adjust your strategy accordingly.

AR: What are the main motivations that lead an Argentinian consumer to leave his or her shopping cart unattended and not finalize the purchase? 

Losada: Well, Argentines, like the rest of Latin Americans, are generally looking for the best cost-benefit option. If at the time of filling your cart you are faced with unexpected additional costs such as extra charges for payment methods, additional taxes, or a very high shipping cost and you don’t have the need or urgency to take that product, you will most likely discard it. 

Another essential thing to keep in mind is that if the website has an unfriendly design with the customer or does not offer a comfortable user experience, or is very slow, or has errors when processing the payment, this can cause additional frustration and lead to desist, so it is very important to be aware of the customer journey from start to finish. E-commerce should be intuitive, easy to navigate, fast and visually comfortable.

AR: How do you think this service and ultra-personalization will evolve with new technologies?  

Losada: I love this question because the most trending technologies such as Artificial Intelligence (AI) are now permeating every industry, every product and every line of business, so there is inherently a change here as well. 

With the use of AI, A2P messaging is expected to become even more efficient and personalized for users. By using algorithms and machine learning, companies can better analyze and understand consumer behavior and preferences to send more relevant and personalized messages.

This also means that it will be possible to automate tasks and processes related to A2P messaging, which can improve efficiency and reduce costs for businesses.

Disclosure: This article mentions a client of an Espacio portfolio company.