SMS is still the best way for companies to reach out to customers. One study suggests that 87% of businesses have used an SMS platform to communicate with customers. 
But have you wondered how companies send bulk SMS messages without having individual accounts with every mobile carrier? This is where the SMS aggregator enters, serving as an intermediary between businesses and mobile network operators.
SMS aggregator streamlines the SMS delivery process and offers several benefits to businesses.
In this guide we will discuss the benefits of SMS aggregators, how they work, and the difference between Tier 1 and Tier 2 SMS aggregators. We also offer you some advice on how to choose an SMS aggregator for your business.
KEY HIGHLIGHTS
- An SMS aggregator is an organization or a platform that connects businesses and mobile network operators.
- There are two types of SMS aggregators: Tier 1 and Tier 2. Tier 1 has a direct connection with MNOs, while Tier 2 has an indirect relationship.
- Most businesses use SMS aggregators to send bulk SMS messages, such as time-sensitive alerts, order updates, and SMS marketing campaigns to a wider audience.
- SMS aggregators offer you multiple advanced features such as two-way SMS, message scheduling, and many more.
What Is an SMS Aggregator?
An SMS aggregator is an organization or a platform that connects businesses and mobile network operators. It sits between businesses and mobile network operators, ensuring each message is routed correctly to the intended recipients. It has direct access to all global mobile carrier networks like Verizon, AT&T, Vodafone, and T-mobile.
As a result, businesses can send messages even when customers are using different carriers. SMS aggregator handles the routing, delivery, and management of text messages.
For example, you want to send a bulk SMS campaign to your customers. Instead of needing individual connections with every wireless carrier in the world, you can utilize an SMS aggregator.
Key Components and features:
- Global coverage
- Integrations
- Two-way SMS
- Reporting and Analytics
- Regulatory compliance
- Dynamic routing
Benefits of SMS aggregators
SMS aggregators play a crucial role in business communication, offering several benefits such as customer engagement and reliability. Besides that, here are the major benefits of SMS aggregators:
- Cost-effective: Aggregators offer you competitive bulk SMS pricing compared to direct carrier rates, resulting in a significant reduction in communication costs. It makes SMS aggregators a cost-effective solution for sending bulk SMS.
- Global reach: SMS aggregator provides you with international connectivity which allows you to send text messages globally. This helps you to build your brand value to a wider audience.
- Convenience: With SMS aggregators, you no longer have to juggle between multiple carrier relationships and contracts. This platform allows you to manage all your SMS needs through a single platform, allowing you to save time and resources.
- Scalability: The major benefit of SMS aggregators is their scalability. Whether you are looking to send messages to a few people or a large group of people, you can easily scale your communication efforts up or down with ease.
- Advanced features: SMS aggregators offer you several advanced features such as two-way SMS, message scheduling, and many more. Using these features, businesses can optimize their communication strategy.
What Does an SMS Aggregator Do?
The SMS aggregator serves as a bridge between businesses and MNOs for sending bulk messages. Here is what an aggregator does:
- Connects businesses to MNOs: Businesses now don’t need an individual contract with each carrier, as the SMS aggregator has a direct connection with a vast network of MNOs globally. You can send messages even though customer uses different mobile carriers.
- Routes messages efficiently: When a business sends an SMS campaign message, the aggregator receives the messages and routes them to the appropriate MNO based on the recipient’s Phone Number. This ensures messages are delivered efficiently and reliably.
- Provides features and tools: Most aggregators offer advanced features such as real-time updates, two-way SMS for customer interactions, message scheduling for optimal timing, or analytics to track campaign performance.
Also Read: Creative Ways to Use Bulk SMS for Customer EngagementHow Do SMS Aggregators Work?
SMS aggregators work by bridging a gap between Mobile Network Operators (MNOs) and businesses. It is an essential part of communication for businesses to reach out to customers. It allows companies to send reminders, transactional alerts, and other messages to a large number of people at once. So, let’s delve deeper into how these SMS aggregators work behind the scenes:
- Business sends text messages: First, a business creates an SMS campaign using an SMS software provider’s platform and sends it to an SMS aggregator.
- Connected to aggregator: Then, when the SMS aggregator receives your campaign data, which includes messages and recipient phone number, it establishes a connection between you and the MNOs.
- Text message routing: Once the connection is established, the aggregator analyzes each recipient’s phone number to identify the most efficient route for message delivery.
- Message delivery: Once the optimal route is determined, the aggregator transmits your messages to the appropriate MNOs. These mobile network operators are the final towers that are responsible for getting to the recipient’s phone.
- Confirmation: Lastly, most aggregators offer delivery reports, such as confirmation receipts, indicating whether your messages are successfully delivered, pending, or failed.
Tier 1 Vs. Tier 2 SMS Aggregator. What Is The Difference?
The major difference between Tier 1 and Tier 2 SMS aggregator is their relationship with MNOs.
While Tier 1 has a direct connection with MNOs, Tier 2 aggregators have an indirect relationship. Further, Tier 1 offers faster delivery, higher reliability, and more detailed reporting for your SMS campaigns. Meanwhile, Tier 2 potentially has a slower delivery, lower reliability, and less accurate reporting.
To clarify more, we have made a comparison table of Tier 1 and Tier 2 SMS aggregators:
| Tier 1 SMS Aggregator | Tier 2 SMS Aggregator |
| Direct connections to MNOs | Indirect connections to MNOs (through Tier 1 aggregators or other middlemen) |
| Faster delivery | Slower delivery |
| Higher reliability | Lower reliability |
| More accurate and detailed reporting | Less accurate or detailed reporting |
| Potentially slightly higher price | Lower price than Tier 1 SMS Aggregator |
| Robust infrastructure for large volumes | Can handle large volumes, but scalability might be lower |
| Typically, a high level of customer support | Customer support levels may vary |
What’s the Difference Between an SMS Aggregator and an SMS Gateway?
SMS aggregators and gateways are similar, but they play different roles in delivering text messages.
An SMS gateway is a platform for sending SMS messages between applications and SMS-enabled networks. It serves as a bridge, facilitating communication and allowing for easy sending and receiving of SMS messages. However, a gateway may only have a connection to a few mobile carriers. Therefore, businesses often use SMS gateways to send SMS messages from their system on a smaller scale.
On the other hand, SMS aggregators have a connection with vast mobile network operators from across the world. It is mainly used to send large volumes of messages. An SMS aggregator’s infrastructure includes an SMS gateway to ensure message delivery.
How Do Businesses Use Bulk SMS Aggregators? (Use Cases)
Businesses use bulk SMS aggregators in various ways to enhance their communication and ensure prompt content delivery to their subscribers. Here are a few examples:
- Time-Sensitive Alerts: The powerful use case of bulk SMS aggregators is sending timely alerts such as appointment reminders, flight delays, meter expirations, internet expiration,s and many more. Businesses can send reminder messages using a bulk SMS aggregator.
- Order updates: A company that sells goods to its customers can send order updates to customers. They can send that their order is confirmed and keep track of their goods during the process of delivery.
- SMS marketing campaigns: Sometimes customers are not aware of brand promotions and discounts. So, to inform them, businesses can use bulk SMS aggregators to send them messages regarding their offers.
- Customer service: SMS aggregators offer two-way SMS messaging features that help businesses handle customer service inquiries more efficiently. This allows businesses to easily communicate with their customers by sending and receiving SMS messages.
Tips to Choose best SMS Aggregator for your business
There are different aspects that you have to look out for when choosing an SMS aggregator for your business. Before selecting any Aggregator, ask some questions to know about their relationship with MNOs, response time, and other things.
Here are some questions that you need to ask your prospective partner about their SMS aggregator:
- Do you have a connection with global MNOs?: The first question to ask your prospective partner is whether they have a vast connection with MNOs or not. You have to ensure that your message gets to every customer even though they are using different carriers.
- What is your general time for response?: You have to know the general time of response. When you send an inquiry to them, they have to send a quick response, mentioning the time to solve the ticket. Resolutions may vary depending on the problem, but they should at least send a message to you.
- What is the procedure for handling tickets?: No wonder, people hate when aggregator uses automated systems for interaction. When you send a ticket, there should be a real person to address the inquiries.
- Could I have a conversation with some of your current clients?: People who use the product already know the good and bad side of it. So, always try to ask if they can speak to some of their clients to know about their pinpoints.
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Final Thoughts
Sending individual messaging is not compatible for businesses as it may take time and more effort.
Therefore, the SMS aggregator emerged as a revolution in business communication. It has a global connection with every global mobile network operation, allowing you to send bulk text messages at once whether your customer uses T-Mobile or Vodafone.
Using an SMS aggregator, you can reach a wider audience at a less cost, compared to direct carrier rates. Even more, you can easily scale your communication efforts up or down whether you have to send messages to a few people or a large group of people.
However, to increase the efficiency of your business communication, choosing the right SMS aggregator is essential. So, try to find out about the connection with global MNOs, the procedure for handling tickets, and the general time for inquiries response.
When you choose the right SMS aggregator, you can maximize the efficiency of your marketing campaigns and conversations with customers.
Check Out: Best Mass Texting Services to Reach More People InstantlyFAQ
How many SMS aggregators are there?
There are two types of aggregators: Tier 1 and Tier 2 SMS aggregators. Tier 1 aggregator has a direct connection with MNOs. Meanwhile, Tier 2 has an indirect relationship with MNOs.
How much does an SMS aggregator service cost?
The cost of an SMS aggregator service can vary significantly based on various factors, including the service provider, the volume of messages, destination countries, and features that they offer. However, on average, SMS aggregator service costs around $10-20 monthly for limited messages.
What are the top SMS Aggegators companies?
These are the top SMS software providers:
- Twilio
- MessageBird
- Clickatell
- Vonage
- Plivo
How to Become an SMS Aggregator?
The initial step to becoming an SMS aggregator is to find a niche market and start negotiating contracts with carriers on their behalf in exchange for a commission.
As an aggregator, you have to consider the needs of the user. Your clients are looking for a dependable and simple service. Therefore, give them free trials for a certain time. Then, make sure to provide exceptional customer service, establish reasonable prices, and advertise your company. Remember that the SMS aggregator’s price will change based on the wireless provider you use.
The wireless providers charge you for message access because you are communicating with them. Next, request messaging access on these wireless networks from companies and software vendors.
What types of businesses benefit most from SMS aggregators?
Most businesses benefit from SMS aggregators that provide efficient communication, global reach, integration, cost-effectiveness, regulatory compliance, and security.
