Whitepaper: Harnessing the Communications Potential in Mobile Commerce

White Paper
Harnessing the
Communications Potential
in Mobile Commerce

Harnessing the Communications Potential in Mobile Commerce 2
White Paper
Contents
Introduction........................................................................................................................... 3
The Movement of Information Mirrors the Movement of Goods.........................................4
Data Demand as a Business Opportunity.................................................................................... 4
An Optimised End-to-End Data Capture and Distribution Solution.......................................6
The Data Dynamics of the Merchant/Carrier Engagement............................................................. 6
Pushing Data via SMS............................................................................................................ 7
Pushing Data via Email........................................................................................................... 7
Pushing Data via “Over-the-Top” Messaging Applications........................................................... 7
The Data Dynamics During Shipment.......................................................................................... 9
The Data Dynamics of the Carrier/Consumer Engagement............................................................ 9
Return-Related Data Flows and Communications........................................................................10
More Intelligent Operations Create More Opportunities to Communicate........................................12
Building an M-Commerce Communications Solution........................................................13
Selecting an SMS and Voice Gateway Partner............................................................................13
Selecting the Right Services.....................................................................................................14
Build on the Brand with SenderID............................................................................................14
Look for a Number Pre-Check API..........................................................................................15
Look for a Full-Service Voice API............................................................................................16
Communications Considerations Associated with Cross-Border Commerce...................................16
Scenario: Communicating When a Total is Not Actually the Total...................................................19
Creating Insights of Compelling Value...............................................................................20
Justifying the Required Investments...........................................................................................21
About Nexmo......................................................................................................................22
This white paper looks at the evolving world of mobile commerce and the
business opportunities that it presents to postal and logistics providers. It is no
longer a world in which carriers focus only on the timely delivery of packages and
parcels. In the world of m-commerce, the ability to capture, manage, and deliver
data can be even more important for long term customer loyalty and satisfaction,
as well as for long term cost reductions and operating efficiencies.

Harnessing the Communications Potential in Mobile Commerce 3
White Paper
Introduction
There is little doubt that mobile commerce
(m-commerce)—by which we mean
transactions made using a mobile device
connected to the web, such as a phone,
laptop tablet, Kindle, and so on—presents
postal and logistics operators with an
opportunity to grow business. As the cost
of mobile devices drops ever lower, more
and more consumers have access to the
mobile commerce ecosystem. With that
ease of access comes great enthusiasm,
because consumers can source and
order merchandise more easily than ever.
Concurrently, more and more companies
are making their wares available through
m-commerce oriented channels—whether
through their own apps, as companies
like Best Buy and Nordstrom are doing
in the U.S., or through apps put out by
m-commerce channel managers, such
as Amazon. Compared to expanding a
brick-and-mortar infrastructure, setting
up and maintaining a virtual storefront is
relatively inexpensive, so selling goods
through a virtual storefront holds attractive
prospects for merchants—and it is clear that
consumers want the option to shop for their
products through this channel.
For postal and logistics service providers
there are two significant opportunities bound
up in the m-commerce dynamic. There’s
an obvious role for a carrier to collect and
move goods from a merchant to a consumer
that may live thousands of miles away1
.
But there’s also a less obvious but just as
important role for a carrier that can collect
and move information between merchants
and consumers. In fact, the role of managing
the movement of information may not be just
as important as the role of moving goods;
in the long run, it may be far more important
because it provides you with information
that your customers will want so they can
improve the experience of their customers.
This white paper will explore the
opportunities presented by m-commerce as
they relate to the capture and management
of data. It will propose several ways to
reconsider and perhaps reconstruct certain
communications structures so that you can
increase revenues while simultaneously
containing operating costs and creating a
better experience for both the merchants
and consumers who will benefit from this
information.
1
In the interest of
clarity, we shall
hereafter use the
term “carrier” to
refer to the postal
and logistics
operators that are
moving goods from
place to place; we
shall use the term
“merchant” to refer
to the party from
which the shipment
originates and the
term “consumer”
to refer to any party
receiving a shipped
parcel. It will be
understood that
“merchants” can
be large or small
businesses (as well
as individuals), just
as “consumers”
can be.

4Harnessing the Communications Potential in Mobile Commerce
White Paper
The Movement of
Information Mirrors
the Movement of Goods
Every time a product is purchased in the
m-commerce environment, information is
generated. As goods move between the
selling and buying parties, information is
generated and moved (in both directions:
from upstream down, and from downstream
up). At some point in
this process, the title of
ownership transfers from
one party to another—and
with that transfer more
information is created and
moved.
In general terms this
information takes the form
of answers to several key
questions:
• Where is the product right now?
• Has product ownership been transferred
from the old owner to the new owner?

What is distinct about the movement of
information, compared to the movement
of physical cargo, is that the volume of
information associated with the movement
of goods can grow at a much higher rate
than the rate at which the volume of goods
themselves may grow. Why? Because
the Internet has expanded customer
expectations regarding ready access to data.
Once merchants and consumers realised that
they could use a browser or a mobile app to
see whether a package had been shipped
or delivered, the demand for information—
from many different points along the transit
arc—expanded dramatically. Five years ago,
customers were happy if a logistics operator
communicated by way of a note left on the
door. Today’s customers—merchants and
consumers alike—want to receive multiple
SMS and email messages with detailed
updates about the status of a package.
Indeed, many of today’s merchants want
to integrate a carrier’s data feeds into
their own platforms so that they may
provide tracking and tracing data to their
customers. Their rationale? Improve the
customer’s experience, as that’s critical to
customer loyalty.
Data Demand as a Business
Opportunity
This demand for data, and the desire of
merchants and consumers alike to access
data from multiple communications points,
presents carriers with a compelling business
development opportunity. Not only can
providing data enable you to provide a
much better experience for merchants and
consumers, but it can also enable you to
increase revenues and reduce operating
costs simultaneously. Moreover, the curious
characteristic of data demand is that the
more liberally you communicate data to
merchants and consumers, the more the
opportunities arise to generate more data—
some of which will be quite valuable.
95% of consumers say a positive
delivery experience would
encourage them to shop more
with that retailer in future.
Get delivery right and consumers
will reward you with their loyalty;
92% of women said a positive
experience would make them
choose a retailer over others
offering the same product.
(MetaPak)2
2
http://
d2pp58jiu3r92o.
cloudfront.net/
wp-content/
uploads/2014/11/
Delivering-
Consumer-
Choice.pdf

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Consider: If you, as a carrier do not tell me
about a delivery in advance then I, as a
consumer, may never communicate with
you. If my parcel appears on my doorstep on
time and unbroken, I might have no reason
to contact you. However, if you send me an
SMS to say you will be delivering my parcel
tomorrow at 1pm, I may reply to say that
I will be at work. That exchange, however
seemingly slight, generates valuable data: It
tells you that I am employed and I may have
certain purchasing power.
These bits of data accrue, and they can
help you make more well-informed business
decisions. You may determine, for example,
that this customer or that would be a good
candidate for your personalised loyalty
program. Or perhaps the insights you gain
about customer habits and preferences may
be marketed to select merchant segments.
Both scenarios hold the potential for
generating revenue for you.
The great thing about these communication
flows is that people want them and opt-
in to receive them. You, as a carrier, gain
a non-intrusive way of achieving your
business objectives. From the perspective
of both merchants and consumers, the
right information delivered at the right time
simply translates into improved operational
efficiencies. A consumer can select a method
for accepting a shipment that is conducive to
his or her work or lifestyle demands (taking
delivery at home, at the office, at a collection
point, or some other optional location).
With more detailed information about when
shipped goods will arrive, consumers
can also use the intervening time more
efficiently—yet without having to phone in to
make inquiries about delivery timing, without
having to risk missing a delivery, and so on.
Merchants benefit too: They can enable a
superior customer experience and increase
revenues through improved customer loyalty.
Sharing the right information, at the right
time, and in the manner consumers want
to receive it, can even enable merchants
to reduce their cost of operations. Status
updates actively pushed to consumers can
dramatically reduce the volume of inbound
call centre traffic, which, in turn, can reduce
the merchant’s cost of operating those
customer-facing centres.
So what kind of data capture and
communications system would be
required to enable carriers to realise these
opportunities? Ideally, a carrier would
build a system along the entire length of
the logistics chain to self-generate and
self-distribute the relevant data, to the
relevant parties, at the appropriate time.
Such a system would ideally be clever
enough to learn from itself, too, identifying
opportunities to personalise data and data
deliveries in response to any queries put to
it. The more personalised this data could be,
the more useful it will be for all parties, which
will improve the experience of merchants
and consumers and result in both higher
revenues and greater cost efficiencies.

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An Optimised End-to-
End Data Capture and
Distribution Solution
Let’s consider what such an optimised end-
to-end data capture and distribution solution
might look like in more detail. Fundamentally,
we are looking at a journey with three legs:
From merchant to carrier; from carrier
(inbound) to carrier (outbound); and from
carrier to consumer. We shall look at the
nature of the interactions between a merchant
and a carrier first. Then we shall look at the
carrier’s internal information flows and the
need to capture and share information arising
from those internal processes. Finally, we’ll
look at the interactions between the carrier
and the consumer, the party accepting
delivery of goods purchased from the
merchant.
The Data Dynamics of the
Merchant/Carrier Engagement
During the merchant-to-carrier leg of the
journey, carriers face two critical information
management challenges. They must:
• Maximise data availability,
richness, and granularity so
that as much information as a
merchant (and, by extension,
the merchant’s customer) might
want is available in a form that
the merchant will find useful.
• Ensure ease of integration so
that merchants can access
shipping information quickly
and easily—and then pass that
information, in an appropriate
format, through to their
customers.
For postal and logistics operators, the key to
overcoming both challenges lies in deploying
application programming interfaces (APIs)
and solution development kits (SDKs) with
merchants’ needs in mind. If you make
the APIs and SDKs as light and as easy
to integrate as possible, you can create
a competitive advantage for yourself by
enabling faster time-to-deploy and lower
cost of deployment. This is true whether
the merchant simply wants to access your
logistics data for internal use or whether the
merchant wants to make this information
available to its customers, whose orders they
are shipping via your services. Indeed, if you
add tools that will make it easy for a merchant
to push this data on to its customers, your
data services will be perceived as that much
more valuable. You will be providing your
merchants with the information they need
to create an even better experience for their
customers.
Essentially, there are two ways to do this.
In a data pull scenario, where either a
merchant or a consumer is initiating a data
query through a website or an app, you only
need an API or a web app that can make
the data accessible. However in a data push
scenario, where you are actively sending
data to merchant or the consumer through an
outbound communications channel, you face
other considerations.

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Pushing Data via SMS
If you want to deliver data via an SMS
message, you could integrate an SMS API
into your platform. With such an API you
could push timely updates and alerts directly
to the merchants and consumers. Or, you
could offer an SMS service whereby your
merchants could communicate with their
customers using your data and your SMS API.
This could be a revenue-generating service if
the SMS vendor providing the SMS API treats
you as a marketing channel and shares with
you the revenues generated from routing your
merchants’ SMS.
One significant advantage of using SMS
is that it lends itself to a timely response
from the message recipient. If the person
expecting to receive a package must change
some aspect of the delivery, it takes only
a second to reply to an SMS. But for you
to receive SMS replies you will need to
obtain a local short code or a long virtual
number to which that inbound SMS will be
sent. Your SMS provider should be able to
provide you with these numbers (and you
may need multiple inbound SMS numbers if
you are sending text messages to recipients
in multiple countries). You will also have
to configure your communications system
to be able to process these incoming text
messages, transform them into actionable
commands, and then act upon them (for
instance, to change a delivery time/date).
Pushing Data via Email
If you want to deliver notifications via email
message (or if you want to enable your
merchants to push notifications from within
their branded apps), you only need to push
the relevant data, in an appropriate format,
to the merchant’s server. From there the
merchant can format the data according to
its brand requirements and push the data to
the consumer.
Keep in mind that when a merchant pushes
your data to the consumer through its own
mechanisms, you may lose the ability to
receive timely responses from the consumer.
You must work with your merchants to ensure
that any response received from the message
recipient that relates to delivery is shared with
you so that you can act upon that response
in an appropriate manner. It will do neither
you nor your merchant any good to have
a consumer’s reply land on the merchant’s
email server and sit there, particularly if that
reply requests that you change delivery from
a residence to a shipping locker on the other
side of town.
Pushing Data via “Over-the-Top”
Messaging Applications
Over-the-top messaging applications (OTT
apps), such as Facebook, WhatsApp,
WeChat, LINE, Viber, Tango, and Kik, provide
carriers with yet another way of interacting
with merchants and consumers. While much
of the initial interaction taking place via
OTT apps was person-to-person in nature,
today’s businesses, including many of your
merchant customers, are rapidly adopting
OTT apps for business-to-consumer
communications. That should come as no

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surprise, really: The top 10 OTT apps have
a combined subscriber base of more than 2
billion users.
OTT apps offer global brands the opportunity
to engage one-on-one with consumers
via an app where consumers are already
spending a lot of time. In China, for example,
millions of businesses use WeChat as the
primary channel for interacting with their
customers. They market products, engage in
m-commerce, and provide consumers with
shipping delivery status updates, airline flight
status updates, and more.
As a means of engaging with consumers,
OTT apps provide several benefits over
traditional messaging channels. They enable
rich communications and offer ways to
remain in touch with consumers when other
channels do not. If a
consumer is traveling and
changes the SIM card on
their phone, or has access
only to Wi-Fi, data pushed
via SMS or email may
not reach the consumer’s
phone. As long as that
consumer has access to
the Internet, however, they
can receive messages via
their OTT app.
As members of an OTT community, carriers
can maintain an active presence, one that
is easy for merchants and consumers to
discover. This enhances the consumer’s
ability to obtain status reports about
anticipated deliveries, report missing/
damaged products, and easily connect
directly with customer care personnel if they
need to discuss other issues.
As more and more merchants develop
a presence in the world of OTT apps, it
becomes more and more important for
carriers to enable access to data from
within the world of OTT apps. As with SMS,
the challenge for carriers is to provide an
OTT API that merchants and consumers
can use to pull or push information relating
to an object they want to have delivered.
From an infrastructure perspective, the
challenges associated with incorporating
carrier data into an organisation’ OTT
presence are similar to those associated
with incorporating carrier data into an
organisation’s branded SMS infrastructure.
By making it easy to push data to the
merchants and consumers using an OTT
application, you can make your services
more attractive to the parties who are buying
and selling the goods. You could choose to
offer merchants an API that would enable
them to pull data from your logistics systems
and then push it out to customers, but that
scenario is subject to the same risks as
those described in the previous section.
If a consumer uses an OTT messaging
app to tell a merchant that they need to
change the location or date of a delivery,
that information must be conveyed to you,
not get lost in the inbox associated with the
merchant’s OTT app.
The top 10
OTT apps have
a combined
subscriber base
of more than
2 billion users.

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The Data Dynamics
During Shipment
Merchant interest in the status of a shipment
does not necessarily diminish as soon as
the package is collected; nor, for that matter,
does the consumer’s. Most carriers already
have tools in place that enable merchants
and consumers to track and trace packages
in transit, but if the consumer has to do
the tracking—or, worse, the tracing—there
is a problem. The ideal communications
scenario would be much more seamless and
proactive.
When contemplating the design of your
communications solution, it is helpful to
visualise the movement of a parcel though
your internal processes and to build the
appropriate data communications points
along the way. The more data relating to
a given delivery that you can proactively
make available to merchants and
consumers, the less costly it is to engage
with those parties (for you no longer have
to deal with their queries through your
costly call centre). It is always best to
proactively pre-empt customer enquiries
by setting the right expectations, managing
the movement of product according to
these expectations, and keeping the
interested parties up to date without their
having to ask.
The Data Dynamics of the
Carrier/Consumer Engagement
During the carrier-to-consumer leg of the
journey, carriers face several different
information management challenges.
They must:
• Ensure the timely delivery of rich,
granular data—both down to the
consumer as it relates to the place
and time of parcel delivery as well as
back up to the logistics management
systems, so that the carrier (and by
extension the merchant) always knows
the status of an anticipated delivery.
• Provide a mechanism whereby
consumers can change the time and
place of an impending delivery—and
have that mechanism convey that
change in delivery scheduling back
to the merchant who originated the
shipment.
Fundamentally, the options for meeting
these needs are similar to those outlined
above, including direct outbound email,
SMS, OTT messaging, or via your own
branded app. The fact that many outbound
communications are simple notifications
makes automated voice messaging
systems a viable alternative, too.
The primary difference between the
functionality needed to support the
merchant-to-carrier and carrier-to-
consumer portions of the journey lies
in the nature of the support you will
need for responses to you the data-
driven notifications you communicate to
consumers. Once you alert a consumer that
a package is scheduled for delivery, you

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may find that the consumer wants to change
the time or location of that delivery; they
may even communicate to you that they no
longer want to accept the package and want
it returned to the merchant. Regardless of
the communications channel, those inbound
responses may be much more complicated
to accommodate than any response you
send to a merchant during the first leg of the
journey. Merchants may convey information
to a carrier about packages to be shipped,
but rarely do carriers need to respond to that
information in any complicated way. With
responses inbound from consumers that is
not the case.
SMS and voice channels provide carriers
with the most efficient means of notifying
consumers of pending deliveries. Carriers
can integrate their logistics systems with an
SMS provider’s API and initiate outbound
messages automatically. Automated voice
systems can be integrated in a similar
manner. Both channels can tell the consumer
when to expect a package, and both can
provide instructions on how to collect a
parcel from a delivery centre or lockbox.
Keep in mind that reliable and timely delivery
of SMS and voice messages are crucial
to the consumer’s —and therefore the
merchant’s—satisfaction with your service.
If your outbound notifications contain an
access code that the consumer will need to
unlock a parcel locker, you need to partner
with an SMS or voice provider that can
reliably ensure that the consumer receives
your notification. Similarly, if high latency in
the SMS infrastructure delays the delivery of
your notifications—particularly if they arrive
after the parcel has already been delivered—
then your notifications are of no value to
the consumer or merchant. Indeed, you risk
appearing unprofessional.
To support SMS or voice notifications, look
for SMS and voice service providers that
use adaptive routing algorithms to monitor
live SMS flows and analyse their quality of
delivery. These tools automatically direct
business-critical messages along the best
routing path. This will help you deliver
an optimal experience for all message
recipients.
Return-Related Data Flows and
Communications
Thus far we have looked at data flows and
communications opportunities relating to
the movement of goods and information
from merchant to consumer. Yet that is not
the only direction in which communications
opportunities exist. Carriers can also
capitalise on opportunities relating to returns
arising from the m-commerce ecosystem.
While m-commerce merchants go to great
lengths to ensure that product return rates
are kept to a minimum, they also know that
how they handle a consumer’s desire to
return merchandise is a critical part of the
overall customer experience. Thus, a carrier
has multiple opportunities to provide value:
Not only can you add value by managing
the collection and return of merchandise in

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a way that mirrors the service level that the
merchant strives to project, but you can also
add value by ensuring that the consumer
and merchant are kept abreast of the
movement of that merchandise back to its
return destination. This can help merchants
lower their costs while simultaneously
improving both your reputation and the
reputations of the merchants you support.
Today, most returns take place in one of
two ways: Consumers either drop off the
package at a local delivery point/postal
office or they arrange to have it collected by
a carrier. The latter of these two scenarios
offers many opportunities to engage with the
consumer and create a positive customer
experience.
• You can communicate with the
consumer to let them know when
to expect your vehicle for package
pick up. The day before the
specified pick-up, for example, your
route planning system could push
an SMS to the consumer to confirm
a delivery window.
• Your communication can provide
an opportunity for the consumer
to reschedule the pickup if the
appointed time is unsuitable. Within
your SMS you could incorporate
virtual mobile numbers that would
enable a consumer to reply with
a series of commands that could
subsequently be acted upon by
your scheduling system.
For example, your SMS might read:
“Your parcel will be collected
between 10am—12pm tomorrow,
10 January, on behalf of Merchant
Y. Reply “A” accept and confirm;
“D” to request a 4 hour delay; “P”
to postpone 1 day; or, “C” to cancel
your return.”
This approach enables simple,
direct, 2-way communication with
the consumer. It enables you to
coordinate and confirm return
collections while maintaining the
optimal experience.
SMS has proven to be the most effective way
to communicate quickly with users around
the world. It has the highest read rate (±95%)
of any form of communication, and message
recipients tend to read inbound text messages
within minutes, if not seconds, of their arrival.
Neither email nor traditional telephone calls
enjoy that kind of response any longer. People
tend to read their email when it is convenient
to do so. More and more they accept inbound
phone calls only from callers whose names
they recognise in Caller ID—and only when
they feel inclined to take that call in real time.
Calls that are shunted into voicemail are
reviewed in a manner similar to that associated
with email: People get to it when they can and
when it is convenient to do so.
That said, some consumers might be in an
area where a voice call will achieve a higher
delivery rate than a text message. Carriers can

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work around this by using a text-to-speech
solution attached to a voice API. Instead
of sending an SMS to a mobile phone, the
carrier would route the SMS to the text-to-
speech API, which converts the text message
to spoken speech and pushes the same
message to the consumer as a voice call.
How can a carrier know whether its scheduling
system should send a message to a consumer
via an SMS API or to a text-to-speech API?
If you are unsure whether the phone number
you have for a consumer is a fixed or mobile
number, your SMS provider should have an
API that you can use to check whether a
given number is a mobile, landline, VoIP or
other number. Once you know that, you can
identify a consumer’s number type and then
set the parameters within your outbound
communications system
accordingly. If the number
on file for the consumer is
determined to be a landline,
for example, your system
could send the contents of the
SMS message to the a text-
to-speech API or trigger a pre-
recorded call to confirm the
arrangements for collection.
Finally, of paramount
importance to the customer
experience when you are
collecting a return package
is the timeliness of your
arrival. If you communicate
to a consumer that your
vehicle will be arriving at a
certain time to pick up the package, then
you must arrive as close to the scheduled
time as possible. This is why it is imperative
for carriers to link any response from the
consumer to the scheduling system itself,
particularly if response involves rescheduling
a pick-up.
Equally important as arriving on time, is the
need to communicate with the consumer as
quickly as possible if for some unanticipated
reason the vehicle will be delayed or unable
to arrive as planned. If the vehicle has
broken down or has been called back to
the depot due to weather conditions, it is
important to reset expectations immediately.
Consumers may be unhappy to hear that
their pick-ups will have to be rescheduled,
but they will be unhappier still if you fail to
inform them of the emergency and they stick
around the house or the office waiting for a
vehicle that does not arrive. In that situation,
you’ve not only failed to pick up their
package, but you’ve wasted their time.
More Intelligent Operations
Create More Opportunities to
Communicate
Integrating your inbound and outbound
communications capabilities with other
systems in your infrastructure can help you
deliver a better experience for merchants
and consumers alike. We have already
touched, for example, on the benefits of
integrating your scheduling system with an
inbound and outbound solution. You present
merchants and consumers with timely
56-779
Mon 9 Jan 11:01
< Messages Contact
Delivery Notification: Your
parcel will be collected
between 10am–12pm
tomorrow, 10 January, on
behalf of Merchant Y.
Reply “A” to accept and
confirm. “D” to request a
4 hour delay. “P” to
postpone 1 day; or, “C”
to cancel your return.

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information via push messages initiated by
your scheduling system; you can also revise
your scheduling in real time if your inbound
communications channel can interpret
inbound messages from consumers in the
event that they want to reschedule a delivery
or specify a different delivery location.
Further integration can enable you to raise
the bar even higher.
By integrating the systems you use for
real-time tracking of vehicles on the road,
for example, you may be able to respond
to a consumer’s request for a pick up far
sooner than they might otherwise expect. If
a consumer uses a carrier’s or merchant’s
web app to schedule a return pick-up and
the scheduling system can see that there is
currently a vehicle in the area
(or one is scheduled to be
there shortly), the carrier’s
communication services
could reach out via real time
SMS or voice call to offer
the customer the option to
have their package collected
immediately.
Real-time automation and
communication services
could be vital in enabling
carriers and their merchants
to differentiate themselves
and serve clients more
effectively.
Building an M-Commerce
Communications Solution
The technologies and services required to
build the engagement experiences described
in the previous sections are present in the
market today. More and more supply chain
management and logistics systems are
being built with APIs that enable them to
interact with other applications. Similarly,
rich APIs for SMS, voice, and text-to-speech
services are making it that much easier to
bring communications capabilities to supply
chain management and logistics systems.
Add to this the rapid, worldwide expansion
of 3G and 4G wireless networks and the
increasing ubiquity of mobile devices in the
vast majority of countries, and it is clear
that we live in a world where all the critical
factors are converging to enable carriers to
deliver ever greater value to customers.
There are, then, certain considerations
that must factor into your plans as you
contemplate a response to opportunities
emerging in the world of m-commerce.
Some are broad considerations that apply to
communications gateway service providers.
Others are narrow considerations that apply
to the communications gateway services
themselves.
Selecting an SMS and Voice
Gateway Partner
There are four key considerations involved
in selecting a communications gateway
partner:
56-779< Messages Contact
Delivery Notification: A
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1. Your SMS/voice gateway must have
global coverage. This is important
because your customers are cross-
border. With global commerce revving up
year to year the chances are good that
your business in five years will be more
international than your business today.
Good coverage is key!
2. Your gateway provider should have direct
SMS and voice connections to network
operators throughout the regions in
which you are engaging with your
merchants and consumers. This enables
low latency, high security SMS and
voice message routing, which translates
to rapid, reliable, and consistent
communications.
3. You need a partner that can provide
reliable support on a 24/7 basis. Should
you encounter an SMS or voice delivery
problem that needs to be resolved
rapidly, this is important, because
problems affecting message throughput
can have a direct negative impact on
your customers’ experiences, which can
in turn have a significant impact on your
competitive position in the marketplace.
4. You will want to work with the same
company for SMS and voice APIs if
at all possible. This creates multiple
efficiencies in terms of assessing
the service, integrating, deploying,
monitoring, and resolving problems.
Selecting the Right Services
Beyond the four broad considerations
enumerated above, you want to work with
a communications service provider whose
services are comprehensive, light, and easy to
integrate. This can help strengthen your brand,
minimise time-to-market with your offerings,
and reduce integration and deployment costs.
There are also aspects certain services that are
critical to the creation of positive experiences
for your merchants and consumers.
Build on the Brand with SenderID
The first question that anyone asks when
receiving an inbound SMS, email message,
or text message is “Who is this from?” If the
answer is unclear or inconsistent, then the
communication may be ignored or viewed
with suspicion by the recipient.
This is of particular concern in the area of SMS
and voice services. Your brand (as well as your
merchants’, if you intend to enable them to
send messages through your SMS API) will be
best served by working with an SMS provider
that can configure a messaging parameter
known as SenderID. Just as CallerID identifies
the party calling on the phone, SenderID
identifies the party sending a text message.
However, not all SMS gateway providers offer
the ability to customise a client’s SenderID.
You and your merchants alike will want to
build on your established brands and to gain
the trust of the consumers receiving your
messages, so it is important that you work
with an SMS gateway provider that offers
customizable SenderIDs.

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The provider should also be aware of the
different regulations relating to SenderIDs
among different regions and different network
providers that will be receiving messages for
consumers. It is worth bearing in mind that
SenderIDs are not automatically displayed
everywhere. In certain countries these require
preregistration; in others, a customised
SenderID will be changed to a local short
code. It is essential that your SMS gateway
provider be able to register SenderIDs on
your behalf (as well as on behalf of your
merchants) and they should do this at
no charge. Even if you do not anticipate
sending text messages to countries that
require preregistration of a customised
SenderID, it is important to register the
identity because your SMS and voice traffic
may at times traverse a region that does
require preregistration. If your SenderID is
not preregistered when passing through this
country, even though that country is not its
destination, your SenderID may be stripped
off (best case) or your message may be
filtered out entirely (worst case).
Look for a Number Pre-Check API
Your communications with consumers can
be effective and add value only if they reach
the intended recipient. So, having the correct
phone number for the individual you are trying
to reach, and knowing whether that number
is a fixed or mobile number, is crucial. If you
are attempting to send delivery notifications
via SMS to a consumer’s landline, your
messages will not go through and the
operational costs of interacting with that
customer are likely to be higher than average
due to missed deliveries, subsequent re-
deliveries, customer enquiries, parcel storage,
and environmental pollution.
One API that can help a carrier avoid
these costs (and the less-than-desirable
user experience they reflect) is a number
pre-check or number insights API. This
technology enables you to check the validity
of a phone number (as well as its network
type) at the point of collection. When a
consumer orders a product on a merchant’s
m-commerce site, for example, and enters
billing and delivery information, a number pre-
check API can, within 2-4 seconds typically,
validate that the number is legitimate. A
service provider’s number pre-check API
should even be able to tell you the name
of the network associated with the phone
number and tell you whether the number is
a fixed or mobile number. The number pre-
check API performs this verification silently,
without the consumer’s knowledge. But, if the
consumer has entered a number that is not
valid, the web page can respond to the API’s
error message to ask the consumer to check
the number and re-enter it.
The number pre-check API reaches into
most countries in the world and validating
European mobile numbers is easy, fast,
and relatively inexpensive. Carriers should
expect to pay €0.03 to €0.04 for each query
put to the number pre-check API, but once a
number has been verified and identified as a
mobile or fixed number it can be associated
with a consumer’s profile and there is
generally no need to verify it a second time.

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Look for a Full-Service Voice API
To date, few carriers have made much use
of voice APIs, and in our view this represents
an opportunity that has been overlooked—
both on the outbound and inbound sides of
consumer communications.
A carrier could use a voice API to automate
customer outreach, for example. A
marketing application could interact with
a voice API to call a list of consumers that
have been identified as candidates for a
carrier’s customer loyalty program. When the
consumer takes the call (more likely if your
brand is appearing the SenderID or CallerID
fields), a pre-recorded voice message might
tell the consumer the
reason for the call and
then invite that consumer
to speak to an agent. If
the consumer selects
the agent option, the
call could be passed
automatically to an agent
who can provide a more
personalised service.

Offering the voice API to a merchant that
already sits inside your platform can also
help distinguish you from competing
carriers. Why? Because you could offer
the voice API as a way to help merchants
streamline the merchandise return process,
thereby improving customer experience.
A voice API offering could even help the
merchant generate revenues. How? Imagine
that a consumer sends an SMS to one
of your merchant customers to initiate
the return of a product that did not fit. In
response to this SMS, your systems could
automate a call through the voice API that
would ask if the customer wanted like to
speak to the one of the merchant’s agents
and reorder a better-fitting or alternative
product.
A service provider’s voice API should be
easy to integrate into the fabric of your
operations. Inbound voice-enabled numbers
are not difficult to obtain, and if your service
provider offers access to a voice API on a
pay-per-second billing model you will find
that you pay only for the time you actually
use. This is a flexible model that really lends
itself to customer retention and acquisition.
Communications Considerations
Associated with Cross-Border
Commerce
In Europe today, only about 10% of online
purchases are made cross-border. That
percentage is increasing quickly, though
and is forecast to continue do so. Cross-
border m-commerce presents a wide range
of challenges relating to different levels of
digitisation in region, reverse logistics (for
returns), harmonised payment technologies,
and more.
From a consumer information standpoint,
though, cross-border m-commerce raises
many simpler questions: Do I understand
the delivery options? Is the delivery option
that I prefer available? How long will it take
for me to get the product? Can I track it?
10% of online
purchases in Europe
are made cross-
border—a stat that is
rapidly increasing.

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If it does not arrive where do I turn? What
rights to I have in case of a problem? What
is my value at risk? If I need to return, do
I contact the merchant or the logistics
provider? What is the process for making
a return? How much will it cost to return?
Could I ever get a refund?
Carriers play a critical role in answering
these questions. Yet, providing the
answers to those questions—and providing
information to subsequent questions
that consumers will have once they have
ordered a product—presents a carrier
several very specific challenges that can be
overcome in partnership with a well-chosen
communications service provider. Consider:
• Different countries, and, within those
countries, different network providers,
have different regulations for SMS
messages. Messages formatted for the
recipients of the country from which a
message is sent may not be delivered to
merchants or consumers in a different
country if the messages are not properly
reformatted.
• Languages differ from country to country.
To provide an ideal experience for the
recipient of an outbound message
relating to a shipment, you need a way
to deliver that message in the language
appropriate to the recipient (which may
not be the same language used by party
initiating the message).
These challenges can be overcome. To solve
the challenges associated with different
regional and network provider regulations,
you must be sure that the communications
service provider you choose is familiar with
the regional and carrier regulations. As
noted before, you will benefit even more by
partnering with a communications gateway
provider that already has relationships
directly with the carriers in the countries
to which merchandise will be shipped. Not
only will the service provider be aware of the
local regulations and requirements but those
direct relationships lessen the possibility that
your messages will traverse other networks,
with still different requirements, that will
either delay or alter the content of the
message you are sending.
With regard to language differences, you
can either develop a series of message
templates in different languages that can
be used automatically in response to
information provided by merchants and
consumers (e.g., phone numbers beginning
with +44 will cause messages to be
presented in English while phone numbers
beginning with +33 will be presented
in French) and automatically select the
appropriate templates. Or, you can work with
a communications provider that can offers
automated translation services through
which you can send and receive messages
in a variety of languages.
The bottom line? When you consider a
communications strategy appropriate

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for cross-border m-commerce, the level
of precision in your communications
infrastructure must go up a level. Both
merchant and consumer will depend on
you for clear communications and if your
communications are unclear (or undelivered)
then you risk creating a more complicated
and expensive engagement for both of them.
Specific considerations when looking at a
communications service provider include:
1. Can your communications service provider
enable you (and your merchants) to provide
relevant shipping information ahead of
the purchase in order to set customer
expectations and reduce instances of
inbound enquiries?
2. Can your communications service provider’s
APIs, SDKs, and gateways recognise
localised differences in market digitisation and
furnish data along the appropriate channel (for
instance send an SMS in Bulgaria, and send a
push notification in Finland)?
3. Can your communications service provider’s
APIs automatically encode text messages
in the right format so that when they reach
the consumer they are displayed in the local
language and not with all question marks?
ensure timely SenderID registration for you
(or your merchants) so that your identity is
displayed appropriately on the consumer’s
device?
provide localised inbound SMS and voice-
enabled phone numbers or short codes that
consumers can use to contact you in order
to initiate a product return?
6. Does your communications service provider
have direct local operator connections to
ensure a high rate of delivery for SMS and
voice calls (in both outbound and inbound
scenarios)?
Three other points to consider:
1. If you are building a network of collection
points in various countries then integrating
your communications infrastructure into
these points is business-critical. If the
communications module lets you down,
the costs will spiral upwards very quickly. A
poor customer experience will hit you with
costs directly through inbound enquiries
and indirectly through loss of future revenue
opportunities. You will want to work with
a communications service provider whose
API is scalable enough to expand along with
your business objectives.
2. In cross-border reverse logistics it is
important to re-integrate returns into your
product flows as quickly as possible in
order to maintain minimal disruptions.
Mastering this will reduce your costs
and increase customer satisfaction. How
quickly can you learn of an instance of
a return, how quickly can you guide the
customer through the returns process, and
how quickly can you communicate with/
to the merchant is largely a function of the
decisions you make when deploying your
communications solution.
3. Good communications on both the
outbound and the inbound legs will certainly
reduce the number of re-deliveries and,
along with these, your environmental
footprint. As the European Commission will
soon be releasing the new environmental
incentive directive, any reduction in your
environmental footprint should show up in
your top line.

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There are times, in a cross-border delivery
scenario, when the total price a consumer
pays for a product on a website turns out
not to be the total price they will finally pay. If
the product ships from a location outside the
EU, for example, you, as the carrier, may be
asked to collect Customs and Import Duties.
That’s a conversation you’d really rather
not have on the consumer’s doorstep, as
there are innumerable opportunities for the
customer’s experience to sour. They may
have just spent €100 on a pair of shoes and
your delivery person is now asking for an
unanticipated €20 in Customs and Import
Duties? The customer may phone your call
centre to complain. They may even be so
angry that they refuse delivery and send the
product back. Either response increases your
delivery costs (to say nothing of the costs to
the merchant). And, because you, the carrier,
are acting as the collector of these duties,
you are likely to experience the brunt of the
consumer’s irritation.
Proactive communications can make a
huge difference in this situation. To ensure
an optimal experience for the consumer,
you must inform the customer in advance of
possible additional charges during product
importation. Ideally, this should be done on
the merchant’s website, even before the
customer has paid for the product.
Indeed, the merchant should indicate these
charges in their terms, forewarn the consumer
again during the check-out process, and
remind the consumer again when asking
them to choose a logistics supplier. Even if
it is not possible to calculate a precise figure
in advance for the charges to be collected
upon delivery, it will often suffice to indicate
a possible range of fees. That will serve to
eliminate rude surprises when knocking on
the consumer’s door.
Keeping consumers informed of these
charges requires additional up-front
communications—not just between the
logistics supplier and the merchant but also
between the carrier and the consumer. The
carrier must make a fee scale available to
the merchant for display during the check-
out process. That will require additional data
flows between the carrier and the merchant’s
website. Then, once the purchase has been
confirmed and the delivery scheduled,
the carrier should inform the consumer as
soon as possible of the exact charges to be
collected on delivery so that there are no
surprises when the parcel arrives.
The communications channels discussed
throughout this paper— SMS, Text-to-
Speech calls, email, and push notifications—
are ideal for this activity. By keeping the
consumer informed, you can reduce the time
required for delivery acceptance, improve the
consumer’s experience, and avoid creating
additional costs.
SCENARIO:
Communicating When
a Total is Not Actually
the Total

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Creating Insights of
Compelling Value
As you capture, manage, and share data
relating to the movement of goods, consumer
buying habits, delivery preferences and more,
you will amass a large amount of data about
your merchants and consumers. Whether
the data concerns the movement of certain
goods, to certain customers, at certain times,
in conjunction with certain events, etc., all this
data is valuable. It paints the very picture of
commerce and in fact makes your services
that much more attractive to merchants and
consumers who have a range of choices with
respect to delivery agents.
Consider the acquisition scenarios
presented to a consumer today. When
looking to buy a product, consumers can:
1. Research online, buy in store
2. Research online, buy online
3. Research in store, buy in store
4. Research in store, buy online
In scenarios 1 and 3, consumers will often
leave a store with the purchased goods in
hand. But if a purchase involves something
large or something that the store does
not have in stock (other than as a floor
sample), then the store will have to ship
the merchandise to the consumer. In those
situations, as well as in scenarios 2 and 4, the
merchant has two choices: rely on an internal
delivery mechanism (i.e., their own fleet of
delivery trucks) or rely on an external postal
or logistics services company.
With the right investments in a
communications platform, the combination
of logistics and communications services
that you can offer will position those services
attractively against an internal delivery service
alternative. You can foster an interaction
between merchants and consumers without
requiring the merchants to make or manage
their own logistics infrastructure. That
shortens their time to market and reduces
their need to make capital expenditures
(CAPEX) in equipment and infrastructure.
They can purchase your services from their
operating expense (OPEX) budgets instead.
By relying on your services, merchants can
expand their operations more effectively
because you are already positioned to support
both the volume of physical traffic that their
sales might produce as well as the volumes
of data traffic that their sales will produce.
That means they do not have to worry
about scaling their own delivery services to
meet the expanding demand generated via
m-commerce. With data services that you can
make available to your merchant customers
at a variety of different customer touch
points—from APIs that pre-check customer
phone numbers even as they enter them on
a merchant’s website to push notification
services that can satisfy a consumer’s
curiosity about delivery times without their
having to dial a call centre—you enable your
merchants to create a commerce experience
that consumers will remember and relish.
That translates into more business between
the consumer and the merchant, which in
turn translates into more business, and more
information, for you.

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Justifying the Required
Investments
Considering the average lifetime value of a
merchant, the investments a carrier will make
to provide merchants and consumers with
the right data at the right time are almost
always well justified. Good communication
lies at the heart of a good experience, for
both merchants and consumers. Developing
the capacity to increase awareness of a
shipment’s status—either
proactively or as a rapid
response to a merchant’s
or consumer’s query—is
critical, and the more
effectively you can provide
the desired insights the
more attractive your
services will be.
Indeed, the more information you can
provide proactively via your communications
network, the less information you will need
to distribute through your call centres. If
you can automate the dissemination of the
right information to the right party at the
right time, you will experience a significant
decrease in the number of phone calls
coming into your call centre. This is valuable
to you as a carrier for two distinct reasons:
• The number of calls coming into
a call centre are directly linked
to merchant and consumer
satisfaction. If they are calling a
lot to enquire about the status of
a delivery, they are not satisfied.
Conversely, the lower the number of
calls, the more satisfied they are.
• The lower the volume of calls
coming into your call centre, the
lower the requirement for resources
to operate that call centre. It might
take 10 operators 10 minutes each
to answer 100 inbound calls about
when a consumer can expect
delivery of a package. With the right
communications solution, you could
eliminate all 100 inbound calls and
put the people who would otherwise
be answering those calls to work
in other areas of the organization
where they can add more value.
You may never be able to eliminate
the need for a call centre—for some
questions cannot be answered
without human interaction—but
you may be able to consolidate
operations and reduce the cost of
those operations substantially.
In the end, your investments drive improved
service delivery and improved customer
satisfaction, even as they can help lower
costs and improve operating efficiencies.
Good communication
lies at the heart of a
good experience, for
both merchants and
consumers.

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About Nexmo
This white paper has been developed
Nexmo Inc. Nexmo provides
communications services based on cloud
APIs that are used the world over by clients
that include Google, Twitter, Samsung,
Nokia, Alibaba, Viber, Line, Kakao,
Airbnb, Zipcar, Expedia, Booking.com,
and thousands of others. The company is
funded by Intel Capital, employs more than
100 people, and has offices in London,
Hong Kong, and San Francisco. The annual
revenues are €100m.
Carriers seeking more information about
communications options or needing
assistance in the development of a
communications strategy or solution
are invited to contact Alec Hajinoff
(alec.hajinoff@nexmo.com) at Nexmo’s
London office. We can help you deliver
an unparalleled customer and merchant
experience, maintain your revenue growth
trajectory, and reduce your operating costs.

Whitepaper: Harnessing the Communications Potential in Mobile Commerce

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