We’ll admit it: SMS is not the most widely used communication channel in Japan. SMS usage in Japan runs in direct contrast to global trends, where SMS ranks as the second most popular communication channel. Culturally, it is regarded by most as curt and unfriendly, and compared to other communication channels, its interface loses out on charm and versatility.

However, when doing business in Japan, personalisation is paramount. All communications in Japan should embody the right tone in order to increase customer receptivity. This is known as omotenashi, commonly translated as "hospitality." Omotenashi is a concept that describes the act of going above and beyond to provide an extraordinary level of service for a guest.

Remember, long before hyper-targeting and customisation became standard, Japanese organizations have been going the extra mile to customize their response to customers.  Adding a little personal touch on top of the customary greeting is not only a good way to bump up customer satisfaction, but it's also a way to keep customers loyal.

So, while existing statistics might show that SMS engagement in Japan is low, SMS technology has enormous potential to help companies improve personalisation at scale. A closer look beyond the numbers presents a very different story about consumer behavior and an untapped opportunity for greater SMS usage in Japan.

SMS as a specialized communication tool in Japan

Just as there are wine glasses, coffee mugs, and teacups dedicated for the consumption of various beverages, so do Japanese mobile users segregate their communication channels for different purposes—far more so than users in other countries.

For example, LINE acts as a channel for users to access and discuss news, media, and games. Email, on the other hand, functions similarly to SMS in other countries; it's a quick and convenient way to send short messages while on the go. Rather than SMS being the active, back-and-forth communication channel that it often is in other markets, SMS in Japan is more commonly used for purchase tracking and appointment reminders.

Respondents surveyed by SendGrid cited staying updated on orders, shipping progress, and appointmentsas the most common uses of SMS in Japan.

This partially explains why SMS messages are opened four times more frequently than emails in Japan despite the apparent user preference of email over SMS.

Stand out in a crowd with SMS APIs

That said, capturing the attention of Japanese users will require some finesse. Like the rest of the digitalised world, media in Japan is becoming increasingly crowded by ads and messages that are competing to stand out.

44% of Japanese customers cited feelings of annoyance when bombarded by marketing messages daily.

Japanese customers also highlighted fake claims of scarcity and repeated messaging as some of the most bothersome practices adopted by marketers. These messages usually appear on social networking apps, which Japanese users check for promotional deals. But when persistent marketers fail to engage their audience, annoyed users simply end up ignoring messages altogether, resulting in hours upon hours of wasted effort. Rather than competing in a race to the bottom on overpopulated social media channels, marketers can capitalize on the high open rates of SMS and weave in promotional deals while reaching customers via SMS notifications.

How different industries in Japan can benefit from multichannel communications

Since 2021, Japanese companies have been adding 2.8 more digital communication channels to their business strategies. This trend towards omnichannel marketing is in line with recent changes in customer behavior, particularly in Japan where younger mobile phone users are active on both older and newer communication platforms and accustomed to toggling between various chat apps and devices.

However, this phenomenon poses a challenge to customer service teams—particularly in banking and logistics. The most common struggles include keeping customers informed on their purchases and expediting security verifications in the most efficient manner.

That’s why many logistics and banking companies are turning to automated SMS to schedule notifications and other important information in advance, keep customers in the loop, and make payments and transactions securely. Thanks to the SMS channel's high open rates and no message limit restrictions, logistics and banking companies can communicate with much greater ease.

Since SMS combines the best of both worlds—high open rates and rich content—many businesses are also relying on SMS to drive customer engagement. For example, this can be achieved by sending links to branded web forms to capture customer feedback. Other ways businesses are benefiting from SMS in Japan include:

  • Building social proof: eCommerce players can use SMS to ask for ratings, which allows customers to give feedback with the click of a button
  • Increasing security: Fintech companies can send SMS OTPs to customers to increase account and user authentication
  • Generating leads: eCommerce businesses can use SMS to ask for referrals, and customers can earn rewards with the click of a button
  • Easing operational planning woes: Logistics companies can use a convenient, two-way SMS exchange to confirm deliveries or appointments
Screenshot of two-way SMS exchange to confirm deliveries or appointments

Reach your customers anywhere, anytime with SMS

Remember, in order to reach your customers anywhere, anytime, your channel of choice needs to be efficient, secure, and have a high open rate. While there’s endless technology choices out there, the fact remains that SMS is still the most trusted communication source.

With 8x8’s fully supported gateway, you can start sending SMS in a matter of minutes. Our SMS APIs are used by some of Asia’s most well-loved businesses, including Lazada (notifications), Traveloka (one-time passwords) and Tokopedia (one-time passwords, and notifications).

Efficiency and flexibility aside, 8x8 is proud to offer customers market leading security that guarantees the integrity of your message. This is achieved while still maintaining high speed and delivery with redundancy assurance fallbacks across the entire Asia Pacific region. Certified by third-party security and compliance auditors, your company will be able to build trust with your audience. Contact us at hello-cpaas@8x8.com to take your customer service to the next level.