Central banks across the globe have two main levers as part of their monetary policy – tinkering with interest rates and printing money. Interest rates and their impact on the economy are closely watched by borrowers, lenders, producers, consumers, and analysts.
Aside from interest rates and fiscal measures, there are other forces that drive the economy, and one of them is messaging.
From birds in ancient times to contemporary chatbots, messaging mediums have evolved to serve the need to deliver the right message to the right person in real time.
Messages fuel world economic engines, allowing transactions to take place seamlessly. Messaging not only drives microeconomic activities but also plays a significant role in macroeconomics.
Following are some of the ways messaging plays a key role in the world economy.
Transaction and commerce catalysts
Transactions are fundamental blocks of any economic activity. Think about the last purchase decision you made based on a messaging campaign you received on your mobile, from ordering the good or service from the mobile app to receiving notification about the delivery date. The entire cycle of commerce was enabled by those contextual messages and notifications.
Similarly, messaging plays an important role in banking transactions. A borrower can make a loan request from the lender via different channels, and the process can involve numerous messaging interactions before the final approval.
Messaging brings producers, suppliers, consumers/borrowers, and lenders together, acting as a catalyst for economic activities and thereby contributing to gross domestic product (GDP).
Job recruitment and talent management
Job alerts and recruitment notifications for existing roles help hiring managers reach a larger talent audience, enabling them to make an offer to the best potential candidate.
Messaging bridges world economies, empowering talented individuals with new job opportunities that increase consumers’ purchasing power.
Idea and innovation exchange
“For good ideas and true innovation, you need human interaction, conflict, argument, debate.” – Margaret Heffernan
Person-to-person messaging results in the exchange of ideas and thoughts leading to greater innovation. Innovation increases productivity, and productivity adds value to the world economy
Fiscal policy and tax alerts
Governments, which generate revenue through taxes, use fiscal policies to influence the economy. Reminders send through SMS, email, and other channels encourage citizens to pay their taxes on time, thereby benefiting the economy.
IoT and asset management
Smart asset management using the Internet of Things (IoT) leads to productivity gains in manufacturing and other sectors. Critical messages from IoT-enabled assets improve monitoring of utilization, leading to productivity and economic growth.
Boosting the economy – and our happiness
These are some of the ways messaging plays a significant role in the world economy.
In addition, there is a debate about whether GDP is a good indicator of economic progress and holistic growth or not, and new concepts like gross national happiness (GNH) have emerged in countries like Bhutan.
Think about those early morning messages with pictures wishing you a great day or your evening messages confirming the safety of a distant relative or friends. Messages like this increase the collective happiness and contribute to our gross happiness.
For more on using messaging to bolster your company’s bottom line, see Five Things To Stop Getting Wrong About Marketing.