You probably know and use WhatsApp. Your company might be growing through the WhatsApp Business app. But what is WhatsApp Business API and how does it work?
The messaging app has gained popularity among business owners and managers in the past few years. After launching a dedicated Business app in 2018, it got the attention of companies across industries.
Now, the WhatsApp Business API, also known as WhatsApp Business Platform, has changed the scenery for commercial communication. In this article, we’ll explore the key differences (and features) of this platform and give you a cost breakdown.
Why is WhatsApp useful for companies?
There are two main reasons why any business, from small local brands to corporations, might start using WhatsApp. The first is that most of their customers already do. That means it makes their team more accessible, which is great for brand awareness.
The second reason is that WhatsApp is a flexible, simple platform in its conception. Individual and group chats, multimedia options, and voice notes are useful for many kinds of interactions. That makes WhatsApp applicable to many sections of your company, such as WhatsApp for Sales teams.
It works on iOS and Android mobile devices, through a desktop app, and on a browser. So, it’s easy to keep track of incoming messages. Bonus points: broadcast lists that help you contact multiple people at once.
Unsurprisingly, all of this made WhatsApp grow in popularity as a business platform. It’s great for internal and external communication.
What are the 3 types of WhatsApp accounts?
First of all, there are three kinds of accounts you can set up on WhatsApp, depending on what you’re looking for.
1) Standard personal account
The basic WhatsApp account is a personal messaging app. All you have to do is download the app, set up a profile, and link your phone number. Then, you’ll be able to chat with any contact who is also on WhatsApp.
The standard account lets you connect multiple devices and check your messages from your phone or computer. You can call, video chat, and text via WiFi or data connection.
2) WhatsApp Business App
However, the standard features aren’t enough for a company’s ecosystem. Which is why WhatsApp launched WhatsApp Business in 2018. The dedicated app is a more robust messaging platform, but with the same user-friendliness people are used to.
The setup is pretty simple: download the app, set up a profile, and link your phone number (it cannot be the phone number attached to your personal account). The company profile includes a name, logo, and brief description. You can also add other contact info and business hours.
After authentication, you’ll be able to message suppliers, clients, and employees with an official account.
WhatsApp Business comes with a native ecommerce tool. It’s a product catalog with a secure checkout system. So customers can check your store, add items to their cart, and buy safely from the app.
source: WhatsApp
This is why WhatsApp Business is popular among small businesses. They can reach clients and close sales on the same platform, with no need for costly third-party apps.
3) WhatsApp Business Platform
source: WhatsApp
WhatsApp Business API isn’t an app in itself. Instead, it’s a custom platform for developers to build a dedicated solution for each specific business. Instead of just creating a profile, business managers work alongside a service provider to include WhatsApp in their software stack.
Usually, bigger companies opt for the WhatsApp Business Platform due to the higher amount of chats. Besides, it can be adapted to more workflows, which is essential for enterprises.
Business App x WhatsApp Business API: key differences
Traditionally, smaller businesses opt for the app, while growing companies prefer the personalized API. However, this is not a rule. In fact, the choice comes from the key differences between them, such as:
Cost
The WhatsApp Business app, much like a standard account, is free to use. Some businesses use it as a standalone tool, others mix software. For example, when using WhatsApp for customer service, you might connect it to a helpdesk software. These are usually free or very affordable options.
WhatsApp Business API, on the other hand, is a premium, paid option. The cost varies based on what services you use and the operation volume. That means it can add up fast.
Automations
The WhatsApp Business app allows you to create custom shortcuts for quick replies. Then, whenever a customer messages you with a query, it’s easy to get back to them fast. Another interesting tool is the greeting message. When a customer first interacts with your profile, they get an engaging reply.
You can also set up automated away messages outside your business hours for peace of mind.
There’s far more automation with WhatsApp Business API. You can create rule-based auto-replies based on the kind of conversations you have with your contacts.
For example, when offering logistics support there’s a lot of back and forth. So you can create a rule that automatically notifies your client when their order is on the way and the ETA. This cuts down on time spent messaging each one individually.
Broadcasting
The WhatsApp Business app offers broadcast lists. This is a mass messaging tool that allows you to send relevant information to multiple contacts at once. On their end, the message shows up as a single conversation. That’s a great way to notify customers about special offers and launches. However, it’s limited to 256 contacts at once.
The WhatsApp Business API allows you to message unlimited contacts at once. Besides, with custom tags, you can personalize the message to each one. This makes the conversation flow smoothly and helps your customers feel connected to the brand.
Team inbox
So far, we’ve explored the flexibility when facing clients. But similar benefits appear when dealing with your digital workspace infrastructure. That is, the ability to work together on finishing tasks.
If you use WhatsApp Business’s app, you’re able to link up to 10 devices and share your WhatsApp with multiple users. However, they’re all based on a single profile, so it’s hard to keep up with who is responsible for what task.
The API, on the flip side, allows developers to build a team inbox. That way, multiple agents can log into the account and reply to messages at the same time.
WhatsApp Business API’s best tools
Companies that opt for the Business API benefit from a few extra resources built into the platform. These can be used to optimize professional communication and workflows.
Clickable messages
source: WhatsApp
Clickable messages are a great way to guide your customers. Instead of having to manually answer each message, you can set up multiple options for them to click. Then, when the message reaches an agent, there’s already a conversation history.
This tool is great for customer service metrics. Often, the client can solve the query themselves with the right guidance. If not, they’ll get an efficient solution from an agent.
WhatsApp flows
The same logic applies to other types of conversation. WhatsApp flows are rule-based experiences for your clients that guide them on different scenarios. They include but aren’t limited to booking an appointment, making a reservation, getting service quotes and personalizing a product.
source: WhatsApp
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How much does WhatsApp Business API cost?
It depends. The pricing for this platform is based on three factors: the region you’re working from, the message type and volume. Here’s a breakdown:
Company’s region of operation
source: WhatsApp
The first step is your company’s region of operation. Some markets offer more competitive pricing, which can impact the overall cost. For example, a chat starts at $0.008 in North America, while costing $0.03 in Europe. Global companies might deal with different pricing in specific markets.
Conversation type
There’s also the question of what kind of messaging you’re sending and receiving. Each type comes with a certain rate, so it’s important to acknowledge what you’re using WhatsApp Business API for.
Authentication
source: WhatsApp
Authentication messages are automated, sign in messages that inform the user of a login try or new account setup. The finance industry, for instance, uses this type of conversation frequently for safety. In the UK, they cost $0.0358 each.
Marketing
source: WhatsApp
You might also be using WhatsApp to notify your customers of great offers. Marketing chats are useful across the board and WhatsApp Business API helps companies set up automated reminders. Forgotten cart? Promo code? Loyalty rewards? That’s the type of message you can send.
Through this system, they cost $0.0705 each.
Utility
source: WhatsApp
Of course, even post-sales, you might need to contact customers. Order tracking numbers, receipts, autopay reminders, and customer experience surveys are some of the common themes. You can use WhatsApp Business API to send them out automatically, at $0.0398 each in the UK.
Service
source: WhatsApp
Service chats are customer-initiated conversations. For example, asking about their account balance, checking product availability, or notifying an error. They are essential for a good customer support team, so it’s important to develop a good strategy via WhatsApp Business API.
If your business is UK-based, they cost $0.0388 each.
The growing costs of the platform
To establish a cost estimate, you should analyze your messaging history with clients. Say your company is based in the UK and sells about 2000 items per month. That’s $79.6 just to notify each person of their order tracking number.
Then, if around 250 more people inquire about product measurements, it’s $9.7 extra to the cost. As your store grows and reaches new clients, more accounts need authentication. The same applies to marketing efforts. Higher outreach = higher cost.
It’s safe to say that this platform is useful for overall company strategy and productivity. However, considering how fast costs add up, it’s also dangerous for smaller, growing businesses with a limited budget.
Is there a WhatsApp Business API alternative?
Yes. Firstly, you can use the regular WhatsApp Business app alongside other software. You can set up a help desk system, a marketing manager, and a CRM tool and link them to your WhatsApp account.
The downside is that this requires using multiple platforms at once. The pro is that you can pick free or inexpensive tools, so the costs are budget-friendly.
Shared inbox
The better alternative, however, is using a WhatsApp shared inbox. With a shared inbox solution, you can use custom workflows, autoresponders and other time-saving resources in a single workspace.
Besides, it’s collaborative. When you create a WhatsApp team inbox, you can invite your agents. That way, managers can assign tasks, set up deadlines, and follow up directly from the conversations themselves. This process saves time, since you don’t have to switch between platforms.
It’s also more cost-effective. WhatsApp itself is already free. Shared inbox tools have different pricing tiers, based on your company’s needs. Our solution, DragApp, starts at $8/user/month.
In summary
WhatsApp Business API is a great way to enhance your professional communication. However, the cost can be prohibitive if your business is still growing, Which is why there are alternatives, such as a WhatsApp shared inbox, that offer collaboration and productivity resources to small and medium-sized companies.
Turn Gmail into your Team’s Workspace.
- 2.5x faster email responses.
- 20 hours less spent per month, per team member.
- 40% more deadlines achieved and happier teams.
