CONVERSATION BASED PRICING ON WHATSAPP
WhatsApp is one platform that has wrapped the world around its efficient online messaging service that not only serves the communication needs of customers but also offers the ease of doing business for many organizations. With WhatsApp Business API becoming the new mantra for firms to make contact easier and more accessible than ever before.
But since Facebook purchased the messaging giant from founders Jan Koum and Brian Acton in 2014, it has faced difficulties in monetizing the service. Though the WhatsApp Business application is free to use, the WhatsApp Business API used to follow a notification-based pricing model but starting February 1st, 2022, it will switch to a conversation-based pricing model where businesses will be charged per conversation.
How does conversation-based pricing work?
WhatsApp Business API powers a business’ conversations with its customers at scale and helps them to connect with their target audience in a simple, secure and reliable way. The platform has recently announced its shift from traditional notification-based pricing model, where every single message would be charged, to a new-age conversation-based pricing model so that Business users can focus on providing a seamless customer experience rather than worrying about the number of messages it would take to deal with a request.
The conversations through WhatsApp Business API mainly fall into 2 categories based on which their pricing varies.
Users can initiate a conversation with a business in case of customer service or general support queries.
Businesses can initiate the conversation with their customers to send post-purchase notifications.
Whenever a business sends the first message, be it a response to a user query or a business-initiated message template, all conversations are measured in a 24-hour message window. The charges for both types of conversations vary according to the market (country or region).
Current pricing model
In the existing pricing model, WhatsApp has 2 types of message concepts: Session message and template message.
Whenever a user initiates a conversation, the business starts a 24-hour message window and each message shared within that window, called a session message, comes free of cost. With every reply from the user, the message window starts again and the conversation can continue for another 24 hours.
However, if the session is closed because the company was the first to message or the user didn’t respond within those 24 hours, then the company can only communicate with the user through template messages. A template message is a pre-written, highly structured text that goes through a strict approval process from WhatsApp and once approved, it can be sent to the users multiple times. The cost of template messages vary depending on the country of the receiver.
New pricing model
The new pricing model is an outcome-based model where conversations are not just charged for the sake of it but rather deliver actual value to both businesses and their clients. Thus, the new model changes the metrics from session or template messages to conversations.
A conversation is essentially a 24 hour window that is initiated as soon as the business sends a message to its users. In this 24 hour window, instead of charging for every text message exchanged, there is a fixed cost per conversation regardless of the number of messages exchanged in that time period between the business and their clients.
The two most important differences between the old and the new pricing models are:
- With the current pricing, the chat session is opened when the user initiates the conversation, whereas in the new pricing model, the session starts when the business writes to the user.
- Under the new pricing model, the conversation session will no longer extend once the user responds to the message. Instead, the 24 hour session will be fixed and if the conversation extends beyond that, a new 24 hour session will automatically start and the business will then be charged for it.
WhatsApp is clearly developing a thoughtful monetization strategy through conversation-based pricing that is a step towards creating value through meaningful conversations. The messages exchanged on the platform through a WhatsApp Business API are the way to creating a communication strategy that is efficient and seamless in its approach.
If you also wish to boost your business through an online messaging platform preferred by over 2 million people across the globe, then reach out to Whizard API now.