A Compass For Communication Methods A Beginners Guide When Considering Whatsapp Business Api Sms And Mass Emails

When choosing the most effective and cost-efficient communication method for B2C (Business-to-Consumer) interactions, it's essential to consider not only the price differences between WhatsApp Business API, SMS, and Mass Emails.

In this article, I will use a few industries as examples and weigh them against other factors you may want to consider. You should know what works best for your business. I intend this article as a useful 'compass,' not a 'map,' to help you navigate the proper method of communication that aligns with your goals, needs, and budget.

Let's dive into it.

1. Overview

WhatsApp Business API

• It is the most widely used communication platform globally, promising the most comprehensive coverage in many countries. Check which platform is more common in your country here.

• It is meant for businesses via API connectivity and supports rich media, automated messages, and interactive menus and features.

• The pricing model is by 'conversation' per 24-hour window. Cost may vary by country and message type. SMS is generally more expensive than emails, but WhatsApp is cheaper than SMS for conversations and rich media content.

Great for high-engagement interactions, richer experience, and highest reported open rate (98%). *No limit to length. (If you really have to know, it's 65,536 characters long)

SMS (Text Messages)

• 'Traditional' text messages are sent directly to customers' phones via the GSM network. Coverage is global for all modern mobile devices with SIM.

• For business: Low cost to send, 'free' to receive. Companies using premium SMS service providers may incur charges for incoming SMS. This 'Low cost' does not apply when sending out MMS (Rich Media SMS)

It is excellent for one-way communication without rich media and low-engagement interactions. Each SMS is 160 characters in length. It is reported to have a 98% open rate.

Mass Email

• They are commonly used to send many emails to customers simultaneously, like newsletters, utility bills, or promotions.

• While sending an Email is free, there are hidden costs: email generation and subscription for mass mailer engines. Email is undisputedly the cheapest form of communication with customers.

It is best for mass marketing and newsletters. There is no size limit, no length or character limit. The open rate report varies from 22% to 35%.

2. Which method for which business?

E-Commerce

• WhatsApp: Customer Service (AI/Human), personal e-voucher, shopping cart checkout reminder, order updates, delivery notification with tracking. Automated self-service via ITR.

• SMS: Flash deals, quick deals, delay notification.

• Emails: Monthly deals, newsletters, promotions, and detailed product information.

Hospitality (Hotels, Travel Agencies)

• WhatsApp: Customer Service (AI/Human), booking confirmation, travel info pack, changes, personal e-voucher, AI-Concierge.

• SMS: Weather alert, delay alerts, last minute reminders.

• Emails: Monthly deals, newsletters, promotions, and detailed product information.

Banks & Financial Services Institution

• WhatsApp: Not GDPR compliant (no private information allowed). TAC Code, product queries & stock quote bots.

• SMS: TAC Code, transaction confirmations, temporary passwords

• Emails: Monthly deals, newsletters, promotions, and detailed product information.

Non-Profit Organisations, Charities

• WhatsApp: Donors' engagement, project updates, AI-FAQ, location sharing, appointments

• SMS: Donation confirmation, urgent appeals, event reminders

• Emails: Newsletters, detailed event information, reminders

Quick Reference: Which Method for Which Business?

Business Type	WhatsApp	SMS	Mass Emails
E-Commerce	Customer Service (AI+Human), cart checkout reminder, personal e-voucher, self-service ITR	Flash deals, quick deals, delay notification	Newsletters, promotions
Hospitality (Travel, Hotels)	Customer Service (AI+Human), booking confirm, info pack, personal e-voucher	Weather alert, delay alerts, last minute reminders	Newsletters, promotions
Banks (BFSI)	*Non-GDPR, TAC, product queries & stock quote bots	TAC, transaction confirm, temp passwords	Newsletters, promotions
Non-Profit, Charity	Donor engagement, thank-you, location sharing, AI-FAQ	Urgent appeals, event reminders	Newsletters, fundraising

The table above makes it pretty clear what each method's strengths are and what examples of use they each have.

Email

• Most high-volume, low-value engagement, low urgency, and low open rate might be filtered away, and content limited to low-res pictures might be used instead.

• Even with open rates as low as 22%—35%, the sheer volume at a very low cost actually results in positive ROI.

SMS

• High volume, low-value 1-way engagement, high urgency, high open rate, text-only.

• SMS messages are simple, non-rich in content, high in urgency, and relatively low in cost. Because of its coverage and speed, SMS remains a favorite. Reliability of delivery has become an issue lately.

WhatsApp

• Mid Volume, high-value interactive engagement, high urgency, high open rate, automation capable.

• Charges per conversation may seem high at first, but the elevated customer experience makes up for it. This method is the most expensive if used for marketing blasts.

3. Important Things to Consider

Who your customers are

• Exclusivity: If you are selling low-value items and your customers do not have high expectations of service or experience, SMS and emails should suffice for marketing.

• Age Group: Younger generations will prefer SMS & WhatsApp, while older folks might prefer emails.

Type of Message

• Rich Content: WhatsApp if you want to send pictures, videos, forms, locations

• Urgent & Simple: WhatsApp & SMS

• Details: Use Emails for extended, detailed information about your products and services

Privacy & Other Laws

• Consent: Obtain the customers' permission before sending them anything using any method.

• Privacy: Especially for BFSI, Personal Identifiable Information can not be transmitted through WhatsApp.

Your Existing IT Environment

• Integration: The more ready your IT infrastructure is, the better you can leverage each method to deliver better service or tailor your marketing.

• Automation: Systems connected to your communication platform may allow for self-service. SMS is very limited, but WhatsApp Business API offers endless possibilities. It is not suitable for email.

Customer Support

• Chat: WhatsApp is the clear winner here, allowing for self-service, AI-powered FAQs, and chatbots for routing, sending, and receiving rich media messages. SMS can provide text-based live support.

• Email is still the preferred choice for corporate support requests and issue escalation due to the trail it leaves and its admissibility in court as proof.

4. Final Thoughts

Each method of communication still exists today because of the merit it carries. Each business, even in the same industry, is unique. And each business leader has their own idea of how their business process, support, and marketing should be. There is no "one size fits all" method of communication; everything depends on the situation.

However, as we explore these exciting possibilities, it is essential to navigate the ethical complexities that come with AI-driven solutions. With careful oversight and a commitment to inclusivity, fairness and privacy, AI can become a powerful force in transforming social welfare, ensuring that support reaches those who need it most.

I hope I have shed some light on which method is more suitable for your immediate and mid-term strategy for consumer-facing communication methods or at least given you an idea or direction. If you need more ideas, go through our blogs. You might find something useful there. Or simply reach out to us.