The Complete Guide to WhatsApp Business API Costs

WhatsApp Business is growing rapidly in Europe, with a total of 2 billion global users and message open rates of 90%. In 2019, WhatsApp expanded its offering to include a business version of the app, initially dedicated only to consumers. Today, 50 million companies worldwide use WhatsApp Business to increase their revenue through this marketing channel.

Large companies must use the WhatsApp Business API through a specific account, while small businesses can use the free WhatsApp Business app, although mass messages are limited to 256 contacts. If you are interested in having a business account on WhatsApp for your company, this guide will explain how WhatsApp Business works, how to use it, and what the associated costs are.

What is WhatsApp Business API?

WhatsApp Business API is an advanced messaging platform designed for businesses looking to improve communication, marketing, and sales through WhatsApp. While the WhatsApp Business app is free and suitable for small businesses, the WhatsApp Business APIs involve costs per conversation, and these costs vary by country. Using the APIs allows medium and large businesses to manage a high volume of messages, automate responses, and obtain advanced features not available in the free app.

If used correctly and relying on the right provider like Spoki, extraordinary results can be achieved in any industry in which the company operates, personalizing the customer’s entire customer journey and making the relationship with them more direct, authentic and profitable.

Click HERE to read some of our clients’ success stories.

Why adopt the WhatsApp Business APIs?

Adopting the WhatsApp API presents a significant opportunity for businesses, thanks to the numerous advantages supported by market data and recent trends. WhatsApp has now surpassed 2.7 billion active users globally, becoming the third most popular social platform in the world (SMM Dashboard). This vast user base makes WhatsApp an extremely powerful communication channel.

WhatsApp usage is impressive: over 140 billion messages are sent every day, and users open the app between 23 and 25 times a day, spending an average of 38 minutes a day, which is about 19 hours a month. This high frequency of use makes WhatsApp an ideal platform for companies wishing to maintain a constant, direct and authentic contact with their customers.

From a business perspective, the Business version of WhatsApp has seen exponential growth, reaching over 200 million monthly active users in 2023, compared to 50 million in 2020. In particular, approximately 50 million companies use the WhatsApp Business application, of which 15 million are in India. This demonstrates how much companies are recognizing the value of this platform for their marketing and customer service activities.

One of the main advantages of using the WhatsApp API is the very high message open rate, which reaches 99%, much higher than the average for emails, which is around 21%. This translates into high conversion rates, ranging between 45% and 60%, significantly higher than those of emails and SMS, which are between 2% and 5%. Furthermore, 83% of consumers use messaging apps to contact companies, and 75% make purchases after using a messaging app.

The WhatsApp API also supports integration with CRM systems and advanced automation, including chatbots, allowing companies to provide 24/7 customer support and manage unlimited messages. Advanced features include session messages, call-to-action buttons, and product catalogs, ideal for conversational marketing strategies and personalized interactions.

Furthermore, companies can benefit from an increased ability to recover abandoned carts, with recovery rates of up to 60% thanks to automatic WhatsApp notifications, significantly improving sales. This demonstrates how the use of the WhatsApp API can lead to increased conversions and improved marketing campaign effectiveness.

Differences Between WhatsApp Business and WhatsApp Business API

There are two types of accounts that WhatsApp has introduced for businesses: the WhatsApp Business App and the WhatsApp Business API, also known as the WhatsApp Business Platform.

WhatsApp Business App:

Free and easy to download.
Designed for small businesses.
Limit of 256 contacts per message.
Basic messaging and quick reply functions.
Ideal for micro-enterprises and small business owners.

WhatsApp Business API:

Intended for medium and large businesses.
Advanced features for automation and integration.
Management of high message volumes.
Support for chatbots and automated responses.
Detailed analysis of conversation performance.

Pricing Model: Cost per Conversation

Since February 1, 2022, WhatsApp has introduced a conversation-based pricing model, replacing the old notification-based model. As of June 2023, rates have been further adapted to better meet the needs of businesses.

But… what are conversations?

A conversation is defined as a 24-hour session that starts when the message is received on the recipient’s phone. Within this slot, all exchanged messages will be free.

Types of Conversations:

Company-initiated conversations:
- They begin when the business sends a message to the customer using pre-approved message templates. These are required to send marketing messages, utility notifications, or authentications.
Conversations started by users:
- They begin when the customer sends the first message to the business. Businesses can respond freely within a 24-hour window from the customer’s last message, without having to use pre-approved templates.

Costs in Italy:

Marketing Conversations: 0.0572 euros per conversation
Utility conversations: 0.0248 per conversation
Authentication Conversations: 0.0313 euros per conversation
Service Conversations: free of charge for each incoming conversation

Good news for companies is that the first 1000 monthly conversations initiated by users are free. This incentive allows companies to experiment with the service without incurring high initial costs.

Factors Influencing the Cost of WhatsApp Business API

Several factors can influence the overall costs of using the WhatsApp Business API:

Country/Region: Rates vary significantly depending on the country in which the company is located. For example, rates in India are much lower than those in Europe.
Customer Support Window: Conversations initiated by users end 24 hours after the last message sent by the customer. If a company wishes to continue the conversation beyond this period, it must send a new predefined message that incurs an additional cost.

Advanced Features of the WhatsApp Business API

Message Automation: APIs allow you to automate the sending of WhatsApp messages, allowing companies to set up automatic replies, send notifications and manage marketing campaigns on a large scale without manual intervention. This is particularly useful for marketing campaigns on WhatsApp and for sending promotional messages.
Integration with CRM and Business Systems: APIs can be integrated with CRM and other business systems, enabling centralized management of customer interactions. This improves conversation tracking, data analysis, and communication personalization.
Scheduled and Personalized Messages: With APIs, it is possible to schedule the sending of WhatsApp messages at specific times and personalize the content based on the demographic and behavioral data of customers. This increases the effectiveness of marketing campaigns and ensures that messages reach the right audience at the right time.
Account Verification: Companies can get the green verification checkmark on WhatsApp, increasing customer trust and improving brand perception.

WhatsApp Business API Features

The WhatsApp Business APIs offer a range of advanced features that go beyond simple messaging. For example, the APIs allow the sending of interactive notifications, contact management, and advanced audience segmentation. These features allow companies to create more targeted and effective marketing campaigns, improving customer engagement.

Security and Reliability

Another important aspect of the WhatsApp Business API is security. All communications via the API are end-to-end encrypted, ensuring that customer data is protected. This is crucial for companies that handle sensitive information and want to maintain the trust of their customers.

Integration with Payment Systems

WhatsApp Business APIs are not limited to communication. Some implementations also allow integration with payment systems, allowing companies to manage transactions directly within chats. This simplifies the purchasing process for customers and can increase sales.

Personalization and Targeting

Personalization is one of the main trends in digital marketing, and WhatsApp Business APIs offer powerful tools for this purpose. The APIs allow you to segment your audience based on various criteria and send highly personalized messages. This not only improves engagement but also increases the chances of conversion.

Analysis and Reporting

The WhatsApp Business API also offers advanced tools for analysis and reporting. Companies can monitor the performance of their campaigns, analyze customer behavior, and optimize strategies based on the data collected. This type of analysis is essential for continuously improving marketing and communication operations.

Collaboration with BSP (Business Solution Provider)

To make the best use of the WhatsApp Business API, companies are strongly encouraged to collaborate with global Business Solution Providers (BSPs) like Spoki. We offer technical support, an advanced software platform, and assistance in managing APIs. We will help you configure and optimize the use of WhatsApp for specific business needs, ensuring that operations are smooth and efficient.

How Spoki can help you

As we’ve already mentioned, WhatsApp Business API costs can vary based on the volume of messages sent and the features used. It is important to consider these costs in the company budget and evaluate the return on investment.

In this sense, however, Spoki adopts a unique, flexible, and transparent business model where you only pay for what you consume. This allows companies in various sectors (e-commerce, retail, automotive, educational, wellness, beauty, and many others) to achieve extraordinary results such as revenue increases of over 30%, an Open Rate of 98%, and a ROAS of 25x, personalizing the entire Customer Journey of each client.

Setup is quick and happens in just a few clicks. In addition, Spoki offers a free plan available with €5 of complimentary credit, so you can experience the platform and some of its features.

Want to learn more about Spoki’s pricing? Click HERE.

We offer 3 paid plans that adapt to the different needs of companies and the teams that compose it.

How to Calculate WhatsApp Business API Costs

Using online calculation tools offered by many BSPs can help estimate monthly costs based on the number of conversations and their type. These tools take into account various factors such as the volume of conversations, the type of conversations (marketing, utility, authentication, service) and the geographical region.

Use the Spoki calculator now.

Conclusions

WhatsApp Business API is a powerful and versatile tool for Italian companies, allowing them to manage customer communications efficiently and scalably. However, it is essential to understand the associated costs and carefully plan the implementation and use of the platform. Collaborating with a BSP like Spoki can offer additional benefits, including technical support and customized solutions. With a well-defined strategy, companies can maximize the potential of WhatsApp Business API to improve customer service, increase sales, and strengthen their brand.

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