Understanding the conversion-based pricing of WhatsApp Business API is an important step for any business to improve their marketing strategy and customer service. In this blog, we will try to understand the elements of WhatsApp Business API pricing model in detail and explain it with an example to make it easier.
Conversation-Based Pricing: Deep Understanding
1. Marketing, Utility, and Authentication Conversations To understand these conversations, we are presenting some examples in front of you:
How are they opened?
Marketing, Utility, and Authentication Conversations are the messaging system implemented in the services of WhatsApp Business API and they are opened when you send a template message and it is checked whether there is already an open conversation or not. If not, a new conversation is opened according to that template and charges are applied for it.
Example and Description
Hour 0: Marketing Conversation
Scenario: Suppose you are launching a new smartphone for the growth of your business and you send a template message for promotional purpose.
-> Your Marketing Template Message:
Charges: Since this is the first time you are sending a marketing message, a Marketing Conversation window will open, and the business will be charged for it.
Hour 4: Utility Conversation
Scenario: A customer ordered a smartphone from you based on a marketing message and you want to send them an order confirmation template.
-> Your Utility Template Message:
Charges: Here, since a Marketing Conversation window was already open, a new Utility Conversation will open and will be charged as there is no existing open Utility Conversation.
Hour 10: Utility Template again
Scenario: You want to send a shipment confirmation to a customer through the platform.
-> Your Utility template Message:
Charges: As there is already an open Utility Conversation through the Platform, a new Utility Conversation will not open at this time and the Business will not incur any additional charges for the same.
2. Service Conversations
How are they opened?
- Service Conversations are opened when a customer sends a free-form message to a business and no other conversations are open.
Example and details
Hour 0: Marketing Conversation
Scenario: You sent a marketing template to a customer using WhatsApp Business API services and a marketing conversation opened.
-> Your Marketing Template Message
Hour 4: Service Conversation
Scenario: Customer responds to your marketing message via WhatsApp and asks “Is this also available?
-> Free-Form Message from Customer:
Charges: Here, if a Customer has sent you a message and there is no open service conversation on the Platform, a service conversation will be opened and charges will be levied for the same.
3. Free-Entry Point Conversations
What is it?
Free-Entry Point Conversations open when a customer contacts you through a business ad by clicking on the Click-to-WhatsApp Ad or Facebook Page Call-to-Action button, and you respond within 24 hours.
Example and details
- Scenario: Click-to-WhatsApp Ad
Message:
- A customer clicks on a Facebook ad and sends a message to a business at 10 AM. This conversation window starts at 10 AM and remains open for the next 72 hours.
- What businesses can do: During this 72-hour period, businesses can send marketing, utility, authentication or service messages without any additional charge.
Example:
- Hour 10: Customer initiates contact.
- Hour 12: You send a promotional offer via a Free-Form Message.
- Hour 48: You can still respond to the customer without extra charges under this 72-hour window.
4. What is Free Tier Conversations?
In this Conversations, all Business Accounts can send 1,000 Free Service Conversations to their customers every month.
Example and Details
-
Monthly Free Service Conversations:
- Your Usage: If the business uses 1000 service conversations during a month, then it is free for the business.
- Overage Charges: If the business uses more than 1000 conversations in a month, then here the business will be charged for additional conversations.
FAQ
1. Is it possible to utilize the same template for utility and marketing conversations?
Approved templates are required for conversations about marketing, utility, and authentication.
2. What messages can I send in free entry point conversations?
You are able to send Service, Authentication, Utility, and Marketing messages during this time.
3. Are Service Conversations the only ones eligible for the 1,000 Free Conversations per month?
Indeed, service conversations are the exclusive focus of the 1,000 Free Conversations.
