WhatsApp has come a long way since its launch. Whatsapp has a certain dominance in people’s daily lives and that is why the platform offers a huge business opportunity. WhatsApp is currently used by more than 2 billion people around the world and the number is growing every day. Such a huge user base means that companies not using it are missing out on a significant potential customer base.
WhatsApp as a platform is constantly trying to improve the user experience. So, in order to help business users, WhatsApp Business was launched.
The business applications of WhatsApp and WhatsApp have both some similarities and some differences. The similarity between them is that they both have almost the same interface, are free to use and can be connected to the same number. The differences, on the other hand, make WhatsApp Business an upgraded version of the stock chat app. Some of the additional features are business profile, product catalog, messaging automation and others.
Now, marketers believe that WhatsApp Business has the potential to take business communications to the next level of engagement. GoodFirms surveyed 560 SMBs using the platform. The result is critical insight into why and how small businesses use this tool.
Why do small businesses use WhatsApp?
Messaging channels such as SMS and Messenger still play an important role in any business’s communications strategy. But with changing times, using WhatsApp as part of a messaging strategy can prove to be the deciding factor. It will soon become the most important tool for staying competitive. This is mainly due to the many benefits that the platform offers to small businesses.
The main reason small businesses use WhatsApp is because it delivers higher engagement (55.5%) of customers. WhatsApp is a simple everyday communication mode and people often open and reply to messages on the platform. Moreover, since all business accounts are verified by WhatsApp, customers have the confidence that they are not talking to an impostor. All of these factors lead to higher levels of engagement.
53.4% of small businesses use WhatsApp because it makes communication personal. But WhatsApp allows businesses to personalize communications by personally responding to inquiries or offering personalized discounts to customers. Not only that, but when a business responds to customer concerns with empathy, it is considered trustworthy and reliable.
52.9% of survey participants use the platform because of the growth opportunities it offers. The WhatsApp Business app helps businesses grow by allowing them to meet customers wherever they are. All communication barriers have been removed as the platform is free to access and already has a huge user base. A business can also share all the latest information, offers, and resolve customer issues in one place. When used properly and making the most of its potential, WhatsApp Business can greatly increase the profitability of a business.
Most companies use WhatsApp to support their customers
SMS and email have been the most common channels companies use to communicate with customers. They are effective in their own way, but not versatile enough. But for conversational purposes, the WhatsApp business app plays a multi-faceted role. Small businesses mostly use their WhatsApp business account for customer support (67.1%).
A strong brand relationship with its customers is the holy grail for any business. One way to build such relationships is through efficient and personalized customer service. The WhatsApp business app comes with several features that will allow you to better communicate with your customers. These features include quick replies, shortcuts, automatic messages for greetings, and more. Apart from these features, it is an easy and affordable option to connect to a global customer base.
WhatsApp Business API is still evolving as a business platform. However, the key to success in marketing is to create a niche on the platform before it becomes crowded. As the popularity of WhatsApp Business began to rise, 51.8% of small businesses are already using it for marketing.
One notable example of this is the Financial Times, which shares free content on WhatsApp. The subscriber-only publication shared two free articles daily on its WhatsApp group and ended up with more conversions than other social media platforms.
Finally, very few SMBs (11.1%) use WhatsApp Business to sell directly to their customers.
How small businesses use WhatsApp Business
Every small business will have its own set of resources that it can save. When it comes to using WhatsApp for business, they can’t all use it in the same way. According to the survey, the majority (47.3%) of companies communicate face-to-face with their customers on WhatsApp.
One of the biggest benefits of personal communication with clients is that they will get satisfactory answers to their questions, because there is a person on the other end of the line who provides solutions to their problems. They will end up trusting the business more.
Around 38.6% of small businesses use a chatbot or automation tool for their WhatsApp business account. This is because it allows them to offer quick solutions to customer issues as they arise. Customers expect the business to be available 24/7. It is not easy for a small business owner to instantly resolve customer issues or build a customer support team. In this situation, small businesses can take advantage of the WhatsApp chatbot.
On WhatsApp, small business owners can add chatbots to help businesses reduce customer service costs by implementing conversational solutions such as welcome messages, thank you messages, order instructions, billing information, and discounts.
There is also the option to hire customer service representatives to communicate with customers. 14.1% of small businesses do this. However, not every small business can afford to hire customer service representatives. It’s always best to use WhatsApp as part of an omnichannel solution that connects all contact channels into one dashboard. Thus, customer service representatives can use WhatsApp along with other channels such as live chat, chatbots, and video chat. This is one of the best ways to keep online services running smoothly for your customers.
What WhatsApp features are SMBs focusing on?
WhatsApp allows businesses to create next-generation experiences with some of their most pre-built and customized features. The functions of the platform go beyond the usual customer service. The goal here is to lay the foundation for conversational commerce.
WhatsApp business makes this task much easier with its affordable features. The most popular feature is its business profile. 98.6% of businesses voted that this is an important feature.
The profile page in WhatsApp Business is much more updated than the regular version of the platform. Business profile features:
- Cover photo
- Work area
- Description
- Location
- Working hours
- Website link
Since this is the first thing customers will see when they contact the business, make sure your account contains all the necessary information and looks professional.
For 91.3% of the surveyed small and medium-sized enterprises, the broadcasting function is also important. This feature allows companies to send bulk messages to a group of users at the same time. The biggest advantage is that any content can be streamed on the WhatsApp business app. Thus, companies can also send promotional messages.
However, this feature has some limitations. First, the business needs to create a broadcast list, and second, broadcast lists are limited to 256 contacts. The way to get around this limitation is that the limitation applies to a single broadcast list. A business can create multiple broadcast lists to remove the communication barrier.
Contact marks are another important feature. 61.4% of small and medium enterprises voted for it. This feature helps companies manage customer communications. A contact label can have one contact or multiple contacts. You can customize up to 20 labels according to specific preferences such as order, location, or new customers.
Where are SMEs promoting their WhatsApp presence?
It’s not enough for small businesses to just be on WhatsApp. It is also important that their target market is aware of their presence.
Businesses need to know where to promote their WhatsApp presence. In an effort to promote their presence on WhatsApp, SMBs should market their service based on the target audience and intended use of the app.
Customer service reps using WhatsApp may find it most helpful to advertise the service on the business’s homepage and social media. On the other hand, if an SMB has a bricks and mortar store and they use WhatsApp to update their customers, in-store promotion with banners and QR codes is a great option.
58% of SMBs think social media platforms are the best place to do it.
Ekaterina Mlodzka, Head of Marketing at Photo AiD, gives a simple reason for using social networks.
A business website is usually the first point of contact between a brand and a customer. Thus, it only makes sense to create awareness of the presence of WhatsApp on the official website. 53.6% of small business owners agree with this idea.
That’s why websites and social media platforms are the place to promote WhatsApp’s presence: your website is one of your most important assets, so it’s very important that you include all information related to your business there. This includes all of your advertising strategies, so your WhatsApp presence needs to stand out on your site. Other social media platforms such as Instagram, Facebook and VKontakte should also be used to promote your WhatsApp presence. The main reason for this is that most WhatsApp users tend to use these platforms, so you will be reaching out to a large number of relevant users, increasing your chances of attracting customers with promotions.
There are also 40% of SMEs that are not promoting their WhatsApp presence anywhere. One reason for this is that they initiate conversations with their customers through the WhatsApp Business account itself. Thus, it becomes easier for further communication. There are also small and medium enterprises that collect customer contact information through various channels and confirm their preferred communication channel with them. In both cases, SMBs do not need to promote their WhatsApp presence and can start conversations with customers directly.
What branded content do small businesses use on WhatsApp?
Different types of content work for different platforms. There is no single approach to using content on social media platforms. The WhatsApp business app is no exception. So far, WhatsApp has been more of a personal communication app. With that in mind, certain types of content will do the best job of capturing the audience’s attention. 99.1% of SMBs use text as their main content type for WhatsApp communication, obviously.
The second most commonly used content type is an image. 93% of survey participants use photos and images.
People usually don’t want to read long paragraph style messages because it takes too much time and effort, so photos and images are the best kind of content to send via WhatsApp.
Video is a popular form of content on almost every platform. They have been proven to increase conversion or engagement rates for businesses regardless of platform. In the case of WhatsApp business, also 38.4% of SMEs believe that video works for them. However, there is a common misconception associated with video that not everyone can create a video and it requires a significant amount of financial resources to create one.
In a more visual world, images and videos are the best way to create compelling social media content. If you’ve never made a video before, don’t worry about it. Any modern smartphone can shoot great video. Low production numbers often perform much better on social media than high-produced products. If you’re looking for that added edge in your photography or videography, consider purchasing a basic tripod and ring light.
One thing should be noted here. To the extent that customers enjoy and interact with visual content, companies must also ensure that they don’t overdo it. Sending a limited amount of messages or visual content is the key to sustainability in the long run.
Conclusion
Whatsapp has become a popular platform for personal and business use due to its reach, free usage, and the many types of messages exchanged on the platform. For all these reasons, the Whatsapp business app can become one of the most powerful customer interaction channels, especially for companies that want to operate globally. Right now, Whatsapp only connects with businesses after their profiles have been verified and approved. Thus, SMEs need to launch their business profiles as soon as possible to gain an edge over the competition.
As appealing as using Whatsapp for business sounds, there are certain tips and tricks here too. Companies need to understand that they still need to maintain a professional front on their Whatsapp business account. Moreover, just because they have access to personal customer numbers, they cannot send all kinds of messages throughout the day. There should be a limit on the number of messages/content sent. If managing a WhatsApp business becomes overwhelming over time, then there is always the option to automate certain tasks with the help of automation tools.
To sum it up, when used correctly, the WhatsApp business app can enable a business to reach new heights of success without burdening them financially or with resources.
