Others

WhatsApp Conversation-based Pricing Updates: What You Need to Know

Published:
June 22, 2023
read

Today, WhatsApp is being extensively used by businesses across the globe for marketing, sales, and support. Considering how businesses are leveraging WhatsApp, Meta has been introducing new features to enable them further.

This being said, the most recent update they have made is a change to their WhatsApp conversation-based pricing.

Here’s what you need to know.

What is WhatsApp conversation-based pricing?

The WhatsApp Business cost for conversations is charged per conversation and not for individual messages.

To give you more context, conversations are message threads between you and your customers spanning a 24 hour period. They are considered as open once the messages sent to customers are delivered.

What has changed in the conversation-based pricing of WhatsApp?

In the latest WhatsApp conversation based pricing, Meta has introduced 4 different types of conversation categories.

The category your message falls into will now decide when the conversation opens and you will be charged accordingly.

The four types of categories are:

  • Marketing: These conversations include all the messages sent regarding product or service offers, promotional campaigns, updates, and reminders to customers to take some sort of action such as completing a purchase or subscribing to a new offering.
  • Utility: These types of conversations are mostly centered around any and all information relating to transactions. It includes transaction updates to the customer, transaction confirmations, and purchase order confirmations.
  • Authentication: These messages are used to authenticate customers during the login process. It includes authentication messages such as one-time passcodes required for account verification, account recovery, and more.
  • Service: These conversations are related to resolution of customer queries

It's important to note that marketing, utility, and authentication conversations can be opened only with template messages white service messages can be opened only with free-form messages.

Understanding the different types of WhatsApp conversation categories

Let’s dive into the different types of conversation categories to better understand the WhatsApp business cost.

1. Authentication

Authentication templates are used to send out one time passcodes to authenticate users. These templates are highly restricted.

Authentication conversations must use WhatsApp’s built-in message templates that offer add-ons such as disclaimers and security warnings. Aside from this, authentication messages need to follow certain content parameters and restrictions regarding URLs, emojis, and media.

Here are some examples of authentication templates: 

{{123456}} is your OTP

{{345678}} is your verification code. For security purposes, do not share this code with anyone.

{{767876}} is your one time password. The password will expire in 10 minutes.

2. Utility

Utility templates are used to confirm or change a transaction or a subscription. This is sent out any time an order is confirmed, canceled, or updated.

Here are a few examples of utility templates: 

“Your order #3213” for 3 items is confirmed”

“Your payment was received. Your order will be delivered in 2-3 business days”

“Your consultation with Dr. Aaron has been completed. Here’s your treatment plan”

“Your password has been updated”

“Your order has been shipped. You will receive the shipment on Thursday, 25th June”

“Your payment failed. Retry through this link”

“Reminder: Your payment for order #3213 is due on 12th June”

3. Marketing

Marketing messages are centered around promotional messages, marketing campaigns, product launches, welcome messages, discounts, requests, and more. These templates are flexible as compared to utility and authentication templates.

Here are some examples of marketing templates:

“Purchase for $5 more and get a gift worth $10!”

“Thanks for placing your order with us. Use SAVEBIG to avail 10% of on your next purchase from us”

“ Hey, welcome to Spencer’s. We are now on WhatsApp”

“Thank you for visiting our store. Have a good day”

“We will be closed on July 4 on account of Independence Day”

“Hey <name>, we are hosting a grand dinner tonight. Join us for the event”

“Thank you for purchasing from us. Please leave your feedback here”

“You left something in your cart. Would you like to go ahead and complete your order?”

4. Service

Like we discussed previously, service templates are meant for the resolution of customer queries. Service conversations are initiated by users rather than businesses.

Here are some examples:

“Hey, I’d like to check on the status of my order”

“Hi, I want to confirm my reservation for my flight from London to New York on 20th June”

What are the rates for each of the WhatsApp templates?

The WhatsApp conversation based pricing will vary based on the region you are in. In India, businesses will be charged the following rates for every 24-hour conversation:

  • Service conversations: ₹0.2906 per conversation
  • Marketing conversations: ₹0.7265 per conversation
  • Utility conversations: ₹0.3082 per conversation
  • Authentication conversations: Rates not finalized

Do we still have free tier conversations on WhatsApp Business?

Another important aspect of the WhatsApp Business cost is if free tier conversations are still available. Wel, it is available but under specific conditions.

Every WhatsApp Business account is eligible to get 1000 free service conversations every month across all of its business phone numbers. This number will be refreshed at the start of each month based on the WhatsApp Business account time zone.

However, utility, marketing, and authentication conversations are not a part of the free tier.

What does this mean for your business?

You will notice that the changes to WhatsApp conversation based pricing will definitely impact WhatsApp marketing costs and it will depend on the scale at which different businesses run these accounts.

This simply means that businesses will have to pay close attention to the different campaign types they plan to use and the templates they require for their business conversations.

Clearly, cost optimization is a necessity here with the updates in pricing and that’s where we can help you.

QuickReply.ai can help you with getting the best out of your WhatsApp Business account without going overboard on costs. 

Book a demo with our WhatsApp marketing experts

Frequently Asked Questions

Turn 1 time visitor into repeat customer with WhatsApp marketing

Book a demo with us today and let's evaluate your store to discover the perfect WhatsApp workflows that fit your business needs.