Starting February 01, 2022, WhatsApp is shifting to a conversation-based pricing model. Find out how this benefits your business
As the world’s #1 conversation app, WhatsApp is an integral channel for direct communication between brands and their consumers.
In recent times, Business to Consumer (B2C) communication has shifted from single message broadcasts to meaningful conversations to build relationship and enable business growth.
The WhatsApp Business Solution enables organisations to send template notifications to customers and also enables business to respond and support those who reach out to them on the channel.
However, Starting February 01, 2022, WhatsApp is introducing some changes in its pricing model to shift the model towards conversation-based pricing. Read on for more details of the pricing model and how it will impact your business.
WhatsApp Business pricing changes
Currently, WhatsApp charges brands for each template message delivered to the customer while the conversations initiated by the customer are free of charge for the first 24 hours.
However, all this will change starting February 01, 2022.
From 1st February 2022, WhatsApp will shift to a conversation-based pricing model. Under this model, WhatsApp will only charge brands once for each conversation and not for each template message sent.
Conversational based pricing by WhatsApp explained
In the current template-based model, WhatsApp charged businesses for each template message delivered to the customers. Customer-initiated conversations were free of charge for a session of 24 hours.
Starting February 1, 2022, businesses will be charged per conversation (24-hour session) rather than per message sent, regardless of who starts the conversation. However, business-initiated conversation rates will vary from customer-initiated ones.
This 24 – hour session or a conversation happens in two scenarios:
1. User initiated conversation: Customer sends the business a message and the business replies with a message that is delivered. (If the business does not reply or deliver a message to the customer, the conversation will not be initiated and thus, businesses won’t be charged)
2. Business initiated conversation : A business sends a message to a customer and the message is delivered to the customer, regardless of if the customer replies to the message or not
It’s important to highlight that within this 24-hour session, costs are incurred only once (per each 24-hour conversation). The rates charged per conversation depend on whether it was initiated by the business or the customer and the country code of the customer’s mobile number.
Therefore, once a conversation is initiated, the brand can exchange infinite messages with their customers within a fixed 24-hour session for free. The brand will be charged only for the first message that is delivered to the customer by the brand (either via user initiated or via business initiated conversation)
Essentially, once a conversation is started, a brand can drive promotional offers, in-stock updates, send post-purchase updates, provide customer support, customer feedback and much more – at the price of a single conversation only.
What is considered a conversation?
WhatsApp defines a conversation as a fixed 24-hour session that includes all messages delivered to a customer (messages sent but not delivered by the brand would not be considered a part of the conversation and thus, won’t be charged). Within this 24-hour session, there can be unlimited exchange of messages between the brand and its customers and this would be considered as a single conversation.
After this session is over, any message sent post 24 hours initiates a new conversation, charged depending on who sent the initial message.
For examples of how conversations work.
Get 1000 free conversations each month and other free points
In addition to these changes in the pricing model, WhatsApp now also gives businesses an opportunity to expand on their existing use cases and integrate them with other Meta products.
WhatsApp gives the first 1000 conversations delivered per registered business account free of charge each month.
If a conversation is initiated by a customer through ads that click to Facebook or Instagram and is continued on WhatsApp, then that conversation will be free of charge as well. The same applies for the conversations started on a Facebook page.
How the new pricing benefits your business
Under the new pricing model, brands can now leverage WhatsApp as a communication channel to send multiple notifications to its customers at the price of one message. Instead of being charged per template, WhatsApp allows brands to send unlimited messages within a 24-hour session.
If you’ve been using WhatsApp to send multiple notifications to your customers, you’re undoubtedly going to benefit from this change. Now, you can send an unlimited number of messages within a 24-hour session, rather than being charged for every message template sent.
Additionally, with the added benefits of free 1000 conversations and free entry points, WhatsApp enables brands to unlock their full potential on the app and provides a way for them to stay connected with their customers throughout their journey.
With this new model, brands can drive promotional offers and sales on WhatsApp, suggest complimentary products based on past data, send post-purchase updates, provide customer support, seek feedback and thus, meaningfully engage their customers on the app.
All of this – at the price of a single conversation only.
To read more, visit the official update by WhatsApp here.
Key takeaways
- New conversation – based pricing model to be effective from February 01, 2022 and the pricing based on template messages will be discontinued starting from 1st February 2022
- The new model is based on 24–hour sessions (conversations) initiated either by the business or the customer. The session begins when a message is delivered. The session is charged per conversation instead of being charged per template message under the previous model
- Costs per session vary based on whether the conversation was initiated by the customer or the business. It also depends on the country code of the customer’s mobile number
- The first 1000 conversations are free every month per WhatsApp business solution account
- Conversations that are started by customers from a Facebook page or through ads that click to Facebook and Instagram are free of charge.
- The new change is introduced by WhatsApp – for full details, check out the official update by WhatsApp.
