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Business, text by text: How messaging is reshaping customer connections

Business, text by text: How messaging is reshaping customer connections

  • 16.03.2025 00:45
  • financialexpress.com
  • Keywords: AI, Market Growth

WhatsApp's Bharat Yatra trained over 20,000 small businesses in India to use WhatsApp Business, highlighting messaging's role in digital growth. Over 90% of people engage weekly with brands via text, driving sales and connections for businesses of all sizes.

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Estimated market influence

WhatsApp

Positivesentiment_satisfied
Analyst rating: N/A

WhatsApp has been pivotal in transforming how businesses engage with customers through its Business app, leading to significant market growth and increased revenue for various companies.

Meta

Meta

Positivesentiment_satisfied
Analyst rating: Strong buy

Meta's acquisition of WhatsApp and support for business messaging have driven substantial growth in digital engagement and marketing effectiveness.

Context

Business Insights and Market Implications: How Messaging is Reshaping Customer Connections

Key Initiatives

  • WhatsApp launched the Bharat Yatra initiative in December 2024, training over 20,000 small businesses in tier-2 cities across India to use WhatsApp Business.
  • Ravi Garg, Director of Business Messaging at Meta, highlights that messaging is central to India’s digital growth, with over 90% of people engaging with brands weekly via text.

Market Impact

  • WhatsApp Business has seen significant adoption globally:
    • Over 200 million businesses use WhatsApp Business worldwide.
    • The platform handles 600 million daily conversations, driving massive digital growth.
  • In India, WhatsApp Business is one of the largest and key markets for Meta, with over 90% of people engaging weekly with brands via text.

Business Growth

  • Small businesses leveraging WhatsApp Business report substantial revenue increases:
    • Moto Lyfe (Delhi NCR): 55-60% of business comes from WhatsApp leads.
    • Shoe Doctor (Delhi): 90% of Rs 1.2 crore turnover driven by WhatsApp.
    • Nomad Eco-Retreat (Himachal Pradesh): Revenue increased by 30-40% using WhatsApp Business.

Competitive Landscape

  • WhatsApp Business competes with other platforms like Google RCS, which integrates messaging with Google Search.
  • Meta’s “Click-to-WhatsApp” ads on Instagram and Facebook drive significant leads for businesses.

Strategic Considerations

  • WhatsApp Business offers a two-fold monetization model:
    • Subscription-based revenue from large businesses.
    • Revenue from “Click-to-WhatsApp” ads on Meta platforms.
  • WhatsApp Business has a reported 98% open rate, making it highly effective for customer engagement.

Concerns and Challenges

  • Spamming and cybersecurity issues have emerged, with concerns over data privacy and misuse of the platform for illegal activities.
  • Businesses often send unsolicited messages, leading to customer fatigue.

Long-Term Effects

  • WhatsApp Business is integrating AI tools to enhance customer support, especially for resource-constrained businesses.
  • Meta’s focus on verified badges and premium features aims to boost brand authenticity and efficiency.

Regulatory Implications

  • While privacy concerns persist, WhatsApp emphasizes transparency and user control over interactions.
  • The platform faces scrutiny over data sharing practices and illegal activities, such as the sale of firearms via WhatsApp in India.

This analysis highlights the transformative impact of messaging platforms like WhatsApp Business on small businesses, market trends, competitive dynamics, and long-term implications for digital growth.