Since 1st June 2023, the updated WhatsApp Conversation-based pricing has taken over, new Conversations have been introduced based on which businesses will now be charged for WhatsApp Business API
But, what exactly is a conversation? How does it affect the way you pay to WhatsApp & your WhatsApp partner? Is it any good?
This blog answers all possible questions you have & more about WhatsApp Conversation based pricing.
In this blog, we discuss more about the types of Conversation based pricing. If you wish to know about the updated WhatsApp Conversation pricing, check out this blog.
How did WhatsApp charge earlier from Businesses using WhatsApp Business API?
Earlier, WhatsApp used to charge a certain fee for each template message depending on the country code of the user.
WhatsApp divides its messages into two categories:
1. Template Messages
2. Session Messages
Template messages are messages sent by businesses (out of the 24-hour session window or as the first message). If the user responds, it opens a session window that lasts for 24 hours from the user's latest message. Click here to know more about the WhatsApp Template & Session messages.
The main revenue stream for WhatsApp in the template message-based pricing model was WhatsApp Template messages. For each message sent by a business, WhatsApp charged a certain fee depending on the user's country code. Check out the country-wise Conversation pricing sheet.
So, what is WhatsApp Conversation based Pricing?
In the Conversation-based pricing, WhatsApp charges for each conversation: Business Initiated Conversation & User-Initiated Conversation.
WhatsApp Conversation is a 24-hour messaging window initiated only when a business messages a user. A Conversation here starts when a business messages the user (thus initiates the Conversation) or replies to a user's message. All incoming messages from users are FREE and only chargeable if the business responds to the user's message.
For a message to become a conversation, here's what needs to happen:
- Business responding to a user message. This will start a User-initiated Conversation (explained in the below section). There's only one type of User-initiated Conversation introduced by WhatsApp which is Service Conversation.
- Business starts the conversation by sending a pre-approved template message. This will start a Business-initiated Conversation. There are three types of Business-initiated Conversations: Marketing Conversation, Utility Conversation & Authentication Conversation.
Businesses and users can exchange any number of messages, including template messages, within a 24-hour conversation session without incurring additional charges.
WhatsApp charges a certain fee for Business-initiated Conversation (BIC) and User-initiated Conversation (UIC) depending on the country code of the users.
In the Conversation-based pricing, WhatsApp charges for each conversation in a 24-hour window.
In the Conversation based pricing, there are no per-message charges. Businesses can exchange any number of messages with the user during a 24-hour conversation window.
But what are Business & User-initiated conversations?
(1) User-initiated Conversation
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Whenever a business replies to a user within the 24-hour session window, that message initiates a user-initiated conversation (UIC) or what we now know as Service Conversation (checkout updated Conversation pricing)
The 24-hour session window starts when a user messages the business & is valid till 24 hours from the latest/last message of the user. The business can respond in this 24 hours session window with any message (without any approval required).
If the business fails to respond within this 24-hour session window, the business will have to start the conversation with a pre-approved template message.
In the above example, the 24 hours session window starts at 1: 09 PM. The User-initiated conversation starts only when the business responds to the user's message i.e. at 3:30 P.M and is charged as per the UIC pricing.
The UIC, in this case, will be valid till 3:30 PM the next day. After 3:30 PM, if the conversation continues, the business would have to pay for another conversation.
The pricing of UIC, as charged by WhatsApp is ₹0.35 for Indian recipients.
(2) Business Initiated Conversation
When a business initiates the conversation (after the 24-hour session window or as the first message) with a Template message, it's considered a business-initiated conversation.
But, to start this kind of conversation, businesses need to get template messages approved beforehand.
There are 4 types of Business-initiated Conversations including Marketing, Utility, Authentication & Service Conversations.
The benefit here is that once a business initiates a BIC & pays for one conversation, it can exchange unlimited messages with the user for the next 24-hours.
- Marketing Conversations include all promotional messages, offers, product updates. These Conversations cost ₹0.88/ Conversation (for Indian users)
- Utility Conversations are transactional in nature and include messages for delivery updates, transaction receipts, reminders and more. These Conversations cost ₹0.125/ Conversation
- Authentication Conversations include messages used for verification purposes such as OTP, account registration and account recovery. These Conversations cost ₹0.125/ Conversation
- Service Conversations are user-initiated conversations where the conversation begins when a user messages a business & the business replies to their message. Effective 1st November 2024, Service Conversations are FREE for all businesses.
6 Key Pointers about WhatsApp Conversation based Pricing
- WhatsApp Conversation is a 24-hour messaging window initiated only when a business messages a user.
- Service conversations are now free, effective from 1st November, 2024.
- If a conversation involves multiple categories such as Marketing, Authentication, Utility, or Service, charges will be applied separately for each category's conversation window initiated.
- Each category of conversations, including Marketing, Authentication, Utility, or Service, incurs its own charges. If you send messages from different categories to the same user within a 24-hour window, you will be charged for each category separately.
3 Real-world Examples of User-initiated & Business Initiated Conversations
We understand that WhatsApp Conversation-based pricing can be hard to grasp at first. However, once you get the zist of it, you'll understand how the new conversation based pricing is way better than paying for each template message!
Example 1: When a User initiates the Conversation (FREE)
POV- User's Screen
Note: All user-initiated (Service) conversations are now FREE, effective from 1st November, 2024. You don't need to pay any charges for replying to your customer queries!
A user initiates a conversation at 10 AM, Monday, thereby opening a 24-hour session window.
The business texts back at 5 AM, Tuesday. Since the business replies within the 24-hour session window, they will pay only for one User-initiated conversation beginning at 5 AM, Tuesday.
Now, let's suppose the business once again messages the user at 4 PM, Tuesday. Notice that the business texts within 24-hours of the UIC that started at 5 AM Tuesday. So, the business won't be paying anything for this message.
Now, the user responds at 3 PM, Wednesday. This time notice that the user replies to the message after the 24-hour conversation period ends.
If the business wants to continue the conversation, they'll have to pay for....if you guessed UIC, you're right. Notice here that the session window stays open 24 hours from the user's last message. That's why it will be UIC.
Example 2. When Business initiates the conversation
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POV- User's Screen
Let's consider that a business initiates the conversation at 10 A.M. Monday with a pre-approved template message. Here, the conversation begins as soon as the business sends the message to the user and the business will pay for one BIC.
Now, the user responds at 11 A.M, on the same day. Will the business pay for another conversation?
No!
Since the user responded within 24-hours of the beginning of the conversation, there will be no extra charges.
The business now responds at 10:30 A.M. Tuesday.
Now, it’s been 24-hours since the business initiated the conversation. So, for which conversation do you think the business would pay for now? The business would now pay for a user-initiated conversation.
Why didn’t the business pay for business-initiated conversation?
This is because the session window which started at 11 AM, the previous day was still active.
Thus, the business paid for another conversation, but this time, user-initiated conversation.
Example 3- Example including Two User-initiated Conversations
POV- User's screen
Note: All user-initiated (Service) conversations are now FREE, effective from 1st November, 2024. You don't need to pay any charges for replying to your customer queries!
A user initiates a conversation at 10 AM, Monday, thereby opening a 24-hour session window.
The business texts back at 5 AM, Tuesday. Since the business replies to the user's message within the 24-hour session window, the business will pay for one User-initiated conversation beginning at 5 AM, Tuesday.
Now, let's suppose the business once again messages the user at 4 PM, Tuesday. Notice that the business texts within 24-hours of the UIC that started at 5 AM Tuesday. So, the business won't be paying anything for this message.
Now, the user responds at 3 PM, Wednesday. This time notice that the user replies to the message after the 24-hour conversation period ends.
If the business wants to continue the conversation, they'll have to pay for...?
If you guessed UIC, you're right. Notice here that the session window stays open 24 hours from the user's last message. That's why it will be UIC.
The business texts back at 6 PM, thus beginning another User-initiated Conversation, charged separately.
Things that stay the same in the Conversation based pricing model
1. 24-Hour Session Window- The 24-hour session window starts from the latest messages of the user. After this window gets over, businesses can only send template messages to the users, thus initiating a Business initiated conversation (BIC).
2. Template Messages- While businesses don't need to pay for template messages anymore, they still need to approve all template messages before broadcasting to users.
What does WhatsApp Conversation based pricing mean for AiSensy Clients?
For AiSensy clients, there's not much that changes except for the WhatsApp Conversation Credits panel that you need to recharge to communicate with your users.
We haven't added any extra commission or surcharges over WhatsApp actuals! You'll be paying the same conversation amount charged by WhatsApp based on your user's country code & whether the conversation is user-initiated, or Business initiated.
The Unlimited users pricing remains the same. Check it out here.
FAQs for WhatsApp Conversation-Based Pricing
WhatsApp changed the pricing from per message to per conversation because: "Relationships are about more than a single message. That's why our rates are per 24-hour conversation session to enable businesses to provide the fast & conversational experiences that customers want." Thus, the shift from per-message charges to per-conversation charges.
WhatsApp Conversation is a 24-hour messaging window initiated only when a business messages a user. A Conversation here starts when a business messages the user (thus initiates the Conversation) or replies to a user's message. All incoming messages from users are FREE and only chargeable if the business responds to the user's message.
The pricing of User-initiated & Business initiated conversations vary depending on the region, the country code of a user and the type of Conversation. In India, WhatsApp charges ₹ 0.81/ Marketing Conversation and ₹0.125/ Utility, Authentication & Utility Conversations.
No! The prices of both user-initiated & business-initiated conversations are fixed & unaffected by the volumes of messages exchanged between businesses & users. Regardless of your message volumes, you'll need to pay a fixed amount for each conversation depending on: 1. The user's country code and, 2. Whether the conversation is Marketing/ Utility/ Authentication/ Service Conversation.
No! Businesses would still need to approve all their WhatsApp Template messages from WhatsApp. However, the process of template message approval has become faster, especially if you're an AiSensy user. Your template message now gets approved instantly. Note that at times template messages might take up to 2 hours to get approved.
No! You'll only be charged once for Business-initiated conversation till the next 24 hours. During this period, you can send any number of texts, images, audio & files to the user. The conversation window renews to a fresh chargeable conversation only if the conversation continues after the 24-hour session cycle ends.
User-initiated conversations are chargeable only when a business responds to user queries, or when the business is the initiator of the conversation. If the business doesn't respond to the query, you won't be charged a single dime.
Final Words
Well, that's a wrap!
WhatsApp has put a step forward into motivating more businesses to adopt WhatsApp Business API with the conversation-based pricing model. The day isn't far when businesses would be pitching ads, motivating customers to click-through & instead of directing to their website, they'd direct them to WhatsApp!
What do you think about WhatsApp Conversation based pricing? Let us know in the comments.
Checkout Useful Resources
How to create Free WhatsApp Chatbot Code-free
Top 12 WhatsApp Business API Use Cases
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