WhatsApp vs SMS: Which Channel delivers the best ROI for African Businesses

Communication in business today has gone beyond making phone calls to follow up on leads, prospects and existing clients.

The mobile messaging trend has drastically grown because business owners now have a deeper understanding of consumer behavior. 80% of the phone calls a business makes to a prospective client always end with "Send me a message with all the details!"

Two channels have stood out on this platform, that is, WhatsApp and SMS. The onus is now on the business owner to understand which of the two to really optimize to achieve maximum ROI. Let us navigate the pros and cons of these two channels but first let's characterize them appropriately.

SMS	WhatsApp
Works on any mobile device - whether basic or smart phone	Works on any mobile device - whether basic or smart phone
Does not require internet but there is normally a charge involved while sending out SMSs.	Sending or receiving messages requires internet connectivity so the user does not have to pay for SMS
Works with all network providers	Has a strong security. WhatsApp messages have an end - end encryption so only the intended recipient is able to view the message passed across.
SMS messages are normally plain and often do not exceed 160 characters	WhatsApp has no limit on messages sent and are rich, you can add and image or video, emoji and other things

Businesses are always looking for 4 basic things when trying to communicate to their consumers:

1. How far can my message go? (Scalability)

2. How else am I able to put a message across to make it more appealing? (Features and innovation)

3. How much will it cost me? (cost - efficiency)

4. How safe is it? (Security)

1.Scalability

• SMS wins the crown on this one. Every mobile device however old would be able to receive messages passed across on this channel

• WhatsApp would require a device that is connected to the internet and able to use the app. Also, the user would have to be very active otherwise messages will be sent and ignored.

  However, it depends on the targeted audience for the message. If you often speak to clients and they respond with "Send me a WhatsApp" then your market is more WhatsApp oriented. You would enjoy more engagement and conversion on the WhatsApp channel unlike SMS.

  
  

  2. Features and innovation

• WhatsApp has richer media. The ability to add videos, images, emojis and even a product catalogue to a message has made it more appealing. There are instances where a client responds to the message simply because of the added image. Visual then becomes more appealing than plain text.

• Two - way communication: As businesses post and send across their messages, they are able to engage in real time with the client. They identify the client's need, negotiate their way through to a conversion in under 5 minutes of a simple WhatsApp message.

• Automated responses. Marketing automation tools are the rise in today's digitally - savvy economy. Tools like Trembi have the ability to send messages on behalf of the company and even respond to any inquiries. This increases conversion rates in the area of customer support and enhances visibility for businesses that promise a 24/7 customer service provision without having to hire extra labor to fill that void.

3.Cost efficiency that favors your cashflow

• SMS comes at a cost per message sent out. So many SMS companies in African businesses have different SMS pricing packages that favor different industries depending on volumes sent out. This would come in handy for mass announcements.

• WhatsApp goes beyond price comparison but rather the value that can be achieved in one single message. This is supported by its ability to appealingly personalize and customize the message with no worry about the number of words or even multiple charges for the messages.

This effective and yet affordable way of communication substantially translates into better Return on Investments for African businesses.

4. Security and privacy

   WhatsApp has end - end encryption that helps businesses keep messages confidential and opened and read by the only intended recipients. This builds trust between the business and the customer which attributes greatly to the business' Return on Investment unlike SMS that can be read by anyone holding the phone at that particular time.

While WhatsApp may seem an overwhelmingly better choice, it would be unfair to deny the pros of SMS:

• higher response rates to urgent messages

• better performance in areas with no internet coverage

When SMS may be a more beneficial channel?

• When sending simple transactional messages

• During retail flash sales when urgent action is needed

• Banking alerts

• Rural mass messages

• Health care reminders

It is imperative that business owners identify and understand their target market, in this way, they will know how to communicate best to them. Platforms like Trembi help educate businesses on different aspects of sales and marketing and how best to communicate your product or service to the client.

Adoption of both SMS and WhatsApp

To achieve maximum ROI, businesses have adopted the use of both SMS and WhatsApp.

• WhatsApp as the primary communication channel for marketing, customer service and ultimately sales. Its unique features allow for customer engagement.

• SMS for customers in rural areas, urgent communication, bank alerts and regulatory compliance messages

Meet the customers where they comfortably are. The goal is to push across messages that are engaging and will eventually lead to growth in sales. It is undeniable that WhatsApp has spread like wildfire even in the rural areas and allows for a much global platform than SMS.

Tools like Trembi campaigns have allowed Businesses venture in both channels with ease all in the while achieving a great ROI.