WhatsApp marketing ROI metrics and tracking, explained

Considering the WhatsApp Business statistics in terms of its 2 billion user base and higher engagement rates,  many businesses are keen to explore its potential as a marketing tool. If you are wondering, “is WhatsApp a good marketing tool?” and whether WhatsApp's paid features, specifically the WhatsApp Business API, help increase WhatsApp marketing ROI, this guide is for you. We will delve deep into the metrics and WhatsApp marketing strategies to help you answer these questions.

What is KPI for WhatsApp marketing?

Key Performance Indicators (KPIs) act as a guide for marketers, helping them achieve their objectives. In WhatsApp marketing strategies, these KPIs not only measure campaign performance but also reveal the cost-effectiveness and value of the paid API solution. Below are the key metrics that are useful to measure WhatsApp marketing ROI.

Delivery rate

The delivery rate for your WhatsApp campaign evaluates the efficiency of message transmission and ensures that your content reaches the intended audience without hitches. It's crucial to understand if there are any technical issues or barriers preventing message delivery.

Formula: (Number of messages delivered / Total messages sent) x 100%

Open rate

The open rate of WhatsApp marketing messages is a reflection of how compelling and relevant your content is to the recipients. A high open rate indicates that your message subject or preview is enticing enough for recipients to view the full WhatsApp marketing campaign message.

Formula: (Number of opens / Total messages delivered) x 100%

Engagement rate

Beyond just opening the message, the engagement rate of WhatsApp marketing messages gauges how many recipients interacted with the content. It provides insights into the quality and efficiency of your content.

Formula: (Number of responses/ Total messages delivered) x 100%

Click-through rate (CTR)

The click-through rate of your WhatsApp marketing campaign message is a critical metric that assesses the effectiveness of your call-to-actions (CTAs) within the message. A high CTR suggests that your CTAs are compelling and resonate with the audience's interests or needs.

Formula: (Number of quick reply clicks or link clicks / Total messages delivered) x 100%

Conversion rate

The conversion rate from your WhatsApp Business statistics delves deeper into the customer journey, tracking those who not only engaged with the content but also took a desired action, such as making a purchase or signing up for a newsletter.

Formula: (Number of desired actions taken / Total messages delivered) x 100%

3 advanced WhatsApp marketing metrics

Not all WhatsApp marketing campaigns revolve around sales. However, when you do measure sales, the financial dynamics of your campaign are essential. By analyzing the revenue and costs associated with each recipient, you can gain a clearer picture of your WhatsApp marketing ROI and the campaign's profitability. Let's dive into three advanced metrics that can help you do just that.

1. Revenue per recipient

This metric provides insights into the average revenue generated from each recipient you engage with through your campaign.

Formula: Total revenue / Total messages delivered

2. Cost per recipient

To understand the efficiency of your WhatsApp marketing campaign spending, this metric breaks down the average cost you incur for each recipient. When calculating the total campaign cost, consider the following:

• WhatsApp marketing conversation cost: the fee you pay to WhatsApp for delivering a marketing template message to a particular country or region.

• Software provider cost: a fixed monthly subscription cost. To accurately distribute this fixed cost, estimate the number of campaigns you'll run in a month. Then, for each campaign, determine how many messages you'll deliver. By dividing the monthly software cost by the total messages delivered in a month, you can ascertain the software cost per recipient.

Formula: WhatsApp marketing conversation cost + (Software provider monthly subscription cost / Total number of marketing messages delivered in a month)

3. Return on campaign spend

This metric gives a holistic view of the profitability of your WhatsApp marketing campaign by comparing the revenue generated per recipient to the cost incurred per recipient.

Formula: Revenue per recipient / cost per recipient

How to track WhatsApp campaign performance for website conversions?

You can track leads originating from WhatsApp links using a combination of URL parameters and analytics tools. Here's a step-by-step guide:

Step 1: Prepare UTM parameters

UTM (Urchin Tracking Module) parameters are tags you add to a URL. When someone clicks on a URL with UTM parameters, those tags are sent back to your analytics tool, and you can track where your traffic came from.

For example, if you have a website https://example.com, you can add UTM parameters to it like this:

https://example.com/?utm_source=whatsapp&utm_medium=social&utm_campaign=my_campaign

• utm_source: Identifies which site sent the traffic. In this case, "whatsapp".

• utm_medium: Identifies the medium. E.g., "social", "email", etc.

• utm_campaign: Identifies your specific campaign.

Step 2: Share the link on WhatsApp

Once you have your shortened URL with UTM parameters, you can share it on WhatsApp. You can embed the link as a call-to-action interactive button so customers can react easily.

Step 3: Analyze the traffic 

In Google Analytics 4, you can go to Reports > Acquisition > Traffic Acquisition to see the traffic from "whatsapp /social".

How to identify a WhatsApp lead source?

If someone contacts you via WhatsApp, determining where a contact originated can be a bit tricky as WhatsApp offers multiple entry points (wa.me links, QR code, social media call to action buttons, website widget etc). There are some strategies and workarounds you can employ:

Method 1: Customize the initial message

If you're using a link to initiate a WhatsApp chat, you can customize the initial message based on the platform or campaign. For instance, a link from an email campaign might have the initial message "Hello! I'm reaching out from the email campaign," while a link from your website might say "Hello! I found you on your website."

Explore more about how to customize your WhatsApp link.

Method 2: Use Google Tag Manager

Google Tag Manager (GTM) is a powerful tool that can help you track clicks on a "Chat with us on WhatsApp" link or button on your website. By setting up tags and triggers in GTM, you can send this data to Google Analytics to determine the lead source.

Here's a step-by-step guide on how to track WhatsApp link clicks using Google Tag Manager:

Step 1: Create a new tag

• Log in to your GTM account.

• click on "Tags" in the left sidebar, then click on "New".

• Name the tag (e.g., "WhatsApp Clicks").

• Click on "Tag Configuration" and choose "Google Analytics: GA4 Event" as the tag type

• Click on “Configuration Tag” and choose “None- Manually Set ID” in the dropdown menu

• Copy your GA4 Measurement ID from your GA4 account and paste it into the required field.

• Name your event (e.g., "whatsapp_clicks")

Step 2: Create a new trigger

• Click on "Triggering" below the “Tag Configuration”

• Name the trigger (e.g., "WhatsApp Clicks").

• Click on "Trigger Configuration" and choose "Just Links" as the trigger type.

• Choose "Some Link Clicks" for “This trigger fires on” and set the conditions. For instance, you might set it to trigger when the "Click URL" contains "wa.me" or "api.whatsapp.com".

Step 3: Publish changes

Once you've set up the tag and trigger, click on "Save”, “Submit”  and “Publish” in the upper right to publish the changes to your live website.

Step 4: Check in Google Analytics 4

After some time, you can go to Google Analytics and navigate to Report > Engagement > Events to see the events being tracked. If you set it up as described, you'd look for the "whatsapp_clicks”. With this event data, you can segment the events by source/medium to see where users were before they clicked on the WhatsApp link. This can give you insights into which channels or campaigns are driving the most WhatsApp interactions.

Is WhatsApp marketing better than email marketing?

When comparing mediums, many businesses ask, "Is WhatsApp marketing better than email marketing?" The comparison between WhatsApp marketing and email marketing for better ROI is complex and depends on several factors. Here's a general comparison:

The question, "What is the success rate of WhatsApp marketing?" really depends greatly on the quality and creativity of the campaigns. This applies similarly to email marketing. However, WhatsApp has undeniable potential as a powerful marketing tool, especially with the WhatsApp Business API offering several advantages over the free WhatsApp Business App for WhatsApp ROI optimization.

How to optimize WhatsApp ROI?

When it comes to optimizing WhatsApp ROI, the paid WhatsApp Business API solution truly demonstrates its value through the advanced segmentation and personalization features. It also allows businesses to employ the following methods to assess campaign effectiveness and make improvements:

Method 1: Audience segmentation

The WhatsApp API also enables businesses to target specific audiences more effectively. For example, if a broad targeting approach fails to engage customers, businesses can create a more tailored audience list based on conversation histories and customer interests. You can then test the effectiveness of different messages for specific demographics, interests, and behavior, so that your targeting and messaging strategies resonate better with the intended audience.

Method 2: A/B testing

Businesses can evaluate the effectiveness of different CTAs, message content, visual elements, timing and frequency in driving conversions. This iterative process empowers businesses to continually improve their conversion rates and achieve better results in their WhatsApp marketing efforts.

Method 3: Automated engagement

WhatsApp Business API can help businesses establish automated conversation flows and guide users on the next steps depending on the replies. By designing a sequence of message templates with button-based responses, you can provide customers with convenient reply options and a seamless communication experience. This step-by-step approach encourages customers to take desired actions.

Method 4: Integration with existing tech infrastructures

Integrating WhatsApp with existing systems provides businesses with rapid access to customer data. It ensures that agents have up-to-date information which enables them to serve customers more effectively and avoid asking redundant questions, streamlining the communication processes for overall customer satisfaction.