Customer engagement and loyalty have been on a steady decline in industries like financial services and retail.

As customer behaviors have changed, so have their communication preferences. People are less likely to send emails to get problems solved or questions answered; they want to have genuine conversations like they have with their peers.

Customer communication has evolved towards two-way conversations

The direct mail you or your parents got in the mailbox wasn't meant for replying. Nor are the emails and SMS messages that companies still rely on.

Social media was one of the original places where people could express themselves and their ideas. Now, we have chat apps, which are an evolution from SMS.

From a business messaging perspective, SMS has been mainly a one-way channel. While it's effective for delivering OTPs, it's not for delivering marketing messages. The main reason is that it can deliver a limited amount of plain text.

People are used to two-way communication facilitated by chat apps. This means that you can have real-time conversations with other people, and customers increasingly expect this from businesses alike.


Gen Z has ditched email and moved to chat apps

While Gen Z has mastered social media, they also prefer chat apps like WhatsApp, Messenger, iMessage, and Viber over email and SMS.

With over 3 billion monthly active users, WhatsApp alone holds a 45% share of the global messaging market. This makes it definitely a “hard to ignore” channel for businesses.

Although the above-mentioned channels have started as peer-to-peer messaging apps, recent studies show that, on average, 72% of people prefer using WhatsApp for business communication.



“WhatsApp ranks as the second favorite app behind Instagram among Gen Z globally.”

Multiple case studies also support this, showing that some businesses see, on average, a 300% increase in conversions compared to SMS and a 700% increase compared to email when using WhatsApp for sales and customer care.

Why Gen Z loves chat apps

Chat apps are effective channels for engaging with Gen Z thanks to their unique features and the fact that they are not overloaded with distracting information.

Interactive and rich content for high engagement

Make your messages more appealing with interactive content. Channels like WhatsApp and Viber allow you to insert visuals, videos, and buttons into messages.

This creates a highly engaging experience, encouraging users to take action. In contrast, SMS is limited to only certain types of content.

Two-way communication for instant action

People value immediate feedback and instant problem-solving, so email and usual support chats no longer fulfill the purpose. At the same time, people have gotten used to chatting with their peers, and they increasingly expect the same from businesses.

Global reach to launch campaigns quickly

We often don't know where our customers are from. While SMS needs separate registration in most countries, WhatsApp and Viber allow you to register once and send messages globally.

Verified Business account adds an extra layer of security

Gen Z is well aware of phishing and smishing threats in email and SMS. Many chat apps such as WhatsApp and Viber help you verify your business account to add an extra layer of security so that users know and be sure that you are sending the message.

WhatsApp is the preferred channel by Gen Z

While various chat apps and communication platforms are available, WhatsApp is the go-to platform for Gen Z. They are used to real-time conversations with their friends and expect to reach businesses as easily. WhatsApp is also a safe and secure channel for personal conversations.