When was the last time you contacted a business? Maybe to ask about an order or submit your KYC. You probably sent an email and waited. Or called and got put on hold.

Most people hate it. 67% say they’d rather message a business than deal with emails or calls. They expect businesses to be as fast and accessible as the apps they already use.

And users:

• Are already on WhatsApp. Over 2.9 billion use it daily.
• Open WhatsApp.  98% open rate vs 20-25% of email.
• Respond faster. Emails take days, chat takes minutes.
• Engage more. Rich media and native payments, turn messages into conversations.

For e-commerce, WhatsApp shortens the buying journey, boosts conversions and recovers 50% of abandoned carts. In BFSI, it resolves 98% of queries without an agent and is now the preferred channel for 70% of customers.

This guide shares how e-commerce and BFSI businesses use WhatsApp to increase engagement, drive conversions, and improve operations.

Why Businesses Choose WhatsApp for Customer Communication

People already use WhatsApp to chat with their grocer, doctor, or bank rep. It’s quick, familiar, and human. Everything they now expect from large businesses, too.

A Bain & Company and Meta report found that over 50% of users prefer messaging for everyday tasks like checking statements, paying bills, or tracking orders. This shift creates opportunity for enterprises.

Instead of scattered touchpoints like email, apps, or IVR, businesses can meet customers on a platform they already trust. That’s why 60%+ enterprises plan to invest more in conversational platforms. It’s helps drive full funnel engagement, from discovery to purchase to post-purchase support.

From promotions to cart recovery and alerts, businesses across e-commerce and BFSI are using WhatsApp to engage, guide, and convert.

So, what’s in it for your business?

1. Higher Open and Response Rates

Traditional channels struggle with engagement: Email open rates average 20%, SMS around 10%, and calls are often ignored. Compare that to WhatsApp, where 98% of messages are opened, and response times are significantly faster.

2. Real-Time, Instant Conversations

Customers don’t want to wait for a reply. With WhatsApp, businesses respond instantly (through automated conversations or Live Chat), helping customers make decisions faster.

3. AI-Powered Automation & 24/7 Support

Not every query needs a human response. WhatsApp chatbots can handle FAQs (shipping, account statements), product recommendations, and self-service requests (delivery tracking, loan enquiries, fraud alerts), resolving 60% of inquiries via auto- reply and increasing efficiency

4. Personalised Marketing & Retargeting

Customers engage more with personalised messages. On WhatsApp, businesses can recover carts, send exclusive offers, and cross sell. Click-to-WhatsApp (CTWA) ads boosts this further by bringing customers straight into chat. With 2X engagement than email, WhatsApp makes marketing feel more like a conversation than an ad.

5. Secure, Encrypted, and Compliant Messaging

Security is a major concern, especially in the finance space. WhatsApp’s end-to-end encryption ensures that sensitive financial and personal data stays private.

6. Interactive Messages for Higher Engagement

WhatsApp goes beyond text with quick reply buttons, list messages, rich media, catalogs, and more making interactions more dynamic. Customers can tap to confirm, browse, or get support instantly, reducing friction and improving engagement. Unlike traditional channels.

7. Native Payments for Seamless End-to-End Journeys

With WhatsApp Native Payments, customers can buy without leaving the app. From e-commerce checkouts to loan payments and more, transactions happen instantly, reducing drop-offs and speeding up conversions. A major advantage over external payment portals.

WhatsApp Business Messaging for E-commerce

Shopping online isn’t different from walking into a store. A customer lands on your website, browses, and finds something they like. They have questions about returns, restocking, or picking options. Instead of filling a form or waiting on email, they tap a WhatsApp button and get instant answer. That’s the seamless experience WhatsApp makes possible.

From discovery to purchase to post-sales support, WhatsApp can handle it faster, smoother, and with fewer drop-offs. Other than the usual benefits, WhatsApp helps scale. You can:

• Run a digital storefront where customers can browse, ask, and buy in one chat.
• Enable easy opt-ins via QR codes, missed calls, or links.
• Design scalable Flows that turn one-to one chats into one-to-many journeys.

So, let’s jump in to see how this journey looks on WhatsApp.

1. Pre-Purchase Engagement

The typical online shopping experience is full of friction. Customers see an ad, click through to a website/app, get distracted, and drop off before they buy. WhatsApp removes this friction by making engagement instant.

a. Lead generation

Traditional ads send users to a landing page or form, where many lose interest. CTWA ads drive awareness, interest, and lead generation by letting users click the ad and start an instant chat on WhatsApp. They convert 25-30% better with users moving faster from interest to checkout.

Titan Achieves 25% Cart Conversions with CTWA Ads

India’s leading watch brand, Titan, used Click to-WhatsApp ads to turn social engagement into high-intent conversations. By showing a personalised catalog and using a WhatsApp chatbot for discovery and checkout, they saw:

• 25% cart conversion rate
• 125+ purchases via WhatsApp
• 8M+ ad impressions, driving visibility

b. Product Discovery

Instead of browsing a website, customers can explore product catalogs right inside the chat. They swipe through products, ask questions, and make purchases without leaving the app. This keeps engagement high and the purchase journey seamless.

c. Upselling and cross-selling

Have you seen Amazon’s “You may also like” feature? Now think of this for your business but inside WhatsApp. AI-driven chatbots analyse user behavior to suggest relevant products, making upselling and cross-selling more effective.

d. Promotional offers, discounts, and gamified campaigns

Unlike mass marketing (emails or conventional ads), promotions on WhatsApp feel personal. Businesses can send tailored codes, flash sales, and interactive campaigns using customer data. These hyper personalised experiences, reinforced by features like countdown timers and scratch to-reveal deals, create urgency and lead to faster and repeat purchases.

Croma’s Interactive WhatsApp Campaigns Drive 34x ROI

Croma, one of India’s largest electronics retailers, ran gamified WhatsApp campaigns on Black Friday, offering discounts through image recognition-based selfies. They saw

• 34x ROI
• 95% of selfies processed within 1.3 seconds, ensuring seamless engagement

2. Purchase & Checkout

Cart abandonment is a revenue killer. Over 76% of shoppers who leave without completing their purchase never return. With WhatsApp-enabled effortless checkout, this number can change.

a. Abandoned Cart Recovery

Email reminders recover just 10-15% of abandoned carts vs. 80% on WhatsApp. A well-timed message, possibly with a limited time offer, nudges customers back to checkout. Instead of ignoring an email, they get a direct message and a reason to complete their purchase.

b. Seamless Checkout with Native Payments

Every extra step increases drop-offs. WhatsApp simplifies checkout by letting customers place orders and pay in one conversation. They can confirm an order with a quick reply and complete payment without switching apps.

c. Building trust through instant reassurance

After a payment or order, customers want to know what’s next. WhatsApp sends instant confirmations, shipping updates, and humanised support replies in the same conversation. This kind of reassurance builds trust and reduces follow-up questions.

3. Post-Purchase & Customer Support

The post-purchase experience decides whether customers return or move on. Delays, poor communication, and slow support can turn a great purchase into a frustrating one. WhatsApp keeps customers informed, engaged, and satisfied, without being intrusive.

a. Shipping & Delivery Updates

Customers shouldn’t have to search for tracking links or call support. WhatsApp sends real-time shipping updates — from dispatch to delivery — so customers always know where their order is. Businesses using WhatsApp notifications see fewer “Where’s my order?” inquiries.

b. AI Chatbots for Returns & Refunds

No one likes waiting for customer service. WhatsApp chatbots let customers initiate returns, process refunds, or request exchanges instantly, without navigating long help pages or waiting on hold. This speeds up resolutions and reduces support costs.

c. Collecting Feedback & Reviews

Most happy customers won’t leave reviews unless prompted. WhatsApp automates feedback collection at the right moment, making it easy for customers to share their experiences. Better reviews mean higher credibility and more conversions.

4. Loyalty & Retention

Acquiring a customer is just the first step. Retention is where real growth happens. WhatsApp makes it easy to re-engage customers, reward loyalty, and keep them coming back.

a. Exclusive Offers for Repeat Customers

Loyal customers expect more than generic discounts. WhatsApp lets businesses send personalised offers, VIP deals, and early access to sales, making customers feel valued. This leads to stronger brand loyalty and higher repeat purchases.

Croma Boosts Loyalty & Referrals with WhatsApp

Croma uses WhatsApp to drive retention through its Tribe Chatbot, which gamifies referrals with instant rewards. Automated service reminders keep customers engaged long after their first purchase.

• 48% higher engagement from new users, 52% from loyal customers
• 98% completion rate for service bookings
• Higher participation through WhatsApp reward programs

b. Re-Engagement Campaigns for Inactive Users

Many customers drop off after one purchase. WhatsApp helps bring them back with automated check-ins, restock alerts, and personalised incentives. A timely message like “Still thinking about the linen shirt you saved? It’s back in stock.” can gently nudge them to return and buy.

c. Subscription Reminders

E-commerce brands often offer subscriptions like regular grocery deliveries or premium membership plans. But missed renewals mean lost revenue. With WhatsApp getting a 98% open rate (compared to email’s 20%), renewal reminders are seen and acted on.

WhatsApp Business Messaging for BFSI

People don’t want to avoid banks. They want to avoid long forms, clunky logins, and branch queues. Especially when services like account opening, KYC, or fund transfer are just a message away. When it’s this easy, old methods stop making sense.

That’s why more customers are choosing WhatsApp. It fits how they already get things done. Instead of juggling helplines, apps, and emails, customers can discover, apply, verify, and transact in a single thread.

This shift is pushing BFSI companies to rethink how they acquire, serve, and grow customer relationships. Beyond the usual benefits, WhatsApp helps them:

• Onboard rural users with no app, just WhatsApp chat.
• Collect documents instantly by letting users upload KYC proofs in chat.
• Build trust instantly using verified business profiles.

Let’s see how the full journey comes to life:

1. Generate leads and awareness

Lead generation in BFSI is tough. Customers are cautious, choices are plenty, and trust takes time. Most won’t pick a credit card or loan after one ad. WhatsApp enables two-way conversations, helping brands offer quick answers, build trust, and move leads forward.

a. Lead generation

Traditional ads send users to landing pages or apps, where many drop off. Click-to WhatsApp ads skip the friction and start real conversations. Prospects ask, get answers, and move forward in one thread. Businesses on WhatsApp see 5X clicks and 3X sales than email and SMS.

b. Targeted offers

When customers check their balance or ask a question, it’s the perfect time to suggest a loan, insurance add-on, or card upgrade. It’s more helpful and not intrusive. Just timely nudges in the same trusted chat. This approach can drive 2x conversions than phone calls.

2. Onboarding and verification

Onboarding is a critical step across BFSI, whether it’s for loans, accounts, investments, or insurance. But it’s also where many drop off, slowed by forms, branch visits, and email delays. WhatsApp turns this into a simple chat. With government API integrations, businesses can validate documents in real time, reducing friction and ensuring compliance.

AU Small Finance Bank simplifies account opening with WhatsApp

To expand digital banking in Tier 2–4 cities, AU Small Finance Bank launched a WhatsApp journey for opening savings accounts. Customers complete Aadhaar eKYC, select services, and open an account in under 5 minutes.

• 500+ accounts opened
• 5,000+ customer interactions
• Aadhaar-based eKYC
• Initiated with a missed call, completed in chat

a. Seamless account opening

Customers often drop off when asked to download apps or fill out lengthy forms just to open an account. On WhatsApp, banks can guide users through the process with simple, conversational prompts, letting them share documents, verify identity, and complete KYC in minutes.

b. Eligibility checks and verification

Whether it’s a loan, insurance, or investment, eligibility checks are often the first step. But still involves long forms, follow-ups, and delays. With WhatsApp, customers answer a few guided questions and get pre-qualified instantly. It’s faster, easier, and drives 2X applications than other digital channels.

c. Automating KYC

KYC reviews can cost banks up to $3,000 per client and take 150 days due to manual work. WhatsApp AI chatbots cut through the inefficiencies with guided chats that collect documents, verify identity, and share instant status updates by reducing time and lowering costs.

3. Service, support, and trust

Important updates often get buried in inboxes. WhatsApp changes that. Messages are delivered in real time, opened instantly, and drive faster action. Financial institutes using WhatsApp see 10x higher open rates and 25x better ROI compared to traditional channels, making every message count.

a. Self-service with AI chatbots

Most queries in BFSI don’t need a phone call, they just need fast answers. With AI- powered WhatsApp chatbots, customers can track applications, update contact info, check policy or loan details, and get support instantly. It’s faster, simpler, and support teams have seen 35% fewer calls and 90% quicker responses.

AU Small Finance Bank delivers real-time service updates through WhatsApp

To simplify banking, AU Small Finance Bank introduced WhatsApp as a service channel. Customers can check balances, view transactions, request passbooks, and raise service requests. By meeting customers where they are, AU Bank turned routine tasks into instant, self-serve conversations.

• 5,000+ interactions
• Real-time updates
• Missed call opt-in
• Smart chat for multi-account users

b. Timely reminders

Most missed payments aren’t intentional. They are just forgotten. Reminders get buried in a crowded inbox. With 10x higher open rates than email or SMS, WhatsApp makes sure alerts like “Your policy is up for renewal” actually get seen and acted on.

c. Fraud prevention

Suspicious activity needs fast action. WhatsApp lets financial institutions send real- time alerts on a trusted and frequently checked channel. Users can flag fraud or verify requests instantly. Switching from SMS to WhatsApp has driven 56% jump in verification responses, cutting fraud risk and easing support load.

d. Feedback and NPS

Collecting feedback is hard when surveys feel like a task. With WhatsApp, short NPS or CSAT flows can be triggered right after a service interaction using buttons and quick replies to make it effortless.

e. Relationship management

WhatsApp helps relationship managers go beyond check-ins by delivering real value, like product explainers, tips, or quizzes that improve literacy. Using features like list messages and rich media, brands can educate customers and build trust through ongoing, helpful conversations.

Conclusion

Your customers are already on WhatsApp. The question is: Are you? From recovering abandoned carts, onboarding customers, or sending time-sensitive alerts, WhatsApp brings speed, simplicity, and results. The brands winning today aren’t just messaging. They’re building trust, driving action, and staying top of mind in the one app people never ignore.

Get started with WhatsApp Business Messaging today!

Visit www.karix.com or write to us at marketing@karix.com for tailored solutions.