Marketing: Are WhatsApp newsletters or email better?

Marketing messages directed at consumers in the form of newsletters are sent by the vast majority of companies via e-mail. However, the fact that email newsletters are not exactly the most successful when it comes to converting new customers has not been a secret for a long time. That's why more and more companies are switching to WhatsApp newsletters. They argue that real marketing success can only be achieved if newsletters are sent via those platforms where consumers spend time anyway. And for most consumers, this platform is WhatsApp. But is this true at all? Are WhatsApp newsletters really part of the marketing of the future? And what exactly are the differences between WhatsApp and email newsletters? We'll enlighten you!

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Basics WhatsApp Newsletter

WhatsApp newsletters are paid mass messages via WhatsApp to share relevant and valuable information with customers. WhatsApp itself calls these messages "Promotional Messages". For example, you can inform your customers about new products, point out discount promotions or remind existing customers about service intervals. The WhatsApp newsletter can thus be used as part of so-called "conversational commerce", where users can purchase products and services by chatting with the company.

WhatsApp newsletters are not to be confused with WhatsApp broadcast messages. According to the WhatsApp terms of use, WhatsApp broadcast messages are not intended for mass newsletter distribution and are also not GDPR-compliant without opt-in. Analytics, automatic replies and message templates are also not available. For more information, read our article "Why WhatsApp Broadcasts are not suitable for online marketing".

To prevent spam and excessive advertising on WhatsApp, the parent company Meta has set some rules for sending newsletters. Among other things, there are caps on the number of messages sent and the content is also checked. Each message template for newsletters must be approved by Meta in advance. From a legal perspective, the GDPR must also be observed, which requires the user's consent (opt-in) to receive the newsletter. Promotional messages can only be sent via the WhatsApp API and are GDPR-compliant. These requirements may sound complex, but they are very simple to implement with Mateo.

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Basics Email Newsletter

Since email newsletters are not tied to a specific company like Meta, the basics are less complex. From a technical point of view, an email newsletter is just a normal email that is sent to several recipients. Depending on whether and which email marketing tool is used for this purpose, the mail can be provided with a personalized salutation and special links that enable analyses afterwards. If marketing software is used for this purpose, sending and analysis are also carried out with it and not with common e-mail programs such as Microsoft Outlook.

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Direct comparison: WhatsApp newsletter vs. e-mail

WhatsApp and email newsletters differ in more aspects than most users would think. The following section lists all the differences and similarities in user numbers, open rates, user atmosphere, spam folder, conversion rate, supported media and features, opt-in, analytics and costs.

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User numbers

Email is a very established communication medium and most people in Germany have an email address. A survey by Statista in 2020 showed that around 96% of the population in Germany has an e-mail address.

According to a survey by YouGov in 2020, around 60 million people in Germany use WhatsApp. This corresponds to around 75% of the population. Worldwide, as many as 2 billion people use the messenger. And the user figures have been recording strong, continuous growth for years, as can be seen in the following diagram.

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Bar chart of monthly active WhatsApp users over time. — WhatsApp user numbers have been experiencing strong, continuous growth for years (source: Statista).

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Opening rate

Traditional marketing channels like email are increasingly saturated. Many consumers receive dozens of email newsletters every week and delete most of them unread. In technical jargon, this phenomenon is called channel fatigue. As a marketer, there are only two options left in such a case: Either emails can be further optimized in the hope that open rates will increase by 1 or 2%. Or it can be switched to a channel such as WhatsApp, where there is no competition yet. That the latter option is likely to be associated with greater success is suggested by statistics on newsletter open rates. While e-mail newsletters are only opened in 22% of cases for the reasons mentioned, the figure for WhatsApp is a full 98% (source: Gartner).

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User atmosphere

In contrast to e-mail, the user atmosphere of WhatsApp is very informal, as most users communicate with friends and family via WhatsApp. When companies are reachable via WhatsApp and send newsletters to customers, this creates a closeness to the customer that is simply not possible with e-mail newsletters. Emails tend to be distant and impersonal and are therefore less suitable than WhatsApp newsletters as a marketing channel that is intended to influence consumers' primarily emotional buying behavior.

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Spam folder

Many email newsletters are sorted into the spam folder by the recipient's mail provider. With WhatsApp, however, a spam folder does not exist at all. The newsletters are guaranteed to reach the recipients and get the attention they deserve between personal messages from friends and family members.

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Conversion rate

The higher opening rate of WhatsApp newsletters, combined with the more suitable user atmosphere, leads to a significantly higher conversion rate and thus to massively increased sales revenues. Various experience reports show that the switch from e-mail to WhatsApp newsletters can contribute significantly to a company's success.

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Reading tip: We have described exactly how your company can also set up and use WhatsApp newsletters in our article"How to WhatsApp Newsletter".

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Supported media and functions

In most email newsletters, only images and GIF files can be integrated. With WhatsApp newsletters, on the other hand, PDF files, videos and emojis can be shared with recipients in addition to images and GIFs. WhatsApp also offers an interactive user experience with individual buttons that allow customers to indicate directly in the chat whether they are more interested in product A or product B, for example.

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Opt-In

For both e-mail and WhatsApp newsletters, an opt-in must be obtained from the recipients in advance. Sending advertising or storing personal data without consent or by opting out has not been permitted in the EU for some time. In contrast to opt-out, where the data subject must actively object to the storage of data or the receipt of advertising, opt-in requires the data subject to actively consent. The conditions for consent are regulated in Art. 7 GDPR . The GDPR does not differentiate between communication channels. The legal requirements are identical for email and WhatsApp newsletters.

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Analyses

Analytics are incredibly important for assessing the success of newsletter campaigns. Which of the most important metrics, such as open rate, click rate, ROI tracking, spam rate, conversion rate, and unsubscribe rate, are determined depends largely on the newsletter software you use. From a technical perspective, the analysis options for WhatsApp and email are identical. WhatsApp newsletter campaigns with Mateo provide you with reliable evaluations and statistics on all relevant indicators and the behavior of newsletter recipients, allowing you to evaluate the success of your WhatsApp campaign.

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Costs

The cost of email newsletters can vary widely and depends on several factors, such as the number of recipients, the amount of features needed, and the provider you choose. Some email marketing providers offer free plans, but they usually include a limited number of recipients and features. If you need more features or want a larger number of recipients, you usually need to choose a paid plan. Common prices here are around 20€ - 30€ for up to 500 recipients. Which analysis tools are included in the basic prices varies depending on the provider.

The prices of WhatsApp newsletter campaigns are generally somewhat higher than for e-mail, since both message-dependent individual costs from WhatsApp (or Meta) and general costs charged by the WhatsApp API provider for the software and other services must be paid.

Mateo's WhatsApp campaign prices are based on the scope of services you require and are agreed individually. Since we focus on small and medium-sized businesses, we work highly cost-efficiently and can provide you with an offer with a good cost/benefit ratio. Mateo does not charge high consultant hourly rates after the fact like some other marketing agencies, but offers a monthly subscription at affordable rates. Feel free to schedule a free consultation to talk about your marketing goals and get a customized quote.

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Conclusion on the differences between WhatsApp and email newsletters

WhatsApp and e-mail newsletters differ in almost all the aspects mentioned. Only the legal basis for opt-in and the technical requirements for analyses do not differ.

Traditional e-mail newsletters show slight advantages in the slightly higher user numbers and lower costs. WhatsApp can dominate the comparison in all other aspects. An opening rate that is higher by a factor of 4.5 on average and the user atmosphere that is much more suitable for a marketing channel lead to massively increased conversion rates and sales revenues. The somewhat higher costs are thus offset by the sales revenues that have increased many times over. WhatsApp newsletters have a much better cost-benefit ratio and thus contribute more to the company's success than e-mail newsletters. In addition, many additional media and functions are supported in WhatsApp and 100% of the newsletters sent end up with the recipient and not in the spam folder like many e-mails.

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Calculation example WhatsApp newsletter vs. email:
‍Insteadof 20% as with emails, 0% of WhatsApp newsletters end up in the spam folder. The open rate is the usual factor of 4.5x higher. Due to the particularly appealing personal user atmosphere and the interactive interface, 4x more recipients click the link to the store and 2x more prospective buyers actually complete the purchase due to the emotional connection to the company.

1/(100%-20%) * 4.5 * 4 * 2 = 45

This results in a conversion rate that has increased by a factor of 45 at slightly higher costs.

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Examples of use of WhatsApp newsletters

There are a variety of uses for WhatsApp newsletters. For example, alert customers that products they regularly buy are available again.

You can also carry out up-selling and cross-selling strategies particularly successfully. If a customer has already purchased something from your product or service portfolio, a short WhatsApp message is often enough to sell further matching items. If you run a hotel, for example, you can draw your guests' attention to the specialties of your in-house restaurant.

In many industries, certain products and services are in focus at certain times due to seasonal factors. Simply remind your customers via WhatsApp of upcoming service intervals such as tire changes, inspections or renewal of the TÜV sticker.

Which customer is not happy about a personal discount voucher for their birthday or warm Christmas greetings? With the WhatsApp newsletter you raise customer relations to a higher level.

Of course, new products can also be advertised in the classic way. As described in our article on WhatsApp marketing, newsletters should not be sent too frequently. However, for products where there is likely to be great customer interest, a short WhatsApp message is worthwhile.

Mateo can of course also be used to send automated messages about orders. Messages like these are not advertising messages, but important customer information and therefore do not require opt-in.

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Send WhatsApp newsletter with Mateo

Mateo offers a comprehensive service in WhatsApp marketing. The service portfolio ranges from setting up the WhatsApp API, individual tips and advice on collecting opt-ins, maintaining customer data and creating newsletters to in-depth analyses on the success of your marketing campaign. A fully comprehensive service that is customized to your business.

Mateo's software also offers customizable message templates that can be used to create WhatsApp newsletters in just a few clicks. With Mateo's central inbox, where customer requests from different communication channels can be centrally bundled and efficiently processed, and the integration of many other tools, it is child's play to optimize customer communication with Mateo. With Mateo, customer communication and marketing can be 100% GDPR compliant.

Simply make a free consultation appointment to find out all the details. With Mateo and the WhatsApp newsletter your company starts into the new marketing age.

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Which is better suited for corporate marketing? WhatsApp newsletter or e-mail?