Gupshup’s Vartika Verma on the company’s transition to a Conversation Cloud Platform

Generative AI stirred much conversation with discussions on the potential threat of replacing humans. While it’s undeniable that technology cannot fully replace the capabilities of humans, it does play a role in automating repetitive and monotonous tasks. In terms of brand interactions, conversations often revolve around customer support. Although the humane touch remains irreplaceable, the innovative use of chatbots to address and understand customer queries represents a novel approach to how brands connect with their audience.

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Gupshup India posted 42.97% increase in revenue to Rs 1618.5 crore in FY23 from Rs 1132 crore in FY22. Furthermore, the company recorded a 40.25% increase in net profit to Rs 47.35 crore in FY23 from Rs 33.76 crore in FY22. In a conversation with BrandWagon Online, Vartika Verma, senior director of marketing, Gupshup talks about the conversational AI market and, use of chatbots, besides the company’s acquisitions in the last two years. (Edited Excerpts)

In 2022, Gupshup made several acquisitions, including Artificial Intelligence (AI) platforms. How have these acquisitions contributed to assembling the puzzle for driving better ROI, and what has been your marketing approach in promoting it?

I’ll first talk a bit about Gupshup’s genesis and the rationale behind our acquisitions, made about two years ago. While it takes time to integrate, the goal is to elevate our offerings into a unified platform. Historically, Gupshup was deeply involved in conversations, primarily delivered through SMS. We provided bulk SMS solutions, enabling brands to connect and communicate with their customers. Then came the big surge of WhatsApp, and Gupshup was among the first to launch a B2C brand on the platform. As users started experiencing the Internet, we noticed that their initial interaction was often sending messages to friends. This led us to build chatbots, now enhanced with AI and large language models (LLM). Customers are responding more favourably to WhatsApp compared to traditional SMS or email.

In recognition of our achievements, Meta awarded us Partner of the Year 2020 for sending over 10 billion messages on the platform. In navigating this landscape, we aimed to enhance conversations across channels like WhatsApp, Instagram, and websites. Key acquisitions, including Active.ai for BFSI- Customer Experience (CX), AskSid Technology Solutions for retail CX, and Knowlarity Communications for voice AI, contributed to our comprehensive platform.

Presently, our platform, soon to be branded as the Conversation Cloud Platform, empowers brands to communicate, converse, and advertise. Let’s delve into these three product offerings – While Communicate provides an API for sending bulk messages on various channels like SMS and WhatsApp, Converse offers a no-code environment and a journey builder for two-way conversations. The third aspect is Advertising, with a hero product called ads-that–click- to- -WhatsApp. This allows brands to engage customers directly through WhatsApp, streamlining customer acquisition, qualification, and transactions.

What is the typical conversion rate and success rate for a lead campaign run for a brand over one month?

When compared to a landing page, the conversion rates depend on the brand’s budget and the number of clicks. Instead of users clicking on an ad and being directed to a webpage, we qualify them. We’ve observed an engagement rate of about 45-50% from ads linked to WhatsApp. In contrast, with a webpage, the best-case scenario is an 8-12% fill rate. Here, we capture the Personally Identifiable Information (PII) data of approximately 55- 60% of people, allowing for conversational engagement.

How is Gupshup gearing up to sustain its momentum and capitalise on the booming conversational AI market with a 43% revenue growth in India in FY23?

We’ve experienced remarkable growth over the past year, and our optimism for the upcoming year is high. While our primary focus remains on our home market, India, we’re also venturing into new markets. We’ve secured significant wins in markets such as Dubai, Indonesia, and Latin America, and some form in Europe and South Africa, and so on.

Our key objectives for this year include deepening our engagement through more meaningful two-way conversations and expanding into additional markets. On the product front, we recently introduced our large language model, ACE LLM. It’s already instrumental in powering the Dubai Electricity Waterboard Authority’s entire chatbot, known as ‘Ramaas,’ which can be found on their website. This mirrors our success in generating interest in AI-based solutions, not only for customer support but also for applications in commerce.

Looking beyond the initial excitement surrounding generative AI, we are witnessing enterprises actively incorporating it into their customer interactions. It’s not just hype anymore; businesses are genuinely leveraging generative AI to enhance their customer conversations.

How is Gupshup contributing to the success of WhatsApp commerce for Indian businesses, ensuring strict adherence to privacy policies, and fostering long-term customer engagement?

When considering Indian customers, we can categorise industries into two groups firstly new-age companies like e-commerce businesses, which naturally engage with customers digitally. Second, is the BFSI (Banking, Financial Services, and Insurance) sector, which may or may not utilise these conversational channels extensively.

For traditional companies, especially those dealing with foot traffic like brick-and-mortar stores, capturing personally identifiable data poses a significant challenge. To address this, for instance, we’ve implemented a solution for a mattress and pillow-selling company. By placing Quick Response (QR) codes on their products in physical stores, customers could self-serve information through a WhatsApp chatbot. This not only led to increased customer engagement but also allowed the company to capture customer details for further interaction within a 72-hour window.

Moving on to modern trade businesses and direct-to-consumer (D2C) e-commerce, we offer various solutions. For customer acquisition, ads or click-to-WhatsApp functionalities can be leveraged. Conversational qualification can happen within the WhatsApp bot, and complete transactions, including catalogue browsing and payments, can occur within the chatbot interface. Additionally, for cart abandonment, we send targeted reminders on WhatsApp, providing a more effective engagement strategy compared to traditional mobile apps.

In the BFSI sector, where KYC (Know Your Customer) verification is a critical step, we’ve developed solutions to facilitate the process. For instance, we’ve introduced a live photo check for e-KYC, a method approved by the Reserve Bank of India. While not directly transaction-related, these solutions contribute to making transactions more accessible for individuals across various tiers.

How does the company plan to address the high dependency on WhatsApp as its primary source of communication and reduce reliance on it if needed?

As not everyone prefers interacting with brands on WhatsApp, we have a fallback plan in place. Currently, our offered channels include SMS, Rich Communication Services (RCS), and WhatsApp, with a built-in fallback mechanism. If a message isn’t delivered on one channel, we ensure delivery on another. This approach considers both reach and cost, allowing users to specify preferences. Some might opt for a delay, while others prioritise urgent delivery on both SMS and WhatsApp.

We provide Communication Platform as a Service (CPaaS) capabilities, known as Smart CPaaS, incorporating intelligence into the platform. For instance, it can be determined that 60% of a campaign should first target WhatsApp and 40% SMS. Smart CPaaS also offers language capabilities, ensuring messages are delivered in the preferred language, accommodating all Indian languages.

Timing is another aspect we consider. Leveraging Smart CPaaS, if historical data indicates that Person A is more responsive around 3:00 pm and Person B around 4-5:00 pm, the system optimises campaign delivery accordingly. Despite the potential drawbacks of relying solely on one channel, our observations show that modern channels like RCS and WhatsApp yield the highest open and engagement rates, surpassing traditional SMS.

How well-prepared is your martech stack to adapt to the phase-out of third-party cookies by Google, considering the evolving needs of brands and publishers?

We recently attended NRF in New York and observed a substantial interest in brands. The primary shift in the U.S. and Europe is that people lean towards engaging on Instagram rather than WhatsApp. From a platform perspective, our ‘click to WhatsApp’ ad feature allows us to capture first-party personally identifiable data and create segments—a platform-level feature extended across channels. In the countries where we operate and grow, such as India, Indonesia, Malaysia, Dubai, Saudi Arabia, Mexico, Brazil, Colombia, Peru, and Turkey, WhatsApp remains the dominant channel.

While acknowledging the growing importance of Instagram in the U.S. and Europe, we are not actively pursuing these markets. Our focus is more reactive, with central teams and teams in Brazil and South Africa handling opportunities. Currently, there are no plans to set up a dedicated sales force to pursue opportunities in the U.S. market.

What is the biggest challenge in the Indian market?

The mindset shift plays a crucial role. Unlike in the West where Internet access started with computers, a vast majority in India experienced the Internet through mobile phones. The browsing experience in the West involves hypertext, and clicking on blue-coloured links in search results. However, in India, the preference for conversations over clicks led to the success of social commerce platforms like Meesho. The adoption of tools with Western appeal doesn’t work well, prompting the realisation that conversational platforms like Gupshup are more suitable.