Following the Covid-19 pandemic, businesses are now opting for digital channels such as WhatsApp Business<\/a>, Messenger by Meta<\/a>, Facebook and others, for interactive communications.
CPaaS is a cloud-based platform that enables organisations to upgrade their existing communications technology stack by adding application programming interfaces (APIs) and other tools to automate interactions with customers, while also seamlessly integrating with channels such as voice, SMS, email, rich communication services (RCS), among others.
Some common examples of CPaaS use cases could be receiving updates about some product or service that an individual has purchased from, say, an ecommerce website, or the sharing of insurance policy copy through WhatsApp or push notifications from bank regarding transactions and more.
The rise of OTT players and the shift to the cloud have enabled today’s CPaaS solutions to utilize artificial intelligence (AI) and machine learning (ML) to perform complex tasks such as layered campaign testing, predicting friction points, and using modules to improve time to market while also ensuring enhanced customer experience, according to Tanla Platforms<\/a>.
As per Route Mobile<\/a>, with automatic API scaling, CPaaS can help brands strengthen their business intelligence by leaps and bounds with real-time analytics that can accessed through a centralised dashboard.
Notably, CPaaS is used in several verticals, including e-commerce, BFSI, healthcare, retail, and hospitality, among others.
Top trends in the CPaaS industry for 2023, according to Tanla, UCToday.com, Webex<\/a> by Cisco, Infobip<\/a> and Gartner:
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Enhanced video capabilities with 5G<\/a><\/strong>: The densification of 5G networks and its low-latency will support video conversations on the go. Tanla predicts that developers will seek to add video chats in their customer service suite as network connections will remain stable, even in highly populated areas.
Hyper-personalisation<\/strong>: CPaaS providers are also experimenting with AI chatbots that can integrate with Microsoft-backed OpenAI’s ChatGPT for providing contextual, detailed, and more personalised interactions to customers.
Webex by Cisco notes that as new ways for customer communications become commonplace, CPaaS companies will need to focus on how to utilise the information and data in an organisation’s “back-end systems to deliver relevant and personalised communications”.
“That means a priority will be helping businesses leverage their capabilities by integrating with third-party applications. This will happen across both horizontal and vertical use cases. And it will include CPaaS platforms powering digital channel enablement for other solutions such as Contact Center-as-a-Service (CCaaS) platforms,” says Webex.
With advanced chatbots combined with enhancements in artificial intelligence and analytics, user experiences are also expected to become more and more conversational going forward.
Infobip expects businesses to apply tools to all parts of the customer journey that can create hyper-personalised experiences and in turn drive loyalty and sales. The trend, it said, will be accelerated by the increasing shift to first-party data and automation in writing AI code.
Customer data platform (CDP) is also expected to gain adoption as it provides organisations with a deeper, real-time understanding of customers, according to Gartner. CDP, by bringing together the customer data from email, calendars, website, can help with the prediction of customers’ buying preferences, brand loyalty, sentiment, and pain points.
As per Gartner, CpaaS providers such as Twilio, Route Mobile, Infobip and others have their own CDP capabilities while others are considering third-party CDP.
Visual builders, low-code and no-code<\/strong>: UCToday expects low-code, no-code to grow strongly over the coming years as it enables CPaaS providers to save time and costs in developing applications, which benefits enterprises. Visual builders further simplify the application development process through the dragging-and-dropping of design and feature elements.
Local & global expansion through telco and channel partners<\/strong>: CPaaS providers are expected to partner with more tier-1 telcos as they seek to expand into new markets and increase their customer base by tapping small and medium businesses (SMBs) and brick-and-mortar enterprises that have yet to begin their digital journey.
Greater focus on security<\/strong>: Rising cyber incidents and the integration of systems within an organisation for personalised communications will necessitate that CPaaS providers develop robust security capabilities while ensuring that organisations adhere to common security standards and with data privacy and regulation regulations.
The CPaaS market continues to grow strongly, nearly 40% during 2021, with a forecast compound annual growth rate close to 30% through 2026, Gartner says.
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