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Latest 27 Jan 2021 | Messaging Channels | 5 min read

WhatsApp's New Privacy Update - What It Means For Consumers and Businesses

2021 - the year of hope, or at least better news and less pandemic-y than the one which preceded it. It’s been a mixed first couple of weeks, especially concerning whether your family and friends’ WhatsApp conversations would be mined for all their content and used by Facebook to learn even more about our lives. 

 

Many WhatsApp users received a notification on January 7th asking them to accept their new terms, which included some data sharing with their parent company Facebook, or face losing access to the app on February 8th. Chaos, panic, and pearl-clutching ensued. There were Slack threads about it at Conversocial, and in personal circles, there were even discussions of whether we should all just move to Signal.

Since 2016, there has been an increasing awareness of the sheer power and depth of data that Facebook products hold. In 2020, it seems consumer awareness of data privacy reached a fever pitch, with so many of us relying on digital, mobile products from the likes of Google, Apple, Facebook, Tencent, Amazon etc, more than ever before.

In the context of this new awareness, WhatsApp’s privacy policy updates earlier this month struck a chord. In fact, there was such a backlash of questions and concerns that WhatsApp pushed back the effective date of the policy changes to May15th to educate the market on exactly what is changing and why. Given Conversocial’s long standing partnership with the WhatsApp Business API, we thought we share our perspective and help clarify the implications, and benefits, of these pending changes.  

 

It's Just Business, Not Personal

It’s important to clarify exactly what we are being asked to agree to. The information that will be shared with Facebook was already being collected by WhatsApp, the only thing that’s different (to quote one of my colleagues) is “the mothership will have access to some data that the subsidiary already had.” Alongside what you’d expect (phone number, email address, crash data), were some data points you might not (advertising data, purchase history and contacts). One of the biggest elements that has upset people is that IP addresses are being shared. This doesn’t apply to EU and UK users, where it’s long been illegal for non-EU companies to collect that piece of information about users. 

The crucial piece of information that may have been lost is that these changes only refer to business interactions, not private communications, something the Head of WhatsApp has been keen to emphasize

 

A key feature that attracted users to WhatsApp is its end-to-end encryption of conversations, and given Facebook’s recent high profile issues around data sharing, it’s understandable that some could see these privacy updates as the first step towards an invasive experience on their private conversations. However, everything we have seen since the initial noise surrounding the announcement seems to suggest that is a long way from being a reality.

 

WhatsApp Has Plenty of Safeguards in Place For its Users

As an approved WhatsApp Business API partner, Conversocial has a good understanding of how the platform puts strict rules in place to protect its users communicating with brands via the app. Firstly you need to be a verified business and there are certain industries that just aren’t allowed access to the API - gambling or cryptocurrency companies for instance. Even when granted access, WhatsApp Business has guardrails that prevent customers from being blasted with unwanted proactive push messages. 

When user’s initially message a business on WhatsApp, the app automatically indicates whether the conversation is with a verified business account right at the beginning of the thread, helping reduce the potential for customers to share personal data with bad actors trying to impersonate a business.

There’s also plenty of restrictions around engaging more than 24-hours after an initial conversation, with a small number of approved templates allowed for these types of engagements. Even once they’ve been sent, the customer has to respond before a conversation can start. 

With all that we know about how WhatsApp works to protect its users, both business and private conversations, I would argue that it’s actually a platform that puts the experience of its customers front and center. 

 

How WhatsApp Business Gives Consumers a Better Experience

There are 2bn WhatsApp users worldwide - 175m of them are using the app to communicate with their favorite brands. It’s a modern solution for superior brand/consumer interactions. Rather than waiting on hold for hours, relying on an email response or being tied to a website’s live chat function, a messaging channel like WhatsApp gives consumers a genuine opportunity to interact with brands on their own terms. All they need is a smartphone and they can have conversations anywhere, anytime. 

It’s true that they collect data and information about WhatsApp Business users, but it’s geared towards creating a better, more personalized relationship between consumers and brands. In Conversocial’s State of CX Trends 2020 report we found that ⅔ of consumers expect brands to offer personalized customer experience over messaging channels and that 94% are more likely to be repeat customers after great CX is delivered over messaging. 

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Exceptional personalized experiences can’t exist without some level of prior knowledge before an interaction - if you’ve ever turned cookies off and seen the kind of adverts that follow you around the internet, you’ll know exactly what I’m talking about. 

WhatsApp collects far less data from users in comparison to Facebook’s other platforms, such as Messenger or Instagram messaging. The data being collected is no different to before, it’s just being shared on Facebook’s databases, rather than shared with the other platforms. The idea is to create more bespoke experiences between brand and consumer, rather than use the data to share with other brands for advertising purposes. It helps businesses to better understand the habits and interests of a user. In some regions, for instance, brands are able to showcase products as ‘shopfront’ that customers can browse and purchase all within the app. By having access to their location, purchase history etc, brands can offer a more personalized selection of goods, offering a far better customer experience as a result.

 

Users' Privacy Concerns are Still Valid

As I said, there are plenty of safeguards in place to protect users, their information, and to keep businesses from invading what to many is a hugely personal and private app. If anything, the commercial arm of the company is the best way to ensure peer-to-peer communications stay free and without intervention from WhatsApp’s parent company Facebook. Allowing companies access to the API and to interact with customers is how the app makes money. With this revenue stream, it ensures there’s less need to even consider whether to monetize private interactions. 

This doesn’t mean conversations about data sharing and privacy are invalid just because the update doesn’t affect private users. Over the past 4 years, there has been a better worldwide understanding of the expansive data access that Facebook has and people are seeing that WhatsApp isn’t immune. 

The reaction, and loss of users to rival platforms like Signal, will have helped WhatsApp HQ understand the need to tread carefully when weighing up commercial decisions and how they will impact both their users’ privacy and their own reputation. This can only be a good thing for the trust between brands and consumers using WhatsApp to interact and the customer experiences available on the platform.

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