Business Messaging ROI: Calculating Return On Messaging APIs

It can be hard to show the return on investment (ROI) of business messaging APIs...

How do you know for sure that a WhatsApp conversation led to a purchase, or that a customer support interaction via SMS made the customer more loyal?

Businesses that use messaging face a big problem when it comes to attribution: figuring out which interactions and channels really lead to desired results like sales or sign-ups.

Imagine a customer journey where they see an ad for your product on Facebook, get a personalised discount code in an email, talk to a support bot on WhatsApp Messenger about the product, and then buy it through your website. Which of these points gets the credit?

Or think about a situation in which a customer gets a text message reminder about an appointment and shows up on time, which lowers the number of people who don't show up.

How do you figure out the impact of that simple message ?

These are the things that make it hard to show the ROI of business messaging APIs.

In this article we explore why attribution is difficult, followed by practical solutions to handle this complexity:

Why Impact measurement is Complex in Business Communication

Multiple Channels, One Customer

A customer's path to purchase rarely occurs through a single touchpoint.

Instead, it usually involves interactions on a number of platforms, such as social media ads, email marketing, website browsing, and direct messaging channels like SMS and WhatsApp.

A customer sees a Facebook ad, gets a text message reminder, talks to someone on WhatsApp, and finally buys something on the website.

The fundamental question then becomes: which of these interactions should be credited with the conversion?

While the final purchase happens on the website, the preceding messaging interactions likely played a significant role in influencing the customer's decision.

Messaging is often used as a middle-of-the-funnel or help channel.

Not every message leads to a sale or sign-up. And that’s okay.

Some messages do other important work. They answer questions. They ease concerns. They keep your brand in the customer’s mind.

For example, a WhatsApp chat might give a key product detail. That detail could clear up doubts. An SMS reminder might prompt the customer to take another look.

These moments help guide people through the funnel. They may not close the deal, but they move things forward.

The challenge is measuring their impact.

Most attribution models focus only on the last click. They give full credit to the final action.

That leaves out earlier steps like messaging. And that means the value of these touchpoints often gets missed.

This can lead to poor ROI estimates for business messaging APIs. It also makes it harder to justify spending and improve your strategy.

To fix this, we need to see the full journey. Messaging is a part of it.

Understanding its role helps us use better models. And those models give us a clearer view of what really drives results.

Dark Conversions & Offline Actions

"Messaging often triggers actions that can’t be digitally tracked."

This simple idea points to a big challenge. It’s hard to measure the true return on investment (ROI) of business messaging APIs.

Some results happen outside the digital space. These are known as "dark conversions."

They include things like in-store purchases or phone calls. Messaging might influence these actions. But standard analytics tools don’t see them.

That creates a blind spot. It becomes hard to link these outcomes back to a specific message or campaign.

As a result, we may underestimate how effective messaging really is.

Take an example. A retailer sends an SMS with a discount on select items.

We can track that the SMS was sent. Maybe we even know it was opened or clicked.

But what if a customer walks into the store the next day and uses the discount?

The point-of-sale system will record the sale. But unless the SMS had a special code that gets scanned, the system won’t know the SMS caused it.

This breaks the chain of data. The impact of that SMS is lost in the analytics.

Without better tracking, many valuable messaging results go unnoticed. And that can lead to poor decisions about where to invest.

Session-Based Limitations

Messaging sessions work differently from web sessions.

Web sessions use cookies that remember users across visits.

But messaging apps like WhatsApp or SMS don’t keep user information once a session ends.

This makes it hard to track users over multiple interactions.

For example, if someone chats with a business on WhatsApp, then later contacts the business through another channel or starts a new WhatsApp chat,

there is no automatic way to link these conversations together.

Without special tracking methods, each interaction looks like a separate event.

If a marketing campaign drives a customer to start a WhatsApp chat, and that customer later visits the website and buys something,

standard website analytics might not connect the purchase back to the original WhatsApp chat.

That’s because WhatsApp sessions don’t leave a persistent ID that the website can recognize.

This limits the ability to see how messaging contributed to the final sale.

Attribution Models Are Not Built for Messaging

Traditional attribution tools like Google Analytics and Meta Ads focus mainly on tracking ads, website visits, and email marketing.

They are not built to handle real-time two-way messaging conversations.

These tools often miss the details of how conversations flow in messaging apps.

This is especially true for chatbot interactions.

In these cases, the customer journey is not a straight line of clicks. It is a back-and-forth dialogue.

Another problem is that messaging does not usually have a clear "last click" moment like a website visit before a purchase.

Most attribution models, especially last click models used by Google Analytics, give full credit to the final action.

That means messaging channels that help earlier in the process by giving information, answering questions, or nurturing leads often get no credit.

Because of this, it is hard to see the real value messaging brings to the customer journey.

Solutions to Handle Attribution Complexity

Here’s how to improve visibility and reduce the “black hole” around messaging ROI:

Use Deep Links with UTM Parameters

Tagging outbound links in your business messages with UTM parameters is very important.

It helps you track how well your messaging campaigns perform.

This tracking is done through web analytics tools like Google Analytics.

Using UTM tags lets you measure your return on investment more accurately.

What are UTM Parameters?

UTM parameters are short codes added to the end of a URL.

They help track where website traffic comes from.

This includes the source, medium, and campaign.

Analytics tools read these codes.

That way, you can see which marketing efforts drive traffic and conversions.

How do UTM Parameters Work in Messaging?

When you add a link to an SMS, WhatsApp message, or other messaging channel, you can include UTM parameters.

Anyone who clicks that link and visits your website will have their session tagged with that information.

This lets Google Analytics or similar tools track where the visitor came from.

It also shows which campaign and messaging channel brought the visitor to your site.

Breakdown of the Example UTM Parameters: [https://yoursite.com/product?utm_source=sms&utm_campaign=may_sale&utm_medium=api](https://yoursite.com/product?utm_source=sms&utm_campaign=may_sale&utm_medium=api)

_utm_source=sms: _This parameter identifies the source of the traffic as "sms". You would use different sources for other channels (e.g., utm_source=whatsapp).

_utm_campaign=may_sale: _This parameter specifies the campaign name as "may_sale". This is useful for tracking the performance of a specific promotional campaign you are running in May.

_utm_medium=api: _The medium parameter indicates the marketing medium used, which in this case is "api".

Why is This Important for ROI Measurement?

Without UTM parameters, when a customer clicks a link in your message and lands on your website, Google Analytics might attribute the visit to "direct" traffic or another general source.

This lack of specific attribution makes it impossible to determine which of your messaging campaigns are actually driving traffic, engagement, and ultimately, conversions (like purchases or sign-ups).

Embed Tracking IDs in Chat Sessions

Adding unique tracking identifiers to your messaging interactions is very important.

It helps solve attribution challenges in channels like SMS and WhatsApp.

Website sessions use cookies to remember users.

But messaging sessions are often temporary.

They don’t keep user information across different interactions or platforms.

To measure how messaging leads to actions like purchases or support tickets, you need to use these unique tracking tokens.

This lets you see the real impact of your messaging efforts.

User ID or Phone Number Hash:

What it is:

User ID: This is a unique ID assigned to a customer in your main system, like your CRM.

If a customer talks to you while logged in or can be identified, this ID can be added to the messaging session.

Phone Number Hash: Phone numbers are the main way to identify users in messaging, especially if they don’t have an account.

Hashing protects privacy by hiding the actual phone number.

At the same time, it creates a consistent ID for tracking.

Why it’s important:

This helps link a messaging interaction to a known customer in your system.

It gives you a complete view of the customer journey.

For example, you can tell if a customer who got a promotional SMS and then contacted support later made a purchase tied to their user ID.

Session ID or Conversation ID:

Session ID: A unique code for a messaging session. It covers all interactions in a set time or until the chat ends.

Conversation ID: A unique code for a specific chat thread between a customer and your business.

Why they matter: These IDs give context to the interaction. They help you track a single chat or related messages. This is key to understanding the order of events and outcomes.

Campaign ID or Referral Codes:

Campaign ID: A unique identifier assigned to a specific marketing campaign (e.g., a seasonal promotion, a product launch, a lead generation drive).

If a user enters a messaging flow as a result of clicking a link in a campaign-specific email or ad, the Campaign ID can be passed along.

Referral Codes: Unique codes assigned to specific referral programs or partners. If a customer uses a referral code during a messaging interaction (e.g., to claim a discount), this code can be tracked.

Why it's important: These tokens directly link messaging interactions to specific marketing efforts or referral sources. This is essential for measuring the ROI of your campaigns and understanding which channels and promotions are driving engagement and conversions through messaging.

Ask “Where Did You Hear About Us?” Smartly

Ask customers, "How did you hear about this offer?" Provide options like Instagram, WhatsApp, or SMS. This shows which marketing channels work best to reach and engage your audience.

Examples:

SMS Campaign: You send an SMS with a discount code. When a customer replies, your system asks: "How did you hear about this offer? Text 1 for SMS, 2 for website, 3 for a friend."

WhatsApp Chatbot: A customer starts a chat. After greeting them, the bot asks: "Welcome! How did you hear about us? Text 1 for Facebook Ad, 2 for Instagram Story, 3 for email newsletter."

Integrate with CRM & CDP Platforms

Connecting your messaging API with CRM and CDP or analytics platforms is a smart move. It helps you understand your customers’ journeys better. You can see how your messaging impacts your business goals.

It’s more than just tracking messages. It links messaging to other customer touchpoints. This gives you a full view of your customer engagement.

By integrating, messaging becomes a key part of your strategy. You get data to measure ROI, improve interactions, and boost business results.

Conclusion

Don’t guess the value of your conversations, measure them accurately. Messaging APIs are powerful, but without proper tracking, their impact is unclear. ROI for messaging is tricky. Conversations cross channels, spark offline actions, and often escape traditional analytics.

A smart CPaaS strategy makes messaging a measurable growth driver. It turns your messaging from a simple tool into a performance powerhouse. You can prove ROI, sharpen targeting, and fully unleash your messaging potential.

Contact us today for a an efficient communication strategy that drives real revenue.