CPaaS Trends in 2024: The Future of Customer Communication

If someone had told you 20 years ago that businesses would be handling customer communication through personalized, real-time messages on apps, you might have thought it was far-fetched. Yet here we are in 2024, where not only is this a reality, but it's the norm. Curious about the latest Communications Platform as a Service, or CPaaS, trends? Keep reading to find out.

Why the CPaaS Market is Poised for Growth

With a CPaaS solutions, businesses integrate real-time communication features—such as an in-app video call, voice, messaging, and more—directly into your apps and websites. The CPaaS market is witnessing major growth, and it's not hard to see why. The Gartner CPaaS research shows that by 2028, 90% of global businesses will use CPaaS to improve customer experience and engagement. This will be a huge increase from 50% in 2023.

But that’s not all; there are other things you should know about CPaaS trends:

• The CPaaS market size is expected to reach $29 billion in 2025.
• The healthcare industry is increasingly collaborating with CPaaS companies to improve patient communication and engagement.
• Retailers are embracing CPaaS communication provider tools to personalize how they interact with customers.
• Schools and universities are starting to use CPaaS solutions to improve how they communicate and engage with students.
• In media and entertainment, CPaaS is becoming the next big thing for delivering engaging content and keeping audiences hooked.
• Banks and financial services are turning to CPaaS vendors to make sure there is secure and smooth customer interactions.

From the statistics above, you can see that CPaaS trends are successfully taking customer interaction to a whole new level. The real question is, what is fueling this growth?

7 Trends Boosting the Use of CPaaS

The simple answer is Artificial Intelligence (AI). We now have AI-powered chatbots that can communicate like humans, in-app chat, voice messages that feel as natural as a phone call, and real-time communication and notifications that always keep you updated. Now, let’s take a look at some of the top CPaaS market trends you should look out for in 2024.

1. Everything Becomes Conversational

Instead of just sending out a newsletter or a quick text, businesses are now aiming for dialogues with their customers. What does this mean for you? It means that every interaction can feel personal and engaging. For instance, imagine a customer who starts by asking a question on your website chat, continues the conversation via WhatsApp or Messenger, and receives follow-up support through a phone call. It's like having a friendly chat where they don't have to repeat themselves every time they switch platforms. This kind of conversational experience is a win-win. Your business gets to connect with customers on a deeper level, and your customers get a more satisfying experience.

2. The Rise of Generative AI

Instead of relying on static, preset responses, generative AI can create replies for each customer's needs and preferences. It means that your support team can provide more relevant and engaging responses, making customer interactions more natural and less mechanical. It also means that your team can handle a higher volume of inquiries without compromising quality. What’s even better is that by automating your interactions, your staff can focus on more complex issues that require human skills.

3. Visual Builders and Conversational APIs Drive Omnichannel Experiences

Visual builders and conversational APIs (application programming interfaces) allow conversations across multiple channels. Here’s the thing: with visual builders, you don't need to be a coding expert to design communication workflows. You simply just map out your customer journeys visually and integrate everything from chat and email to SMS and social media into one smooth experience. This means your customers get a consistent message, no matter how or where they choose to interact with your brand.

4. Customer Data Platforms Enable Greater Personalization

Customer Data Platforms (CDPs) gather data from different sources—like websites, social media, and customer service interactions—in a single view of each customer. You're probably wondering what this means; well, let's break it down. With a CDP, you can go beyond basic segmentation and start delivering personalized messages. For instance, instead of sending the same email to everyone on your list, you can create messages according to each customer's preferences, behaviors, and past interactions.

5. CPaaS Providers Are Expanding Their Channel Partner Programs

CPaaS providers are making it easier for partners—like resellers and system integrators—to provide a full suite of communication solutions to their clients. So, if your business is looking to integrate messaging, voice, video, or other communication features, you can do it without having to build everything from scratch. What's really cool about these expanded programs is their flexibility. As your business grows, you can easily scale up or adjust your communication features to match your needs. This means that you’ll always be ready to meet customer demands without the stress of constantly upgrading your system.

6. The Broader Communications Market is Converging

The combination of CPaaS trends with other communication services like UCaaS (Unified Communications as a Service) and CCaaS (Contact Center as a Service) is great news. Here’s why. Let's say a retail company is using UCaaS to handle all its internal communications—things like video meetings, team chats, and file sharing. At the same time, they use CCaaS to manage their customer service operations. By adding CPaaS into the mix, they can take it a step further. Now, they can send SMS notifications to customers about their order status, handle voice and high-quality video calling directly through their mobile app, and automate follow-ups after support calls.

7. Demand for Security Continues to Grow

If your company handles personal or financial information, securing that data should be at the top of your list. You simply can't afford to have your data breached because it can have serious consequences, not just for your business but for your customers as well. So, what can you do to prevent this? Companies are now looking for improved solutions that provide protection. These solutions must-have features like encryption, multi-factor authentication, and secure access controls. This is the only way to keep your information safe and make sure that only the right people can access it.

Potential Challenges that Impact the CPaaS Market Trends

When we talk about the CPaaS trends, it's easy to dwell on all the benefits it has. But don't forget that, like any industry, the CPaaS market comes with its own challenges. One major issue is security. There is so much sensitive communication data flowing through a CPaaS platform. So, the stakes are high.

If a CPaaS API doesn't have solid security, companies might hesitate to adopt it, no matter how great or how efficient the features are. After all, no business wants to risk a data breach that could compromise their customers' information. Another challenge is regulatory compliance. As CPaaS providers increase globally, they need to navigate a lot of data protection and communication laws. One wrong move could mean fines, penalties, or even losing customer trust.

Then there's the integration challenge. Not every business has the technical know-how or the infrastructure to plug a CPaaS platform into their existing systems. This is a serious challenge, especially for smaller companies who might find the integration process too difficult. Lastly, with the growing popularity of CPaaS, customers are expecting more. What’s more? Well, they want flawless service, personalized interactions, and zero downtime. If a CPaaS provider can't provide these things, they might just find themselves losing to competitors who can.