Introduction to CPaaS: Communications Platform as a Service
5/16/2022
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Introduction to CPaaS: Communications Platform as a Service

The communications platform as a service (CPaaS) has gained rapid popularity, and a study from Juniper Research predicts that the CPaaS industry will be worth more than $34bn by 2026.

The importance of customer engagement platforms is reflected in that over 80% of businesses are turning to customer engagement technologies, and more than half will be utilizing CPaaS tools. According to IDC's findings, approximately 77 percent of enterprises are investing in CX solutions; therefore, companies appear determined to increase their contact with customers.

The popularity of cloud technology and how it has revolutionized company operations has made CPaaS the go-to approach for customer engagement. This is not a surprise since customers increasingly demand to be engaged in new ways. With the popularity of smartphones growing, it became clear that businesses should create apps for them.

Organizations can keep portions of their communications stack in their data centers, but most are now incorporating cloud-based capabilities. CPaaS allows businesses on both ends of the spectrum to reap the benefits of cloud computing by bringing them to their data centers.

However, the technology's primary function is not to assist corporations in becoming more responsive to clients. The need for CPaaS stems from the desire to provide a more adaptable method of interacting with consumers.

CPaaS is a fantastic choice to combine complex technology, culminating in one user interface. The result is a seamless user experience across various platforms, especially during periods of remote work when many organizations have to reform overnight.

Technology has revolutionized the way organizations interact with their consumers and link to other ecosystems. Customers would be able to communicate with a company across many channels rather than switching platforms to communicate. Everything has been made simpler for customers. Businesses have a lot of information at their disposal. Instead of requiring the consumer to use precise search queries to reach the required information, they were able to deliver it by employing AI and chatbots.

The underlying reason for this shift to CPaaS is a total rethinking of how businesses have evolved and that enterprises must create and deliver memorable experiences to survive in this new economic era. In the previous decade, the world has changed more than at any other time. In today's world, customers and employees alike prize experiences more than standalone goods and services. The experiences we now take for granted and desire in our daily lives motivate similar ambitions for how we want to work and conduct business.

This has necessitated a significant shift in communications technology. The old method of corporate communication is no longer effective. Voice-centric, monolithic apps cannot provide tailored experiences for specific cases.

The difference between CPaaS and UCaaS

CPaaS's flexibility in providing customers with various alternatives distinguishes it from other cloud-based communications platforms, such as unified communications as a service (UCaaS). In particular, media selection allows for more customization, and text messaging is often appealing. SMS is easy to understand and use, with reading rates as high as 90% within the first three minutes. Compared to emails, which are frequently missed or unread, SMS has a greater appeal. This flexibility is key. The primary distinction between UCaaS and CPaaS is that the former is a dedicated platform with limited features and services, whereas the latter refers to any cloud-based communications services.

A unified communication solution can manage various communications, such as chat, audio, video, group conferences, file and screen sharing, storage, PBX integration, and task and project management. Customer information may be kept track of using a client relationship management system in conjunction with this.

The CPaaS can be used to connect the UC platform's features for easier data retention and customer communication. There is also the matter of how individuals behave, changing in a rapidly shifting business climate to consider - things have changed considerably during the lockdown. The pandemic dramatically altered people's perceptions of work-life balance, time constraints, and communication methods - they are now communicating less in person and more over text, video, or phone. CPaaS' use has allowed for greater adaptability in reacting to these ever-changing circumstances.

However, the road to more customer engagement is still a long one. According to an IDC study, only 22% of organizations use more than three channels for conversational interaction. Customers in every region tend to utilize four communication methods. Only 30% of organizations allow consumers to move from a chatbot to a live agent for improved assistance. Companies that have implemented such a system report significantly higher levels of client satisfaction.