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Chat as a Service Explained: Your Guide to Choosing the Right CaaS Provider for Your Needs

Explore our in-depth 'Chat as a Service' guide to learn about the various CaaS provider types and discover how to leverage these services to enhance your business communication strategies.

Aarathy Sundaresan • Dec 12, 2023

In the fast-changing world of technology, chat has become an indispensable tool that has revolutionised the way we connect, communicate or conduct any kind of business - regardless of a company's size or stage of development.

The real-time nature of chat has revolutionised communication by enabling instant exchanges that transcend geographical limitations and time zones. This immediacy has become a cornerstone of modern business, where responsiveness and efficiency are crucial. Consequently, businesses have embraced chat as a service (CaaS), acknowledging its potential to bolster customer service, streamline operations, and cultivate strong customer relationships. However, what exactly does ‘Chat as a service’ mean?

This article focuses on what chat as a service is and the different types of chat as service providers.

What is chat as a service (CaaS) ?

Chat as a Service (CaaS) is a cloud-based platform that provides businesses with the tools and infrastructure to integrate real-time chat capabilities into their websites, mobile apps, and other digital channels. CaaS eliminates the need for businesses to build and maintain their own chat infrastructure, allowing them to focus on delivering exceptional customer experiences.

CaaS can help businesses in a number of ways, including:

  1. 01.

    Improved customer service

    CaaS provides businesses with a convenient and efficient way to provide real-time customer support. Customers can chat with a live agent or chatbot to get help with their questions, resolve issues, and make purchases.

  2. 02.

    Increased sales

    CaaS can help businesses increase sales by providing a way to chat with potential customers in real time. Businesses can use chat to answer questions, provide product demos, and close deals.

  3. 03.

    Reduced costs

    CaaS can help businesses reduce costs by deflecting some support inquiries from phone and email. This can free up agents to handle more complex issues and reduce the overall cost of customer support.

  4. 04.

    Improved customer insights

    CaaS can help businesses gain valuable insights into their customers. Businesses can use chat transcripts to track customer sentiment, identify pain points, and improve their products and services.

If you are considering using CaaS for your business, here are a few things to keep in mind:

  1. 01.

    Define your goals

    What do you hope to achieve with CaaS? Are you looking to improve customer service, increase sales, or reduce costs?

  2. 02.

    Choose the right platform

    There are a number of CaaS platforms available, so it is important to choose one that meets your specific needs.

  3. 03.

    Integrate CaaS with your existing systems

    CaaS can be integrated with your existing CRM, marketing automation, and other business systems.

  4. 04.

    Train your employees

    Make sure your employees are trained on how to use CaaS effectively.

  5. 05.

    Monitor your results

    Track your results to see how CaaS is impacting your business.

Different types of chat as service providers

There are several types of CaaS providers, each offering unique features and catering to specific needs. Here's a brief overview of each type:

Live chat software for customer service

Live chat software is a specific type of CaaS that focuses on providing real-time customer service through chat functionality. These are typically plug-and-play SaaS applications used by customer-facing teams to connect with customers and prospects. It offers businesses a direct and convenient way to connect with their customers, address their questions and concerns, and ultimately improve customer satisfaction. Live chat software is widely used across various industries, particularly those with high customer interaction, such as:

  • E-commerce

    Answering product questions, assisting with checkout processes, and resolving purchase issues.

  • Customer service

    Providing immediate support, handling complaints, and offering solutions to customer problems.

  • Lead generation

    Engaging website visitors in real-time, qualifying leads, and converting them into paying customers.

  • Telecommunications

    Assisting customers with technical issues, billing inquiries, and account management.

  • Travel and hospitality

    Answering booking questions, offering travel recommendations, and assisting with reservation changes.

Some of the popular live chat software options are

  1. 01.

    Drift

    Drift is a leading live chat platform that helps businesses connect with website visitors and convert them into qualified leads. It offers various features, including chatbots, automated workflows, and personalised greetings, making it ideal for proactive engagement and sales lead generation.

  2. 02.

    Intercom

    Intercom is another popular live chat software known for its user-friendly interface and robust features. It provides a comprehensive suite of tools for customer service, including live chat, chatbots, ticketing systems, and reporting analytics. Intercom is particularly suited for larger businesses with complex customer support needs.

  3. 03.

    Zendesk chat

    Zendesk Chat is a powerful live chat solution integrated with the Zendesk customer support platform. It offers features like chat transcripts, customer profiles, and integrations with other Zendesk products, making it a seamless choice for businesses using the Zendesk ecosystem.

  4. 04.

    Freshchat

    Freshchat is a feature-rich live chat platform designed for businesses of all sizes. It offers a range of features, including chatbots, canned responses, and omnichannel communication, making it a versatile solution for diverse customer service needs.

  5. 05.

    LiveAgent

    LiveAgent is a comprehensive customer service platform that includes live chat as one of its core features. It offers a combination of live chat, ticketing systems, call centre functionality, and social media integration, making it ideal for businesses needing a unified customer service solution.

Chat infrastructure providers

Chat infrastructure providers offer businesses a powerful platform for integrating real-time chat functionality into their websites and mobile applications. This allows businesses to facilitate user-to-user communication within their own ecosystem, fostering engagement, collaboration, and community building.

Key benefits of using a chat infrastructure solution:

  • Scalable Chat APIs & SDKs

    These providers offer robust APIs and SDKs for various platforms (iOS, Android, web) enabling seamless integration with your existing applications.

  • Customizable Chat Experience

    Businesses can tailor the chat interface and features to match their specific needs and brand identity.

  • One-on-One, Group Chat, and Channels

    Support for various chat formats allows users to communicate individually, in groups, or within dedicated channels for specific topics or communities.

  • User Management

    Create user accounts, manage profiles, and set permissions to control user interactions within the chat system.

Popular chat infrastructure providers include:

1. CometChat

Key features of CometChat include,

  • Comprehensive support for diverse message types, including GIFs, voice notes, polls, images, and customizable messaging options.

  • Fully equipped SDKs and pre-built UI Kits tailored for popular technologies such as Angular, React, React Native, Vue, Flutter, Swift, and Android.

  • Integrated platform offering access to text, voice, and video messaging capabilities within a unified system.

  • Features for message and user moderation, ensuring conversations remain healthy and conducive.

  • Enterprise-grade performance standards and a 99.99% uptime SLA for reliability and peace of mind.

  • Resources like sample apps, extensive documentation, user-friendly tutorials, solution hours, and a responsive support team to streamline implementation for developers and expedite market entry with chat functionality.

CometChat's in-app messaging and calling capabilities have been embraced by several renowned brands. Among them are Kahoot, Shaadi.com, Endeavour, and Nobroker, each utilizing CometChat's functionalities to enhance their user experiences and interactions within their respective platforms.

Signup for a free trial to test it on your own.

Chat with our team to get a personalised demo tailor made for your use case.

2. Sendbird

Their marketplace widens the scope by providing access to various plugins and extensions, though this might signal that certain features and integrations require additional effort for implementation.

However, integrating Sendbird's SDK may pose challenges, demanding more time and resources, potentially impacting project timelines.

Furthermore, as user bases grow, Sendbird's pricing structure could become a hurdle, especially for smaller firms, as increased usage might significantly inflate costs, affecting overall budget considerations.

Additional reading: Sendbird's limitations and how it compares with other alternatives

3. PubNub

PubNub offers a real-time platform enabling developers to create and scale applications using a publish/subscribe messaging API.

While its pub/sub model allows for scalability, it demands significant custom development and lacks certain essential features like reliable message delivery and user presence indicators. Security-wise, it lacks built-in authentication, potentially making it unsuitable for sensitive data handling.

Pricing complexity and limitations in extendability, particularly in voice/video solutions and webhooks, further pose challenges for businesses aiming for comprehensive real-time engagement solutions.

Additional reading: Detailed analysis on the performance limitations of pub/sub model and comparison with other alternative options

4. StreamChat

StreamChat stands out for its robust features like Messaging API, Chat SDKs, user management, and push notifications, placing a strong emphasis on empowering developers with raw APIs to construct upon. However, this developer-centric approach may not entirely align with the nuanced demands of businesses seeking more tailored solutions.

Limitations of StreamChat:

  • Absence of native SMS and email notifications critical for engagement.

  • Lack of structured message support affecting advanced functionalities.

  • Rudimentary UI kits potentially limiting customizability

  • Voice and video capabilities raising stability concerns

  • Additional storage costs for image and file transfers

5. Twilio

Twilio, renowned for its multifaceted cloud communications platform, offers the Twilio Chat SDK, an integral part of its suite of communication services.

Categorised as a cPaaS (communications Platform as a Service) provider, Twilio equips developers with a range of APIs and tools to craft tailored communication solutions. Beyond chat functionalities, Twilio extends its capabilities to include voice, video, and SMS services, fostering a comprehensive communication toolbox.

The inherent advantage of utilising Twilio's Chat SDK within its ecosystem lies in its seamless integration with other Twilio services such as voice and video calling, SMS messaging, thereby amplifying its potential for versatile communication solutions.

Voice and video calling infrastructure providers

Video & audio calling infrastructure providers: the architects of seamless virtual connections, empowering you to bridge distances, foster collaboration, and unlock a world of possibilities.

Key benefits of using voice and video infrastructure solutions:

  1. 01.

    Scalable APIs and SDKs

    Integrate video and audio calling into web, mobile, and desktop applications with ease.

  2. 02.

    High-Quality Audio and Video

    Deliver crystal-clear audio and video calls for a smooth and immersive experience.

  3. 03.

    Low Latency

    Minimize delays and ensure real-time communication for interactive sessions.

  4. 04.

    Screen Sharing

    Share presentations, documents, and applications during calls for enhanced collaboration.

  5. 05.

    Recording and Playback

    Capture calls for future reference and training purposes.

  6. 06.

    Whiteboarding

    Collaborate visually with real-time drawing tools and annotations.

  7. 07.

    Meeting Management

    Schedule and manage meetings effectively with integrated features.

  8. 08.

    Integrations

    Connect with other tools and platforms for enhanced functionality.

Here are some popular video & audio calling infrastructure providers

1. CometChat

This comprehensive approach simplifies development processes, streamlines user experiences, and offers exceptional adaptability.

Whether crafting messaging apps, collaborative tools, or customer support platforms, CometChat's Video Calling SDK empowers developers to create immersive and interactive communication solutions resonating seamlessly with their target audience.

Key Features of CometChat’s Video Calling SDK:

1. UI Kits and Customization: The SDK comes equipped with pre-designed UI components for chat, voice, and video calls, facilitating easy integration into applications. Moreover, developers enjoy customization options, allowing the adaptation of the UI to match specific branding and design preferences.

2. Versatility Across Use-Cases: Designed to cater to a wide range of scenarios, CometChat's Video Chat SDK flexibly supports diverse use-cases. Whether for messaging apps, collaborative tools, customer support platforms, or any real-time communication application, this SDK aims to provide adaptable functionality, meeting specific communication needs effectively.

2. 100ms

100ms, a pioneer in video & audio calling infrastructure, delivers exceptional low-latency and high-quality communication, enabling immersive user experiences.

While lacking broader communication features like chat and lacking transparent pricing, it excels in scalability, flexibility, customizability, and advanced features like screen sharing and whiteboarding, making it a powerful solution for businesses seeking to enhance virtual communication.

3. Daily.co

Daily.co's video chat SDK simplifies native integration, reducing development time and enabling a focus on user experience. It adapts seamlessly to diverse scenarios, offering customizable interfaces for a branded user experience.

Collaborating with CometChat, Daily.co enhances video streaming capabilities. However, while integration is smooth, customization beyond standard offerings may require additional development effort for highly specialized features.

4. Dyte

Dyte's video conference SDK & API presents developers with a versatile and user-friendly solution to seamlessly integrate video communication into their applications.

Prioritising security, reliability, and ease of use, Dyte's SDK enables the quick embedding of scalable, customizable, and interactive video calls within minutes. Its applications span various sectors, including education, telehealth, live interviews, fitness, community engagement, sales and support, and even gaming and the metaverse.

However, Dyte lacks a chat SDK, limiting users from engaging in text-based conversations during video calls via Dyte’s SDK. While excelling in video communication capabilities, developers seeking integration of chat functionality alongside video calls may need to explore alternative solutions to fulfil this aspect.

5. Sendbird

The distinctive aspect of Sendbird's Video Chat SDK lies in its modular communication approach. This flexibility allows businesses to select and pay for specific features like video, chat, and voice separately, tailoring their solutions precisely while ensuring a top-tier user experience.

However, Sendbird doesn't provide a bundled package encompassing all communication features (video, voice, and chat) as a single offering. For both chat and video capabilities, businesses may need separate subscriptions, potentially increasing costs for applications requiring comprehensive communication functionalities. Sendbird's pricing, heavily reliant on Monthly Active Users (MAUs), might lead to overpayment for apps with fluctuating daily or seasonal user engagement, affecting budgeting for inactive users.

Off the shelf chatting, video, audio and platforms

Readymade chat, video, and audio platforms offer comprehensive solutions for businesses to communicate efficiently with both prospects and team members. These platforms support various communication formats, including one-on-one chat, group chat, and integrated calling, providing flexibility and convenience.

Their primary use case lies in two key areas:

1. Team Collaboration: These platforms streamline communication and collaboration among team members, facilitating seamless information sharing, project management, and task coordination. Real-time chat and calling features enable instant communication and problem-solving, while file sharing and collaborative tools further enhance team productivity.

2. Live Events: These platforms offer powerful tools for hosting engaging virtual events like webinars, conferences, and online workshops. Features like screen sharing, live Q&A, and breakout rooms enable interactive sessions, reaching a global audience and fostering audience participation.

Here's a closer look at three leading providers: Slack, Teams, and Zoom.

Slack - Slack focuses on streamlined team communication and collaboration. Its key features include one-on-one and group chat, channels for topic-based discussions, file sharing, integrations with various productivity tools, search functionality and customizable interface.

Teams - Teams is a good choice for businesses that need a tightly integrated solution with Microsoft Office products. It offers seamless integration with other Microsoft tools, robust video and audio calling features, and powerful collaboration tools.

Zoom - Zoom provides cloud-based video conferencing platform with added chat features. It offers high-quality video and audio, robust meeting features, and user-friendly interface.

Aarathy Sundaresan

Content Marketer , CometChat

Aarathy is a B2B SaaS Content Marketer at CometChat, excited about the convergence of technology and writing. Aarathy is eager to explore and harness the power of tech-driven storytelling to create compelling narratives that captivate readers. Outside of her professional pursuits, she enjoys the art of dance, finding joy and personal fulfillment.