In a previous article, I highlighted Chinese software player Infobird Co. Ltd. (IFBD, Financial) as being one of the lowest valued SaaS (software-as-a-service) companies with very high growth potential. The company’s recent transition from customized SaaS to a standard, off-the-shelf SaaS solution to help companies in their customer engagement functions is expected to be a major driver for future growth.
The company recently announced that they are adding a new product to their standardized SaaS portfolio – a WeChat Call Centre. This new intelligent SaaS offering could mark Infobird’s entry into private domain traffic and become a much more relevant offering particularly for Chinese small and medium-sized businesses (SMBs). Let us dive deeper into the details of the new product and how it will drive the company's growth.
The importance of private domain traffic
Private domain traffic is a concept that is extremely important for companies operating in China. In simple words, it implies an ongoing interaction of brands with their clients via social media platforms, particularly WeChat.
Many large Chinese brands and SMBs are known to create WeChat groups and have existing customers as a part of these groups, where they can continue cross-selling different products to these customers. WeChat has always been the ideal platform for private domain traffic as it is one of the largest private messaging services in China with over 1 billion active users.
Most companies believe that private domain traffic is a part of their brand’s private assets that can be utilized to stay relevant in customers' minds and increase the chances of customer retention. Its relevance has increased with the increasing cost of high-quality sales leads due to the low accuracy of offline traffic and domestic internet giants’ monopoly of online traffic.
With customer acquisition costs rising, retention has become the need of the hour, particularly for SMBs who find it difficult to survive given their limited marketing budgets. Compaies are now focusing on cost-effective marketing strategies, which will require building long-term relationships with businesses, enhancing customer life cycle, increasing the customer retention rate and creating their own private domain traffic. It is this space that Infobird is looking to tap using its latest product.
The WeChat Call Center
Infobird is expanding its product application boundaries and business scope to generate more significant value through its offering in a relatively uncontested market space. Its WeChat Call Center is a unique private domain traffic tool that uses a combination of artificial intelligence (AI), customer portraits, Robotic Process Animation (RPA) and other essential technological capabilities. Its objective is to help brands interact with its customers in the WeChat groups by providing maximum automated support and minimizing the human element in these chats.
The Enterprise WeChat-based private domain traffic is a significant market opportunity for Infobird as it combines the benefits of Enterprise WeChat and Call Center to create the next generation of customer service platforms. Infobird’s management claims that the WeChat Call Center platform can provide personalized and automated services as well as marketing for enterprise clients while ensuring the consistency and stability of customer interaction.
Furthermore, the product can also build and maintain private domain traffic for clients and combine multi-channel customer resources into Enterprise WeChat. It is worth highlighting that the product also connects public domains to private domains, achieving unified operations for different channels such as Enterprise WeChat, phone calls, SMS, Apps and webpages.
For enterprises with a considerably larger customer base, WeChat Call Center provides significant benefits in automation, batch, personalizing services and helping clients enhance efficiency and reduce operating costs. It can also boost the convenience of daily client operations and improve customer interaction efficiency.
As we can see in the above chart, Infobird’s stock price continues to trade lower as the market has yet to factor in the future potential of its offerings. With the significant development of big data, artificial intelligence, RPA, 5G and other technologies, the company is expected to play a key role in helping Chinese businesses retain customers while significantly reducing marketing-related expenses.
Infobird’s standardized SaaS offerings have a base pricing that starts as low as $15 per user per month, which is highly affordable for smaller businesses. With the launch of the WeChat Call Center, the management is expected to get far more aggressive in customer acquisition, especially within industries such as consumer goods, health care and retail, which have a strong demand for private domain traffic solutions. At a price-sales ratio of 5.3, I believe that the company has an excellent upside potential over the coming years.