Zalo for business: The complete guide

Discover Zalo, Vietnam’s top messaging app, and learn how it can enhance your business’ communication in the Vietnamese market.

Senior Content Marketing Specialist

Dan Mekinec

Senior Content Marketing Specialist

To connect with the Vietnamese audience, you need to speak their language and use the right channel to reach them on. That means getting to know Zalo, the homegrown superstar app used by 73 million people in the country, including more than 155,000 companies.

Before we dive into business use cases, let’s go through the key facts about Zalo, and why it became so popular in Vietnam.

The story of Zalo, Vietnam’s super app

Launched in 2012, Zalo is a Vietnam-based social platform that became the nation’s favorite messaging app within a decade. Like other OTT messaging apps, it enables users to text, make voice and video calls, share files and engage in group chats.

With 87% of the country’s smartphone users active on Zalo, it is the most-used messaging app in Vietnam.

As of the end of August 2024, Zalo’s monthly active user base reached 77 million people, including more than 155,000 companies, with nearly 2 billion messages sent daily. These facts sound even more impressive considering that Vietnam is among the top 10 markets in app downloads globally.

an infographic showing the top messaging platforms in Vietnam

With an 87% penetration rate in Vietnam, Zalo surpasses global messaging giants. Source: Decision Lab

Zalo is owned by VNG Corporations, a video gaming and social media startup that rose to the status of Vietnam’s first tech unicorn. The name “Zalo” is a combination of the words „alo“, the greeting Vietnamese people use when picking up the phone, and „Zing“, a suite of online services offered by VNG.

Today, Zalo is considered by many to be a “super app“, as VNG’s ecosystem offers services that range from social interactions to seamless payments, and convenient online shopping.

Like WeChat in China, KakaoTalk in South Korea, and LINE in Japan, Zalo was developed by a local company, in the local language. It offers a highly localized user experience that surpasses the ones offered by international messaging competitors. Powered by its natural language processing, it secures high engagement rates through lively stickers for conversations in Vietnamese.

example of Zalo stickers

Localized stickers are one of the reasons why Zalo triumphs over other apps. Source: zaloapp.com

Zalo implemented end-to-end encryption in May 2022, offering the same level of security similar to chat apps such as WhatsApp. On top of that, seamless integrations to services like ZaloPay, Zalo Shop, and Zalo Bank enable users to pay their bills, transfer money to friends and family, buy products online, and even get micro-loans — all in an already familiar setting.

This widespread adoption is why many organizations, such as government agencies and enterprises have also also started using the app to connect with users in Vietnam.

How businesses can use Zalo

With Zalo Notification Services (ZNS), Zalo offers many ways for businesses to engage with users and customers. Here are the most common use cases:

Authentication and verification

You can authenticate users by sending verification codes (also known as 2FA). Users who register their account on your platform will receive a Zalo message to verify their phone number or account.

example of zalo verification codes

Example of sending passwords and verification codes on Zalo.

89%

of users are highly satisfied with ZNS authentication compared to other services, according to the Intage Vietnam & Zalo Cloud report.

Top tip: Did you know that sending authentication messages on Zalo offers significant cost savings compared to SMS? You can use Infobip’s Authenticate solution to send verification codes on Zalo, combining it with the SMS failover option to ensure maximum deliverability and cost-efficiency.

Account changes and transaction notifications

You can use Zalo notifications to confirm account creation, inform about password changes, and provide account info updates. Users can receive notifications about transaction status, balance changes, and payment requests.

Examples of notifications on successful purchases and transactions on Zalo

Examples of Zalo notifications on successful purchases and transactions.

Among different types of Zalo notifications via ZNS, such as after-sales, account information, and product and service updates, users prefer transaction update notifications. 79% of respondents have shown their willingness to receive more such notifications than other types of notifications.

58%

of users interact with businesses via Zalo to get transaction status, shipping details, and appointment scheduling. Source: Intage Vietnam & Zalo Cloud report.

Order confirmations, bookings, and event updates

You can use Zalo notifications to confirm orders and provide updates on booking status, registrations, and event attendance. You can also use ZNS to send reminders for events such as payments, deliveries, check-ups, or maintenance.

Examples of notifications on successful purchases and transactions on Zalo

Example of Zalo notification on order delivery.

Customer service notifications

You can use Zalo messages to communicate service changes and account-related information. Also, gathering customer feedback through Zalo helps you improve the quality of your service.

Examples of notifications on successful purchases and transactions on Zalo

Example of a Zalo notification asking for customer feedback.

Through Zalo, you can send notifications on suspicious activity and other risk warnings.

Examples of notifications on successful purchases and transactions on Zalo

Example of notification on service hour changes.

95% of respondents to the survey prefer to receive customer service notifications from businesses on the Zalo platform, and many users are eager to recommend the platform to their family and friends. Compared to other channels such as SMS, Email, and Business Applications, more users prefer Zalo for receiving customer service notifications.

57

is Zalo’s Net Promoter Score (NPS), with 62% of people Satisfied and would recommend it (9-10 points). Source: Intage Vietnam & Zalo Cloud report.

After-sales messages

Businesses use Zalo to maintain long-term customer relationships and provide various after-sales services. According to the report, 69% of users are interested in receiving after-sales messages through ZNS.

Here are some examples of after-sales messages you can send on Zalo:

  • announce loyalty rewards
  • send birthday greetings
  • notify users about bonus points
  • send guidance on how to use purchased products
  • notify customers about upcoming products/services
  • send promotions, seasonal offers, and gift vouchers
Examples of notifications on successful purchases and transactions on Zalo

Example of a birthday gift voucher.

Channel promotion

You can use Zalo Notification Services to promote your Zalo Official Account (ZOA) and Zalo Mini App. By sending targeted notifications, you can attract more users.

Why do consumers in Vietnam prefer Zalo notifications?

Here are some of the reasons why users prefer to receive notifications via ZNS compared to other similar services:

  • Notifications feature a clear and easy-to-navigate layout and content
  • Well-balanced frequency of receiving promotional notifications
  • The amount of promotional content is limited, with minimal spam messages
  • Notifications only received from trusted businesses
  • Promotional notifications include tailored content as per users’ needs
  • Appealing design and interface of the notifications

How to get started with Zalo

There are two ways you can start using Zalo for your business, depending on whether you have a legal entity in Vietnam.

  • You can only send verification codes (account registration and verification). A fast and easy way to get started would be to use Infobip’s solution called Authenticate.
  • You can use a non-branded, generic sender, or we can create a special Zalo Official Account for your brand, exclusively for sending verification codes.
  • You can also use the SMS failover option to ensure users get an SMS in case they don’t receive a Zalo message.
  • You are eligible to create a Zalo Official Account (ZOA) and Zalo Cloud Account (ZCA) for your business. You can also use Zalo OA Followers feature to manage and respond to customers.
  • You can use Zalo OA Followers to manage and respond to customer inquiries.
  • You can engage in two-way communication through OA Followers and send one-way notifications through ZNS.
  • When using Zalo Notification Services through Infobip, you can get your daily message quota and information about your account’s quality through Infobip support teams.

You can see examples of a generic sender (left) and a branded sender (right) for sending verification codes below:

example of generic sender for OTP
example of branded sender for OTP

Video walkthroughs: sending Zalo messages with Infobip

Here is a video on sending Zalo messages with the Zalo Notifications Services (ZNS) via Infobip’s web platform:

And here is how to connect Zalo via API:

Why it’s important to keep your Zalo notifications high-quality

When using Zalo Notification Services, the feedback you get matters. If Zalo users report your messages as bad, it can affect your status.

Zalo grades Official Accounts (OA) into three categories: Good, Medium, and Low. Your grade depends on how many negative reports you get. The features you can use, like how many messages and what kind of content you can send, depend on your grade. If you’re doing well, you can send more messages. But if you get too many bad reports, Zalo might limit your messaging or even stop it for a while.

Your grade can change based on the quality of your messages over the past week. Zalo checks this every day. If your grade changes, you might have to wait a bit before you see any new features.

To illustrate all this, here are some examples: the below image shows a message template that users reported as bad. It is written in a very formal way, with the purpose of informing customers on due payments. This information can be both unpleasant to read in a Zalo message, and also unnecessary if a customer had already paid.

Example of a Zalo message template that received negative feedback

Example of a Zalo message that received negative feedback.

On the other hand, the image below shows a good example of a Zalo message. It is written in a warm tone, asking for a review of a customer order. This increases the chances of getting positive feedback, especially for orders customers are happy with.

Example of a good Zalo message asking for customer feedback

Example of a well-formatted Zalo message asking for customer feedback.

Best practices for businesses sending Zalo notifications via ZNS

Certain factors should be considered when delivering Zalo notifications via ZNS so that you receive better engagement. Here are some best practices for sending ZNS notifications.

Personalize after-sales notification content

  • Don’t send the same content to every customer, as it will result in poor engagement. Your priority should be creating personalized content for each age group and focusing on the product and service information your customers are interested in.
  • Before sending notifications to your customers, you must segment them based on their past purchases, needs, and preferences to ensure they receive relevant messages.

Maintain quality and provide valuable content

  • You should review the notification’s content before sending it to your customers to prevent any incorrect information or grammatical mistakes. You must also send notifications that address your customers’ needs and provide them with sufficient value.

Manage the notification frequency

  • Allow your customers to control how often they receive notifications via ZNS from the start. According to the Intage Vietnam & Zalo Cloud report, you should aim to send 2 to 3 notifications weekly. However, younger audiences aged between 20 and 27 are more receptive to 3 to 4 notifications.
  • With the new Promotion Quota policy effective November 1, 2024, businesses must be strategic as the monthly quota is now calculated based on past ZNS usage. You must carefully plan notification frequency to avoid exceeding the quota while maintaining customer engagement without overwhelming them.

Be reachable to your customers

  • The content of your ZNS should include an option to contact your business through a customer service phone number, email address, or a link to your website support section.
  • By applying these best practices, you can boost the effectiveness of your Zalo notifications and foster stronger connections with your customers. Personalization and quality content will help you drive higher engagement, earn loyalty, and improve your brand reputation.

Adopt the right strategy

  • You must prepare a proper strategy to understand the choice and willingness of your audience while sending Zalo notifications via ZNS.
  • According to the Intage Vietnam & Zalo Cloud report, the percentage of the satisfied group is higher when it comes to preference for receiving more ZNS compared to the neutral/dissatisfied group. The Neutral group comprises younger people between 20 and 27 years old who are aware of ZNS and open to receiving notifications compared to the older age group of from 35 to 50 years.
  • While meeting the expectations of satisfied users, you can convert the Neutral group into satisfied users by customizing notifications to fulfill users’ preferences.

To sum up: Zalo helps you save messaging costs and improve CX

Zalo is more than just a chat app. It has become a way of life for millions of Vietnamese people, which has already led to more than 155,000 companies using it. If you want to start using Zalo too, here are the key things you need to keep in mind:

  • Zalo supports the sending of verification codes for authentication and verification purposes, as well as one-way notifications, alerts, and reminders
  • Businesses without a legal entity in Vietnam can only send verification codes on Zalo using Infobip’s Authenticate, while those with legal entities can create a Zalo Official Account and send other types of messages using Zalo Notification Services
  • Zalo evaluates the quality of Zalo Official Accounts according to the sender’s bad reporting ratio (when users report messages as bad, the account may be paused)
  • To send promotional messages, like after-sales notices, new product announcements, and gift vouchers, you need to submit each type of message as a template for Zalo’s approval (it gets approved on a case-by-case basis)
  • You can send Zalo messages via API or web platform (broadcast)

If you’re an international company without a legal entity in Vietnam, you can start sending verification codes and save on messaging costs with Zalo using Infobip’s Authenticate. If you have a legal entity in Vietnam, you can use Zalo OA Followers and Zalo Notification Services (ZNS) through Infobip, reaching your Vietnamese audience the way they prefer.

Start using Zalo as a business

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Mar 25th, 2024
10 min read