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Smart businesses will always take advantage of innovative ways to use technologies in order to maximize their profits and polish their workflows. One such emerging technology that has the potential to revolutionize how businesses function is application program interfaces or APIs. APIs could enable companies to grow quicker than ever before and save them loads of money in the process. Today we’ll be taking a look at what APIs are, how they can promote innovation in business, and detail a few specific APIs that may be worth integrating.
What is an API?
Application programming interfaces facilitate communication between two applications that would otherwise be disparate. Much like how a user interface allows a person to manipulate and exchange data with a software application, an API allows one software application to interact with another software application.
The simplest way to explain the function of an API is through an example. Early in the lifespan of Google Maps, a third-party application allowed Google’s software to use its database of real estate information to show locations directly through Google Maps via an API. By allowing Google Maps (software A) to communicate with the third-party real estate application (software B) Google saw an exponential increase in popularity. This is just one example of how APIs can drive innovation across industries.
Why is it Important to Integrate APIs Into Your Platform?
APIs are not a new technology, but they are undoubtedly growing in popularity. This is because of the several benefits APIs bring to companies that in turn increase their revenue. APIs allow businesses to connect with customers that would usually be out of their market, spur innovation across industries, and streamline operations and business processes.
APIs Enable Businesses to:
- Connect With Customers
An effective API will give existing and potential customers new reasons and means of connecting with a business. To build on our earlier Google Maps example, let’s explore how this same use of an API benefitted the company that owned the real estate software. By allowing their database to be used in Google’s software, they are able to reach both customers that are already familiar with their services and people who use Google Maps but had not used their services beforehand. Combine this with Google’s wild growth as a result of the API implementation and it becomes obvious that the third-party real estate software had plenty of new prospects at its fingertips.
- Streamline Business Operations/Processes
The automated nature of APIs can also help businesses streamline their operations. Let’s take the example of an insurance company’s claims department. When handling a claim an employee must access a handful of databases and applications to receive all of the information they need. They would need to access the customer’s policy information, pull information on the customer’s vehicle from another database, and consider the details of the claim all before they could come to a decision on how to handle the situation. An API could automate a good portion of this process allowing the employee to handle the claim much quicker and with fewer errors.
Useful APIs You Might Consider Integrating
- WhatsApp Business API
WhatsApp Messenger is a Facebook-owned application that can replace SMS. The WhatsApp Business API allows businesses to communicate with their customers over the internet with end-to-end encryption. This means that messages and calls between a business and a customer are incredibly secure. Only the business and the customer it is interacting with would be able to view messages or hear calls.
- USPS Shipping API
A USPS shipping API allows your company to streamline its shipping services. This includes automatic access to rate comparison, pricing, package tracking, and proof of shipment.
- MailChimp
MailChimp enables your business to complete email marketing campaigns more simply. The MailChimp API allows you to connect the software’s campaign solutions to a database so your business can synch campaign statistics and subscriber information.
In Summary
So, here’s everything we’ve covered in this article as briefly as possible. An API allows software applications to communicate with one another, even if they are in different industries. This will promote innovation and streamline your business’s operations which will save you money in the end. There are several useful APIs that are publicly available that your company can benefit from.
Key Takeaways
- APIs facilitate communication between two applications.
- APIs benefit your company by spurring innovation and simplifying your company’s operations.
- Most businesses are implementing APIs and there are several options that may benefit you.
