Definition of a Webhook
A webhook is a method used in web development for automating the exchange of data between web applications in real time. It enables one application to send automated notifications or updates to another application when specific events occur. Unlike traditional polling methods where an application repeatedly checks for updates, a webhook sends data instantaneously when triggered by a predefined event.
This allows for more efficient communication between different systems. It also enables developers to create seamless integrations between various services and platforms. Webhooks are commonly used in areas such as notifications, data synchronisation, and triggering automated actions in response to events.
Today we are going to be looking at several webhook examples from the SaaS company perspective. This is to demonstrate how a SaaS from any vertical or business can build webhook integrations. These will then benefit its end-users and expand its product functionality.
Webhook Example: E-commerce
Let’s consider a technical example of how a webhook might be used in the context of an e-commerce website.
Imagine your end users use your SaaS (Shopify, Woocommerce etc.) to host their online store. This is where their customers can place orders for products. You’ll want to include an integration so your SaaS will automatically update their inventory system whenever a new order is placed. This means they can ensure accurate stock levels.
Here’s how you could use a webhook:
Setup: You configure your SaaS platform to send a webhook notification to the inventory management system whenever a new order is received.
Trigger Event: A customer places an order on your end-user’s online store to purchase a product.
Webhook Sent: Once the order is successfully placed, your SaaS platform triggers a webhook and sends a POST request. This contains relevant information about the order (e.g., order ID, product details, quantity) to a specific URL endpoint in the end-users inventory management system.
Processing: The inventory management system receives the webhook payload and processes the incoming data. It updates the inventory records by decrementing the quantity of the purchased product to reflect the sale.
Confirmation: Upon successful processing, the inventory management system might respond with a confirmation status code (e.g., 200 OK). This acknowledges receipt of the webhook and successful inventory update.
By using a webhook in this scenario, your SaaS can automate the process of updating your end-user’s inventory in real-time whenever new orders are placed. As a result, it ensures accurate stock management without manual intervention.
Webhook Example: Finance
Let’s consider another technical example of how a webhook might be utilised in a finance SaaS application. Specifically for handling payment notifications between a payment gateway and an accounting system.
Here’s how you could use a webhook:
Setup: A business uses your SaaS as a payment gateway service (Stripe, PayPal etc.) to process online transactions. It also uses an accounting system to manage its finances. They want to automatically update their accounting system whenever a payment is received.
Trigger Event: A customer completes a purchase on the business’s website, and your SaaS, the payment gateway processes the transaction successfully.
Webhook Sent: Upon successful processing of the payment, the payment gateway triggers a webhook and sends a POST request. This contains transaction details (e.g., transaction ID, amount, payment status) to a designated URL endpoint in the business’s accounting system.
Processing: The accounting system receives the webhook payload and processes the incoming data. It identifies the payment transaction associated with the webhook and updates the relevant financial records. These could be updating the accounts receivable ledger to reflect the payment received.
Confirmation: After processing the webhook payload, the accounting system might respond with a confirmation status code (e.g., 200 OK). This is done to acknowledge receipt of the webhook and successful update of financial records.
By employing a webhook in this scenario, the business can automate the process of updating its accounting records in real-time whenever payments are received. As a result, it ensures accurate financial tracking and reconciliation without manual intervention.
Webhook Example: Support
Our final technical example considers how a webhook might facilitate communication between a support chat application (Freshdesk, Intercom etc.) and an internal communication application within a company.
Setup: The company uses your SaaS as a support chat application to handle their customer inquiries. As well as a separate internal communication application (e.g., Slack, Microsoft Teams) for team collaboration. They want to notify the relevant team members in the internal communication app whenever a new support ticket is created or resolved.
Trigger Event: A customer submits a new support ticket through the company’s website or support portal, or an existing ticket is resolved by a support agent.
Webhook Sent: Upon the creation or resolution of a support ticket, the support chat application triggers a webhook and sends a POST request. This contains relevant details (e.g., ticket ID, status, customer information) to a designated URL endpoint in the internal communication application.
Processing: The internal communication application receives the webhook payload and processes the incoming data. It parses the information to determine the nature of the notification (e.g., new ticket created, ticket resolved). It’ll then identify the appropriate channel or team members to notify.
Notification: The internal communication application sends a notification message to the designated channel or specific team members. It will inform them about the new support ticket or the resolution of an existing one. The message might include relevant details from the webhook payload to provide context to the recipients.
By utilising a webhook in this scenario, the company can streamline communication between support teams and other departments. This ensures prompt awareness of customer inquiries and resolutions, facilitating collaboration, and improving overall customer support efficiency.
Webhooks and Embedded iPaaS (Cyclr)
A common issue we hear from SaaS companies is that they don’t have the time or resources to rapidly expand their native integrations. Luckily, embedded integration platforms such as Cyclr exist, which take the time and effort out of building native integrations.
We’ve created a platform that enables anyone on your team to develop and deploy integrations within your SaaS with no technical knowledge required. They only need to understand the data, where it is and where it needs to go.
With Cyclr we’ve created multiple webhook connectors that allow you to trigger-based integrations. Our webhooks include Generic Webhooks, Synchronous Webhooks and Mid-Cycle Webhooks. Each has a unique functionality to enhance your integration workflows.
If you’d like to learn more about Cyclr and our webhooks join us for one of our live demos!
