Twilio > Case Studies > Driving Conversion and Sales with Twilio Flex and WhatsApp: A Case Study on Magazine Luiza

Driving Conversion and Sales with Twilio Flex and WhatsApp: A Case Study on Magazine Luiza

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Technology Category
  • Networks & Connectivity - 5G
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • E-Commerce
  • Retail
Applicable Functions
  • Product Research & Development
  • Sales & Marketing
Use Cases
  • Retail Store Automation
  • Theft Detection
About The Customer
Magazine Luiza, often referred to as Magalu, is the largest retail chain in Brazil and one of the largest companies globally. Founded in 1957 as a physical store, Magalu has since embraced e-commerce as part of its sales strategy. The company has a technology and innovation laboratory, LuizaLabs, located within its research and development center. The lab focuses on creating products and services for retail, offering customers more benefits and a better shopping experience. In 2022, Magalu launched its Marketplace, allowing other stores to sell their products through the Magalu platform. The company aims to maintain a digital sales platform that also has physical service points focused on developing customer relationships by showing human warmth to each customer.
The Challenge
Magazine Luiza (Magalu), the largest Brazilian retail chain, faced a significant challenge in maintaining its customer service strategy of demonstrating 'human warmth' as it expanded its digital platform. The company had successfully grown its Marketplace to support 200,000 sellers, but the digital platform posed a challenge in maintaining the personal touch in customer service. The company identified four key points of contact with the customer: attraction, onboarding, relationship, and retention. However, the existing process of attracting new customers and onboarding them onto the platform was not effective. The company used Click to WhatsApp ads on social media to attract potential sellers, but the subsequent registration process lacked context about the platform and did not provide a channel for potential sellers to ask questions. Furthermore, the company found that 79% of the emails sent to potential sellers with instructions for completing the registration process were ignored, indicating that email was not the most effective means of communication.
The Solution
To address these challenges, Magalu implemented a strategy that leveraged the WhatsApp Business Platform, with the help of Twilio. The company changed the communication of the next steps of the registration process from email to WhatsApp, a platform preferred by the Brazilian public and installed on 98% of Brazilian cell phones. This allowed the company to onboard new sellers more quickly. The entire registration and communication structure was changed in just two months. In addition, Magalu now offers two types of service via Twilio Flex: questions about onboarding and financial contracting. To maintain the relationship with the customer and ensure retention, Magalu developed a chatbot within WhatsApp that can respond to sellers’ frequently asked questions and direct them to a live Magalu agent. The company also sends promotions and news about Magalu through WhatsApp, ensuring that sellers return to the platform to register new products and adhere to new promotions.
Operational Impact
  • The implementation of the WhatsApp Business Platform and Twilio Flex has significantly improved Magalu's operational efficiency and customer service. The shift from email to WhatsApp for communicating the next steps of the registration process has resulted in a faster onboarding process for new sellers. The use of WhatsApp for communication has also ensured that sellers are more engaged with the platform, as they can easily access promotions and news about Magalu. The chatbot developed within WhatsApp has further enhanced customer service by providing immediate responses to sellers’ frequently asked questions and directing them to a live Magalu agent when necessary. This has not only improved the customer experience but also increased the efficiency of the customer service team. The company is continuously evolving its use of WhatsApp for retention on the Magalu Marketplace and plans to offer the ability to hire personalized services within WhatsApp in the future.
Quantitative Benefit
  • The percentage of people who signed up for Marketplace and were ready to sell more than doubled, from 21% to 46%.
  • The use of WhatsApp guaranteed 19.8% more sales volume.
  • The Marketplace has grown to support 200,000 sellers.

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