Magazine Luiza
Achieving a 6.9X increase in responses to customers with Messenger API for Instagram and a 30% reduction in call center contacts with WhatsApp
THEIR STORY
Omnichannel retail giant
Founded in 1957, Magazine Luiza (Magalu) is one of Brazil's largest retail companies, with more than 1,200 stores and 35,000 employees across the country. An early adopter of online retail, Magalu launched its ecommerce site in 2000 and introduced a marketplace platform in 2018 for 3,500 small businesses. Also in 2018 they brought their famous persona Lu, to be a Messenger-powered digital assistant that included quick replies, natural language processing, and a handover protocol to onboard the vendors. Following the success of that project, Magalu introduced Lu for customer care on Messenger and then evolved with the Instagram and WhatsApp channels.
THEIR GOAL
Effortless conversations with customers
Magalu’s customer service team received a large volume of calls and messages across its communication channels daily and was unable to respond to customers on Instagram and WhatsApp and via its call center quickly and efficiently. The retailer needed a solution that would help its customer service team minimise response times, reduce the volume of calls, and improve operational efficiency.
THEIR SOLUTION
Communicating across Facebook apps and services
To streamline the customer communication process across channels, Magalu’s in-house developer team worked with Facebook and customer software expert Sprinklr to incorporate Messenger API for Instagram and WhatsApp Business API into its existing Messenger experience. By doing so, the Brazilian retailer consolidated its messaging strategy, giving its customer service team greater visibility over all customer queries and enabling a more consistent customer care experience across the Facebook Family of Apps.
THEIR SUCCESS
A comprehensive messaging strategy
Magalu’s integration of Messenger API for Instagram and WhatsApp Business API helped boost its customer care team’s productivity and efficiency – especially during the coronavirus (COVID-19) pandemic when messaging grew in popularity. By pursuing a consolidated messaging strategy to interact with customers, the retailer reported the following results between October 2018 and October 2020*:
- 30% greater efficiency with Messenger integration compared to email and website
- 47% more volume on Messenger handled by human agents after integrating handover protocol, compared to email and website
- 6.9X increase in responded tickets driven by Instagram API adoption
- 16% increase in total volume of direct messages received via Instagram
- 60% average retention rate of customers on WhatsApp
- 30% reduction in call volume after integrating WhatsApp Business API
“At Magalu, our goal is to offer customers excellent service regardless of which channel they are using to contact us. To help customers closely connect with our brand, we introduced our digital assistant, Lu, and integrated it with Messenger, Instagram and WhatsApp, so that customers could easily interact with the brand at any time and on the platforms where they are most comfortable. By offering this service experience, we achieved greater customer service efficiency and our team increased productivity.”
Products used
Connect with customers easily by using tools to automate and quickly respond to messages.