ZALORA Scales Operational and Marketing Customer Communications Using Nexmo SMS API

Published April 24, 2017 by Charles Costa

ZALORA is Asia Pacific’s leading online fashion destination with operations in Singapore, Hong Kong, Indonesia, Malaysia & Brunei, the Philippines, Thailand, Vietnam, and Taiwan. The company offers free returns, speedy deliveries, free delivery over a certain spend, and multiple payment methods including cash-on-delivery, making it a truly innovative retailer in Asia

Today, more and more shoppers in Southeast Asia are going mobile, changing how businesses engage these consumers. While there is still a use case for email, the channel faces stiff competition from mobile, which has proven an effective user acquisition, marketing, and operational messaging channel.

Understanding this trend, ZALORA sought an SMS solution to implement effective marketing campaigns and provide customers with a reliable transaction, order and delivery updates. Initially, ZALORA turned to local SMS aggregators but discovered that thousands of their messages were going undelivered, which negatively disrupted customers’ shopping experience.

“Not only did Nexmo provide the scale ZALORA required, but they offered great trackability, reliability, and the API was easy to integrate with our core retail systems,” said Johanan Choo, Regional Mobile & CRM Systems Analyst for ZALORA. To overcome these challenges, ZALORA partnered with Nexmo to use its robust SMS API for:

  • Reactivation campaigns. Customers who have not purchased after a certain amount of time will receive an SMS with a device-specific coupon code that can be used for their next ZALORA purchase. In addition, SMS provides an easy way to bring customers back to ZALORA’s website and/or brand app.
  • Event marketing campaigns. Time-specific events including Cyber Monday, Black Friday, November 11, December 12, and birthdays are critical marketing periods for ZALORA, and SMS allows them to communicate region-specific sales in real time.
  • Transaction & operational updates. When a customer places an order, they receive real-time confirmations, payment reminders, and delivery notifications via SMS. “SMS is an effective way to reach customers who are not very engaged via other channels, so we knew we needed a single SMS API solution to provide the best possible customer experience across our marketing and operational efforts,” said Alicia Teo, Customer Experience Manager for ZALORA.

ZALORA has greatly improved operational and marketing efficiencies with the Nexmo SMS API.

Highlights include:

  • New revenue streams
  • Consistently high mobile user acquisition rates
  • Increased traffic to the ZALORA eCommerce and mCommerce sites
  • Decrease in the customer contacts ratio per order, thereby reducing overall customer service costs

“Because the deliverability is so high with Nexmo’s SMS API solution, ZALORA has seen a significant uplift, both in terms of increased revenue and traffic to our website. SMS is no longer a “nice to have,” it’s an expectation from our customers,” said Ms.Teo. “We look forward to continuing to push the boundaries of what’s possible in customer communications with Nexmo.”
“SMS provides great value as it informs our customers in a very timely manner about deals. Having one touchpoint for our centralized marketing outreach is very efficient,” continued Mr. Choo. “Nexmo’s single SMS API provides better visibility into our marketing spend, which helps our marketing team create more strategic, cost-conscious marketing decisions.”

To learn more about this use case, view the full case study here.

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