Zalora Scales Operational and Marketing Customer Communications Using Nexmo’s SMS API
ChallengeUsing SMS aggregators, thousands of Zalora's SMS messages were not being delivered, negatively disrupting mobile shoppers' experience. A new solution was needed.
SolutionNexmo’s SMS API
- Consistently high mobile user acquisition rates
- Increased traffic to the ZALORA eCommerce and mCommerce sites
- Decrease in the customer contacts ratio per order to reducing overall customer service costs
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.
Zalora is Asia Pacific’s leading online fashion destination with operations in Singapore, Hong Kong, Indonesia, Malaysia and 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.
Understanding the trend toward mobile eCommerce, Zalora sought an SMS solution to implement effective marketing campaigns and provide customers with 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.
Bolstering Zalora’s Marketing and Transaction Efforts
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 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 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.
Zalora has greatly improved operational and marketing efficiencies with the Nexmo SMS API. Since implementing Nexmo, Zalora has experienced consistently higher mobile user acquisition rates, increased traffic to the Zalora eCommerce and mCommerce sites and a decrease in the “customer contacts ratio per order,” 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. We look forward to continuing to push the boundaries of what’s possible in customer communications with Nexmo.”