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

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.

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.