Construction equipment distributor case: increased proceeds by 37% due to customer segmentation and bulk messaging via WhatsApp Business API

The company supplies construction equipment from China:
•  machines for rebar
•  road machinery
•  compressors

It works with large construction and trading companies. Most of the sales were through sales representatives and phone calls. The company has set a task to develop an additional sales channel – messaging via WhatsApp.

What have been done

Loaded client database to CRM and segmented it

Downloaded client database from 1С and uploaded to CRM. Managers filled in client record cards and divided them into 5 categories based on sales value per year:
•  A – above 150 000$ 
•  B – 100 000 - 150 000$
•  C – 60 000 - 100 000$
•  D – 30 000 - 60 000$
•  E – below 30 000$

Also, each client was assigned with a segment depending on goods category he is interested in.

For example:
Company 1: annual turnover over 150 000$. Principal business – machines for rebar. Secondary business – equipment for concrete (immersion vibrators, heat treatment of concrete). 
Company 2: annual turnover of 100 000 - 150 000$. Principal business – equipment for road construction (slabs, pavement cutters, rock drills).

Replaced emails with messaging via WhatsApp Business API

Earlier messaging on sales promotions and fresh supplies have been done via email with the following results:

The company employs 13 managers, in average each manager has 700–1000 contacts in his database. Average order price is 1500$.

Using ChatApp integrated WhatsApp Business API with CRM. The company has been accredited by Facebook and agreed messaging templates.

Messages were sent as follows:
1. At season start when new products are introduced at the market. 
Clients get familiar with specifications and retail prices of products. It helps to select required goods in advance and post them on a website. 
2. When container arrives to Russia 
Clients may pre-book the goods, get advance payment and assign equipment to buyers. 
3. When container is unloaded at a warehouse
This messaging is distributed over the clients who has warehouses in regions where unloading takes place. 
4. Selling of stock balance from warehouse in the end of the season
Clients are offered to buy goods with a 10 % discount.

Problem: open rate has increased 3-fold, but conversion to order has reduced

“Company management was in a fury! We spent so much time, resources, and funds for agreement of templates and messaging and such a failure as a result. We began to sort out the issue”, – Ivan Albychev, Inter-M.

Managers collected feedback from the clients. It turned out that most of the clients got used to communicate by phone or email, and messages in WhatsApp from unknown number felt suspicious. 

Solution: told clients by phone and email about a new communication channel – WhatsApp

Managers explained that now each client will receive messages only about the categories of goods he is interested in. It took 3 weeks to notify clients.

After repeated messaging campaign in WABA conversion increased 3-fold

Result: average proceeds gain of 37 %

Proceeds were measured in a high season from April to September and compared with an equivalent period of the previous year when the messaging was done via email only. 
Clients received information only on goods they are interested in via convenient communication channel. As a result, each segment started to buy more.