< Back

How a Small Business Boosted Retention Rate by 23% with BotStar

Download PDF

123%

Increase in Retention rate

3x

Conversation Rate with BotStar

200%

Profit earned after 2 months

About Tiny

Tiny is an online gift store where customers can customize their gifts online and choose the destination where the gift is delivered to.

The special about this online shop is that you can choose everything to make the gift become unique. If there is no special request, the random gift will appear if the customers answer 5 basic questions in the Random Gift section.

Jack and Linda are co-founders of the shop. Jack worked in developing the website for Linda to sell her gift box design online. After working with other gift shops, they decided to open an online gift store for themselves. Tiny’s vision is to bring a memorable and meaningful gift to everyone.

The Challenge

In the beginning, the shop was small and Linda could take care of every single customer. Since Jack was in charge of the technical part, Linda needed to do all the customer service parts. Linda could work and support customers up to 15 people per day. But in the busy season such as Thanksgiving Day, Mothers’ Day, Fathers’ Day, or Christmas, Linda could not handle everything.

The business becomes more well-known since her design is loved by lots of people. As it was going bigger, lots of queries came to the site. Linda could not handle all the customers’ requests at the same time. She just only could answer 15 customers per day and other people needed to wait for the next day.

Also, all the customer’s information and buying confirmation details needed to be confirmed via call. It cost so much time.

After several busy months, Jack and Linda realized that lots of customers visited Tiny’s website but the number of people who really made the purchase was not that many. A big problem: The rate of returning customers was disappointingly low.

Because their business didn’t grow, they decided to ask their customers for feedback, doing some research about their own products. After a while, they realized that their customized gifts all receive good feedback but their website is hard to view and the ordering process, service is rated bad due to the long waiting time. Customers said that they would rather choose another gift provider with a faster ordering and service process than having to wait so long.

The Solution

During that time, Jack could not help Linda much with the support because he had others to focus on. He spent a lot of time on market research and website visual development. He also tried to find a way to better support customers but with less human effort.

Then a friend introduced him a chatbot solution that could help Linda better in supporting customers with automatic responses.

Jack searched some chatbot providers to compare the price and their features. Then, he chose BotStar because of the visual editor which is very easy to use. This is very suitable for Linda because she is a non-technical person and she could go to the chatbot and create or edit the chatbot by herself.

After using the chatbot for months, Linda found that this chatbot supports her and saves her lots of time:

  • The chatbot can collect customer information through simple questions. The payment method is also provided by the chatbot. Shipping status and other updated messages are also automatically sent to the customers.
  • It also allows customers to make an order on their main website, and at the final steps, they will be forwarded to Tiny’s Facebook page. Thanks to that, Linda and Jack can have customer’s data, categorize them, and send some follow-up messages after their purchase.

The Result

Linda now can manage the shop better and categorize her customers easier using some tags in the campaign. Customer feedback that they are satisfied with the support and the waiting time is less than before. With the loyalty program, lots of customers come back with some discount and they also suggest some new customers come to the shop.

Some numerical results after 2 months of launching the chatbot:

  • 123%x Retention rate
  • 3x Conversation
  • 2x Revenue

* Disclaimer: Names and events in this article have been modified to preserve BotStar client confidentiality & privacy.