LeTAO: How to Achieve a 50% Conversion Rate from Online

LeTAO: How to Achieve a 50% Conversion Rate from Online

Started in Hokkaido, LeTAO is a popular dessert brand that specializes in creating exquisite sweets, including its signature Double Fromage cheesecake, beloved by customers across the world.

The Problem: As LeTAO's popularity was exploding offline, the online website was only managed with email and LINE messenger and inquiries were mostly about post-purchase.

The Solution: LeTAO started using Channel Talk to increase pre-purchase conversations and help generate more sales through conversations.

The Result:

LeTAO currently has a 50% CVR for loyal customers and a 30% CVR for general customers.

The dessert company saw that the average customer spend is 1.5 times higher when a chat had started vs when a chat wasn't initiated.

LeTAO also sees around a 50% open, click-through, and conversion rate for their onsite pop-ups powered by Channel Talk.

Read on to learn more about LeTAO's story.

Full Case Study

In this interview, we spoke with Mr. Eto and Mr. Ono from the Customer Success Solutions team and Mr. Yonezawa from the Ecommerce Team, to learn how LeTAO continues to build its fan base online.

Creating One Passionate Fan Each Day

1. LeTAO is growing steadily, with increasing sales both in physical stores and online. How has the brand evolved?

Mr. Ono: We started by opening our main store on a popular street for tourists with the goal of creating sweets loved by locals that everyone could enjoy.

After we were featured on TV, our signature product, the Double Fromage, and our brand, became known.

Our motto is: "Create one passionate fan each day".

This means we prioritize personalizing service for each customer. We offer suggestions for gift-giving and strive to earn their trust with every conversation.

How to Build a Successful E-commerce Store: Loyal Customers

2. What are the key considerations for your e-commerce website?

Mr. Yonezawa: We're always focused on creating an online shopping experience that meets customer needs.

Since customers can’t physically see the products online, we make sure the photos and site layout realistically reflect the in-store shopping experience.

3. LeTAO's website aims to create an experience similar to the excitement of shopping in-store. How do you achieve that?

Mr. Eto: Most customers who visit our offline stores are new so our standard products are the most popular.

However, for our website, many repeat customers come to purchase online-exclusive items not available in the stores.

This has helped increase our number of loyal customers and we introduced Channel Talk to help facilitate conversations with those customers.

Increasing Pre-Purchase Inquiries from 10% to 50% with Channel Talk

4. How was the customer experience for customers before and after starting to use Channel Talk?

Mr. Ono: Previously, our customer inquiries were handled primarily through email and LINE messenger and the majority were post-purchase inquiries.

Our focus for the website was to provide real-time support for customers considering purchasing.

By implementing Channel Talk, we were able to link our customer data and provide personalized customer service to every customer.

Our pre-purchase inquiries went from 10% to 50% after using Channel Talk.

50% Engagement for Online Pop-Ups

5. Can you share more about the results you saw using Channel Talk's marketing campaigns (also known as pop-ups)?

Mr. Ono: The pop-up campaign we used to target loyal customers achieved:

• 54.4% views

• 48.6% click-through rate

• 47.2% conversion rate (CVR)

This campaign was very successful and we plan to continue utilizing this feature. We also noticed more loyal customers started chats with us from this campaign.

Achieving a 50% CVR Through Chat Support

6. The conversion rate is quite impressive! How did you achieve it?

Mr. Ono: Our general chat support CVR is around 30%, but for loyal customers, it’s about 50%.

We noticed that the average order value is 1.5x higher for customers who used live chat.

During customer conversations, our focus is to understand the customer's needs and provide suggestions rather than pushing for a sale.

Customers appreciate genuine service and it has led to repeat purchases.

Looking Ahead: Future Plans for Using Channel Talk

7. How do you plan on using Channel Talk moving forward?

Mr. Ono: Moving forward, we plan to adopt a more proactive approach to communication, similar to in-store experiences, and increase customer satisfaction through personalized support in chat.

For example, when customers use our service for gift purchases, we want to gather more information about the recipient and the occasion through a chatbot, providing an even more tailored experience.

Achievements Overview:

• 50% CVR from loyal customers, 30% CVR from regular customers

• 50% of all inquiries are pre-purchase inquiries (previously 10%)

• Average customer spend when using live chat is 1.5 times higher compared to when live chat is not used

• 54.4% views, 48.6% click-through rate, and 47.2% CVR for a marketing campaign (pop-up) for loyal customers