Balaan: Leveraging Live Chat to Boost Conversions 30%

Balaan: Leveraging Live Chat to Boost Conversions 30%

The Problem

Luxury goods shoppers expect high-quality customer service but this is difficult to replicate during an online shopping experience.

The Solution

Channel Talk’s live chat feature helped Balaan to recreate the offline store experience online and provide high-quality customer service which resulted in a 30% increase in conversions.

Luxury Goods at 30% of the Cost

With more than 4 million dollars in transactions per month and over 1 million domestic users, luxury goods platform ‘Balaan,’ is making its presence known in the luxury fashion industry across South Korea.

With their AI-integrated ERP system, Balaan tracks inventory delivery in real-time from the product's origin countries (such as Italy or France) to the product’s intended destination, giving customers a sense of security and reliability for their luxury goods.

During a Demoday presentation at Sparklabs, CEO of Balaan, Richard Choi walked on stage and explained the model that helped launch their business.

Background:

• Luxury brands operate both offline and online stores, while simultaneously supplying a large portion of their goods to European boutiques

• These boutiques represent about $300 billion, approximately 66% of the luxury fashion market.

Issue:

• Contracts with luxury brands takes on inventory risk directly

Balaan’s Solution:

• Balaan eliminated this risk by contracting with European boutiques instead

The Result?

• Balaan to save on costs and offer luxury goods 30% cheaper than their competitors

• Overall conversion rate increased by 30%

The Offline Luxury Goods Shopping Experience

Nowadays with the popularity of e-commerce, luxury goods can be purchased online, often for a better price.

Yet, so many shoppers still choose to go to the physical stores of Gucci and Louis Vuitton.

But why?

It’s because of the offline customer experience.

Going to a physical store means seeing the product in person and having the experienced staff assist your shopping journey by answering all your questions and offering suggestions.

Creating a personalized experience as you search for the perfect product is the experience people are looking for when they step into a luxury store.

Shoppers enjoy special treatment, and many are willing to pay extra for it.

Recreating Offline Experience Online With Channel Talk

Balaan made the decision to use Channel Talk in order to bring the same in-store shopping experience to its online platform.

The luxury goods shopping experience means meeting a certain level of service and Balaan was determined to meet those expectations.

Channel Talk’s live chat feature proved to be the highlight of Balaan’s customer experience.

When shopping for luxury goods, customers often ask, "What is the newest collection" or "What size or color do these come in?"

Since each individual has their own taste and preference, customized service can greatly impact customers' purchasing decisions.

Especially with luxury goods, the higher price tag means greater investment and a longer purchasing journey.

In order to maintain a positive shopping experience, Balaan utilized Channel Talk’s live chat feature to answer customer inquiries quickly.

Customers want to be confident that they’re making the right buying decisions, and the best way to convince them of that is through simple and seamless communication.

Balaan provided this with quick and active responses to customer inquiries and successfully distinguished themselves from their competitors by offering a more elevated customer experience.

Balaan’s Customer Service Quality

Balaan ensures the best quality of service by having active representatives, always ready and willing to help customers through Channel Talk.

Detailed questions such as product authenticity or size concerns are answered immediately, instead of letting customers wait through outdated and slow CS ticketing systems.

Using Channel Talk’s live chat, in combination with our operation and marketing features, Balaan gradually began turning first-time visitors into avid fans of the company, with some of them spending more than $40,000 a year individually.

The result of this active engagement with their customers is what led to the 30% increase in conversion, and solidified Balaan as a major player in the luxury e-commerce industry.