dahmakan: Doubled conversion rates and saved 30% costs with SMS
2x
conversion rates
30%
cost reduction
Challenge
Low conversion rates
dahmakan was mainly using email and push notifications to communicate with their customers about order confirmations, delivery updates, and promotions.
SMS was a secondary communication channel as it was expensive through their previous service provider.
However, they noticed that SMS had a better conversion rate for certain types of messages in the local market due to high delivery rates and the customer’s ability to easily save and refer to messages.
Solution
Expand the use of SMS
dahmakan wanted to leverage the popularity of SMS for daily customer communications. When they consulted with Infobip, they ran an experiment to test their theory. They used all three channels (Push, Email, and SMS) in a promotional campaign and the results showed that SMS had the highest conversion rate.
dahmakan used Infobip’s API to make SMS their predominant channel for daily communication at local rates, which reduced their costs by 30%.
Infobip could also provide dahmakan with quality support and a quicker response time, due to local offices and regional expertise. With a dedicated Customer Success Manager, dahmakan was supported through the move between providers as well as implementing new growth strategies.
Solution
Double the conversions at 30% less cost
dahmakan has seen their conversion rate double with SMS for promotional campaigns.
dahmakan’s promotional messages are linked to customer loyalty and include:
- Cashback or discount offers on orders
- Referral incentives
- Notifications about free credits after a certain number of orders
- Reminders to use free credits before expiry
They have been able to ramp up the use of SMS as a communication channel because of the better rates that Infobip can provide, which is 30% less than what they were paying.
Introducing SMS has had a positive impact on customer experience too. Customers can receive notifications without having the app installed and it is easier for them to store and access SMS promo codes compared to push notifications.
dahmakan now also uses SMS to inform their delivery staff about canceled orders and Cash on Delivery (CoD) so that drivers know exactly how much they have to bring back at the end of a shift.
dahmakan believes that SMS will help them provide a better service to their customers as they continue to expand in Kuala Lumpur and Thailand.
Infobip has helped us connect to our customers daily, at a better rate. The team has provided us with reliable, attentive customer support (two times faster and with local points of contact), which has helped dahmakan achieve our goals.
Asyraf Hazif
Product Manager
Company Profile
dahmakan
dahmakan (which translates to “Have you eaten?”) is a food delivery service in South East Asia, specializing in authentic home-cooked flavors prepared by 5-star chefs. Operations are centralized, from the kitchen to the delivery service as well as their website and app. dahmakan runs an efficient service model based on delivery times that coincide with lunch and dinner hours, which is more cost effective and lets them provide inexpensive, high quality, freshly prepared meals. The company currently operates in Malaysia and Thailand with a user base of over one million.
