Bauhaus Hit 65% WhatsApp Coupon Redemption, Bridging Digital Engagement and In-Store Sales

Bauhaus International (Holdings) Limited (HKEX: 483), founded in 1991, is a well-established Hong Kong-based retail operator. Initially focused on multi-brand bags and leather goods, Bauhaus expanded successfully by creating its own distinctive fashion labels like TOUGH Jeansmith and Salad, now showcased across its network of 35 retail stores in Hong Kong and Macau.

Leveraging WhatsApp and Omnichat to achieve significant success in driving online-to-offline (O2O) sales and enhancing customer engagement, Bauhaus underwent a digital transformation to grow its business.

The tangible benefits of this omnichannel approach are confirmed by Frances Wong, Managing Director of Bauhaus: “WhatsApp has enabled us to achieve increased sales, improved customer support efficiency, and more optimised marketing campaigns.”

Navigating challenges of modern retail through omnichannel strategy

Bauhaus’s strategic decision to embrace WhatsApp and the Omnichat platform was driven by the need to address several critical challenges inherent in today’s rapidly evolving and highly competitive retail environment, particularly within the dynamic Hong Kong market:

Need for digital transformation

Like many established retailers with a significant physical presence, Bauhaus recognised the urgent need to adapt to shifting consumer behaviours. Customers increasingly expect seamless, integrated experiences across both online and offline channels. While Bauhaus had established an ecommerce website in recent years and nurtured a strong loyal customer base, they observed challenges engaging these customers effectively through newer digital channels; many loyalists showed resistance to using the online store or opening promotional emails. Given that WhatsApp is a ubiquitous and highly convenient communication tool favoured by Hong Kong consumers, it became crucial to leverage this platform.

Cost-effective customer acquisition

Acquiring new customers through traditional methods was becoming increasingly challenging and expensive. Furthermore, capturing initial interest and contact details from potential customers, whether encountered online or offline, required low-friction, immediate methods. Bauhaus needed more scalable, targeted, and measurable digital strategies to reach new audiences and convert interest into tangible sales, reducing reliance solely on brand heritage and existing foot traffic.

Elevating customer service standards

Providing consistent, high-quality service across 35 retail outlets and online platforms, managing inquiry volumes efficiently (especially during peak times or outside business hours), and equipping staff with the tools for effective, informed responses were crucial areas requiring improvement. Providing customer support after shops closed was a major challenge. Customers need help anytime, creating a demand for 24/7 assistance that was difficult and costly to offer with only traditional staffing.

Optimising O2O synergy and ecommerce expansion

While growing its e-commerce presence was important, the greater challenge lay in creating true Online-to-Offline (O2O) integration and offering a completely seamless customer journey. Key hurdles included enabling customers to easily transition between online research and in-store visits (or vice-versa), ensuring consistent product information and promotions across channels, managing inventory visibility effectively, and providing unified support – ultimately optimising the synergy between e-commerce and physical retail to maximise customer satisfaction and overall sales potential.

Powering Bauhaus with Omnichat & WhatsApp Business API

Addressing these interconnected challenges required an integrated digital communication and engagement solution, leading Bauhaus to partner with Omnichat and leverage the power of the WhatsApp Business API.

WhatsApp Business API is specifically designed for medium to large enterprises, allowing Bauhaus to connect WhatsApp’s messaging capabilities directly into their own business systems, such as CRM platforms, and e-commerce backends, supported by official Meta Business Partners like Omnichat. This allows for seamless data flow and advanced automation capabilities beyond the standard WhatsApp applications.

Building trust with Meta official verification

A significant benefit of utilising the official API is achieving Official Business Account status on WhatsApp. This verified status, visually represented by the authentic blue tick badge next to the Bauhaus brand name, instantly assures customers they are interacting with a legitimate and credible company presence, thereby significantly enhancing trust and confidence in their communications.

Enhancing service efficiency with 24/7 chatbot automation

Bauhaus implemented a 24/7 WhatsApp chatbot and keyword auto-replies, powered by Omnichat, which proved highly effective, successfully automating the handling of 93% of initial customer interactions. The chatbot efficiently addresses frequently asked questions concerning store locations, operating hours, current promotions, and other common enquiries, ensuring customers receive instant, accurate responses anytime.

Customers can engage with the chatbot through an easily accessible widget on the official Bauhaus website. This entry point offers a dual advantage: providing instant support while simultaneously capturing the customer’s phone number upon chat initiation. This equips Bauhaus with valuable contact information essential for lead generation and facilitates richer customer profile development within the Omnichat platform.

Driving customer acquisition with Click-to-WhatsApp Ads

To efficiently acquire new customers through online channels, Bauhaus strategically utilised Meta’s Click-to-WhatsApp ads, enabling potential customers with a single click on a Facebook or Instagram ad to initiate a direct WhatsApp conversation with the brand, seamlessly bridging discovery and engagement.

As Frances stated: “We have seen a 3x increase in leads and a 50% reduction in lead acquisition costs through ads that click to WhatsApp.” Rather than solely directing prospects to a static e-commerce store, engaging them immediately in a WhatsApp conversation allows Bauhaus to instantly address specific questions, resolve potential purchase hurdles, and offer a more personalised shopping experience, thereby effectively accelerating conversions and capturing valuable leads.

Driving Online-to-Offline sales

Incorporating WhatsApp broadcast messages and digital coupons for bridging online customer journey with their physical retail presence, Bauhaus incentivised online audiences to visit offline stores, thereby driving both in-store conversions and valuable foot traffic, while also enhancing the overall in-person shopping experience.

This Online-to-Offline (O2O) strategy yielded exceptional results, evidenced by a remarkable 65% redemption rate for the WhatsApp-distributed coupons within Bauhaus’s retail outlets. Key factors contributing to this success included the convenience of paperless digital coupons, which customers could easily access anytime directly within their WhatsApp chat history. This seamless accessibility translated directly into strong conversion rates and contributed significantly to achieving an impressive Return on Investment (ROI) exceeding 30 for these O2O campaigns.

Consolidating customer data on membership card

Previously, Bauhaus customers faced the inconvenience of requiring in-store staff assistance simply to check their points balance. Now, all essential membership information – including tier status, points balance, and available digital coupons – is centralised onto this easily accessible WhatsApp membership card, likely presented directly within the customer’s preferred chat interface.

Customers can easily view their complete profile, track rewards accumulation, browse personalised offers, and initiate coupon redemption directly from the digital card interface at any time. This not only improves customer convenience but also actively incentivises members to utilise their exclusive discounts, thereby encouraging repeat store visits and driving incremental purchases.

Capitalising on this initial success, with ongoing support from Omnichat, Bauhaus is proactively exploring the next phase of its WhatsApp strategy. Future plans involve deepening platform integration by incorporating features such as interactive gamification to boost engagement, leveraging native WhatsApp Catalog and Payments for seamless in-chat transactions, and further optimising the Online-to-Offline (O2O) journey. The strategic aim is to cultivate an even more cohesive and engaging customer experience, managing the entire lifecycle – from initial awareness and consideration through to purchase and re-engagement – entirely within the WhatsApp ecosystem.