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Retail tech case study: How Wow Momo increased repeat customer purchases by 80%

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Wow Momo also received 30,000 orders within just two months of the chatbot’s launch

Mumbai: Founded in 2008 by Sagar Daryani and Binod Homagai, Wow Momo has emerged as a prominent Indian fast-food restaurant chain based in Kolkata. The brand was established with a starting investment of Rs 30,000 and offered steamed momos through a mere 200 sq. ft. kitchen.

Since then, Wow Momo’s journey has been marked by remarkable growth. Presently, the brand boasts a network of more than 600 outlets scattered across around 30 cities, with plans to further expand its reach by adding approximately 250 new outlets in the upcoming fiscal year of 2024, the brand said in a release.

According to a report by Crunchbase, in June 2017, Wow Momo secured Rs 44 crore in funding from Lighthouse funds and the Indian Angel Network. This momentum continued as William Bissell, the managing director of Fabindia, contributed Rs 3 crore to the company, propelling its valuation to a noteworthy Rs 300 crore. In September 2019, Tiger Global Management invested an impressive Rs 130 crore which further elevated the brand’s valuation to a staggering Rs 860 crore.

In the rapidly evolving landscape of the food industry, innovation takes centre stage. Wow Momo has embraced this spirit by introducing a groundbreaking solution—a chatbot seamlessly integrated with WhatsApp. This innovative approach revolutionizes the way customers place their orders, offering convenience and efficiency to its dedicated clientele.

The need
As the world increasingly turns digital, consumer preferences are evolving. Customers now seek seamless experiences that fit into their daily routines without disrupting them. The traditional method of ordering food through apps or websites, while effective, often involves downloading yet another application, taking up precious storage space on mobile devices. Recognizing this need for a more streamlined process, Wow Momo set out to bridge the gap between convenience and technology.

The Approach
Wow Momo leveraged both internal and external capabilities and resources to implement the chatbot technology solution. Internally, it utilized its existing IT team to develop and deploy the chatbot, leveraging its expertise in software development and programming. Additionally, it allocated resources towards training staff and integrating the chatbot with its existing operations, such as order management and delivery tracking systems.

Externally, Wow Momo partnered with multiple delivery partners to expand its reach and reduce dependence on a single provider. It also leveraged third-party services for customer data analysis and targeted marketing to identify potential customers and create personalized campaigns.

Challenges
Integrating the chatbot seamlessly with the existing Point of Sale (POS) system and ensuring dynamic menu updates was a notable hurdle. However, the implementation of a webhook with the meta WhatsApp web service paved the way for future modifications, overcoming this challenge with a solution.

Business Impact
With the chatbot’s integration, Wow Momo achieved the dual goal of customer satisfaction and improved business growth. The streamlined process translated to higher customer retention rates as the convenience of ordering through WhatsApp resonated with patrons. This innovative solution allowed Wow Momo to improve customer satisfaction and loyalty, as well as increase repeat customer purchases by 80% and new customer acquisition by 10%. Notably, the ticket size for orders placed via the chatbot tended to be larger compared to traditional dine-in orders. This win-win approach was reflected in the numbers, with a staggering 30,000 orders received within just two months of launch.

Conclusion
By embracing technology and capitalizing on a platform like WhatsApp, the fast-food chain has not only catered to changing customer preferences but also enhanced the overall dining experience. The integration of technology not only addressed the need for convenience but also led to business growth, with the chatbot becoming a preferred choice for placing orders among customers.

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