The company has experienced notable growth in recent years, challenging the hegemony of established telecommunications operators in the country. One of the keys to its success lies in its customer-centric approach and constant search for new strategies to enhance user experience. In this context, the alliance with Chat Center and the implementation of the conversational channel have been decisive.

Technical case summary:

• Company: Movistar Mexico
• Service: Customer Service, Sales, Remarketing, and Revenue Share.
• Size: Large.
• Location: Mexico City, with presence in multiple locations throughout the country.
• Objective of Movistar Mexico: Expand Movistar Mexico’s market by targeting portability customers.
• Achievements:
  • Significant sales growth: The implementation of remarketing strategies through Chat Center contributed to a substantial increase in sales. In just two months, sales doubled compared to similar historical periods.
  • Increased digital channel penetration: The sales channel through Chat Center represented 10% of all Movistar Mexico sales within a span of six to seven months, indicating rapid penetration and acceptance of the channel by customers.
  • Cost and profitability optimization: The digital channel model is recognized as more profitable and efficient compared to traditional customer service and sales channels. Movistar Mexico seeks to leverage this efficiency to improve profitability and optimize its operations.
  • Future vision: Movistar Mexico aims to continue expanding its presence in the digital channel, with the goal of it representing 20% of all sales. This vision reflects the company’s commitment to digital transformation and the adoption of new technologies to meet market demands.

Founded 14 years ago, after Telefónica’s acquisition of Pegaso, Movistar has consolidated its position as the second-largest company in Mexico, with approximately 20 million active customers. Its focus on customer service and digital transformation has been fundamental to its growth, especially during the pandemic, positioning it below Telcel and ahead of AT&T.

While the company arrived in the country in 2000, the digital area emerged in 2016 and has solidified over the past three years. Recalling the origins, David Islas, E-commerce Manager at Telefónica, Movistar’s subsidiary in Mexico, said, “We worked for two years, from 2017 to 2019, to create the channel. Just when we were ready, the pandemic hit, which helped us a lot in terms of e-commerce at a time when most commerce companies were benefited and boosted by hyper-acceleration.”

At that time, Chat Center was already providing its services to Movistar Mexico’s B2B area, although it was soon required by the B2C area to expand the customer base by providing personalized attention in portability transfers, an action that was formalized in August 2023. This integration helped improve customer service and seize new sales opportunities, quickly becoming the company’s great differential to become increasingly competitive in the market.

Since its implementation, Movistar Mexico has experienced a significant increase in sales, thanks to remarketing and paid advertising strategies. David Islas said, “When we started with Chat Center (in B2C), we saw an opportunity to do remarketing. This helped us reach customers who were halfway through the sale. The remarketing strategy increased our sales by around 10-20%.”

And he added, “Our goal is for the digital channel to represent at least 20% of our sales. We believe this is possible and are working on various strategies to achieve it. The conversational commerce channel has great potential to increase our sales and continue growing in the market,” he said, ensuring that this is one of the channels with the highest sales penetration, despite having another software that provides conversational support but does not reach even 2% of conversions and to which they cannot demand what he considers necessary for the results they are obtaining, which is personalized and humanized attention provided by Chat Center.

But this was just the beginning, because the service reached with the commercial and strategic alliance expanded rapidly through various communication channels, leading to a drastic increase in sales in a short period, exploring new strategies such as the affiliate model through the media agency Habas, with the aim of further doubling the results.

“We opened the channel to paid advertising, which allowed us to double our sales in just two months. We are also in the process of implementing Chat Center as an affiliate model through our media agency. I think this will allow us to increase even more,” said the representative of Movistar Mexico.

Focused on the objective, he specified in numbers what the company’s growth perspective is: “We have around 15 million active lines in a country with a population of 125 million,” he said, adding, “Our strategies are mainly focused on a segment of one or two million people, who are the ones moving from company to company every month.”

In this regard, it is important to highlight the great leap in innovation that the company is making, which, in the words of David Islas, represents a significant change in sales strategy. “We are leaving aside the traditional and betting on new technologies and communication channels. This will allow us to be more efficient and profitable in the long term,” he said.

As an interesting fact, David Islas shared an anecdote that explains that the service that Chat Center provides to the company goes beyond sales results: “In August, we had an issue with an influencer that could have greatly damaged the assisted part of the company. Looking to generate his audience, he gathered different companies where you left a number and they called you at that moment. Basically, it’s what we do. The influencer launched a game leveraging that service and under the slogan ‘If you want to bother the person you hate, leave their number here and they will call about 20 times.’ That game forced us to make an effort in the assisted segment to which we could not respond, and we had to close it. Three days after the incident, we came out with Chat Center, and Chat Center took over everything assisted. As a result, in August, instead of sales dropping, the opposite happened, we increased them.”

There is no doubt that the alliance between Movistar Mexico and Chat Center has become a success story due to the speed with which it boosted sales and strengthened the company’s position in the market. With a customer-centric vision and a solid digital strategy, Movistar is ready to continue growing and leading the transformation of the telecommunications sector in Mexico hand in hand with an ally with which, it is clear, they are implementing a profitable and efficient model.