Entering 2016, O2O Commerce on WeChat remains a heated topic. We heard this term all the time lately, but what does it mean and how can I benefit from WeChat O2O? Here are the most asked questions regarding WeChat and O2O Commerce, along with our answers.

What is O2O Commerce on WeChat?

O2O Commerce (Online to Offline) is the principle of connecting the online digital World to the offline world through the integration of internet-connected devices. Either customers are driven offline based on online information like e-coupons, store locators or customers are propelled online through call for actions in the offline world, like: QR codes & mobile payment systems.

The goal of O2O Commerce on Wechat is to create product and service awareness via WeChat, allowing potential customers to research various offerings and then visit the local brick-and-mortar store to make a purchase.

How does O2O Commerce work on WeChat?

WeChat Official Accounts

Currently there are 2 useful tools offered by WeChat: official accounts and mobile payment. The former is an account that sends articles and promotional materials to its subscribers. Businesses can adapt WeChat to manage memberships, interact with frequent or potential customers, and send targeted promotions. The built-in payment feature then allows businesses to track transactions and analyze customers’ shopping habits and preferences. Mobile payment is arguably the most innovative part of O2O because it gives consumers of traditional businesses the same convenience of online payment.

What is a typical example of businesses using WeChat for O2O?

Starbucks “Daily Goodness” Calender Example

Starbucks has been always active since the beginning of WeChat Commerce. In 2013 the month before Chinese New Year, Starbucks started its campaign called “Daily goodness”. Every day it encouraged customers on social media to visit Starbucks shops and take part in certain activities, like sending online greetings through the app or give parents a bear hug in store to get a three for two deal. All challenges were fun, easy and leveraged the Chinese New Year’s festive atmosphere and spirit of goodwill. Through this operation, Starbucks not only managed to create a deeper bond with local customers but also multiplied its sales by 10 compared to other months. This example shows the power of O2O concepts and how it can create buzz when you are creative in mixing new technologies and cultural aspects.

Above all, how can WeChat benefit your O2O Commerce?

The idea of O2O Commerce is to bring the online customers to your offline business, and WeChat’s huge user base can gurantee you to find your target customers. Till the end of 3rd Quarter 2015, WeChat had 650 million monthly active users (MAUs). At the end of last year, the company had 500 million, meaning its user base had jumped up 9.8 percent in a matter of months.

Furthermore, WeChat is best at enhancing user loyalty and generating repeated purchases. The functionality of WeChat’s public accounts are pre-order options, payment, discounts and customer reviews, which are good methods to strengthen the bond between your customers and your business.

Last but not least, the improving WeChat Payment will bring more potential to your business: The new payment solution could allow its users to buy an offline product through an online payment, which will not only save time for both customers and retailers, but also make order management easier via WeChat.

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