Connectly
Blog2022-08-29

Will Conversational Commerce Be the Next Big Thing in Online Shopping?

By Connectly Team

Will Conversational Commerce Be the Next Big Thing in Online Shopping?

Conversations shape the world of business. They spark innovative new ideas, help recommendations spread through word of mouth, and lead to corporate deals and mergers. And, increasingly, they're playing a role in eCommerce.

In the last decade or so, conversational commerce has come to the forefront of marketing, sales, and customer retention strategy. But what is conversational commerce exactly? And how does it benefit your business?

By combining genuine human interaction with AI, conversational commerce gives you a two-way line of communication with new leads as well as loyal customers. It's the future of customer experience—and it's already here.

What Is Conversational Commerce?

Conversational commerce is a customer relationship strategy that combines two-way messaging with shopping and marketing. The technology allows customers to make purchases, ask questions, set up returns, give feedback, and much more—all from the comfort of their favorite online platforms.

Conversational commerce is often touted as an omnichannel solution. Why? Because it facilitates the customer-brand connection through numerous popular messaging channels at once. Customers may speak with humans, AI-powered bots, or a combination of the two through chat apps, social media, and voice assistants like WhatsApp, Facebook Messenger, WeChat, Amazon Echo, iMessage, and SMS.

The Rise of Conversational Commerce

Popularized by Chris Messina—former Developer Experience Lead at Uber (and inventor of the hashtag)—the idea of conversational commerce turns eCommerce on its head. It promotes relationship-building and personalized experiences by establishing a direct and convenient link between customer and company.

Because, when you think about it, conversational commerce is nothing new. For thousands of years, buyers engaged face-to-face with sellers in markets across the world. But the rise of one-click online shopping erased the direct line of communication between consumers and brand representatives.

"Humans crave connection," even in their online shopping experiences. Today's app-based conversational commerce aims to bring back the age-old concept of two-way business in our modern, hyperconnected era.

Why Is Conversational Commerce Important?

Conversational commerce is a tried-and-true method of building and maintaining customer relationships. According to a KPMG survey, "86% of loyal customers are likely to recommend a brand to family or friends."

Per KPMG, 56% of consumers look for quality customer service, while 55% want an easy shopping experience. Conversational commerce makes these goals possible.

The Benefits of Conversational Commerce for Businesses

  • UbiquityMore than 80% of people globally have smartphones. Conversational commerce allows you to reach practically anyone in the world.
  • 24/7 coverage – Human or automated agents available around the clock mean customers get support anytime.
  • Cost-effectiveness – AI-powered chatbots can replace dozens of customer service agents, resulting in massive savings.
  • Upselling and cross-selling – Recommend products at any point in the customer journey, feeling like friendly suggestions rather than sales tactics.

The Benefits of Conversational Commerce for Consumers

  • Preferred – When consumers have the option to call or send a message, "they choose the latter 70% of the time."
  • Personalized – A uniquely personalized customer journey from the very beginning.
  • User-friendly – Familiar messaging apps mean no learning curve.
  • Convenient – Assistance is within arm's reach, without being overbearing.

How to Leverage Conversational Commerce

In the Awareness Stage

Chatbots help redirect low-level traffic away from humans. For example, WordPress hosting provider WP Engine uses an automated chatbot to welcome website visitors, actively greeting customers and providing an effortless way to learn more.

In the Consideration Stage

Once a consumer is considering your business, you can use a conversational commerce marketing platform to continue the conversation via WhatsApp, WeChat, or SMS—sending case studies, whitepapers, product recommendations, blog posts, and more.

In the Purchase Stage

Automated conversational commerce can guide customers through a purchase. Chilean gas company Lipigas found success with WhatsApp-based conversational commerce: "By allowing customers to place orders 24/7, the company saw a 60% reduction in operational time while increasing the conversion rate."

In the Post-Purchase Stage

Conversations saved within messaging apps keep you top of mind. Customers can reach out post-purchase about returns, product questions, feedback, or tech issues—and you can proactively send surveys, "we miss you" texts, or promo codes.

Conversational Commerce Tools

WhatsApp

WhatsApp has more than two billion active users who send over 100 billion messages every day. In more than 100 countries, WhatsApp is the most popular messaging app.

SMS

Text message open rates can reach 98%, compared to email's 20% open rate.

Live Chat

Live chat helps customers who are already on your website, with a message icon assuring them that support is never far away.

Voice Assistants

Products like Amazon's Echo and Google Home allow for a hands-free, voice-only commerce experience. Customers of Canada's TD Bank can even use their Amazon Alexa to find exchange rates, obtain stock quotes, and inquire about accounts.

Get Started With Conversational Commerce

As the world's top businesses shift to conversational commerce, it's easy to see why. It puts the customer back in control of the conversation, allowing them to reach out how, when, and where they want.

And for much of the world, the how is through WhatsApp. With an enormous user base that continues to grow, WhatsApp is the ideal tool for communicating with consumers worldwide.

For a code-free approach to conversational commerce over WhatsApp, consider Connectly. Through AI-powered Natural Language Processing (NLP) and real-time data, Connectly can help you boost response rate, click-through rate, conversions, and more.

Book a demo today to find out more about the Connectly approach to conversational commerce.