Conversational Commerce:

Conversational commerce is the intersection of messaging apps and the market. It leverages the
engagement that consumers get through messaging and chat apps like Facebook Messenger,
WhatsApp, Talk, and WeChat. This can be done via live or automated conversations, consumers can
get support, offer feedback, receive personalised catalogues and recommendations, do money
transactions, etc.

Why is it important?
In 2019, the conversational commerce market size was estimated at $5.94 billion with an estimated
compound annual growth rate (CAGR) of 26.3% from 2020 to 2027.

That would put the entire conversational commerce market size at $30.45 billion in 2027.

This reflects the growing demand- more people would like to have a substantial conversation with
their brands of choice before going ahead with the purchase. Conversational commerce is a term
coined by Uber’s Chris Messina in a 2015 piece published on Medium. She quoted, “Conversational
commerce is about delivering convenience, personalization, and decision support while people are
on the go, with only partial attention to spare.”

People that actively use messaging apps are reaping various benefits, including greater customer
satisfaction, positive brand image, efficient and reliable customer support, and most importantly,
higher sales.

For example, implementing WhatsApp Business API can improve customer experience and
streamline to-and-fro support using an automated WhatsApp chat bot.

Since the launch of this service by WhatsApp, 80% of businesses have made claims saying that they
have experienced improved customer journeys, team efficiency and reduced costs.
Conversational commerce highlights the power of messaging and active support by providing
continuity. Most eCommerce Businesses that experience the issue of cart abandonment have reaped
tremendous benefits by extending their support on platforms like WhatsApp, where chatbots will
answer most of the queries on the chat window itself and when required you can continue the
conversation over a phone call.

Conversational commerce strategy is mostly defined by two types of services:

Live Chat

One of the most popular forms of conversational commerce is the live chat. Live chats can be
present on the website or can have its own specific interface.
It is easy to use, comprehensive and can help address a customer’s questions faster than any
conventional customer service options. The initial contact is generally automated- asking the generic
questions.

Afterwards, if the customer’s problem requires further attention, it can be handed over to a live
agent for further assistance.

Messaging Chat Bots

Chatbots unlike live chats are entirely automated. Chatbots are able to assist multiple customers at
the same point, at any given time.

The setup is extremely critical for chatbots. The businesses have to understand the common points
on concern and queries and have the best possible answers ready on the chatbot for them. Since the
majority of customer queries are pretty similar and basic, chatbots allow human customer support
to focus on edge cases. If special cases arise, the conversation can be forwarded to live agents.

So, is there a future for Conversational Commerce?

Consumers of all ages and around the world are ready to embrace the convenience, speed and
personalisation that comes with interacting in smart messaging platforms. Therefore, Conversational
commerce is not a passing fancy and is likely not only to continue reshaping eCommerce but set new
industry and marketing standards for years to come.

Related Post

1 Comment

Leave a Comment

Cookie Consent with Real Cookie Banner