The e-commerce space is one that evolves at lightning speed with businesses clamouring to improve client experience and stay ahead of the competition. An emerging trend that has been gaining traction as of late because of its ability to provide businesses with that necessary edge is conversational commerce. But what exactly is it, how can it boost your conversions and sales, and is it right for your business? Let’s explore benefits of conversational commerce.

What is Conversational Commerce?

Conversational commerce refers to the intersection of messaging apps and online shopping. It involves using chatbots, messaging platforms, and voice assistants to interact with customers in real-time, providing a personalized shopping experience. This can include answering queries, offering product recommendations, processing orders, and handling post-purchase support.

Benefits of Conversational Commerce

  1. Personalized Customer Experience:
    • Conversational commerce enables businesses to offer tailored recommendations based on customer preferences and browsing history. Personalized interactions make customers feel valued, increasing the likelihood of a purchase.
  2. Immediate Customer Support:
    • Instantaneous responses to customer inquiries reduce the chances of cart abandonment. Chatbots and live chat features provide 24/7 support, addressing concerns promptly and keeping potential buyers engaged.
  3. Streamlined Purchase Process:
    • Integrating payment gateways within messaging apps allows customers to complete transactions without leaving the chat. This seamless experience reduces friction and simplifies the buying process, leading to higher conversion rates.
  4. Increased Customer Engagement:
    • Engaging customers through conversational interfaces keeps them involved with the brand. Regular interaction builds a relationship, encouraging repeat purchases and fostering loyalty.
  5. Data Collection and Insights:
    • Conversational tools gather valuable data on customer behavior and preferences. Analyzing this data helps businesses refine their marketing strategies and improve product offerings.

Is Conversational Commerce Right for Your Business?

To determine if conversational commerce is a good fit, consider the following:

  • Customer Demographics:
    • If your target audience is tech-savvy and frequently uses messaging apps, conversational commerce could be highly effective.
  • Product Complexity:
    • Businesses with complex products that require detailed information and customer support can benefit significantly from real-time, conversational assistance.
  • Current Support Channels:
    • Evaluate your existing customer support and engagement channels. If they are underperforming or causing friction, conversational commerce could provide a streamlined alternative.
  • Scalability Needs:
    • For businesses experiencing rapid growth, chatbots can scale customer support without a proportional increase in human resources, maintaining efficiency and customer satisfaction.

Conversational commerce platforms

Popular platforms for conversational commerce span various messaging apps, social media platforms, and voice assistants. Here are some of the most widely used ones:

Messaging Apps:

  1. WhatsApp:
    • Widely used for business communication and transactions, especially with the WhatsApp Business API, which allows automated responses, catalogs, and payment integrations.
  2. Facebook Messenger:
    • Integrates seamlessly with Facebook Shops, enabling businesses to interact with customers, provide support, and facilitate purchases directly within the app.
  3. WeChat:
    • Popular in China, WeChat offers comprehensive e-commerce functionalities, including in-app purchases, customer support, and marketing tools.
  4. Instagram Direct:
    • Businesses can use Instagram’s direct messaging to interact with customers, answer queries, and drive sales through shoppable posts and stories.
  5. Telegram:
    • Known for its robust security features, Telegram supports bots for automated interactions and can be used for customer support and order processing.

Voice Assistants:

  1. Amazon Alexa:
    • Enables voice-activated shopping, allowing customers to order products, track deliveries, and receive personalized recommendations through Alexa-enabled devices.
  2. Google Assistant:
    • Supports voice search, product inquiries, and transactions, integrating with various e-commerce platforms to offer a hands-free shopping experience.
  3. Apple Siri:
    • Provides voice-activated assistance for searching and purchasing products via Apple’s ecosystem, including Apple Pay for seamless transactions.

Chatbot Platforms:

  • InfoBip:
    • Allows businesses to create chatbots for Facebook Messenger and SMS, automating customer engagement, marketing campaigns, and sales processes.
  • Chatfuel:
    • A no-code platform for building chatbots on Facebook Messenger and Instagram, facilitating automated customer interactions and sales.
  • Intercom:
    • Provides a comprehensive suite of messaging tools, including live chat, chatbots, and automated workflows, aimed at improving customer support and driving conversions.

Social Media Platforms:

  1. Facebook Shops:
    • Integrates with both Facebook and Instagram, allowing businesses to create online stores and interact with customers through Messenger and Instagram Direct.
  2. WhatsApp Business API:
    • Used for larger businesses to automate and scale their customer interactions, including notifications, customer support, and transactions.

E-commerce Platforms with Conversational Commerce Capabilities:

Most headless and composable e-Commerce platforms (like Akinon, Kibo, BigCommerce, and CommerceTools) supports integration with chatbots and messaging platforms to provide real-time customer support and personalized shopping experiences. A good systems integrator like DigiCommerce can help connect various messaging apps and chatbots to your e-commerce platform and enable your business to use conversational commerce tools to enhance your online store.

Steps to Implement Conversational Commerce in Your E-commerce Organization

  1. Define Your Goals:
    • Determine what you want to achieve with conversational commerce. This could be improving customer support, increasing sales, offering personalized product recommendations, or a combination of these.
  2. Choose a Conversational Platform:
    • Select a messaging platform that your customers are likely to use, such as WhatsApp, Facebook Messenger, or even a live chat feature on your website. These platforms are user-friendly and widely adopted.
  3. Integrate with Existing Systems:
    • Look for a reputable systems integrator or a service provider who specializes in setting up conversational commerce.
    • Companies like DigiCommerce will work to connect your e-commerce platform, payment solution, CRM, and inventory management systems with the selected conversational platform to ensure all data flows securely to and from the systems in real time.
  4. Gather Data and Content:
    • Collect all necessary information about your products, FAQs, shipping details, and customer service policies. This content will be used to train your chatbot, GenAI or LLMs and ensure it can answer customer questions accurately.
  5. Test Your System:
    • Before fully launching, test the conversational system with a small group of users. This helps identify any issues or areas for improvement. Ensure the chatbot provides accurate responses and handles transactions smoothly.
  6. Launch and Promote:
    • Once testing is complete and you’re satisfied with the setup, launch the conversational commerce feature on your platform. Promote this new feature to your customers via email newsletters, social media, and your website to let them know about the new, convenient way to shop.
  7. Monitor and Optimize:
    • After launch, continuously monitor the performance of your conversational commerce system. Gather feedback from users and use analytics provided by the platform to identify any issues or opportunities for improvement. Regularly update the platform’s knowledge base to keep information accurate and up-to-date.

Key Considerations:

  • Customer Support: Ensure there is a seamless way for customers to escalate from chatbot to human support if needed. This helps maintain a high level of customer satisfaction.
  • Security: Make sure that all transactions are secure and customer data is protected. Your systems integrator should comply with relevant security standards.
  • Personalization: Use data from customer interactions to personalize the shopping experience. This can include recommending products based on past purchases or browsing history.

Providing personalized, immediate, and seamless customer interactions, has the potential to significantly boost conversions and sales. Embracing conversational commerce could send your customer engagement and satisfaction to new heights and completely transform your online business.

If you’d like to explore how conversational commerce can help your business, contact us today.