5 Benefits of Conversational Commerce (and How To Get Started)
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Conversational commerce uses the power of brand-customer interactions to facilitate purchases and build lasting relationships. This includes communications with artificial intelligence designed to provide recommendations, answer questions, and increase customer engagement. The result is a streamlined personalized experience for every user.
There are a lot of ways to make a sale. Paid ads, influencer marketing, and social media can all help to draw users in. However, when it’s time to buy and your buyers are at the bottom of the funnel, it’s hard to beat the power of a personal touch. That’s where conversational commerce comes in.
Conversational commerce uses live and digital assistants to engage users and help them with their purchases. In this article, we’ll take a closer look at what it is, go over a few examples, examine some benefits, and walk through three simple steps to get started.
What is conversational commerce?
Conversational commerce is a strategy where brands engage with their customers through methods such as live chat, chatbots, messaging apps, and voice assistants. Through these direct interactions, companies are able to provide personalized suggestions, offer relevant assistance, and simplify the buying process.
Chris Messina, the founder of Uber, coined the term back in 2015:
“Conversational commerce is about delivering convenience, personalization, and decision support while people are on the go, with only partial attention to spare.”
Speaking with your customers certainly isn’t new. What makes conversational commerce a fresh concept is the digital age. People are constantly on the move and enjoy the speed and convenience of online shopping. Conversational commerce provides the brand-user connection without disrupting the flow of the purchasing process, usually with the help of seamless AI-enhanced tools.
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What is conversational commerce vs. conversational marketing?
They’re similar terms, but there’s an essential distinction: scope. Conversational commerce focuses specifically on transactions themselves and how communication can enhance them in order to increase sales.
On the other hand, conversational marketing applies this strategy to a broader marketing approach. It uses the same tactics to engage customers and build relationships before checkout begins.
So conversational commerce is often part of a larger conversational marketing strategy, but it can also stand on its own.
There’s a third term to keep an eye on too – conversational apps. These are the actual pieces of technology that companies use to execute conversational commerce.
| Conversational Commerce | Conversational Marketing |
|---|---|
| Focus on purchases at the bottom of the funnel | Focus on building larger-scale relationships |
| Limited to sales-focused channels | Omnichannel approach |
| Conversion is the goal | Long-term engagement is the goal |
What is an example of conversational commerce?
Conversational commerce comes in many different forms, each with its own benefits and best use cases. Let’s take a closer look at your options.
Chatbots
Chatbots are relatively affordable, totally automated interfaces that shoppers can converse with as if they’re human. It relies on artificial intelligence and user input to provide relevant, data-based responses. They’re available directly on the store’s website, usually as a pop-up.
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A major benefit of chatbots is that since they’re fully automated, they can be used 24/7. It’s also a huge convenience to shoppers who may have questions but would prefer not to speak to someone. However, chatbots might not be powerful enough to solve every possible issue. That’s why many sites choose to have live support on standby at least some of the time.
Best for:
- Guiding users through frequently asked questions
- Suggesting support articles for typical minor issues
- Providing product recommendations based on user profiles
Live chat
Chatbots rely on technology for conversational commerce, while live chat relies on actual representatives on the other side of the screen. This is also a method that takes place directly on a website.
Thanks to this, live chat is usually a better option for complex inquiries that can’t be solved through articles. On the other hand, it also comes with labor costs and as such can’t run 24/7.
Best for:
- Resolving advanced issues at checkout
- Booking experiences and other complex purchases
- Establishing a more personalized connection with users
Messaging apps
In contrast to chatbots and live chat, messaging apps don’t take place on the store’s website. On the contrary, their appeal is that they occur right from apps that shoppers already use frequently, such as WhatsApp and Facebook Messenger.
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The big appeal of this method is that it operates within an interface that shoppers are already familiar with. That means they may be more willing to engage with your brand, especially if they’re new customers.
Best for:
- New customers
- Long-lasting issues that might require follow-up
Voice assistant
Voice assistants like Siri and Cortana are commonplace these days. They can be just as easily applied to conversational commerce. Even so, it’s important to note that voice assistants are a bit out of the ordinary in this case. Those using voice assistants are likely not fully engaged and may not be as near to the purchase process as users with other conversational commerce tools.
Best for:
- Checking pre-purchase facts such as price and availability
- Looking up basic company information
- Answering straightforward questions
What is the benefit of conversational commerce? (5 advantages)
Conversational commerce comes with many benefits. Here are five reasons to consider it today.
1. Boost engagement
Engagement is the first step toward making a purchase. The more familiar customers are with what you have to offer, the more likely they are to choose you when the time comes. Fostering a long-term relationship thus relies on increased engagement.
Conversational commerce makes it easier for your users to get to know your business. By providing this easier method, you’re making your sales more accessible to more potential customers.
2. Cut down on cart abandonment
Cart abandonment happens when a customer gets to the last stage of the purchase, but changes their mind for some reason. Conversational commerce can provide a solution to this by providing support when most necessary.
For instance, a chatbot that detects a user is taking a long time to check out can pop up and offer more information on things like shipping charges, or provide a link to positive reviews of the product they’re considering. Similarly, messaging apps can be used to send user-specific promotions at the right time to motivate users to complete their purchases, even if they’ve left the site.
3. Access crucial customer data
Conversational commerce can help maintain customer data across multiple interfaces for a more personalized, effective experience. Chatbots, live chat agents, messaging apps, and voice assistants can all access user information to inform how they communicate. This can lead to more successful sales and more successful customer interactions overall.
Moreover, this data can also feed back into the technology itself. For example, let’s say your chatbot history is showing many users are getting caught up at checkout because they don’t understand your shipping policies. Knowing this, you can find ways to make them clearer and remove that roadblock before it even happens.
4. Increase online sales
A lot of sales comes down to showing the right product to the right customer at the right time. With conversational commerce, you’re opening up more opportunities by always having some way to provide recommendations and guidance. Not only that, but because they operate on user data, it’s possible for these recommendations to be tailored down to a single individual.
Moreover, the automated side of conversational commerce means there’s no limit to how much you can do this. Scaling will never be a problem. With the exception of live chat, users will be able to access this customized experience at the same time with just the click of a button – no increase in staffing costs necessary.
5. Cultivate brand loyalty
Conversational commerce tools allow you to provide a tailor-made experience for every user. This not only boosts sales, but also makes it more enjoyable for your customers! If they can expect recommendations and assistance that are designed to fit their needs, they’re more likely to visit again. It’s a simple way to increase your customer retention and satisfaction.
How to get started with conversational commerce in 3 steps
Ready to reap the rewards? Here are a few steps you can take to begin adding personalized value to your users.
Step 1: Figure out your needs
For all the benefits that this strategy has to offer, it’s important to note that you’ll still need a goal in mind! If you’re not employing it for a specific purpose, you could end up with a disorganized approach or be unable to really measure its success.
So start with a clear idea in mind: is your main objective to lower cart abandonment? Or are you trying to attract a wider audience who may not be familiar with your platform?
After you have a particular goal, try to figure out how it fits into your larger strategy too. What are you already doing to address the issue, and how will conversational commerce support it? Like any other technique, it doesn’t exist in a vacuum, so be sure to completely understand what its role in your organization will be before you invest.
Step 2: Find your perfect conversational commerce technology
The four main conversational commerce technologies - chatbots, live chat, messaging apps, and voice assistants - are all unique. They’ll offer different advantages and challenges to your particular organization based on what you sell, what your current strategy is, and how your customers tend to react.
After you figure out your needs, picking the right one (or in many cases, a combination of the above) will come down to research. In addition to learning more about each method, be sure to look into the major providers. Doing demo calls with potential products is a great way to get an idea of what you can expect.
Step 3: Refine your strategy
Once your tech is up and running, there’s no time to lose. You should be monitoring your conversational commerce strategy frequently. In order to understand if it’s working for your organization – and if not, how you can fix it – you’ll need to keep a close eye on its performance.
The clearest way to do so is with the data collected by that technology. However, don’t be afraid to look into the larger omnichannel ecosystem as well. You could also directly solicit feedback within the conversational apps to see a real-time reflection of how your customers are engaging with this strategy.
Key takeaways
Even in today’s digital world, connection is everything. Conversational commerce is a strategy designed to bring your users close to your brand. It’s a natural, convenient way to engage with them and provide tailored content at the best opportunities. By supporting a better user experience, conversational commerce can boost your sales and cement solid relationships for years to come.
