Conversational commerce refers to the intersection of messaging apps and shopping. Meaning, the trend toward interacting with businesses through messaging and chat apps like Facebook Messenger, WhatsApp, and WeChat. Or through voice technology, like Amazon’s Echo product, which interfaces with companies through voice commands.
Consumers can chat with company representatives, get customer support, ask questions, get personalized recommendations, read reviews, and click to purchase all from within messaging apps. With conversational commerce, the consumer engages in this interaction with a human representative, chatbot, or a mix of both.
Using chatbots, businesses can resolve customer service issues, provide recommendations, create wishlists, and interact with buyers in real-time.
The market shift
Consumers are increasingly relying on messaging apps for all forms of communication, whether personal, business, or commerce. Increasingly, consumers are using chat to find and select products and services, and to complete the payment process, all without having to call, email, or even visit a brand’s website. Everything is happening within the messaging app.
What that means for consumers
Chat companies are now partnering with brands to make it simpler for customers to buy from them. Facebook Messenger, for example, has partnered with Uber to make it possible for customers to order an Uber driver without leaving the messaging app – the conversation. Amazon’s Echo – a voice activated tool – has partnered with Capital One so that the bank’s customers can inquire about their balance, make a payment, or check recent transactions, all through Echo.
Not only is conversational commerce simpler for consumers who, thanks to messaging apps, no longer need to toggle back and forth between text conversations and websites to gather information and make purchases, but it’s also a step closer to the attention you might get from a sales associate in the store. When ordering from a website, you can read reviews to get a sense of whether a product will work for you, but using chat you can ask for help comparing your options – more like the advice you would receive in-store.
Reducing the steps required, and the number of information sources consumers need to turn to, shortens the distance between prospect and purchase.
Conversational Commerce FAQ
What is meant by conversational commerce?
What are examples of conversational commerce?
- Chatbots: Chatbots are computer programs that use natural language processing and artificial intelligence to simulate conversation with customers. They are used to provide customer service, provide product recommendations, and answer questions.
- Voice Commerce: Voice commerce is a form of conversational commerce that allows customers to make purchases through voice-activated services like Amazon Alexa, Google Home, and Apple Siri.
- Social Media Messaging Apps: Messaging apps such as WhatsApp, Facebook Messenger, and WeChat are increasingly being used for conversational commerce. Customers can use these platforms to ask questions, make purchases, and receive product recommendations. 4. Text Message Marketing: Text message marketing allows businesses to send messages to customers via SMS. These messages can be used to promote products, offer discounts, and provide customer service.