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What Is Conversational Commerce? Definition and Guide

what is conversational commerce

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.

Learn more: What is Social Commerce? Tips, Tools, and Trends for 2022

Conversational Commerce FAQ

What is meant by conversational commerce?

Conversational commerce is a term used to describe the use of chatbots, messaging apps, and other artificial intelligence (AI) technologies to enable businesses to communicate with customers in a more natural way. It allows customers to have conversations with businesses, ask questions, and make purchases without having to go through traditional online or in-person channels.

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.

Why is conversational commerce important?

Conversational commerce is important because it provides customers with an easier and more convenient way to shop. It enables customers to interact with brands and businesses in a more natural and conversational way, which helps to create a better shopping experience. Additionally, conversational commerce can help to increase customer loyalty and provide businesses with valuable insights about their customers that can be used to improve the customer experience.

What is meant by conversational marketing?

Conversational marketing is a type of digital marketing that focuses on building relationships with customers through real-time, personalized conversations. It typically involves the use of chatbots, live chat, SMS messaging, and other interactive technology to provide customers with a more personalized experience. The goal of conversational marketing is to create meaningful, two-way conversations with customers that build trust, loyalty, and brand affinity.