Think of traditional in-person selling at brick-and-mortar stores: we visit a store, walk through products and, inevitably, questions arise. Seeking clarification, we end up engaging with a salesperson.

But how does this work during online shopping? Without a physical store or salesperson, we may feel stuck as our questions are left unanswered. Plus, trying to get answers via phone or email may take ages, resulting in incomplete purchases even when genuinely interested in the products. Such a lose-lose situation, right?

Fortunately, conversational commerce is here to change the game, and provide a solution for online sellers’ and customers’ problems during their eCommerce experience. "But how does it work?", we hear you ask! Let's dive deeper into the topic and find out together.

What is Conversational Commerce?

In its simplest form, conversational commerce is a collection of tools that enables businesses to make conversations with customers throughout eCommerce processes.

Conversational commerce tools encompass a range of communication channels such as chatbots, live chats, and voice assistants like Amazon's Alexa.

To understand Conversational Commerce better, we can take a look at the development of it through the years.

How did conversational commerce develop?

You have probably heard this before: Human beings are social beings. We naturally enjoy conversations and ask questions, especially when making decisions. 

In this sense, conversational marketing, which proposes two-way communication in real-time conversations, is considered a highly impactful sales technique. As online shopping has become more common, conversational messaging has emerged as a popular form of conversational marketing. Using messaging software to talk to customers, this approach has gained popularity over the years.

Now we can approach conversational commerce as an upgraded version of conversational messaging since it is built upon the same concept but goes beyond simple messaging. Using various tools, such as AI-powered technologies, social media platforms or live communication methods, it connects businesses with customers in a more comprehensive way.

The Impact of Conversational Commerce on Businesses

The lack of immediate assistance is proven to negatively impact customer satisfaction and sales numerous times. Indeed, a recent survey conducted by Zendesk showed that over 50% of customers demand quick responses on-site while over 40% look for 24/7 support. Moreover, Forrester says customers are 2.4x more likely to keep shopping if they receive prompt customer support. Long story short: the faster your reply, the more customers you win. 

And conversational commerce is your number one assistant in this race! With advanced conversational commerce tools, businesses can finally deliver the instant, empathetic customer experience that today's consumers demand. These tools provide real-time assistance, enabling consumers to get in-detail information within seconds, and feel more connected to the store. This results in a supported decision-making experience for customers and more completed sales for businesses:

• 93% of consumers see online real-time help beneficial, whether it's before, during or after their purchase process. 

• 75% of customers are likely to spend more on a brand that offers messaging support, rather than traditional phone support.

• 65% of the weekly shoppers who used live chat while shopping are more likely to purchase from the retailer again.

Now we probably are all on the same page: conversational commerce leads to happier customers and increased sales. 

The most obvious reasons behind these statistics are speed and user experience. With conversational commerce, customers receive quick responses regardless of time and complete the shopping without getting frustrated about the details. Moreover, they get to quickly research products and make purchases through chatting, which means a smoother shopping experience.  

As a result, businesses win the speed race in assisting customers, leading to increased customer satisfaction, loyalty, and ultimately, sales. Thanks to these, businesses gain a competitive advantage and achieve long-term success by standing out in their fields.

Conversational Commerce Tools

In order to implement conversational commerce effectively, online shops can use  conversational commerce tools – technologies that improve conversation-based engagement between businesses and their customers across the eCommerce journey. These tools encourage ongoing engagement and dialogue by allowing businesses to communicate with customers via text, voice, messaging, and other channels and encourage ongoing engagement and dialogue. 

Businesses who use conversational commerce tools see an average of 10% increase in revenue in the first 6 months and 30% cost savings on customer service.

This is undeniable that conversational commerce tools lead to better business results, but choosing the right one can affect the whole story. 

The most common conversational commerce tools are: chatbots, messaging apps, voice assistance, and voice chats.

Chatbots

By now, most of us have probably interacted with a chatbot in one form or another since many online stores already use them. So, what are these chatbots all about? 

Chatbots are basically robot customer service agents. They can provide round-the-clock support for customers, easily receive orders or process refunds, and ask for feedback or reviews. 

Indeed, 80% of regular inquiries can be answered by chatbots quickly, saving time for both customers and service providers. This means decreasing the abandoned cart rates and lost sales as a result of frustrated customers with no or late replies. According to a report by Comm100, the average satisfaction rate of bot-only chats is 87.58%, which is a near-to-perfect result.  

H&M is one of the brands that uses a chatbot. It was designed to act as a virtual stylist in addition to assistant, helping customers navigate through their extensive range of products. By analyzing purchase history and asking targeted questions, the chatbot provides tailored suggestions and recommendations for customers, thus making them more likely to purchase.

Messaging apps

If you want to provide your customers with a more familiar way of communicating, messaging apps are what you are looking for. They allow customers to start a conversation with a brand representative in a more convenient and accessible way: by simply opening messaging apps like Facebook Messenger, Telegram, or WhatsApp.

The Order on WhatsApp feature is a great example of how messaging apps are used in Conversational Commerce to provide a seamless shopping experience.

This feature further simplifies the eCommerce process, allowing businesses to accept orders and payments directly through the WhatsApp messaging app. With Order on WhatsApp, customers can simply send a message to the business and place their order. Then the business can provide them with more information, payment link, and updates on the delivery status. That translates to a better shopping experience for both sides.

• Learn more about how to sell on WhatsApp.

Voice assistants

It is hard to believe that the first “Hey Siri” command was used more than a decade ago, but voice assistants started to become more and more popular since then, leading to the evolution of voice commerce.

As a modern conversational commerce tool, voice assistants provide a hands-free experience by allowing customers to use voice commands to interact with brands and get things done quickly. 

By accepting voice commands, brands also offer a more inclusive experience for customers who may have difficulty typing or reading text messages, such as those with visual impairments or physical disabilities. This feature also extends to screenless devices such as smartwatches, making it easier for customers to interact with brands on the go.

Walmart is one of the companies using voice commerce to better their sales and customer satisfaction. It has implemented voice-activated grocery ordering through Google Assistant and Siri, which allows customers to use voice commands to add items to their grocery cart and place an order for pickup or delivery. Customers can also ask for recommendations and search for specific products using the Walmart Voice.

Video chats

Rather than relying solely on text or voice-based communication, some brands are taking it a step further by using video chats to connect with customers. With the help of this conversational commerce tool, businesses easily understand customer needs, ask questions based on real-time reactions and mimic the social interactions that would happen in-store. This method also offers opportunities for upselling and cross-selling, as well as building high-value customer experiences. 

Best Buy is one of those brands preferring video chats as a conversational commerce tool. "Virtual Consultation" feature of this brand allows customers to have virtual consultations with a product expert to receive product recommendations and troubleshooting assistance. According to Best Buy, customers who use this feature are more likely to purchase appliances and have a higher average order value.

All in all, today’s digital age allows Conversational Commerce to become a game-changing sales tool for businesses. As it continues to evolve and gain more popularity, businesses that embrace it are likely to see increased customer engagement and revenue as well, while customers experience better customer service. Such a win-win situation!

Takeaways:

• Conversational commerce is a sales tool that enables businesses to have conversations with customers through the e-commerce process.

• Conversational commerce tools provide customers with a more convenient, personalized, and supported decision-making experience.

• Businesses that embrace conversational commerce are likely to see increased customer satisfaction, loyalty, and revenue.

• Popular conversational commerce tools include chatbots, messaging apps, voice assistants, and video chats.

• The future of conversational commerce seems promising as more businesses are adapting to it and seeing positive results.