What Is Conversational Commerce, and How Can It Help E-Commerce Businesses?
Conversational commerce, as the name implies, is the type of business that takes place through the use of conversations. It refers to the interaction between buyer and seller via messaging apps. It entails interacting with companies via messaging or chat apps such as live chat support software, chatbots, SMS, voice assistants, WhatsApp, Facebook Messenger, etc.
Through personalized interaction between buyers and sellers, conversational commerce turns one-way dialogues into conversations. It is one of the quickest and easiest ways for customers to find the products or information they need. Additionally, conversational commerce guides consumers seamlessly throughout the purchase process by communicating with them. This blog will discuss conversational commerce and how it can help e-commerce businesses. Let’s dive into the world of conversational commerce.
What is Conversational Commerce:
Conversational commerce, also known as chat commerce or c-commerce, refers to conversational interfaces such as chatbots, voice assistants, and messaging apps. It engages customers in interactive conversations by offering product and service recommendations, answering questions, processing transactions, and handling payments. Additionally, it transforms the traditional e-trading model by merging customer services and transaction processes into a single interface. The types of conversational trading facilities available in the marketplace include:
- Live Chat Support Services or Messaging Applications (Facebook, WhatsApp, Messenger)
- Short Messaging Service (SMS)
How Can It Help E-Commerce Businesses?
Implementing conversational commerce can provide several benefits to e-trading businesses.
- It enhances customer engagement by delivering personalized and interactive experiences.
- Conversational interfaces allow companies to understand customer preferences, provide tailored recommendations, and address queries in real-time.
- It results in higher customer satisfaction and loyalty.
- Conversational business can streamline purchasing by enabling customers to complete transactions within the chat interface.
- It reduces friction and drop-off rates, increasing conversion rates and revenue.
Conversational Business Market Size:
Due to rising customer expectations for personalized and convenient shopping experiences, the market size of conversational trading has steadily increased. Additionally, according to a report by Markets and Markets, the global conversational AI market, which includes conversational commerce, is projected to reach USD 29.8 billion by 2028, with a CAGR of 22.6% from 2023 to 2028. However, this shows the massive potential of conversational trading in e-commerce and the growing demand for interactive and personalized shopping.
Conversational Trading Platforms:
Many companies have emerged as critical players in the conversational commerce space, offering creative and innovative solutions. For instance, WhatsApp is a well-known and well-liked messaging app that belongs to Facebook. It has become a powerful platform for conversational trading due to its extensive user base and ease of use. However, businesses can leverage WhatsApp to engage more customers, provide real-time responses, and process orders seamlessly within the same interface. Additionally, some of the other conversational trading platforms include Shopify, Live Person, WeChat, etc.
Increasing Demand for Conversational Commerce:
Conversational commerce is a highly efficient omnichannel marketing process that has been proven successful for customers and sellers globally. In addition, it’s transforming the entire business paradigm and how businesses interact with customers by providing an interactive environment. However, the growing adoption of smartphones makes conversation trading incredibly effective. Moreover, approximately 6.84 billion people have smartphones, representing around 85% of the 8 billion global population. Thus, recent studies have shown that people are more comfortable making purchases on their smartphones. Smartphones or mobile transactions increase the usage of conversational commerce, or chat commerce.
Conversational Commerce Trends:
The rising popularity of conversational commerce can be attributed to several key trends.
- Firstly, consumers increasingly seek convenience and personalized experiences, and conversational trading provides a way to meet these expectations. With the ability to engage in real-time conversations, customers can receive instant support, product recommendations, and purchase assistance without leaving the chat interface.
- Secondly, the growing adoption of messaging apps and voice assistants has created new business opportunities to connect with customers. Conversational trading enables businesses to leverage these platforms to engage customers in interactive conversations and provide seamless shopping experiences.
- Thirdly, advancements in artificial intelligence (AI) and natural language processing (NLP) technologies have made conversational interfaces more sophisticated and capable of accurately understanding and responding to customer queries.
This has fueled the growth of conversational trading by providing businesses with powerful tools to deliver personalized and contextually relevant customer experiences.
Conversational commerce is revolutionizing the e-commerce industry by leveraging interactive conversations to provide personalized and convenient shopping experiences. However, by incorporating conversational trading into their e-commerce strategies, businesses can stay ahead of the competition. EIDIKO HR, the region’s best live chat support service, can enhance the customer experience by providing real-time support, personalized recommendations, and seamless transaction processing.