Technology keeps changing through innovation. Users and consumers keep setting high expectations from this changing mobility and functionalities of technology in different IT platforms in the form of comfort and convenience. One of such innovations in tech based industry that is getting a lot of attention since the past decade is Conversational Commerce.
The evolution in conversational commerce can be seen after the power shift to customers from businesses. Today, all the efforts are made to aware, attract and retain customers. Conversational commerce is one of such efforts. Conversational commerce, also referred to as chat commerce or conversational marketing, is a method for online businesses to use the power of dialogue to promote their products and services. It is a new platform or way of interacting with customers.
Conversational commerce generally relates to the convergence between chat applications like WhatsApp, WeChat, inbuilt chatbox, helpline numbers, call centers etc. and retail shopping. For instance, within messaging applications, customers may connect with corporate employees, obtain customer assistance, ask questions, receive tailored suggestions, read feedback, and make purchase decisions. The customer may be conversing with a live person, a chatbot, or a combination of both in this case.
Chatbots can be used by businesses to automate customer communications. Businesses usually let customers make purchases through them without ever exiting the messaging service they currently use. Companies are now able to send order confirmations, as well as shipment and delivery alerts, over Facebook Messenger. Businesses use chatbots to connect with customers in real-time, handle customer care concerns, make suggestions, and construct wishlists.
Customers, on the other hand, are increasingly relying on messaging applications for many types of communication, including personal, professional, and commercial interactions. Consumers are using chat to research, choose, and finalize payments for goods and services without having to contact, email, or even go to a company’s website. The chat app is where everything takes place.
Conversational Commerce Implication
Now, there are many ways businesses implement conversational commerce into their daily operations. They are listed below.
Live chat is one of the most used forms of communication, where customers may instantly obtain responses through the retailer’s website, helpline number or any messaging applications . It’s also pretty simple to use and has a significant edge over email and phone due to this functionality. With live chat, one employee may converse with two or three consumers at once, which helps companies shorten wait times and increase customer satisfaction.
A chatbot is a piece of software that assists people by texting them the answers to their inquiries. Multiple people can speak with chatbots simultaneously, and they have quick, continuous and customized answers to the questions. Additionally, you may use them on websites and chat services. This makes it possible to give a conversational experience across channels that are appropriate for different phases of the client journey.
Now, Artificial Intelligence is revolutionizing chatbots. AI in chatbots makes conversation more authentic, comprehensive and more engaging.
Users can send and receive instant messages, queries, and business using messaging software like WhatsApp, WeChat or Messenger. Because they allow for private conversation, brand engagement, and online purchase, consumers are keen to utilize them. Since they are attracting 20% additional users than social media networks, some applications have actually surpassed social networks in popularity. Additionally, common messaging apps let users use emoticons, GIFs, videos, and memes to make the conversation fun and increase client engagement.
A voice assistant is a sort of software that responds to user inquiries and is triggered by voice commands. Voice assistants like Siri, Alexa, Cortana, and Google Assistant are a function that is increasingly common in many modern gadgets. Customers adore them because they are practical, entertaining, and allow for multitasking.
Voice assistants are becoming more and more popular, which motivates businesses to include them into their customer service and marketing plans. Voice assistants may provide quick answers or point users to your website, both of which can help you build more awareness of your business.
Benefits of Conversational Commerce
There are multiple benefits to implementing conversational commerce for the business, which are listed below:
Improved Customer Satisfaction
By offering customers a personalized, speedy, and simple purchasing experience, conversational commerce enhances the customer experience. Businesses use conversational commerce tools in messaging apps to remind consumers to complete their purchases and pay for them directly. Conversational commercial efforts assist customers by providing personalized service, reminders, 7/24 availability etc.
Higher Lead to Conversion Rate
Understanding client demands comes through interacting with them, whether in person or through chatbots. As a result, businesses can provide customers with the things they want in addition to executing efficient targeted offers and discounts by collecting their data. Also, availability of services 24/7 via live chants, chatbots etc. increases the credibility of the business leading to high retention of customers.
SMEs are active on Instagram and such businesses are quick in response by providing what customers are asking for. Such quick response time and prompt availability help customers to solve their product/service related query, leading to business.
Develop Customer Loyalty
Knowing your customers’ wants enables you to constantly satisfy them as they become more dedicated to your business, because they feel fulfilled. Artificial Intelligence and Machine Learning in AI helps businesses to be updated with customers preference and purchases and provide them a more personalized and customized business.
Become a Guardian Angel for Small & Medium Scale Businesses
Small and medium-sized enterprises (SME) may find it challenging to compete on price with e-commerce and retail powerhouses. They are able to maintain profitability and save expenses thanks to their increased trade volume.
On the other hand, due to their increased trade volume, e-commerce powerhouses may find it difficult to reply to client questions rapidly. If SMEs want to thrive and grow, they must adopt an effective conversational commerce strategy.
Optimization of Services
Conversational Commerce efforts optimize the services provided by the businesses. There are AI and machine learning algorithms working to make conversational efforts authentic and real. The features like Auto answer, FAQ, customized greetings, customer care centers etc. make work of business easier and quicker.
For instance, most of the retail based businesses are utilizing their chatbots to answer the queries of customers. Similarly, voice assistance is helping customers to get information about their requirements. Rather than promoting business in all the medium, businesses can market their business in Google or Amazon and their voice assistance will promote their business when required by prioritizing their paid marketing.