We see more and more businesses embracing the era of mobile commerce today, and truly, the world of commerce has witnessed significant transformations, moving from traditional brick-and-mortar stores to online platforms.
With the indulgence of smartphones and mobile devices, consumers enjoy unmatched flexibility and convenience in accessing a large range of products and services through many different interfaces.
Insider Intelligence predicts that mobile commerce will account for 10.4% of all retail sales by 2025.
To further engage customers and provide them with unparalleled flexibility, businesses welcome conversational AI into the shopping process after realising its potential.
AI plays a pivotal role in enhancing the efficiency, personalisation, and overall intelligence of such mobile commerce platforms.
The stats are where the facts are at, and according to a report by Markets and Markets, the conversational AI market is expected to witness significant growth. Starting at USD 10.7 billion in 2023, it is projected to reach USD 29.8 billion by 2028, indicating a remarkable compound annual growth rate (CAGR) over the forecast period.
This rapid expansion demonstrates the increasing adoption of AI-powered solutions and virtual assistants across diverse industries, not just in commerce.
Before exploring the impact of conversational AI on industries, let’s first understand the essence of mobile commerce.
What is Mobile Commerce?
M-commerce, short for mobile commerce, is the process of buying and selling goods and services using wireless handheld devices like smartphones and tablets.
It falls under the umbrella of e-commerce, granting users direct access to online shopping platforms from their mobile devices, eliminating the need for desktop computers.
There are three main types:
a) in-app purchasing
b) virtual marketplace apps like Amazon and
c) digital wallets such as Apple Pay.
Many industries benefit from mobile commerce in various ways:
- Financial Services: Mobile banking and brokerage transactions are seamless.
- Telecommunications: Handheld devices handle service changes, payments, and account reviews.
- Service and Retail: Consumers place and pay for orders on the go through online stores.
- Information Services: Mobile devices are primary channels for accessing news updates, including financial, sports, traffic, and weather.
Mobile commerce’s continued success offers convenience and accessibility to consumers while creating new growth opportunities for businesses.
How Does Mobile Commerce Work?
Mobile commerce platforms connect mobile devices to wireless networks, enabling online purchases and transactions.
Key performance indicators include mobile and application traffic, average order value, and order value over time.
Mobile add-to-cart rates, average page loading times, mobile cart conversion rates, and SMS subscriptions are also monitored by developers.
Mobile payment products work through peer-to-peer sharing, where users pair their bank card information with their mobile devices to make payments by waving them over payment terminals using near-field communication technology.
The Difference Between eCommerce and Mobile Commerce
While e-commerce involves buying and selling goods and services over the Internet, M-commerce has some distinct differences:
M-commerce allows transactions to happen anywhere with internet access through handheld devices, providing greater mobility than fixed desktops used in e-commerce.
2. Location Tracking
M-commerce apps can utilise Wi-Fi and GPS-based technologies for location-specific content and personalised recommendations, whereas e-commerce relies on IP addresses for broad regional tracking.
M-commerce employs biometric authentication, mobile wallets, QR codes, and cryptocurrencies to address security concerns arising from credit card usage in e-commerce.
Suggested Reading – Elevating Your eCommerce Game with Conversational AI: A Beginner’s Roadmap
How Can Conversational Commerce Aid Mobile Commerce?
Conversational commerce can transform M-commerce, bringing significant advantages to both businesses and customers. By leveraging conversational AI, companies can engage customers in real-time, forging meaningful connections that build loyalty and trust. Swift resolution of queries and concerns further elevates customer satisfaction and drives higher conversion rates.
Moreover, through meticulous data analysis, conversational AI tailors product recommendations and experiences to suit individual preferences. This personalised approach enhances customer engagement and fosters repeat purchases, solidifying customer loyalty.
Utilising conversational AI solutions, such as virtual assistants and AI messaging interfaces, empowers M-commerce in several essential ways. We provide nine critical use cases below!
1. Personalised Product Recommendations
Through data analysis, conversational AI tailors product recommendations to individual preferences. Customers receive personalised suggestions that align with their tastes, increasing the likelihood of purchasing.
2. Interactive Virtual Assistants
Conversational AI interfaces, acting as virtual shopping assistants, engage customers in real-time conversations. These assistants guide customers through shopping, providing product information, answering questions, and offering personalised advice.
3. Seamless Customer Support
Conversational AI solutions provide instant and round-the-clock customer support. Customers can resolve issues, track orders, and receive timely assistance, increasing customer satisfaction and loyalty.
4. Interactive Product Visualisation
Conversational AI enables customers to interact with products through images, videos, and augmented reality. This immersive experience empowers customers to make informed decisions and reduces the need for in-store visits.
5. Real-time Order Updates
Conversational AI informs customers about their order status and shipping updates, providing peace of mind and building trust with the brand.
6. Personalised Discounts and Offers
Leveraging customer data, conversational AI delivers tailored promotions and discounts. This targeted approach increases customer engagement and encourages repeat purchases.
7. Virtual Fitting Rooms
Fashion retailers use conversational AI to offer virtual fitting rooms. Customers can virtually try on clothes and accessories, leading to more confident purchase decisions and reduced returns.
8. Feedback Collection and Surveys
Conversational AI collects valuable customer feedback through interactive surveys. This feedback helps businesses improve products and services based on customer preferences and needs.
9. Cross-selling and Upselling Recommendations
Conversational AI suggests complementary products or upgrades based on the customer’s preferences and purchase history, increasing the average order value.
Suggested Reading – What is WhatsApp eCommerce?
The Future of Mobile Commerce with Conversational AI
The future of M-commerce appears bright as it extends its reach to a broader audience. To stay competitive and maintain an edge, businesses must adapt to evolving trends.
One effective approach is integrating conversational AI solutions into customer support.
To experience the remarkable power of M-commerce in customer support firsthand, schedule a demo with the Verloop.io team. Discover how Verloop.io’s innovative generative and conversational AI tools can elevate your M-commerce business, improve response times, and enhance customer satisfaction.
The future is at our doorstep, and with Verloop.io, we can explore its extraordinary potential.
Unlock the power of conversational AI and m-commerce with Verloop.io’s cutting-edge solutions.