Business is changing at an incredible pace. The online market has replaced the offline market. In the last year, we’ve seen a breakthrough in the rise of conversational commerce.
Today, customers prefer online platforms to make their retail purchase decisions or communicate with businesses to resolve their queries.
Chat and messaging are turning out to be the most common way to communicate with the stakeholders in the business. Especially in times like that of COVID-19, there has been a rise in chatbots, emails, and social media.
Conversational commerce platforms act as the new sales channel tool and enhance customer retention.
Before we move ahead to understand the basic reasons for the rise of conversational commerce, let us look at what is conversational commerce.
What is Conversational Commerce?
In the simplest terms, conversational commerce is the tool that allows the interaction between the customer and business with the help of digital messaging and voice-assisted technology.
Suggested Reading: Conversational Commerce: Redefining eCommerce
Live chat, chatbots and voice assistants are the finest conversational commerce examples that allow a business to interact with the customers and transform potential leads to profitable relationships.
Furthermore, conversational commerce is used on various platforms that allow the customers to narrow their choices, list down the preferences, and make an informed decision.
Some of the great statistics that help us to better understand better what is conversational commerce actually all about are:
- Gartner suggests that around 30% of our interactions will be based on a conversation with smart machines.
- Comscore suggests that almost 50% of the search will be based on voice searches.
- Chatbots Magazine, about the conversational commerce platform, suggested that around 34% of the people prefer to answer AI questions via chatbots or virtual assistants.
- Juniper Research found the projected value of the chatbot eCommerce transactions to be $112 billion by 2023.
Reasons for the Rise of Conversational Commerce
The key benefit of conversational commerce is in making the business more approachable and convenient for the customers.
Capgemini, in a report, found that less than 50% of the top banking, retail, and automotive players have deployed voice or chat assistants for customer support.
Likewise, customer’s interest in messaging and conversational AI is accelerating, particularly when they are purchasing online.
Suggested Reading: Conversational AI Is Enhancing The Current Support Experience
Without further ado, let’s dive in to find out what are the major reasons for the rise of conversational commerce:
1. Better customer experience
An excellent customer experience is key to keep the customer loyal to the business. With this in mind, companies should focus on giving customers what they want.
One of the things consumers want is an omnichannel experience and quick response. For instance, consumers are more inclined towards using voice assistants. Thus, companies can use conversational commerce to connect their multiple channels with their CRM and automate the processes.
Offering options to connect with different avenues of communication can truly enhance the overall shopping experience.
2. Time and cost-effective
Time and cost are important for both business and customer. The use of conversational chatbots has proven to reduce the cost and time involved.
Chatbots help to address routine queries and handle multiple questions at a time. This saves the time and cost of training of the employees. In truth, chatbots can reduce operational cost by 30%.
3. Offering personalised suggestions
Customers like to have personalised suggestions that can reduce their time searching for the product and get the best-suited product for them.
Similarly, customers find it easier to decide when the business offers the product range based on past searches or the portfolio.
A conversational commerce platform uses AI to understand customer behaviour and recommend relevant products. On the other hand, customers can chat with chatbots to find relevant data and make informed personalised decisions.
4. Customer engagement for feedback
Businesses thrive on getting feedback to make them grow. This helps them get new ideas for the product, analyse customer expectations, know about the product or service in demand, and conduct research.
For customers, filling up feedback forms, particularly the long ones, is tiring and boring. This in turn results in a bad customer experience. And we also know only customers with bad experience end up being vocal about it. Consequently, companies end up getting only negative feedback.
Interacting with the target audience with conversational commerce platforms makes the customers feel important and inclusive, thus making them loyal to the brand.
5. Define the brand immensely
The brand is the image of the business in the eyes of the customers. It is how the customers perceive the importance and value of the business.
Brands can employ conversational platforms to provide a customer experience that they remember. From informing customers about ongoing offers to guiding them through the buying journey. Hence, each step provides an opportunity to make an impression on the consumer.
6. Reduction in cart abandonment rates
Cart abandonment occurs when the customer adds products to buy in the cart but leaves the online business platform before making the payment.
The reasons for cart abandonment are many. For example, it can be the price, availability, colour, or being unsure of getting the product on time.
SalesCycle suggests that 46.1% of people open abandoned cart emails, 13.3% click inside the emails, and of those clicks, more than 35% end up buying something. So, using the conversational commerce platform can help get better sales and reduced cart abandonment rate.
Suggested Reading: Why Your eCommerce Platform Needs A Chatbot Today
Conversational Commerce: A Growth Strategy
In conclusion, the main aim with which the companies adopt conversational commerce is to assist customers by offering a customised and personalised experience.
A paradigm shift has been witnessed in how the customers interact with the business and have a huge impact on the overall customer experience. It has transformed the entire eCommerce landscape today.
The rise of conversational commerce has helped earn a loyal and satisfied customer base and offer a better human experience while shopping. When the business is optimised, the customers get discounts, offers, recommendations, feedback, and smoother communication and query resolution.
Conversational AI-powered chatbots are examples of conversational commerce. These chatbots have not only shown up to 80% positive customer experience but also helped companies reduce operational costs.
Verloop.io offers eCommerce companies a conversational platform with an end-to-end solution for better customer service and engagement. Let us help you delight your customers.