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Introduction
Conversational commerce, or c-commerce, has become an ever bigger trend in recent years that keeps turning the e-commerce world upside down.
Above all, large companies and corporations such as Amazon, Apple and Google are betting on conversational commerce. But more and more mid-sized companies are also recognizing the potential and investing in the technological possibilities – whether in the form of chatbots on the website or via voice assistants on smartphones and tablets.
What is conversational commerce?
Conversational commerce basically means nothing more than users communicating with companies or brands via chatbots or voice assistants – whether to search for products or to pay for orders.
The focus is on natural communication between people – in other words, conversation. By using artificial intelligence and machine learning, it becomes possible to imitate these conversations and give customers the most natural, pleasant shopping experience possible.
What does this mean for our customers?
It means an all-round improvement for your customers. No more annoying form fields, no more searching for the right menu item – just a conversation. Whether you're looking for the right ring size, the right shoe shape or a nice gift for a family member, all this should be possible with a conversation that feels like personal advice. Whether via voice assistant, chatbot or live chat – customers can simply communicate their concern and get an answer immediately. It also means your customers don't have to call a hotline or write an email to get help. This direct approach to solving their requests leaves no time for frustration to build. No wonder almost 60% of customers prefer the chat option to talking to a service agent directly.
What does this mean for my company?
Conversational commerce can also mean a big improvement for your company: more customer satisfaction, higher conversion rates and less effort in looking after customers.
Conversational commerce is the combination of online shopping and personal customer service. The model is the shopping experience in a real store, except that the chatbot takes on the role of the salesperson, advising the customer personally and responding to their wishes.
You can read more about the role chatbots can play in e-commerce in our whitepaper The power of AI in e-commerce.
How does conversational commerce work?
Conversational commerce lets companies communicate with customers naturally by enabling human conversations in real time on digital channels such as SMS, messengers and chatbots. By combining AI and natural language processing, chatbots can hold a smooth conversation and create a natural shopping experience. There are currently several ways to use conversational commerce:
SMS or messenger
If your customers want to order products or simply look for information, SMS-based chatbots are best suited. They cover many simple tasks, whereas messenger-based chatbots are also suited to more complex tasks. They offer more functionality, so your customers can use them to book trips or find their next favorite restaurant, for example.
For many purposes, chat-based solutions are perfectly adequate and can move your company forward significantly. Above all, these tools are available to your customers 24/7 and take the load off your customer service during opening hours.
Alexa! Add eggs to my shopping list
For tasks that require natural language processing, voice assistants are best suited. They offer even more functionality and can play music on command or look up the opening hours of local stores. A few words from you are enough, with no need to type your request into a search engine. Alexa and Siri are probably the best-known examples of voice assistants used by a broad mass of people.
C-commerce in e-commerce
Of course, conversational commerce is especially exciting for online stores with many products. With c-commerce via chatbot, for example, product search is personalized and tailored – similar to a real conversation with a salesperson in a local store. Paying for products or services usually happens via the same channel too, so it's as simple as possible for customers.
The future of conversational commerce lies in the combination of AI and natural language processing. Combining these technologies will make it possible to hold even more natural, smoother conversations. It will also let chatbots take on more and more tasks, so users can interact with them naturally more and more often. You can read exactly how AI and NLP work in our corresponding blog articles.
What are the benefits of conversational commerce?
The e-commerce industry has developed rapidly in recent years, and more and more people shop online. It's no surprise that customer expectations are rising too. They want a personalized, individual shopping experience – and that's exactly where conversational commerce comes in.
Benefits for companies
Conversational commerce lets companies enter into direct dialog with their customers and offer a personalized buying experience. Chatbots can, for example, optimize product search or support purchase decisions. Companies can also analyze customer data better and tailor their offering even more closely to customers' needs.
Benefits for customers
With conversational commerce, customers can find and buy products quickly and easily without having to visit a separate website or download an app. It also offers the option of getting in touch with a customer service employee immediately – for example to ask questions about a product or get help with an order.
Conversational commerce is therefore both practical and customer-friendly and will play an ever bigger role in the future. For companies that want to keep improving their online offering and optimize customer service, conversational commerce is definitely an option to have on the roadmap. If you're wondering how fit your customer service really is, you can find out with our test.
Examples of successful companies in conversational commerce
1. Sephora
Sephora is a leading company in the cosmetics industry and announced a partnership with a chatbot startup in 2016. The AI bot was designed to help customers find the perfect cosmetics and advise them on choosing the right products. Sephora thus extends its traditional brick-and-mortar business and offers a customer-centric approach to enable interactive sales via a chatbot.
Users can contact the bot either via Facebook Messenger or the Sephora website. From 2016 to 2022, Sephora recorded an increase in sales and stronger brand loyalty among its customers. Online sales roughly quadrupled. Of course, the personal online presence also makes it possible to reach and build a broader customer base.
2. 1-800-Flowers
1-800-Flowers is one of the world's leading online retailers of bouquets and gifts. The company recently developed a chatbot called "Gabby" that helps customers find the perfect gift. Gabby is available via Facebook Messenger and the website, and users can ask it questions like "I'm looking for a present for my girlfriend" or "I'm looking for a birthday present for my dad". Gabby then gives personalized recommendations based on the user's input, as you can see in this example:
3. Adidas
Adidas is one of the world's leading manufacturers of sportswear and footwear. The company recently developed the "Adidas Confirmed" chatbot, which helps customers find the perfect pair of Adidas shoes. The bot is available via Facebook Messenger, and users can ask it questions like "I'm looking for a pair of running shoes" or "I'm looking for a pair of soccer cleats". Adidas Confirmed then gives personalized recommendations based on the user's input. Adidas has also automated customer service by offering customers a live chat tool on its website, while a chatbot is available around the clock in the Adidas app.
Conclusion: is conversational commerce the future of online shopping?
In conclusion, conversational commerce is a promising approach for the future of online shopping. By combining human interaction and modern technologies, a smooth and personalized shopping experience can be offered. A conversational commerce strategy has now become standard at many companies. As Sephora's example shows, it pays off.
Especially now, when online shopping is popular and younger generations in particular communicate a lot via social media, companies need to be present where their customers are. It's no coincidence that the early days of conversational commerce often focused on messenger apps like Facebook Messenger. These chatbots were then extended to WhatsApp and Instagram.
Part of conversational commerce is excellent customer service, which offers more possibilities than ever thanks to the introduction of AI. Chatbots and shopping assistants improve customer service while increasing the conversion rate. Bottom line, this means more sales with less effort for your company.
At melibo, we want to keep playing a leading role in advancing the conversational commerce trend. That's why our chatbot platform already offers several features that support conversational commerce. Want to know which ones they are and how to implement them in your store? Then simply schedule a no-obligation first call and let us show you how our AI chatbots can move your company forward so you can sit back and relax.
