What Is Conversational Commerce: Definition, Benefits, and Examples

What Is Conversational Commerce: Definition, Benefits, and Examples

Conversational commerce, also called chat commerce, streamlines B2C interactions by being present where customers are, and doing away with websites and apps that obstruct interaction. However, not many managers are completely aware of the advantages of conversational commerce, even though it holds a lot of potential for organisations. Additionally, it is difficult for businesses to stand out in the cutthroat e-commerce market.

As a result, we will first go over the advantages and importance of chat commerce for your business in this article. Then, we'll talk about the best conversational commerce strategies, like using chatbots, gathering customer information, and developing a plan that sets you apart from your competitors. Finally, to make the topics in each section easier for readers to understand, we provide examples of conversational commerce.

Conversational Commerce: Precisely Explained

Conversational commerce in 2022 can refer to a variety of methods used by e-Commerce companies and retailers to improve and facilitate the customers' purchasing experience. These methods include the use of chatbots, AI, and messaging technologies. For example, in order for customers to ask questions, this could resemble placing a messaging widget on a retailer's website. The ecosystem of messaging-first marketplaces, where customers buy and sell directly to one another, may also resemble that.

Perhaps it appears in the form of a grocery delivery person informing a customer about a swap or a sales employee at a high-end boutique informing devoted consumers about new arrivals. It might even be the way that businesses enable integrated payments and user verification so that customers can make purchases right from messaging applications.

Businesses now have to provide the conversational experiences that customers have come to anticipate as conversational commerce seems to be pervasive. The distinctions between brick-and-mortar retail and e-commerce experiences are becoming increasingly hazy, and the same is true of the points at which messaging and e-Commerce, sales, and support converge. Because of the complexity of the customer journey, conversational technology constantly adds new touchpoints for both brands and consumers.

4 Types of Conversational Commerce

There are a lot of advantages to conversational commerce, and it is obvious how it may help your company increase conversions and customer loyalty. Here, you need to evaluate what specific kinds of conversational commerce platforms can comparably benefit your business.

Here we have mentioned a few of the top types of conversational commerce that can potentially benefit your business:

Live Chat Program

Today's eCommerce websites typically include live chat software because it enables users to quickly and clearly answer questions without having to fill out forms, send emails, or make phone calls, all of which can lead to cart or site abandonment.

Live chat may be reactive or proactive, acting as a "here if you need me" sort of service or even proactively reaching out to customers as soon as they land on your website to give help and direction throughout the process.

One agent may handle several cases instead of being limited to one call at a time with the help of live chat software. Customers won't have to wait as long, which increases the probability that they'll stay and complete their purchase. There are many different free live chat platforms available, but how you use and configure them for the features you want on your website is crucial.


Chatbots may effectively fulfil the objective of conversational marketing for smaller firms with less capacity for customer support or products and services with a more simple purpose or offer by responding to frequently asked queries.

In addition, Chatbots may automate routine requests like order status, similar items, and case resolution, and more sophisticated versions may even integrate conversational AI to customise the experience further.

Messaging Apps

You may talk using a messaging program, such as Messenger or WhatsApp, and send and receive instant messages. Because they allow for private conversation, brand engagement, and online purchases, consumers are keen to utilise them. These applications have indeed surpassed social networks.

Also, these helpful messaging platforms permit the use of emoticons, GIFs, movies, and memes, which keeps the dialogue light and increases client engagement. Brands utilise messaging applications for this reason. They contribute to far more natural and individualised consumer connections, which results in improved conversion rates.

According to data, 70% of emotionally involved customers spend twice as much with businesses they identify with emotionally as they do with brands they don't.

Voice Assistance

Because they are convenient and simple to use, voice assistance programs like Siri, Alexa, and Google Assistant are becoming more and more popular. Additionally, they provide customers with a feeling of pleasure and engagement throughout their quest for information, which may help to lighten the atmosphere and increase the possibility that they will develop an emotional connection to your business.

Voice assistants are becoming more and more popular among companies trying to enhance customer relations since they can respond right away to voice requests, direct users to your website, and give you a chance to establish a deeper connection with them.

Top 4 Benefits of Conversational Commerce

Conversational commerce is quickly emerging as the key to providing excellent client experiences as businesses attempt to customise customer care with the most cutting-edge technologies.

1. Increased Client Satisfaction

By offering customers a personalised, speedy, and simple purchasing experience, conversational commerce enhances the customer experience.

i. Convenient Checkout

About 70% of the time, shoppers put items in their carts but don't check out. Businesses may use chatbots in messaging apps to remind consumers to complete their purchases and pay for them directly. Customers may buy goods and pay for them all on a single platform as a result.

ii. Gathering Feedback from the Consumer

By interacting with customers, businesses may learn about their needs and desires. As a result, e-commerce companies are better able to predict demand for certain items. They may also evaluate how chatbots are affecting their marketing and sales efforts.

iii. Offers that are Unique to You

Everybody has varied demands. 30% of buyers are so prepared to pay more for things that are customised. Personalised suggestions are improved by conversational commerce since it gets to know the consumer through interaction.

iv. Available Round of Clock

You can not figure out the exact time of buying as people buy things from the internet 24/7. Because of this, businesses nowadays need to be reachable seven days a week to help clients make assistance with what to buy or to answer their inquiries.

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Businesses may interact with clients round-the-clock using chatbots for messaging applications. They are accessible all the time to offer customised products and address customers' frequently asked questions.

2. Make Your Clients Loyal

More devoted clients are made possible through conversational commerce, allowing for recurring business. Knowing the requirements of your customers enables you to satisfy them constantly. They become more dedicated to your e-Commerce firm because they feel satisfied with your product. Business Insider claims that personalised offerings, for instance, increase customers' likelihood of making repeat purchases by more than 40%.

3. Higher Rate of Conversion of Leads

Conversational commerce has the potential to nearly double the lead-to-conversion ratio because:

  • Understanding client demands come through interacting with them, whether in person or through chatbots. As a result, businesses can provide customers with the things they want.
  • Companies may execute efficient, targeted offers and discounts by collecting client data.
  • If you implement a chatbot, its 24/7 accessibility gives your business a competitive edge over competitors who are constantly unavailable.

4. A Survival Strategy for SMBs

Small and medium-sized companies (SMBs) may find it challenging to compete on price with e-Commerce and retail behemoths. Giants are able to benefit from economies of scale and save expenses thanks to their increased trade volume.

On the other hand, due to their increased trade volume, e-Commerce behemoths may find it difficult to reply to client questions rapidly.

Examples of Conversational Commerce

Now that we are familiar with conversational commerce, let's look at some examples of it in practice on some common websites and services that you may have used:

Amazon Alexa

Many of you who are reading this post have probably had some experience with Amazon's voice-activated assistant, "Alexa," who is all-knowing, either directly or indirectly. From a simple question to a shopping query, Alexa can handle practically anything you ask it.

Alexa can perform a variety of tasks for you, like searching the web for you, bringing up and filling an Amazon shopping basket (and finishing transactions if you attach your credit card information), connecting to other software and hardware, such as a home audio system to play music, and more.

It is a practical domestic tool, but as a voice-activated virtual shopping assistant, it excels most at helping with shopping.


Coffee queues are one of the main issues facing the average worker in the morning, and Starbucks has utilised its app to address this issue. Through their app, you can place an order and chat with a "virtual barista" to add whatever extras you like to your morning brew. This gives you the feeling of conversing with a real person.

The voice ordering, texting, and payment features of the message-based ordering system completely expedite the procedure. You may avoid those long queues after your purchase is finished and you receive a notification when it is prepared!


Through proactive conversational marketing, H&M advances conversational commerce. H&M uses a chatbot to get in touch with prospective and existing consumers using the messaging app Kik in order to promote new products, deals, and similar things to whatever the recipient may have recently been looking at.

The chatbot functions similarly to an actual stylist or salesperson in a physical store, making suggestions and taking into account the customers' preferences after asking a few simple questions. The capability to view and vote on the creations made by other chatbot users is another feature similar to physical store buying.

Final Verdict

For many brands, the adjective "conversational" might be off-putting. It gives the impression that conversational commerce is soft—heavy on interaction but low on purchases. Another trend that appeals to marketers but has little impact on revenue.

There are several use cases for conversational commerce, as shown by the examples in this article. It is apparent that conversational commerce is one of the best ways to interact with your audience and start a conversation.

But more than that, it's also a very powerful tool for answering consumer questions, promoting brand recognition, and contacting potential customers at the right moment.

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