Conversational Commerce is a popular retail trend that refers to the use of messaging apps, chatbots, and other artificial intelligence-powered technologies to enable consumers to interact with businesses. From a commercial standpoint, the idea is known by similar names such as conversational marketing, conversational shopping, etc. However, the cornerstone of conversational commerce is founded on tried-and-true tactics — having a conversation and thinking of the client first.
Consumer retention in today's age is directly linked to a nice user experience. Deloitte’s 2022 retail tech report explains “Digital tools must elevate the consumers' human experience. For an interaction to lead to loyalty and drive future business, it must create a positive and rich memory."
The global spend for conversational commerce across OTT platforms, such as WhatsApp or WeChat, will increase from $13.3 billion in 2022 to $25.1 billion in 2023, according to a recent analysis by Juniper Research. Retail and eCommerce verticals who are prioritizing the next level of online customer experience, will be the driving forces behind this rise of 89%.
Human conversational commerce refers to the use of human-powered conversations to facilitate online transactions and customer service interactions. This can include live chat or video chat with customer service representatives, as well as social media interactions with brands. Human conversational commerce has the advantage of being able to provide a more personalized and human-like experience for customers, as human agents are able to understand and respond to customer inquiries and concerns in a way that chatbots and other artificial intelligence-powered technologies may not be able to.
By utilizing both human and artificial intelligence-powered technologies in their conversational commerce strategy businesses create an optimal user experience. This will provide a more efficient and personalized shopping experience for their customers.
1:1 video commerce refers to a shopping experience in which a customer is connected with a personal shopper or sales representative via video chat in order to receive personalized assistance with their purchase. This can include product recommendations, post-purchase help, virtual try-ons, and other interactive features that enhance their shopping experience.
Combining conversational commerce with video commerce can provide a more interactive and personalized shopping experience for customers. Here are a few specific ways in which businesses can combine these two approaches: