The Know-How of Conversational Commerce

HomeBusinessThe Know-How of Conversational Commerce


Key Takeaways

Gartner predicts that by 2025, conversational AI will power 75% of all customer conversations.

Conversational Commerce (Salesforce) can increase online sales up to 30%.

Conversational Commerce is a new approach to commerce that combines AI with human-like interaction for improved customer experience.

All businesses can benefit from this technology, which is essential to maintaining a competitive edge.

The future advancements in technologies will continue to expand and enhance its capabilities.

Conversational commerce is an emerging trend that is changing the way customers interact and conduct business. It is a convergence of instant messaging, artificial intelligence and the vast world of ecommerce. This innovative approach allows customers to have conversations with brands via various messaging platforms. They can shop, ask questions, and receive support in a way that is convenient and conversational. This seamless integration into the everyday shopping experience simplifies not only the purchasing process, but adds an extra layer of personalization to traditional ecommerce platforms.

Conversational Commerce is a new way of doing business that has a major impact on customer service. This approach caters to modern consumers’ evolving needs in an age where personalization and immediacy are valued. Businesses can provide round-the clock assistance, personalized recommendations, and quick transaction processing by leveraging AI chatbots. This level of responsiveness enhances customer experience and fosters a feeling of loyalty and connection between the brand and the consumer. It empowers the consumer, giving them full control of their shopping journey from inquiry to sale, within their favorite messaging app.

Conversational Commerce has implications that go beyond improving customer interaction. They also signal a change in the landscape of digital commerce. The traditional boundaries between digital marketing, online shopping and customer service are becoming increasingly blurred as more businesses adopt this method. This integration allows businesses to gain valuable insights about consumer preferences and behavior. These insights allow companies to refine their strategies and offer more personalized experiences. They can also drive growth. Conversational Commerce is evolving and will become a vital tool for businesses looking to succeed in the digital age. It offers a unique combination of convenience, personalized experiences, and innovation.

The survey data on brands’ popularity and revenue generation has revealed that e-commerce brands that are using conversational Commerce have increased their revenue by 25%, and at the same time, the consumer buying behaviour survey data states that 82% of online shopping enthusiasts believe that brands that provide instant responses to their queries are better with their products and support. The recently researched graph also indicated that 47% of people never buy from the stores with no instant chat or message option or with no social media presence.

In the data above, it is evident that brands need to meet their potential customers where they are: on their terms and in their environment.

Gone are the days when the products’ quality and prices were the USP of the online merchants. In the present era, customers need personal attention and recognition through sources like instant customer support, live interaction, and social media accounts to rely on after-sales support, and this expectation is in the masses because of the introduction of conversational commerce technology. The cut-throat competition is now only among those who are able to use this latest trend in the right way to reach out and assist their potential customers in delivering convenience, personalisation, and decision support.

Are you curious to explore more and find out why conversational Commerce seems to be the new buzzword in the industry?

The term conversational commerce represents the technology that is adopted for online customer engagement by online retailers, brand marketers, and agencies to build conversational channels with their potential customers and prospects. 

In layman’s language, it is a strategic business initiative of online retailers to engage with clients using various sources of texts and voices to sell their products and services by implementing technologies like live chats, chatbots, messaging tools, voice assistants, social media accounts, etc. with a purpose of communicating to move their clients faster through the sales funnel. 

An online business starts with generating targeted traffic to your site and ends when the traffic converts into leads and finally turns into a customer. Conversion of visitors to customers can be greatly enhanced through conversational Commerce. If the technology is used at every step throughout the process of the sales funnel, it is definite that using conversational Commerce can greatly increase the likelihood of visitors becoming customers. 

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Let’s see how Conversational Commerce assists in turning every visitor into a customer and then retaining them forever, using its benefits at each stage of the sales funnel.

1. Different Stages

Stage 1: Awareness 

Initially, when customers land on your company’s website or landing page for the products or services they are looking for, they will get the same information available all over the internet and in media. However, what can capture their attention is if you can come forward and listen to what they need in terms of products and services and then provide them with a solution that is best for them. This is the first step to building a personal rapport with the client, which will build trust in your brand because by using conversational tools, you helped them with options to solve their problem.

Stage 2: Interest and Evaluation

A visitor is now your lead, and the prospect knows about your brand and your products and services. But at this stage, the prospect is comparing your offers and those of your competitors on their own purchasing parameters. This is the time when you can utilise conversational Commerce to introduce your offers and explain more about your products and services. When personalised offers and convenience are offered at this stage, you build a better comfort zone in customers’ hearts and minds and make them stay with you.

Stage 3: Action 

At this stage, the customer is ready to purchase, so it is important to keep the customer engaged so that his decision to buy turns into to actual action to buy. We have to be aware that online media is flooded with options, and it takes fractions of seconds for the prospects to get distracted and go away. The conversation and engagement will support him in his action, and if any queries or hurdles come during the process of buying, instant answers and support can fasten the process.

Stage 4: Engagement and retention

A repeated client is 10 times more profitable than a new client because the cost per acquisition is extremely low and conversion ratios are extremely high; after all, he is already your customer. Retaining was never too easy and fast till conversational Commerce was introduced. You can keep a regular check on their requirements, keep checking their feedback and take happiness ratings on the products and services. This will help you improve your engagement rates and personalise your efforts to keep your customers associated with your brand forever.

Stage 5: Referrals and Reviews

The online marketing trend is all about personalised messaging, emotional connection, and review sharing. Yes, when you can get 5-star ratings and a high number of reviews, your approach will win every customer’s heart, and that’s where conversational Commerce comes into the picture. The powerful technology here helps to get reviews and referrals from them and make them feel part of your team not just for one benefit but to reap more benefits and to keep a long-term relationship with every client.

We learned so much about how to increase sales conversions at different stages of the sales funnel, so now let’s see what type of tools and options can be used to make the best of the latest technology.

2. Type of Tools and Options

Live chat 

The most popular conversational commerce tool for interacting with customers is the real-time live chat option. These are being used by most e-commerce brands as using the live chat option gives more convenience to customers as compared to e-mails and tele support. Live chats get instant responses for faster buying decisions and also it benefits online retailers. In this manner, they can interact and provide the best support to two or more customers at a saving cost and time.


Chatbots are basically software that is programmed to communicate with customers for all types of customer support. This can be used at all stages of the sales funnel in a natural way to interact with the customer and help them with all the information and offers they deserve to know. Customers can easily get their queries sorted out in less time with the help of the chatbot in answering all doubts related to the order status, flight status, rescheduling of the flight, etc. 

Messaging Apps

Additionally, WhatsApp has become an integral part of life, and almost everyone on earth is connected to it. So when these types of apps are used for the sales and support process, the customers are super comfortable because they can communicate at their convenience in their own environment. 

Such conversation platforms also connect brands with the customer’s emotions which is extremely favourable to have better conversion. A few more that come in the messaging apps category and are being used popularly are messenger, Snapchat, telegram, etc.

Voice assistants

The popular names that define voice assistants are Alexa, Google Assistant, and Siri. The growing popularity of these assistants has encouraged online brands to associate their customer support with voice assistants to have a long-term association with their customers and to make faster sales for increased revenue. Artificial intelligence has made it possible in many ways to give more and more personalised customer support by keeping records on interests, recognising voices, etc. 

3. Conversational Commerce in E-commerce

Impact on Online Shopping

Conversational Commerce has significantly transformed the landscape of online shopping. By integrating AI-driven chatbots and messaging services into e-commerce platforms, businesses have been able to offer a more interactive and personalized shopping experience. Customers can now get recommendations, ask questions, and even complete purchases directly through chat interfaces. This shift not only makes shopping more convenient but also adds a level of personal engagement that was previously missing in the digital shopping space.

Case Studies and Success Stories

Numerous e-commerce businesses have successfully integrated Conversational Commerce, showcasing its potential. For instance, a well-known fashion retailer saw a substantial increase in sales after implementing a chatbot that offered outfit recommendations based on customer preferences and past purchases. Another success story comes from a tech company that used Conversational Commerce to provide instant customer support, leading to higher customer satisfaction and repeat purchases. These case studies underscore the tangible benefits of Conversational Commerce in enhancing customer experience and driving business growth.

Enhancing Customer Decision-Making

Conversational Commerce aids in customer decision-making by offering tailored advice and answering product-related queries in real-time. This interactive process mimics the in-store experience where a salesperson assists customers. For example, customers can receive guidance on product features, availability, or even get help comparing different products. This immediate, personalized assistance helps in reducing the decision-making time and enhances the likelihood of a purchase.

Streamlining the Checkout Process

Another significant impact of Conversational Commerce in e-commerce is the streamlining of the checkout process. Chatbots can guide customers through a simplified checkout procedure, where they can select products, choose payment methods, and arrange delivery, all within a conversational interface. This convenience minimizes the steps needed to complete a purchase, reducing cart abandonment rates and improving overall sales.

Gathering Customer Feedback and Insights

Conversational Commerce tools are excellent for gathering customer feedback and insights in real-time. By engaging customers in post-purchase conversations, e-commerce businesses can collect valuable feedback about product satisfaction, user experience, and areas for improvement. This information is crucial for businesses to refine their offerings and enhance customer satisfaction continually.

Integration with Social Media Platforms

The integration of Conversational Commerce with social media platforms has opened up new avenues for e-commerce. Customers can now interact with businesses through popular social media messaging apps, making the shopping experience more accessible and integrated into their daily social media use. This integration not only boosts convenience for customers but also allows businesses to tap into a larger audience base, leveraging the vast user networks of social media platforms.

Through these diverse impacts and applications, Conversational Commerce in e-commerce demonstrates its vital role in shaping the future of online shopping, enhancing customer engagement, and driving business success in the digital era.

4. Conversational Commerce and Data Analytics

Data analytics is a key component of Conversational Commerce. It provides valuable insights to help businesses make better decisions and improve customer experience. Businesses can uncover patterns and preferences by analyzing data collected from customer interactions. This will lead to more personalized and effective communication strategies. This section examines the impact of data analytics on Conversational Commerce.

Leveraging consumer insights

Conversational Commerce is a personalized experience that requires a deep understanding of customer behavior. Businesses can customize their communications and offerings by leveraging data analytics to gain insights into consumer behavior. This approach increases customer satisfaction, but also loyalty and engagement. By analyzing conversation logs and purchasing history, companies can identify trends and pain points and refine their products accordingly.

Predictive Analytics: Anticipating Customer Needs

In Conversational Commerce, predictive analytics involves the use of data, statistical algorithms and machine-learning techniques to determine the likelihood of future outcomes using historical data. This allows businesses to anticipate the needs and preferences of their customers, resulting in proactive service and personalized recommendations. By delivering the right content and suggestions, predictive analytics can improve customer engagement and increase conversion rates.

Enhancing the User Experience through Data-Driven decisions

Data analytics allows businesses to make informed business decisions, which enhances the user experience of Conversational Commerce. Understanding customer interactions and preferences allows companies to optimize their conversational interfaces and make them more intuitive. This optimization results in a smoother and more enjoyable customer experience, which encourages repeat interactions and loyalty.

Real-Time analytics for immediate action

Conversational Commerce uses real-time analytics to allow businesses to respond and analyze customer interactions in real time. This immediate response is essential for meeting customer demands on the fly and for resolving problems quickly, both of which are vital to maintaining high levels of customer satisfaction. Data analysis in real-time helps adjust conversation flows, offer instant support and provide timely and relevant information.

Analysis of Customer Retention and Acquisition

Data analytics can have a major impact on customer acquisition and retention. Businesses can develop more effective engagement strategies by understanding the behavior and preferences of their customers. Data analytics-based personalized experiences not only help retain customers by catering to specific needs, but also attracts new customers with targeted marketing.

Conversational Commerce is a powerful tool that helps businesses better understand their customers. Companies can improve user experience, enhance real-time responses, and increase customer retention by leveraging consumer insights and predictive analytics. This data-driven approach marks an important step in the evolution in customer-business interaction in the digital age.

Emerging Technologies in the field

Conversational Commerce has been a fast-evolving technology, and this is one of its most exciting features. Artificial Intelligence is the leading technology, and it’s becoming more sophisticated at understanding human language. Chatbots and virtual assistance can now provide contextually relevant and nuanced responses thanks to advances in machine learning and natural language processing. These advancements are not only improving customer experience, but they also open up new avenues for customized marketing and sales strategies.

Prepare for future innovations

Preparing for future innovations will help businesses stay competitive in Conversational Commerce. This requires investing in technology platforms which can be adapted to new advances. This also includes training staff on how to integrate and manage these technologies within their existing frameworks for customer service and sales. Businesses must keep an eye out for emerging trends, and be prepared to adopt new tools that will enhance customer engagement and streamline operations.

Integrating Augmented and Virtual Reality

Conversational Commerce, which combines Augmented Reality and Virtual Reality with Conversational Commerce, is transforming the way we shop. AR allows customers to see products in their space before buying, while VR offers immersive virtual shopping experiences. These technologies, when combined with conversational user interfaces, can make online shopping interactive and realistic, thus bridging that gap between online and store experiences.

Expanding into new markets and demographics

Conversational Commerce will expand to new markets, demographics and languages. Businesses can use conversational interfaces as technology becomes more widely available. The expansion doesn’t stop at geographical reach. It also involves catering to various age groups and consumer tastes, diversifying the market.

AI Enhances Personalization

Conversational Commerce’s future will be enhanced by AI capabilities. AI algorithms are getting better at analyzing data and customer behavior in order to provide highly personalized solutions and recommendations. This level of customization can lead to a deeper engagement with customers, increased loyalty and higher conversion rates.

AI and Data Ethics

Conversational Commerce will continue to grow and the ethical use of AI and data will become more important. Businesses must ensure that they use customer data in a responsible and transparent manner, while maintaining privacy and trust. It is important to adhere to the data protection laws and ethical AI practices in order for brands and customer relationships to last.


Conversational Commerce, which is fueled by the popularity of online messaging, connects businesses and customers by digital messaging using various tools as discussed above and allows brands to deliver personalised customer service via digital channels to digital shoppers. With the right optimisation, conversational Commerce enables businesses to answer questions quickly, recommend products, offer discounts, request feedback, and convert customers.

Conversational Commerce is a major shift in customer interaction and business strategy. The emergence of Conversational Commerce as a powerful tool in the digital era underscores the importance of personalized, responsive customer engagement. This approach enhances not only the user experience, but also streamlines business processes leading to an increase in efficiency and customer satisfaction. Integration of AI and machine-learning technologies with human-centric channels of communication has created new opportunities for businesses to better connect with customers. This field will continue to evolve and it will redefine the paradigms for customer service, sales, and marketing. It will foster a more dynamic and interconnected commercial environment.


Q. What is Conversational commerce?

Conversational Commerce uses chatbots and AI to improve the shopping experience. It streamlines the purchasing process and offers personalized interactions with customers.

Q. What are the benefits of Conversational Commerce for businesses?

It improves customer service, increases sales and enhances customer engagement. Through personalized interactions, businesses see better conversion rates and greater customer loyalty.

Q. Can Small Businesses Implement Conversational Commerce?

Yes, Small Business can use affordable tools and platforms for Conversational Commerce. This approach can improve customer interactions and is scalable.

Q. Is Conversational Commerce Secure?

Yes, if implemented with strong privacy and data protection measures. To protect customer data and maintain trust, businesses must prioritize security.

Q. What will the future of Conversational Commerce look like?

The future is expected to include more advanced AI, augmented realities, and personalization. Voice commerce and deeper social media integration are among the future trends.

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