The opportunities around “conversational commerce” have been talked about for a while. Here, Mitto explores the possibilities for growth going forward – with the right approach.
Conversational commerce is the integration of retail systems and payment platforms into communications channels like Facebook, Instagram and WhatsApp, for instance. We’re already seeing platforms offer it, but how will companies be using it efficiently going forward?
It's imperative that companies move fast to make sure they aren't behind the curve. After all, hundreds of millions of Chinese customers are already taking advantage of the technology on WeChat, owned by Tencent, one of China’s mightiest tech giants.
Big growth
According to Juniper Research, in a report published last summer, sales made via conversational commerce channels will grow more than seven-fold, from $41 billion in 2021 to $290 billion by 2025.
There are four key conversational commerce channels. These are chatbots, OTT (over-the-top) messaging apps, RCS (rich communication services) messaging and voice assistants. By 2025, says Juniper, half of the money going through conversational commerce channels will be handled by chatbots.
Applying a conversational commerce strategy creates an end-to-end customer purchasing experience, enabling businesses to guide a shopper just as they would in a physical store. You can answer their questions in real-time, provide recommendations, and ultimately process payment within a single communication channel.
Friction-free
Mitto’s CTO, Ramon Kania, says: “Anyone in marketing, customer experience or sales knows that even the slightest friction along the buyer's journey can result in an abandoned purchase. So let's remove any friction by delivering an end-to-end experience within, for example, Facebook Messenger or Instagram.
