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.
“Consumers are already using these channels daily to interact with brands, whether through ads or organic content and forcing them to move to another channel to actually purchase something may lead to abandonment. Why not expand this engagement to include purchasing?”
Kania calls for conversational commerce advocates to adopt the approaches of some e-commerce masters. “Ease of use is key to any successful business. Look at Amazon and Netflix. Their entire business models are centred around convenience and frictionless experiences, and that’s a large part of why they’re so successful. Customers want ease of use.”
Personal
Kania notes personalisation is key too. “We find that customers are searching for more personalisation. A conversational commerce strategy facilitates a highly personalised dialogue between your brand and a customer. These intimate interactions can build a relationship, deepen trust and loyalty, and ultimately facilitate business growth.”
Be more strategic, Kania says. “Paired with the power of omnichannel communications, conversational commerce allows your brand to offer consumers 24/7 purchasing support, no matter where they are. This level of service undoubtedly will result in increased growth, enhanced customer experience, and sustained loyalty.
To be able to take advantage of conversational commerce, companies often need help in integrating their retail systems to the channels they want to use, and Mitto is ready to help. It offers various communications services through its own API, myriad tech stack integrations, and its own pre-built solution – Mitto Conversations.
