Four Reasons Why Conversational Commerce is the Future of Customer Engagement

A communications revolution mixed with the rapid development of new technologies has caused the way we connect to evolve. As communication methods advance though, so too do customer expectations.

Customers today expect companies to be able to immediately and seamlessly connect with them anywhere and everywhere, in the channel that is most convenient and contextually relevant to them. This could be text messaging, social chat, voice calls, video, you name it. The foundation of conversational commerce is the ability to engage with customers along every step of the customer journey, in whichever channel they prefer – essentially, a customer-first approach that enables more meaningful conversations.

Let’s explore four benefits of conversational commerce and why it represents the future of customer engagement.

Timely customer support increases loyalty and trust

Consumers today demand rich experiences with brands and increasingly choose to engage with retail companies that have the tools in place to provide a frictionless and multichannel shopping experience. For example, mobile devices are at the center of most of all of our lives today. For this reason, they should be key to any companies’ business model when it comes to engaging with customers. Businesses – especially retailers – can utilize the intersection of their e-commerce and social channels to engage and complete sales with customers – right from their smartphones and through the apps they are already using. This is conversational commerce.

Self-service chatbots, in-app messaging and personal shopping assistants – these tools can help move consumers through the purchasing cycle by anticipating questions (where’s my order?), flagging items for follow up (alerting a customer that an item just came back in stock), or helping with next steps (like scheduling an in-store visit). These tools also help customers avoid having to make voice calls to customer support lines with complex phone trees and long hold times.

Anticipating customer needs and offering real-time customer support through conversational commerce brings forward new intelligence and insights, which can help drive customer acquisition, engagement, loyalty and trust across the board while supporting customers in a timely manner.

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Engage customers where they are comfortable

Consumers today are most likely to engage with their favorite brands on the channels they enjoy using most frequently in their personal lives, which for many are chat apps on their smartphone. While it’s true that messaging is convenient and fast, and has become vital to a modern customer experience, preferences can change at any given time. That’s why conversational commerce tools extend to other digital options like voice and live video as well to meet customers wherever they are most comfortable at any given moment.

According to Vonage’s 2021 Global Customer Engagement Report, 48% of consumers have increased their digital engagement with retailers and e-commerce platforms since the pandemic began. Additional research shows that mobile commerce is emerging as a defining channel for many organizations and is expected to double its share of retail sales, with the percentage of transactions from mobile/digital wallets projected to rise to 52.5% of transaction volume in 2025.  These data points further support the notion that consumers have a preference toward brands that utilize these tools and channels.

It has become table stakes for companies to quickly integrate with the channels their customers feel most comfortable using. Conversational commerce allows them to do this in a way that means customers receive real-time customer engagement on their preferred channels and are more likely to return and/or complete a purchase.

Personalized experiences and enhanced convenience

One of the biggest benefits of conversational commerce is that it allows for consumers to still receive a customer-centric shopping experience from a brand without them having to visit a physical store. For example, virtual assistants can make personalized recommendations and help customers complete their purchases directly on their smartphones.

Conversational commerce chatbots can also virtually simulate an in-store experience for customers. Virtual chat bots can engage a customer in conversation, listen to what they want and offer on-target recommendations, completely transforming customer engagement from a boring and difficult process, to one that is personalized, user-friendly and easy. In a similar vein, in-store associates can also switch to video and provide advice directly to customers for a more personal, human touch.

By utilizing customer-preferred communications channels like voice assistants, video or messaging apps that provide personalized experiences and enhanced convenience, companies can greatly improve overall customer satisfaction rates and retail sales.

Businesses of all sizes can be responsive without getting overwhelmed

For larger companies, scaling customer experience offerings can often be done with ease, but for smaller companies it may be more difficult to do so. Depending on the size of a business and amount of support staff available, responding to every customer inquiry can be a daunting task. Utilizing conversational commerce automation tools like chatbots can help companies when it comes to supporting customers with easier tasks and more frequently asked questions, freeing up time for employees to focus on larger, more complex issues.

Through technologies like artificial intelligence (AI) for chatbot messaging paired with human support when needed, brands of any size can create a better overall customer – and employee – experience. This allows companies to remain agile and responsive without getting overwhelmed and can also help meet other objectives like increasing loyalty, driving additional sales and reducing friction within the customer journey.

Conclusion

Consumers today are more comfortable with technology than ever before and expect intuitive, automated features from brands that keep them engaged while still getting the information they need. Shopping and communicating with brands shouldn’t be a chore for customers – technology can make the process seamless for both the customer and the business. Conversational commerce is the future of customer engagement because it merges together the best of e-commerce and social channels to interact with customers and engage them with a brand or company in the ways the customer prefers, ultimately resulting in increased loyalty and – hopefully – higher sales.

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Author Biography

Yash Kotak is the Senior Director of Product Management at Vonage.