In this research note, we aim to formally define the principles and attributes of conversational commerce as well as its benefits and factors that differentiate it from traditional web chat support channels.
Even prior to the COVID-19 pandemic, organizations were seeking new opportunities to monetize their dialogue with customers. The pandemic has accelerated the push to open new self-service and assisted commerce channels. After all, every customer interaction is an opportunity to engage in a conversation, enhance one’s brand value, and potentially convert this dialogue into revenue—hence the concept of conversational commerce.
- How does Conversational Commerce fit into Agile Monetization?
- When will Conversational Commerce adoption move into the mainstream?
- What is the business case for adopting Conversational Commerce?
- Who are the winners and losers in Conversational Commerce?
Against the backdrop of the COVID-19 pandemic, we see a renewed push to automate and enable self-service, including in commerce and monetization. This is what sets Conversational Commerce apart from chat and chatbots. We expect that, by 2025, more than 30% of e-commerce transaction value will involve some form of Conversational Commerce.
Conversational Commerce offers organizations of all sizes four distinct opportunities to incrementally drive e-commerce conversion and grow topline revenue:
- Monetize customer support and product inquiry chat
- Increase level of engagement with consumers and reach new prospects
- Transform a low-tech, unstructured, text-only chat channel into a highly capable and structured customer engagement and commerce mechanism
- Increase cross-sell opportunity across all channels
Conversational Commerce should be a key consideration for any commerce strategy. It touches on all aspects of digital interactions and consumer journeys. It drives efficiency through scale and automation while increasing customer satisfaction through engagement, context, and relevance. The most measurable ROI comes from the different monetization opportunities it delivers, the increase in conversion, and the collection of rich metadata. We expect significant growth in adoption of Conversational Commerce over the next 23 to 48 months, especially as pandemic-coping strategies drive interest in this area.