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Conversational Commerce: Connecting With Customers!


Vijay Kumar

Senior Specialist - Marketing @ Shiprocket

April 9, 2024

8 min read

In today’s corporate environment, customer experience plays a major role in the success of online retail businesses. That is why providing excellent customer service is just as important as offering premium products at competitive prices.

Conversational commerce, also known as chat commerce or conversational marketing, is an innovative approach that allows online companies to utilise conversations to market and sell their products and services. Businesses are beginning to interact and establish a direct connection with their clients more often by using this tactic.

Studies indicate that global spending on conversational commerce channels will surpass USD 290 billion by 2025. So, let’s examine how your company may utilise conversational commerce to enhance customer interaction and sales.

Conversational commerce is a revolutionary approach to online business-customer interaction during the digital purchase process. This strategy encourages genuine conversations that strengthen relationships, as opposed to inundating customers with unsettling pop-ups or banners.

Using chat and messaging apps to engage consumers and enable in-the-moment transactions is known as conversational commerce. This conversation can take place through several platforms, including messaging apps like WhatsApp, chat widgets on websites, and SMS. The goal is to easily help clients make educated purchase decisions, whether it’s through a chatbot or a real agent driven by AI.

Conversational commerce has many different goals.

  1. Personalisation: Ensuring that clients receive assistance and direction while they buy.
  1. Sales facilitation: Using prompt reminders and live chat support to guide consumers through the purchasing process.
  1. Marketing: Presenting new goods and services to consumers.
  1. Post-Purchase Support: Continuing to help and offer advice following the completion of a transaction.

A growing number of firms are using AI-powered chatbots and virtual assistants to improve client interactions and expedite the purchasing experience. It is claimed that businesses may reduce customer care costs by up to 30% by implementing conversational chatbots. Companies that enable smooth, customised dialogues are seeing substantial growth. 

Why are Companies Adopting Conversational Commerce for eCommerce Marketing?

Conversational commerce is becoming more and more popular among businesses since it replicates for customers the comfortable, in-store purchasing experience from the convenience of their house. This strategy helps companies meet their goals more quickly while also improving consumer satisfaction. Some other reasons for adopting conversational commerce are:

  • Reducing Cart Abandonment: The average cart abandonment rate is estimated to be 70.19%, which is a major issue for eCommerce businesses. To solve this, conversational commerce identifies the causes of abandonment such as expensive shipping or a difficult checkout procedure, and provides a solution.
  • Closing Possible Leads: Conversational commerce platforms help customers explore offers. By employing chatbots on checkout pages and customising live chat greetings, businesses may provide real-time information and assist them in making educated decisions.
  • Offering Post-Purchase Support: Conversational commerce solutions allow companies to communicate with consumers who require additional help with purchasing, resolving issues, and obtaining feedback through organic dialogues.
  • Upselling and Cross-Selling: These tactics can boost revenue by providing customised product suggestions through real-time conversation and leveraging Messenger chatbots. This helps to reach out to past clients and remind them about related items or substitutes.
  • Building Customer Loyalty: By helping consumers at every step of the way, businesses can create stronger bonds and instil confidence in their clients. The brand is positively reflected by chatbots that share promotional offers and voice assistants who offer help. This increases consumer loyalty.

Prominent Brands Employing the Conversational Commerce Strategy

Some of the popular brands that are successfully utilising the conversational commerce strategy are:

  1. Sephora: To provide customised product recommendations based on user preferences, Sephora introduced a makeup bot on Kik. By putting up quizzes and providing product evaluations and how-to videos, the business encouraged consumers to buy straight through the app. This technique effectively promoted the items and content while increasing sales.
  1. H&M: Using Kik, H&M employed a chatbot to ask customers questions about their tastes and preferences and then provided personalised product recommendations. As a personal stylist, H&M’s chatbot streamlined the shopping experience, saving customers time and effort.
  1. Starbucks: Starbucks introduced a smart barista bot for ordering and paying for coffee, minimising customer wait times and hassle. Once the order is ready, customers receive an alert notification, ensuring immediate service without the need to stand in line.
  1. WHO: The World Health Organization used chatbots to deliver accurate information and updates on the COVID-19 pandemic on social media sites like Facebook Messenger and WhatsApp. More than 19 languages were supported by these chatbots, which ensured that millions of people including those with low reading levels had fair access to important health information.
  1. Instacart: Instacart employs customer surveys, tailored offers, delivery notifications, and SMS order confirmations. Clients can get timely responses and updates on their orders through their two-way real-time communication.
  1. Domino’s: Domino’s AnyWare initiative streamlined ordering by letting customers make orders via SMS, Slack, or Facebook Messenger. Reducing friction in the customer process helped Domino’s increase conversions and offer tailored experiences across several channels of contact.
  1. Netflix: To provide suggestions and let users know about new episodes, Netflix interacts with users using WhatsApp. This strategy improves client retention by reaching out to subscribers and proactively distributing material.

Steps to Implement Conversational Commerce in Your Business

Here are the steps to add conversational commerce to your eCommerce business:

Step 1: Think About its Advantages

Begin by researching how conversational commerce might help your company. Consider what kind of goods or services you provide and how clients could interact with you via these innovative chat platforms. You can use these tools to help with product suggestions, customer assistance, or direct transactions.

Step 2: Select Channels of Communication

The methods of communication you use to interact with your consumers should thus be carefully chosen. Examine channels such as email, text messaging, Facebook Messenger, Instagram Direct, and your website. Selecting channels that appeal to the tastes of your target audience as well as your company objectives is crucial to successfully incorporate conversational commerce.

Step 3: Choose a Tool for Communication

Selecting the communication system that will enable exchanges is the next step after determining your chosen routes. You can select a complete customer relationship management (CRM) software that connects many message channels and provides powerful conversation management tools. You can also look at stand-alone artificial intelligence (AI) chatbot systems that automate interactions and offer clients real-time help.

Step 4: Create Conversational Pathways

Once you’ve chosen your communication tool, carefully consider how you want your consumers to engage with you. Design these conversation channels taking into account the various touchpoints and contexts. To guarantee a seamless productive client experience, include components like welcomes, input prompts, and answers to frequently asked questions.

Step 5: Examine and Resolve Problems

To find any possible problems or places for development, thoroughly test your conversational commerce plan before putting it into action. To make sure there is uniformity and functioning, test the conversation channels on several platforms.

Step 6: Assess Performance

After your plan for conversational commerce is live, use pertinent metrics and key performance indicators (KPIs) to regularly monitor its performance. Monitor customer satisfaction ratings, response times, conversion rates, and customer involvement for relevant data. Examine the information collected to find patterns, areas for improvement, and potential for optimisation. To make your conversational commerce initiatives more effective, make regular adjustments to your strategy based on these observations.

Transform Your eCommerce Communication with Shiprocket Engage.

Shiprocket Engage offers solutions to enhance client interactions while streamlining communication for your eCommerce business. It has over 3000 eCommerce clients. Shiprocket Engage offers crucial features including address verification to cut down on returns, order confirmation via WhatsApp, and the ability to convert cash on delivery purchases to prepaid for easier deliveries. 

With its automated WhatsApp tool, Shiprocket Engage lowers return rates by up to 40% and engages clients after the sale to minimise returns. Its additional features empower your brand to streamline communication and growth, making it easier for you to become a customer favourite in the competitive eCommerce market. Using Shiprocket Engage, you can promote loyalty and automate correspondence to achieve long-term performance.


Roughly 60% of B2B sellers will rely on conversational interfaces driven by generative AI technology by 2028. This implies that voice assistants, chat applications, and bots will all be essential in commercial operations. Conversational commerce provides various benefits for brands that use these real-time communication capabilities.

Building long-lasting connections with customers while marketing and selling your items is made possible via conversational commerce. Consumers value ease of use and time savings, so providing them with the right support could boost their shopping experience. These marketing techniques can provide significant returns on investment by successfully satisfying customer requirements. 

What are the conversational commerce statistics?

Globally, there is a growing need for conversational commerce, which combines natural language processing, artificial intelligence, and chatbots to offer seamless customer experience. From 2024 to 2034, the conversational commerce market is expected to grow at an astonishing 16.3% compound annual growth rate (CAGR) and reach USD 34.41 billion.

What distinguishes conversational marketing from conversational commerce?

Using conversation-based technologies to engage with clients is the basis of both conversational marketing and conversational commerce. The main distinction is that conversational marketing aims to raise customer awareness and involvement, whereas conversational commerce is primarily concerned with the selling of goods.

What difficulties does conversational commerce present?

Conversational commerce has numerous benefits, but there are also some difficulties that companies need to take into account. It’s critical to realise that for some customers, the absence of human help might make the purchasing process more difficult.

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