May 24, 2023
Conversational commerce isn’t a new term. Since the first television ad aired in 1941, companies have tried to improve how they interact with and engage their target customers. Today, the global conversational commerce market is valued at USD 14.9 billion in 2024 and continues to grow rapidly.
Over the past 60 years, we’ve seen advertising evolve to include new channels and capabilities ranging from direct mail to social media to hyper-targeted smart TV promotions. Today though, there’s a new way of connecting with your customers: conversational commerce.
What is conversational commerce?
Conversational commerce is the use of messaging apps, chatbots, and voice assistants to help customers discover, research, and buy products in real time. It enables brands to interact with shoppers directly, answer questions, and guide purchases through digital conversations.
The phrase “conversational commerce” was popularized by Silicon Valley product designer Chris Messina in a 2015 Medium post. (Fun fact: Messina also invented the word “hashtag.”)
In his post, which came out a few months after the launch of the Amazon Echo smart speaker, Messina said the rise of voice assistants and messaging services would change the game for how brands interact with their customers. He predicted that more brands would use specialized apps to deliver, “convenience, personalization, and decision support while people are on the go.“
- Direct engagement: Brands can answer questions and guide purchases instantly.
- Personalized support: Shoppers get tailored advice and recommendations.
Brands of all sizes now use interactive tools to engage customers, making shopping more convenient and enjoyable for everyone. In fact, 70% of brands are already leveraging artificial intelligence to communicate with customers through personalized recommendations and support.
In one Facebook survey, almost 70% of respondents said being able to message a brand makes them feel more confident about the company. In another survey, 75% say they’re likely to spend more with a brand if they can message rather than call them.
The conversational commerce market was valued at almost $6 billion in 2019 and is expected to reach USD 63.4 billion by 2034.
Benefits of conversational commerce
Conversational commerce benefits both brands and shoppers by making buying easier and more personal. Key advantages include:
- Building trust and increasing sales through real-time conversations is crucial, as 67% of consumers value messaging-based brand interaction and prefer chatbots for quick responses.
- Boosting conversion rates and customer loyalty
- Providing valuable insights into shopper behavior
- Enhanced customer experience: Shoppers get instant support and advice, which increases satisfaction and confidence in your brand.
- Increased conversion rates: Real-time conversations drive more purchases and reduce friction in the buying journey—AI-powered chat interactions have increased conversion rates by up to 23%.
- Higher customer loyalty: Personalized engagement fosters stronger relationships and repeat business, as 78% show higher repeat purchase intent with personalized experiences.
- Valuable insights: Every interaction is an opportunity to learn more about your customers’ preferences and needs.
- Operational efficiency: Automated tools like chatbots handle routine questions and free up your team for more complex support, leading to average cost savings of 30% in customer service operations.
Conversational commerce examples
When it comes to engaging your customers, there are multiple conversational commerce platforms and tools for you to choose from.
- Chatbots: Automate responses and guide customers through routine questions and recommendations.
- Live chat: Human agents provide personalized support and resolve complex issues in real time.
- Messaging apps: Let brands interact directly with customers on channels they use every day.
- Voice assistants: Offer hands-free convenience for search, ordering, and support.
1. Chatbots
A chatbot uses software to mimic the natural cadence and context of a human conversation. These vary from tools that can answer common customer queries to advanced “digital assistants” that make the user feel like there’s a real-life agent on the other side of the screen.
They can be used on your website and in the messaging platforms your customers already use every day. Since they’re fairly quick and easy to implement, chatbots are a popular choice for brands just getting started with conversational commerce— chatbots commanded 64% of the market in 2024.
2. Live chat
Many consumers are familiar with using live chat for their customer support inquiries. But these services can be valuable throughout the buying journey, allowing customers to quickly find the information they need to feel more confident about their purchases.
3. Messaging apps
Apps like Messenger and Telegram are becoming increasingly popular conversational commerce platforms. They allow consumers to engage with brands privately, at their convenience— 68% of adults globally use messaging apps daily. Users also appreciate the ability to use common messaging icons like emojis, GIFs, and memes.
4. Voice assistants
Voice assistants like Siri and Alexa use artificial intelligence, machine learning, and natural language processing to allow users to run internet searches and conduct simple tasks with the sound of their voice— 17% of consumers already using voice assistants for shopping.
The hands-free convenience empowers users to multitask. For example, when you’re baking you can ask Siri how many teaspoons are in a cup — without having to wash the flour off your hands.
Conversational commerce use cases
Part of the success of conversational commerce is its ability to meet customers where they are, rather than forcing them to visit a website or their inbox.
Conversational commerce platforms encourage two-way dialogue instead of one-way ads or emails. Like a helpful store assistant, these tools make online shopping more personal and give shoppers the advice they need to make confident purchases.
Here are several examples of how your brand could use conversational commerce throughout the customer journey:
- Awareness: The average business person sends and receives a whopping 126 emails per day. When trying to drive more awareness about your campaigns and special promotions, conversational commerce tools can be an excellent alternative to email marketing. They allow for better engagement, as users can set the alerts to come in at a schedule that works for them.
In-app messaging gives customers more control and delivers results, with open rates close to 75%, over 45 times higher than email.
In addition to in-app messaging, you can also use chatbots and live chat to drive interaction on your site. For example, look at what we do at Bazaarvoice.com to increase awareness about the benefits of working with us. You may have seen it pop up in the bottom right of your screen.
If the user clicks “Sure!”, the bot asks a series of questions about their needs and then directs them to the appropriate landing page. This helps us better engage potential customers while increasing awareness about our programs and services.
- Research and consideration: When shopping online, it can be hard to sort through all of the options to find just the right product for your needs and preferences. Conversational commerce platforms can make the research and consideration stage more interactive, fun, and human-like for shoppers.
For example, H&M positions its chatbot as a personal stylist. The bot uses a series of questions to get a sense of the shopper’s tastes and style. It then presents different options and lets the user pick the item they prefer. Based on the user’s feedback, the bot continues to help the shopper find what they need and then offers products for them to save, share, or buy.
The tool also allows customers to preview the latest fashion trends, see outfits that have been created for other users, and browse items based on their tastes.
- Purchase: Dominoes was a conversational commerce early adopter, allowing customers to order a pizza simply by typing “🍕” in a text. The dream.
Another is the coffee giant Starbucks, which uses conversational commerce to improve the purchasing experience. Customers can use the brand’s barista bot to order and pay for their tall caramel frappuccinos and grande vanilla lattes. Once their drink is ready, customers receive a notification and can skip the line to get their caffeine fix.
The app is voice-activated, making it even easier for users to order their favorite coffees and snacks. The tool also allows customers to track their rewards points and redeem special offers.
Adding a chatbot to your checkout page is a quick win, as 47% of shoppers would consider buying through a chatbot and it can clarify shipping and returns instantly. Chatbot-powered websites saw a 23% boost in conversion rate compared to those without.
- Post-purchase: In addition to answering questions during the sale, chatbots can also help automate your post-purchase customer engagement.
The office supply store Staples is well known for its “easy button” promotions. In these ads, the store says finding and purchasing whatever you’re looking for is as easy as pushing a big red button.
Staples brought the easy button to life with its “Easy System” customer support messaging app. Built in partnership with IBM’s Watson, the bot can handle most customer support questions. It also makes repeat orders a breeze for procurement teams.
Conversational commerce tools can also help with your upselling and cross-selling strategies. Let a chatbot reach out to customers when the product they most recently purchased is likely running low and remind them to reorder—conversational AI prompts help recover nearly 35% of abandoned carts.
In addition, you could use live chat to make recommendations based on past purchases or highlight complementary products.
- Brand loyalty: We also love the idea of using conversational commerce tools to build brand loyalty.
For inspiration, check out Casper’s Insomnobot3000. The site uses a chatbot to “hang out” with customers who are having trouble falling or staying asleep. It loves talking about popular TV shows like Seinfeld and Stranger Things, as well as the merits of pizza and waffles.
Sure it might be a bit too Black Mirror. But Casper’s Insomnobot3000 is so engaging it was nominated for several awards and has been featured in multiple marketing publications.
Types of conversational commerce platforms and tools
Choosing the right tools is key to a successful strategy. The main platforms for conversational commerce include chatbots for automated assistance, live chat for real-time human support, messaging apps like Messenger for on-the-go convenience, and voice assistants for hands-free shopping. Each tool serves a different purpose, and the best approach often combines them to create a seamless customer journey—82% of shoppers are more likely to buy from brands that deliver ‘omnichannel conversational experiences’.
- Chatbots: Automate responses and guide customers through routine questions and recommendations.
- Live chat: Human agents provide personalized support and resolve complex issues in real time.
- Messaging apps: Let brands interact directly with customers on channels they use every day.
- Voice assistants: Offer hands-free convenience for search, ordering, and support.
Chatbot vs. human support in conversational commerce
Effective conversational commerce combines chatbots for quick, routine answers and human support for complex or sensitive issues— 62% of consumers prefer using a chatbot over waiting for a human agent. Here’s how they compare:
| Chatbots | Human Support |
| Instant, 24/7 responses to common questions | Handles complex or emotional situations |
| Automates routine tasks | Builds trust and loyalty through empathy |
Case study: Real-world results with conversational commerce
Brands that embrace conversational commerce see measurable results. For example, a leading home goods retailer implemented a chatbot to help shoppers find complementary products. By asking simple questions about style and color, the bot provided personalized recommendations directly in the chat window. This approach not only improved the customer experience but also led to a significant increase in average order value—businesses that excel with AI-driven personalization see up to 40% more revenue.
Another retailer used live chat during their busiest sales season to handle complex questions and recommend bundles to high-intent shoppers. The result? Higher conversion rates, more satisfied customers, and a boost in repeat purchases.
Getting started with conversational commerce
Like anything new, it can be difficult knowing where to begin. Here’s the best practices to follow for getting started with your conversational commerce strategy—83% of businesses plan to increase investment in conversational marketing this year.
- Identify your needs: Conversational commerce can do a lot, from helping you reduce shopping cart abandonment to improving the customer service experience. Before you start your journey, think about the goals you’d like to achieve and the areas of your business you want to support.
- Do your research: The goal is to meet customers where they are. To achieve that, you need to do your research to find out which apps and services your customers are already using. According to Zendesk, 45% of consumers prefer to use embedded messaging to interact with brands, while over 30% prefer social media messaging apps like Facebook’s Messenger.
- Don’t focus just on selling: The most successful brands use conversational commerce tools to support their customers throughout the buying journey. You want a solution that can harness the power of data to continue the conversation on every touchpoint.
- Ask for demos: There are so many conversational commerce platforms for you to choose from. To help you find the best solution for your needs and your customers’, sign up for demos, free trials, and webinars. You want to find a solution that will work with your current technology setup and capabilities.
- Decide what success looks like: The goals you set before starting your conversational commerce should shape the KPIs you use to measure its success. Look for a tool that offers real-time visibility into metrics like conversion rates and customer satisfaction scores.
- Make sure your mobile experience is up to snuff: With many conversational commerce interactions taking place on smartphones, you want to make sure your mobile website is modern and adheres to best practices for user experience. Today, just shy of 73% of online sales take place on a mobile device, and 67% of consumers value messaging a brand through mobile apps.
How to measure success with conversational commerce
To understand the impact of your efforts, focus on a few key metrics. Track conversion rates from chat interactions, monitor customer satisfaction scores, and measure the reduction in support ticket volume. These data points will help you demonstrate ROI and identify areas for improvement. Success isn’t just about having conversations; it’s about having conversations that drive business results.
- Conversion rate: Review how many conversations lead to a sale or completed action.
- Customer satisfaction: Use post-interaction surveys to gauge how helpful your conversational tools are.
- First-contact resolution: See how often issues are solved in a single chat.
- Support volume: Monitor changes in the number of support tickets after implementing new tools.
How to win at conversational commerce
The best way to get started with conversational commerce is to work with a platform who can do it for you. Our Questions & Answers portal allows you to quickly implement and manage a conversational commerce strategy that works for your brand, team, and customers.
With Questions & Answers, you can quickly and easily reply to customer questions on over 1,750 retail sites, increasing brand awareness and allowing you to respond to customers wherever they shop. Our clients have seen as much as a 98% increase in conversions thanks to Questions and Answers, as well as a 50% decrease in support center costs.
Frequently asked questions about conversational commerce
What is the meaning of conversational commerce?
Conversational commerce is when brands use chatbots, messaging apps, or voice assistants to help customers shop and get support through real-time conversations.
What are some examples of conversational marketing in commerce?
- A chatbot recommending the right size
- Order updates sent via Facebook Messenger
- Voice assistants reordering a favorite product
Which platforms are most associated with conversational commerce?
- Website chatbots and live chat
- Social messaging apps like Facebook Messenger and WhatsApp
- Voice assistants such as Amazon Alexa and Google Assistant
How do chatbots compare to human support in conversational commerce?
Chatbots provide instant, 24/7 answers for routine questions, while human support handles complex or sensitive issues. The best approach combines both for a seamless customer experience.
How can I get started with conversational commerce?
Begin by identifying your business goals and the areas where conversational tools can make the biggest impact. Research the platforms your customers use, pilot a chatbot or live chat on your site, and measure the results. Keep refining your strategy based on what your customers respond to most.
