By Harsha Solanki
“Navratri is almost here! Have you decided what will you wear on Durga Puja? Don’t worry, we have sorted it for you!” It might look like a message from a friend, but it is a WhatsApp text from a fashion e-commerce company as part of their latest marketing strategy ahead of the festival season in India. It is just one example of how conversational commerce is revolutionizing retail. While the transformation began with the emergence of e-commerce platforms, conversational commerce is now its driving force, especially with customers expecting conversational everything.
Conversational commerce enables brands to offer personalized shopping experiences and automated customer service and drive sales through conversational tools like AI-powered chatbots and messaging channels such as WhatsApp and Messenger. With the soaring mobile and internet penetration in India, conversational commerce has emerged as a pivotal digital strategy for brands that want to gain an edge in the complex and hypercompetitive business landscape. According to the latest IDC Infobrief whitepaper, about 63% of organizations in India plan to increase their communications platform spending over 2023-24 to forge stronger connections and deliver enhanced interactions with their customers by leveraging conversational commerce.
But how is conversational commerce personalizing shopping, automating customer service, and propelling brand growth, especially with the upcoming festive season?
Weaving Personalised Shopping Experience
Customers spend a reasonable amount of time on WhatsApp in a day, making it an excellent platform for businesses to stay in touch with them. Brands can personalize shopping for customers by leveraging chatbots on such messaging apps. They send personalized recommendations based on their historical preferences on the website and send updates on the latest promotional campaigns and product launches. Since it’s a chatbot, the conversation is not just one-way. Customers can ask the chatbot for more information, fostering a stronger relationship with the brand and building trust.
Automate Customer Service Amidst Festive Rush
A brand’s presence on messaging apps just for promotional messages and reminders can be irksome for customers if they can’t get in touch when they need support. This is where AI chatbots simplify matters for brands. It can be challenging to manually revert to every customer query on the messaging apps, especially during the hectic holiday season. AI helps businesses address customer queries much more quickly and efficiently. Not only do they get quick responses, but the chatbot can also connect them with customer service executives if the issue requires additional support. It is an excellent approach to building a loyal customer base, as it assures 24/7 support and availability.
Amplify Sales
Conversational commerce is not limited to just personalising shopping and supporting customers. It has a crucial role in enabling businesses to amplify their sales. You may wonder how. Around 70% of shoppers leave their carts without purchasing the products, and various factors may contribute to the customer’s decision not to complete the transaction. This is where conversational commerce steps in. With an AI chatbot, the brand can reach out to customers on WhatsApp or a preferred communication channel with a reminder to complete their purchase. It also offers them an opportunity to answer any query a customer might have about the product, assisting them in finalizing the transaction. It is an essential tool to convert leads into sales and enhance business growth.
Conclusion
The emergence of e-commerce was the outcome of technological advancements of the time to enable people to shop while sitting in the comfort of their living rooms. It was revolutionary. As technology has continued advancing in the past two decades, customer expectations have also evolved. They expect a simulation of an offline shopping experience while they shop online, which is more conversational, resulting in the emergence of conversational commerce.
The integration of the technology into brand strategies leads to a significant increase in customer satisfaction. With an omnichannel communication approach, businesses can also drive their online sales during the festivals. They also benefit from lower operational costs and data analysis. As conversational commerce progresses, there will be further transformations in online retail and businesses need to stay prepared to be the first ones to adopt it for growth benefits.
The author is the VP GM-Asia of Infobip