India is set to secure the top spot in retail e-commerce development from 2023 to 2027, according to Statista. With the exponential growth of online shopping, leading enterprises are embracing digital solutions to keep up with shifting customer preferences. 64.6 percent of the global population uses the internet as of April 2023, and the number of smartphone users in India is projected to surpass one billion this year. The advanced functionalities of smartphones and increased internet penetration in the country have led to a growing number of online and eCommerce marketplaces, intensifying competition among businesses. As a result, companies are turning to conversational commerce to stand out from the crowd and gain a competitive advantage.

The Need for Conversational Commerce

The modern customer journey is hardly linear, and businesses must adopt new-age technologies to facilitate complex digital experiences. Conversational commerce helps businesses anticipate customer needs and effectively guide customers toward a purchase. By 2028, the conversational commerce transaction value in India is expected to reach 51,970.9 million USD.

To get the most out of conversational commerce, businesses are using an omnichannel approach that includes WhatsApp, RCS, Video, and Voice, in addition to traditional digital channels. WhatsApp Business now has more than 200 million global users, and 35% of business leaders say that it is easier to close sales deals with virtual agents.

With Kaleyra, you can leverage the rich features of the WhatsApp Business Platform to simplify communication flows for increased productivity. With the platform’s advanced capabilities, businesses can set up predefined responses and drive conversions through meaningful conversations. Powered by AI-based technologies, conversational channels such as WhatsApp can create customer buckets and derive actionable insights for business growth.

More than 80% of customers consider trust a deciding factor in their buying decisions, according to a Harvard Business Review survey. Kaleyra’s WebRTC-based Video/Audio calling solution enables customers to have face-to-face interactions that build trust. One of the most programmable solutions on the market, Kaleyra’s secure platform makes it easy for businesses to embed and customize a Video communication channel to offer immersive customer experiences.

Personalization is key to winning customers’ hearts, and McKinsey & Company’s findings show that 71% of customers expect personalized interactions from businesses. Kaleyra’s SMS integrations with platforms, such as Zoho, Hubspot, and Shopify, allow businesses to launch and manage customized messages and reusable templates to send promotional messages, reminders, and more. With CPaaS (Communication Platform as a Service), businesses can effortlessly leverage the functionalities of multiple messaging channels, conversational tools, and applications to offer a cohesive user experience.

CPaaS as a Gateway for Conversational Commerce

CPaaS facilitates the easy implementation of additional communication channels alongside existing platforms without investment in expensive infrastructure. Businesses can benefit from flexible APIs and low-code or no-code tools that CPaaS offers to build customized applications. The global CPaaS market is forecast to reach $29 billion by 2025, according to a Juniper report.

CPaaS platforms offer SMS, MMS, RCS (Rich Communication Services), push notifications, voice and video services, and advanced messaging channels, such as WhatsApp, Google RBM, Apple Business Chat, Meta Messenger, Telegram, WeChat, and Viber. In addition, CPaaS vendors can support rich technologies, such as conversational bots and Quick Response (QR) codes. They can also facilitate payments through integration with third-party payment gateways or native capabilities, such as WhatsApp Pay and Apple Pay, that reduce friction in the path to purchase and maximize conversions.

Kaleyra, recognized as a major player in the IDC MarketScape 2023 Vendor Assessment for CPaaS, empowers businesses to connect with customers on channels they are already on. According to the IDC MarketScape, “Kaleyra has a comprehensive and well-balanced portfolio as well as a solid services stack.”

Omnichannel communications is a key growth driver for conversational commerce revenue. 43% say that customer expectations for omnichannel experiences have increased, according to a Forrester study. CPaaS platforms that support omnichannel communications, such as Kaleyra, offer significant value by providing fallback options and ensuring the successful delivery of messages.

What the Future Holds for CX

Consumers regularly use three to four messaging applications that businesses can use for customer engagement. Since customer engagement involves multiple channels across digital touchpoints, CPaaS providers will offer conversational platforms that include a range of channels and AI-driven tools. According to Gartner, 95% of enterprises will utilize API-enabled CPaaS solutions to enhance their digital presence by 2025. AI chatbots with Natural language processing (NLP) capabilities can have natural conversations and engage customers at scale across multiple communications channels. Conversational AI, along with messaging apps, will help automate routine tasks like data collection and simplify tasks such as address changes and password resets. Fuelled by technological advancements, CPaaS will see more bot integration in the coming years. With an emphasis on innovation and a human-centric approach, the future of CX holds exciting possibilities and promises to be truly transformative.