What is Conversational Commerce? A Starter Guide

In the digital age, selling goods and services is no longer limited to brick-and-mortar establishments. The constant influx of new technologies has paved the way for the expansion into eCommerce, allowing new and long-time business owners to thrive.

Thankfully, digital transformation has greatly impacted the Philippines, and experts predict that the country’s online shopping industry will grow by 47% in 2025. This rapid expansion entails shifts and innovations that continue to develop the country's eCommerce landscape, one of which is conversational commerce.

What is Conversational Commerce?

Conversational commerce allows buyers to connect and shop with brands via social media, messaging apps, chatbots, and voice search. Shoppers may inquire, get recommendations, and purchase from within these channels, making their experience more seamless and convenient.

Thanks to its success, conversational commerce enjoys a growing support from buyers and sellers alike. Statista expects a major surge in global spending on this strategy, with an estimated rise from $41 billion in 2021 to $290 billion in 2025—pointing to its ability to generate sales and foster customer loyalty. As more brands hop on this trend, incorporating it into your operations is critical to staying competitive.

Examples of Conversational Commerce

Before you begin implementations, here are common conversational commerce examples and a few local brands that have tapped into their potential.

1. Live chat services
   
   

   Customers appreciate being able to get the help they need quickly, and live chat is an excellent way of providing that service promptly. This feature lets buyers chat directly with agents regarding inquiries, updates, and purchases from the convenience of your website.

   Alveo Land, a leading property developer in the Philippines, leverages live chat services to build customer relationships as soon as visitors enter their website. A "Chat Now" bubble lets them talk with a live agent and inquire about services without approaching the company in real life.

2. Messaging apps
   
   Brands can interact with buyers through messaging apps like Messenger and WhatsApp. You can often see them integrated into websites; Brilyo Jewelry, a jeweler in Quezon City, has a button redirecting visitors to their Messenger account for inquiries.
   

   Messaging apps also present a more convenient way to conduct transactions than a dedicated website. For instance, Rush’s eStore Charge lets social media merchants generate checkout links and send them through private messages where buyers can confirm purchases and pay. It also accepts multiple payment options and includes a delivery booking system for more comprehensive transactions via messages.

3. Messaging apps
   
   

   A chatbot is an automated software that can talk to multiple clients simultaneously 24/7, reducing the demand for live chat support. They're also compatible with both websites and social media platforms, an example of which is Meta's automated responses for Messenger.

   For example, users visiting local fitness brand Slimmers World's Facebook page may see preset inquiries upon clicking the Message button. Selecting any of them generates an automated response, letting Slimmers World entertain essential questions at any time of the day without fail.

4. Voice search

Voice search allows shoppers to find products and services using their mobile or home assistants, like Amazon's Alexa and Google Assistant, for a more effortless experience.

Fintech giant Paypal is one of the few brands employing this emerging innovation. The company lets account holders perform tasks like balance inquiries, fund transfers, and money requests using voice commands through Alexa. In the Philippines, financial services like GCash may find it helpful to replicate Paypal's efforts and pioneer the technology in the country.

The Benefits of Conversational Commerce

Want to incorporate conversational commerce into your operations? Here are some ways it can elevate your brand.

1. Minimizes cart abandonment
   
   Cart abandonment often happens when shoppers find transacting with your business too much hassle. Conversational commerce minimizes its occurrence by giving buyers a more effortless experience w ith the brand, from inquiries to purchases.
2. Automates customer service
   
   Chatbots eliminate the need to have a customer service team available around the clock. It allows you to allocate resources to key processes that can expand your business while providing faster customer service on eCommerce sites.
3. Reduces expenses
   
   Taking advantage of free services like messaging apps eliminates unnecessary expenses you could spend instead on more pressing needs. Chatbots also minimize labor costs by reducing the demand for additional agents to accommodate customer messages.
4. Boosts sales
   
   Live chats and chatbots can serve as additional avenues for product promotions, especially those relevant to shoppers' messages. They also enable cross-selling related products as add-ons to help boost your sales.
5. Opens up a larger market segment
   
   Some conversational commerce tools, such as messaging apps, are more prevalent among mobile users. Taking advantage of these platforms lets you tap into the mobile market more efficiently, growing your customer base further.
6. Simplifies feedback
   
   Your customers no longer need to take the extra steps of emailing or navigating through online platforms to leave product or service reviews. Conversational commerce lets them leave feedback on social media posts, live chats, and messaging apps while making it easier to consolidate their responses for evaluation.
7. Improves engagement and loyalty

Conversational commerce aims to make purchases more straightforward, which already helps engagement. However, using these approaches demonstrates how much you value your audience's experience, leaving an excellent impression on potential buyers and reinforcing brand loyalty.

A Competitive Advantage Through Conversational Commerce

As businesses strive to surprise their customers with new approaches, you can use conversational commerce as an engagement strategy to get an edge over the competition. Reinforce your existing customers' support and leave a lasting impression on new ones.

Interested in using conversational commerce to boost your engagement? We can help you out. Start building a solid eStore today with Rush's all-in-one eCommerce solution to secure your position as a top industry player.

Interested? Book a demo with one of our Sales Champs to learn more!