The Age of Conversational Commerce
We’re entering a new phase in ecommerce: the age of Conversational Commerce. According to the most recent International Data Corporation (IDC) report on AI , spending on AI systems is forecast to rise from $85.3 billion in 2021 to $204 billion in 2025, with retail being the industry projected to invest the most.
Here, we will look at a vital aspect of automation, Conversational Commerce, and look at the trends influencing it and why it makes sense to invest in it.
Trends Influencing AI Spending
The most significant and most apparent contributing factor on the rise in interest in artificial intelligence solutions (automation, smart nurture flows, interactive web interfaces, AI-powered chatbots) in ecommerce has been the Coronavirus pandemic.
With consumers staying away from brick-and-mortar stores and moving over to online retail, all forms of retailers have been scaling up their ecommerce efforts. This has made embracing automation in some form or fashion a necessity to make the process of scaling up their online presence as streamlined as possible.
Another trend that has influenced the widespread embracing of artificial intelligence solutions, particularly smart AI chatbots, is the communication preferences of millennials and zoomers. These generational groups are more likely to use messenger apps and native clients to talk to brands.
As such, chatbots are an excellent investment as the demand is there from consumers – and it’s worth remembering that the oldest millennials turned 40 last year, so these are not just the youngest elements of your customer base.
Why Should You Invest in Conversational AI?
So, the demand is there – but what are the benefits to companies who embrace conversational AI?
Firstly, it’s as if you have a Digital Twin of your best salesperson. Unlike a traditional webshop, providing your customer with a Conversational Commerce experience on your website opens several opportunities to increase order value and lower bounce rates.
The chatbot proactively interacts with the user and can intelligently take the user to the relevant sections of the website, where they can find the products, sizes, and styles that they wish to view. The chatbot’s actions are based on conversations with the user – AKA zero-party data, AKA data volunteered by the customer rather than supplied by third-party cookies or brokers. This is becoming more and more crucial with the disappearance of third-party data.
You can also use this data to upsell products. Once the chatbot has an idea of the customer’s style preferences, it can choose the right product. For instance, a customer buying a pair of jeans will get offered a belt that’ll be a great match.
This adaptive AI can also respond to different customer journey stages, recommending products to a customer based on the current wishes and needs rather than their past purchases. So, for example, a webshop with a Conversational Commerce setup will offer other products to a return customer who is shopping for their partner than one who is coming back for purchasing another pair of those jeans they love.
Finally, it can save you from cart abandonment by supporting users through the checkout, encouraging them to complete their purchases, and offering discounts to more reluctant customers in exchange for signing up to newsletters.
Automation Is Here to Stay
Automation, AI, and Conversational Commerce are here to stay in ecommerce. I n a world of millions of businesses selling online, AI-powered automation can be a critical advantage against competitors.
If you want to learn more about Conversational Commerce and are going to be at Smart Retail Tech on 2-3 March, Henrik Fabrin’s presentation will show you all you need to know. However, if you aren’t attending – or can’t wait – then visit Certainly’s website to learn more and book a free demo.