What is Conversational Commerce and How Does it Relate to Social eCommerce?

Modern-day people have to wear several hats to complete everything they have to do in a day. We're natural multitaskers, rushing through life, rarely stopping to look back, sit and relax. And since we always lack time, we demand to save it wherever is possible - especially while shopping.

Even though now the speed and convenience of the service are among the main factors that determine whether we will make a purchase or not, there's one more thing we think it's important in our purchasing decisions: personalization.

We want brands to be fast to respond to our needs and desires, understand our tempo and lifestyle, but also dig deeper and show us they can truly know us and provide us with a customized experience, too.

And while these demands might seem like too much, there's one marketing tactic that can help us achieve it all. We're talking about conversational commerce.

Social ecommerce makes up a great part of conversational commerce that can help brands provide both fast and reliable experience that's tailored to their needs. In this article, we’ll explore what conversational commerce is and how it relates to social ecommerce.

What is conversational commerce?

Coined in 2015 by Chris Messina, an ex-Uber and ex-Google employee, conversational commerce was a term used to describe the convenience, personalization and decision support messaging apps were expected to deliver to customers during their online purchases.

Today, conversational commerce is a much broader term, as it refers to a marketing method that allows brands to strike a conversation with their customers, help them during their purchases and provide a more personalized experience that moves them faster through the sales funnel.

Why is conversational commerce social, and how does it relate to social ecommerce?

1. It allows interaction with a customer, providing decision support

One of the greatest perks of conversational commerce is the fact it provides support during the decision-making process. By striking a conversation with a customer via a chat app, brands can now get closer to the consumers, learn about their preferences, likes and dislikes and offer better suggestions. Since customers don't feel alone anymore, and since they already have more informed suggestions about the products they can buy that will suit their needs the best, they’re more likely to shop with the brand and be satisfied with their purchase.

For example, a customer might be looking for a specific outfit for a certain event and send a message to a local store. On the other hand, the seller can provide assistance using automated questions to narrow down the choice and offer suggestions based on the customer's answers. Since customers don't need to wander around and browse alone, they're more likely to shop with a store that provides them with such assistance.

2. Makes businesses more approachable

Communication makes us get to know each other better, and this is exactly what brands are doing to provide a more convenient service to customers.

For instance, by communicating with customers via an appointment booking feature, brands can now get insights into their customer's schedule and help them get what they want when it's the most convenient for them.

This can work for a wide range of transactions - from beauty salons to car repair shops. By using this method brands can close the deal much sooner, given the customers don't have to wait to check the availability on the phone or in-store.

3. It can help increase sales by sending custom-tailored offers and promotions

Studies show that the generation that holds the biggest purchasing power now, Millennials, want a more personalized experience. By using the methods of conversational commerce, brands can now send customers highly targeted deals that make the most sense for them.

When they receive offers like this, customers feel valued and appreciated. They’re more likely to engage with a brand and stay retained.

4. Allows brands to be where their customers are

The biggest proof that conversational commerce is personal is in the fact that it allows brands to be where their customers are - social media. Customers crave interaction, and they want the convenience of shopping straight from their social media feed.

Using methods of conversational commerce, brands can be where their customers are and provide them with fast and reliable answers that will ease their shopping experience and satisfy their need to get an immediate response.