What Is Conversational Commerce

A Simple Guide to Chat-Based Shopping.

1. Introduction to Conversational Commerce

In a physical store, a salesperson helps you choose the right product and guides you to the checkout. Online, we know that 87% of customers cannot find the product information they are looking for.

In fact, 91% of customers worldwide would like real-time assistance when shopping online.

This is where conversational commerce comes in. It allows brands to communicate directly with their customers via messaging platforms or voice assistants to offer personalized recommendations and provide real-time answers.

Especially considering that today, 1.4 billion people regularly use chatbots, integrating instant messaging and online shopping.

2. Chatbots, Messaging platforms and Voice Assistants: Different Forms of Action

Chatbots are increasingly present on popular messaging platforms like WhatsApp, Messenger, and WeChat, which together have billions of active users. For instance, WhatsApp Business allows companies to create automated sales channels, where customers can ask questions, get recommendations, and even complete purchases directly within the app.

Voice assistants such as Alexa, Google Assistant, and Siri facilitate online shopping by allowing consumers to place orders through voice commands. For example, an Alexa user can buy products on Amazon simply by asking their voice assistant to do so, without having to navigate a website. This technology is ideal for recurring or quick purchases.

Virtual assistants can also be integrated directly into website navigation to offer a smoother shopping experience. For instance, tools like Dialog analyze user behavior in real-time to recommend relevant products, answer questions directly on the product page, and offer personalized deals. This type of solution helps reduce friction in the shopping journey while significantly boosting conversion rates by providing contextual assistance at every step.

3. The New Role of AI in Conversational Commerce

The emergence of generative AI, with examples like ChatGPT, has transformed conversational commerce by making interactions more natural, responsive, and instantaneous. Unlike old rule-based technologies, generative AI uses deep learning to analyze conversations in real-time and generate responses tailored to users' specific needs, much like a human advisor would.

This technology allows for 24/7 customer support in multiple languages, while offering personalized recommendations based on each customer's history and preferences. In fact, 77% of companies believe that AI is more efficient than humans at handling customer support requests due to its speed and accuracy, and its ability to manage high volumes of requests without interruption (ET Centric).

Generative AI doesn't just respond to questions—it continuously learns from every interaction, making future responses even more accurate and shopping experiences increasingly personalized. This constant improvement process allows businesses to offer more and more tailored solutions, thereby strengthening customer engagement.

Use Case: Dialog for Technical Products

For complex products like cosmetics, Dialog helps by answering real-time questions (e.g., skin type, ingredients) on product pages. It can recommend suitable products and complementary items, simplifying the selection process and improving conversion by offering a personalized experience.

4. Optimizing Conversion: Personalization, Cross-Sell, and Upsell in Real-Time

91% of consumers say they are more likely to purchase from brands that offer relevant deals and recommendations for them (source). Conversational commerce tools play a crucial role in meeting this demand by providing personalized experiences based on user preferences and behaviors. This personalization turns customer interaction into an engaging, tailor-made experience, directly boosting conversion rates.

Additionally, personalization also enhances transaction value. When live chat is used before a purchase, the average order value increases by 10%, according to Voicebot.ai. This shows how essential real-time interaction is in guiding customers toward the products that meet their needs, while building trust and satisfaction, which translates into increased revenue for businesses (source).

Conclusion

Conversational commerce, driven by the advances of generative AI, opens new perspectives on how consumers interact with brands online. By offering personalized recommendations and real-time responses, these technologies meet customers' growing expectations for smoother and more engaging experiences.

Amazon, for instance, has introduced Rufus, an AI assistant integrated directly into its website. Rufus is a text-based assistant designed to guide users throughout their shopping journey, answering their questions and offering relevant suggestions based on their needs. It is a good example of how AI can transform the online shopping experience by making it more interactive and personalized.

Gautier Tubert - Marketing and Growth @Dialog