Conversational commerce is a new form of e-commerce that allows conversational business practices enabled through new technological advancements. In a world where customers expect a better experience, online retailers can compensate for their physical absence with technology that allows conversation when a customer needs it. Filling out a help form or waiting on a customer support call is a thing of the past; conversational commerce erases the divide of poor communication with the ability for open dialogue between a customer and a company. 

Types of Conversational Commerce

Conversational commerce provides customers convenience, allowing them access to help immediately. It also acts as an efficient customer support tool for businesses, enabling efficient and effective customer support for most inquiries. Examples of conversational commerce include: 

1. Messaging Apps

Messaging apps allow businesses to stay in touch with customers and share the most updated information, including promotions. Facebook Messenger and Snapchat are two examples that help brands communicate with customers, leading to higher engagement and conversion rates. 

2. Messaging-First Marketplaces

Different retail sites and social media organizations have enabled consumers to sell directly to other consumers, enabled through chat interactions. 

3. Live Chat 

First implemented to boost customer service quality and response time, live chat has been integrated into many businesses' websites. Customers can initiate a chat session immediately when they need help or have questions. The company’s support staff typically monitors chat windows, and it is usually seen as an improvement to the most costly and time-consuming phone-based customer support. 

4. Chatbots 

Developed as an iteration of live chat, artificial intelligence (AI) chatbots have been integrated similarly. Chatbots are designed to understand customer inquiries, automate appropriate responses, or direct customers to the correct destination for further advice. This method has cut down on the need for physical employees working in live chat, saving money but also somewhat at the expense of personalized, intuitive responses you would receive from a real human being. 

Benefits of Conversational Commerce 

Several benefits of conversational commerce have led to its quick popularity among businesses. A few of the many benefits include: 

• Quicker customer service
• Increased engagement
• Obtain more feedback from customers
• Increased sales 
• Improved customer experience
• Reduction of the rate customers abandon their product cart 
• Higher conversion rate

Conversational commerce has many advantages when implemented correctly, although it also brings some challenges, such as decreased human interaction.