What is Conversational Commerce | Lightspeed

Chatbots and text message campaigns aren’t just for big box stores. Your business can still take advantage of the many forms of what’s now known as conversational commerce, no matter what size it is. 

Conversational commerce isn’t a passing fad, either. Chatbots and livechat are two examples of this trend. The fastest-growing communication channelsThese types of tools are increasingly popular with customers. In this article, we’ll explain what conversational commerce is and how you can use it to drive sales for your eCommerce site.  

What is conversational commerce?

How does conversational commerce function?

Four examples of conversational commerce

Conversational commerce has many benefits

How to use conversational Commerce for your Business

The holidays are around the corner—are you ready?

It’s a new holiday season with new rules for retailers. Make sure you’re prepared for what to expect with our free 2021 trends report.

What is conversational commerce? 

Conversational commerce is when retailers and brands use conversations with customers to drive sales or strengthen their relationships with customers. Sometimes called conversational marketing, conversational commerce not only lets customers reach brands more easily, it allows brands to offer more personalized, tailored service to customers—a win-win. 

How does conversational commerce function? 

Conversational commerce is unlike other forms marketing and communication. It is a dialogue, not a monologue. Customers are encouraged and encouraged to interact with you until they are satisfied. 

Here are four examples of conversational commerce that you can use

Conversational commerce comes in many different forms, and you’ve likely encountered at least one. Here are some examples of conversational commerce you might have encountered: 

1. Chat live

Live chat is a popular alternative for email and phone conversations. Contact option for customer service preferredShoppers aged 18 to 49. Live chat, unlike chatbots, allows your customers to talk to a human being (such a customer service representative or sales associate). 

Live chat is a way for customers to ask questions or get assistance regarding an order. Live chat’s immediacy and personalized approach makes it a strong conversion tool—implementing a live chat app on your website can increase conversion rates by As high as 4%

2. SMS marketing

SMS text messaging is one form of conversational commerce that is highly effective. Texts have become a popular form of communication. Open rate 98%They offer a 45% response time, making them a great choice if your message is urgent or important. 

Small Biz Sense LoyaltyThis feature allows you to send texts directly from your point of sale to anyone enrolled into your loyalty program. 

3. Chatbots 

Chatbots are exactly what they sound like—automated chat prompts designed to help you find the information you’re looking for. Chatbots usually start with a greeting, and then present customers with a variety of options or flows. “Hi! “Hi! Choose an option. 1) I need help finding the perfect product or 2) I need help with an order I placed.” 

Chatbots have a key advantage over live chat—that they don’t require as much dedicated labor. Once you’ve written and designed your ideal chat flow, you can publish your bot to your eCom site for customers to interact with. Chatbot ecommerce conversions should reach $112 billion by 2023

4. Facebook Messenger or WhatsApp 

With over 1.3 Billion 2 billion monthly active users respectively, it’s safe to say that Facebook Messenger and WhatsApp present huge opportunities for you to connect with your customers on a deeper level. 

Customers use these platforms to contact companies for customer service and shopping advice. Messaging is also a great way to showcase your brand’s unique voice and personality—and ultimately show that you’re there for people when they need you. 

You should check your messages regularly to ensure that you respond to all inquiries promptly and efficiently. Facebook will reward you for doing so by putting a “Very responsive to messages” badge on your company page, which will look great to both prospective and current customers alike. 

Conversational commerce has many benefits

Conversational commerce offers many benefits. 

1. Maximize your sales potential

Conversational commerce gives customers the chance to be presented with different buying options. This is similar to what your store associates would do in a physical shop. You can not only help your customers find the best product, but you can also recommend other products to them. You can increase your sales and also drive up your profit. average order value

If you want to get technical, adding a chatbot to your checkout page is a great way to reassure customers to make a purchase. 

2. Improved communication with customers 

Conversational commerce can help your customers be more informed and empower them to make a purchase. The average abandonment rate of abandoned carts was 70%—which is quite high. Conversational commerce allows you to: 

  • Make an SMS campaign for abandoned carts to remind customers to make their purchase. 
  • If you have a software developer or feel comfortable enough editing your website, try installing Facebook Messenger’s Checkbox plugin. Customers will then be able to opt-in to receive messages from your business’s Facebook page, so you can send abandoned cart messages, order updates, receipts and more. 

3. Get feedback on how you’re performing

Every customer service interaction presents an opportunity to learn more about how you’re doing. Whether the messages you get are positive or negative, conversational commerce can tell you what’s working and what can be improved, so that you can continue delivering the best experience possible. 

A feedback tool is another great way to achieve this. You can take this example: IkeonoAfter a service is completed, customers can be automatically sent follow-up surveys. 

4. Customer loyalty can be increased

Talking to customers is a great way to provide better service and build customer loyalty. Conversational commerce allows for more personal and high-touch customer service. Customers will most likely choose you over your competitors. 

How to use conversational Commerce for your Business

No matter how small or large your business, conversational commerce is possible. Follow these steps to find the best solution for your business’s unique needs: 

1. Set your business goals 

Before implementing a conversational commerce tool and strategy, take the time to pinpoint what exactly you’re looking to achieve. Do you want to offer customers faster, more convenient service options? Do you want to provide shopping advice through your eCom shopfront? Be sure to align your goals with the potential of conversational commerce tools. 

2. Look for the best tools to help your business.

After you’ve finished goal-setting, it’s time to look for the best tools to help you get started. If you’re not sure where to begin, consider looking at ways to build upon tools you already use. 

Small Biz SenseCustomers can extend their conversational commerce offering by integrating add-ons and integrations into their existing retail commerce platform. Small Biz Sense allows you to choose the right combination of tools for your industry and customer base. 

3. Get your tools and strategies set up

After you’ve decided which software or integrations you’ll be using to talk to customers, you’ll need to ensure they’re configured correctly. Make sure you run thorough tests for any tool you’ve installed to catch any potential problems or errors before announcing your new service offerings. 

4. Analyze and interpret the results

Once you’ve launched your conversational commerce tool and strategy, it’s important to measure the results. Did your SMS campaign convert more? Are customers leaving more positive reviews on platforms such as Yelp and Facebook? You can make better decisions by understanding how your strategies are performing. 

The future of commerce is flexible

Conversational commerce is a way to meet customers wherever they are. Customers expect more from you these days. Your business should have the ability to adapt to changing customer needs and the changing retail landscape.

Small Biz Sense’s one-stop commerce platform lets your customers shop and make appointments whenever, wherever. Talk to our retail expertsFind out how your business can grow.


Cyndy Lane

Cyndy is business journalist with a focus on entrepreneurship and small business. With over a decade of experience covering the startup and small business landscape, Cyndy has a reputation for being a knowledgeable, insightful and approachable journalist. She has a keen understanding of the challenges and opportunities facing small business owners and is able to explain them in a way that is relatable and actionable for her readers.