How to Develop Conversational Commerce Platforms for Business

The significant difference between buying and selling in the previous era and today cannot be separated from the role of technology. In the past, buying goods without talking to the seller seemed impossible. However, now it is very easy to do. 

This is because communication platforms have now been integrated with the buying and selling process, giving rise to conversational commerce platforms. Through these platforms, buyers can complete transactions without needing to communicate directly with the seller. How is this possible? Read the explanation below to find out more!

What Is Conversational Commerce?

Conversational commerce is chat-based e-commerce. In general, conversational commerce utilizes chatbots, voice assistants (such as Google Assistant), or messaging apps (including Messenger, WhatsApp, and WeChat). In Indonesia, WhatsApp is one of the most widely used channels in local conversational commerce.

The platforms mentioned above help streamline the buying and selling process, from displaying product catalogs, providing personalized recommendations, processing payments, to after-sales service. Everything is done and completed in the chat room or conversation platform.

In this era of technological advancement, conversational commerce is the best choice for e-commerce for several reasons, including:

• WhatsApp messages have a 90% chance of being opened by the receiver, which is much higher than email marketing, which tends to have a low open rate.
• AI chatbots can handle general questions and simple requests from customers 24 hours a day, so companies can reduce customer service costs.
• The live chat feature can save customers waiting time, making communication faster, more practical, and satisfying.
• Businesses can provide a much more personalized shopping experience. For example, by connecting messaging apps with CRM, businesses can adjust conversations according to customer behavior and purchase history.
• Businesses have the opportunity to manage omnichannel campaigns more regularly and efficiently. This is because data from various sources, such as automated messages, emails, and offline interactions, can be integrated into a single customer profile.

Read also: Data-Driven Marketing: Definition, Benefits, & Methods

Types of Conversational Commerce

There are several types of conversational commerce commonly used by businesses, as follows:

1. Messaging and Chat Applications

Some commonly used messaging and chat applications include WhatsApp Business, Facebook Messenger, Instagram Direct Message (DM), WeChat, and Telegram. 

With these applications, brands can provide various services simultaneously, from offering product recommendations and answering questions to completing transactions without switching platforms.

In addition, one customer service representative can serve multiple customers simultaneously, unlike telephone services, where each interaction must be handled individually. Interestingly, messaging and chat applications are also proactive, allowing agents to greet customers even if they are browsing without any interaction. 

2. Chatbots and AI

It is important to note that chatbots and AI use Natural Language Processing (NLP) technology and machine learning algorithms to mimic human conversation. Thus, chatbots and AI can help answer frequently asked questions (FAQ) and serve customers just like real customer service representatives.

This certainly streamlines many processes. Businesses can provide 24-hour service without relying on customer service agents and the associated costs.

In addition to being more efficient, the buying and selling process can also be more personal and relevant, because chatbots and AI can recognize customer preferences and track their purchase history. Therefore, the use of chatbots and AI can contribute to improving customer experience.

3. Voice Assistants

Several voice assistants are commonly used to support sales, including Google Assistant, Siri, and Alexa. From their name, you can probably guess that this type of conversational commerce operates with voice commands.

Voice-based interactions offer many conveniences that written interactions, such as chat, cannot provide. Without having to touch the device (hands-free), users can search for product information, access services, and even complete purchases more conveniently.

Examples of Conversational Commerce Usage

In the world of marketing, numerous popular and successful examples of conversational commerce have generated significant profits. You may have encountered or even used some of them. Below are a few examples:

1. Four Seasons Chat

Have you ever heard of the Four Seasons Hotels and Resorts brand? This world-class luxury hotel chain utilizes conversational concierge, a personal assistant service, to help meet customer needs, a common practice in the hospitality or luxury service sector.

Four Seasons applies conversational concierge in its company app and other related messaging apps, known as Four Seasons Chat. With this service, visitors can not only book rooms, but also make additional purchases, request room upgrades, or get special recommendations.

Guess what the impact of this innovation is? Four Seasons Chat has garnered international recognition as one of the most innovative digital guest services, establishing a new standard in the luxury hospitality industry. Outstanding, isn’t it?

2. Tile & Ada

Tile is an American technology brand known for its Bluetooth tracker products, which are small, tag-shaped devices that help locate frequently lost items, such as wallets or keys.

To enhance the user experience, Tile collaborated with Ada, a conversational intelligence platform that uses advanced AI chatbots.

Through this collaboration, Tile can offer seamless conversational services to customers, answer questions more quickly, and facilitate the purchasing process. Furthermore, staff requirements can be reduced, and purchasing opportunities can be increased.

Read also: AI for SEO: Impact, Uses, and Examples of Implementation

How to Develop a Conversational Commerce Platform

If you want to develop a conversational commerce platform in your business, here is a brief guide:

1. Planning and Setting the Goals

This first stage will help you take more focused steps and ensure that your chosen tools deliver the expected results. Start by identifying the needs and challenges your business faces, such as the large number of frequently asked questions from consumers that require quick answers.

Then, set small and realistic targets, such as reducing the number of common customer questions by 10%–15% within 2–3 months. 

Next, you also need to identify your audience demographics so you can choose the right platform. For example, if the majority of your audience is American, Messenger would be more suitable than WhatsApp.

2. Choose the Right Messaging App

According to Statista data, over 60% of global e-commerce sales come from mobile commerce. This means that consumers are accustomed to shopping via smartphones, so messaging apps are strategic tools for increasing brand sales. 

Before making a decision, you need to understand the advantages and disadvantages of each messaging app. Sometimes, an app may excel in payment features but have privacy rules that must be followed. 

Therefore, after selecting a specific app, you need to adjust your business strategy to adapt to the app's characteristics.

3. Designing Structured and Effective Conversations

Conversations between sales agents and customers should certainly lead to purchases, but do not forget to make them feel natural and enjoyable.

Therefore, identify the scenarios where chat commerce can help, such as answering product questions, providing recommendations, or handling complaints. Next, create a conversation flow that you think is ideal. Here is a guide for handling several scenarios:

• Product recommendation scenario: Provide recommendations according to customer needs. Inform them of the product's main features, price, and availability.
• Answering questions scenario: Provide customers with the opportunity to ask detailed questions, and then answer them clearly, informatively, and promptly.
• Post-purchase scenario: Provide shipping details, estimated delivery time, and tracking number. If available, also offer after-sales services, such as official warranty or product exchange if the size is not suitable.

4. Implementing and Training AI Agents

The next step is to install and train the AI agent to ensure it works as expected. First, choose a platform that already provides AI agent tools and integration. Next, start training the AI agent with the following mechanisms:

• Using NLP (Natural Language Processing): The goal is for the AI to understand the meaning of customer messages.
• Using ML (Machine Learning): Make the AI learn from previous interactions.

During this training process, you also need to pay attention to sentiment analysis so that AI can read customer emotions. For example, if a customer shows an angry response, AI should be able to respond in a more human-friendly or relaxed manner.

5. Monitor and Adjust Relevant KPIs

Monitoring KPIs (Key Performance Indicators) is necessary to asses the effectiveness of the strategies that are already in place. Here are some KPIs to pay attention to:

• Order value: The average value of transactions made through the conversational commerce channel.
• Customer engagement: Measured by the number of conversations initiated, response speed, and interaction duration.
• Customer satisfaction: Measured by ratings, feedback, or surveys after interaction.
• Conversion rate: The percentage of customer interactions that actually result in a purchase.
• Abandoned cart rate: The percentage of customers who added products to their cart but did not purchase.

6. Use Experienced External Services

If, after reading the steps above, you find the process complex and complicated, that is normal. Building this system requires adequate allocation of resources, including time, thought, and money, as well as a high level of commitment.

No need to worry! You can utilize assistance from experienced external partners, such as cmlabs. The expert developer team at cmlabs is ready to help your business develop a well-designed and search engine-friendly conversational commerce platform.

Are you ready to implement this technology to increase profits and improve customer relations? Let's make it happen together with cmlabs! For detailed information about our services, please contact our team immediately!

Read also: cmlabs Strengthens Digital Marketing Solution with 10 Integrated Services