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Let us look at a scenario – A brand, let’s say, X is selling a specific kind of Whey Protein and is providing details of basic customer queries such as compliance concerns, safety & health benefits to users, and maybe affordable pricing. But what if the customer wants to know whether the protein powder can be mixed with curd and consumed? Or can he consume the protein on his no-workout day also?’ To whom does the customer pose this question? And how long should the customer wait for a response? This is when conversational commerce comes into play.
In a mobile-first community, conversational commerce is becoming one of the biggest enablers for MSMEs. Handholding your customers from generating interest in your product to transaction through direct personalized conversations with them, primarily using messaging and voice platforms, is what conversational commerce is. The non-intrusive conversational commerce is helping MSMEs build trust and allow them to deliver a personalised experience, digitally.
A customer going to a bank to fill up a form for a savings account with the support of bank staff, to virtual assistants and chatbots guiding you with the same process, now, conversational commerce has come a long way.
Today, 70% of large enterprises are engaging with a large customer base through conversational platforms. New-age tools such as WhatsApp for Business, the emergence of chatbots, virtual assistants (EVA of HDFC Bank, Maya of Myntra), voice-based assistants (Siri, Alexa) – among others are not only assisting users in their purchase processes but also helping them gain more knowledge about the products and services they are looking to purchase and post-purchase support. Customers, too, are embracing this shift seamlessly, with over 50% preferring conversational journeys for everyday tasks like paying bills, booking travel, accessing bank statements, checking shopping and entertainment offers.
With everything just a click away, customers can respond at their convenience, and businesses can expect an increased response rate, to traditional methods of calls or emails. Especially in the services sector, a Business Insider report stated that industries like healthcare, banking, and retail will save $11 billion due to chatbot automation, thus reducing the administrative burden. Table booking at fancy restaurants, flight updates, banking transactions, insurance expiration notifications, to bill payments, everyday services are now revolutionized via conversational commerce, gaining positive traction from customers. Conversational commerce is no longer about forcing customers into making a purchase, but it’s about offering what they want and when they want it.
More than just sales: Conversational commerce is not only a sales journey/conversion process, but also a window to connect with customers for elements such as surveys, feedback, offers, or grievances. This invaluable data can help in understanding customer preferences better and provide instant gratification to the customers, basically a win-win for both.
Game changer for MSMEs: With less budget, limited hands to work in their enterprise, and a shortage of time at hand, conversational commerce tools act as a big enabler for the MSME sector. It can help them connect with more customers at a faster rate. About 47% of SMEs in India reportedly use conversational commerce tools, driven by affordable solutions that offer personalized, 24/7 customer support without the need for large IT teams.
Discoverability and better communication: Today, more than 15 million MSMEs use WhatsApp for Business to create a digital presence, drive traffic through click-to-chat ads, and chat with customers. With limited budgets for offline marketing, it is a great way to increase business discoverability, provide better customer support, commerce, and payments.
Data Goldmine: The more you chat, the more you know your customer. Multiple interaction touch points increase chances of customer conversations across channels, provide user insights such as factors behind purchase decisions, post-purchase feedback, cart abandonment timelines, among others. This understanding of the customer can further help in implementing newer solutions, refining existing ones, and offering what they like.
Not just texting: The traditional servicing tools are heavy on writing; however, the rise of conversational commerce has changed it completely. With more avenues at hand, customers can chat, use voice-based prompts, and add images to express what they are looking for. Indic – multilingual language support has broken down the language barriers, coupled with regional content, all of which is making the entire experience personalised, intuitive, and easier than ever. Now, shopping feels more like chatting with a friend.
And the list of benefits is long….
60% of large enterprises are planning to increase their spending on conversational platforms over the next 3-4 years. India’s largest B2B marketplace has seen a 3x response rate from the buyers after starting a direct engagement with them with the help of various conversational commerce tools. This clearly shows that the integration is helping in attracting the relevant audience and better customer responsiveness with the existing ones.
Conversational commerce is creating a level playing field and democratizing opportunities for businesses of all sizes and scales across geographies. Ensuring cost effectiveness, better sales conversions, delivering personalised experience at scale – among others, conversational commerce has accelerated the tech adoption for MSMEs that will significantly improve the contribution of these MSMEs to India’s digital journey.
Online Coverage: ET Insights