Over a decade ago, the explosion of the social media phenomenon opened the floodgates for all organizations to market their products and services for free. With the use of Facebook and Twitter, businesses were able to increase profit, improve brand visibility, and extend awareness in a global scale. Today, consumer behavior trend has dramatically shifted from using social media networks to popular messaging applications such as Messenger, Viber, and WhatsApp to communicate with brands and technology. This rapidly emerging trend is known as Conversational Commerce and it is a term that refers to how organizations are utilizing automated chat bots to interact with consumers across all available channels of communications. With Conversational Commerce, the world of business has yet another ground-breaking platform to generate substantial revenue. Here is why and how.
Why Conversational Commerce Generates Revenue
To understand why Conversational Commerce is able to generate revenue for an organization, it is essential to take a closer look at two trends that are greatly fueling this emerging business concept. These trends are:
Today people are spending more time on messaging applications than social media. In fact, one of the top business and financial news websites: Business Insider, released an online article reporting how messaging apps have surpassed social media platforms and are continuing to do so with great momentum. As most individuals are now spending more time on Facebook Messenger, WhatsApp, and WeChat, business organizations are now milking this trend by developing applications that tap into these messaging platforms.
The second trend fueling Conversational Commerce is the rise of chatbots. Technology has certainly made tremendous strides in creating bots, which are artificial intelligence with machine learning and the ability to process natural language. These bots are more and more becoming ubiquitous as they are incorporated into websites and applications to deliver continuous customer service that humans simply cannot perform. With the software developing community continuously improving and enhancing these bots, organizations are now able to provide a customized customer experience unlike any before.
Due to the rise in usage of messaging applications and the continuous development of chatbots, Conversational Commerce is essentially the merging of these two technologies. It is allowing individuals to use applications to order food or book transportation while the organizations providing those services to communicate back via an intuitive messaging interface facilitated by a chatbot.
How Conversational Commerce Generates Revenue
The main goal of Conversational Commerce is to take all the functionalities of any specific application and make them all available in a conversational interface where organizations can fully interact with their consumers via a chatbot. By achieving this, an organization will have the opportunity to continuously generate a substantial amount of revenue. Conversational Commerce achieves this in many ways such as:
If an organization is already using an intuitive conversational interface where a chatbot is facilitating communications, they can program the chatbot to suggest other products or services that they may offer to online visitors. Oftentimes, consumers do not know a business’ full range of products or services. When consumers visit the website and the chatbot is able to offer the full catalogue to consumers, this could translate into a sale as the consumer may be looking for something that the organization already offers.
Another manner by which a business can generate more profit via Conversational Commerce is to use their messaging interface as an advertising platform. Whenever a person visits their website, they can program their bots to suggest the websites of their affiliates complete with description. If the website generates a lot of online traffic, a business can charge their affiliates more for advertising.
Personalized Customer Experience
It is a fact that consumers always want to feel special whenever they are engaging with a brand. Conversational Commerce allows customizing how chatbots are able to engage consumers. This can work to enhance customer engagement and may certainly lead to repeat consumers, which translates to more profit for the organization.
Identifying Target Consumers
Being an extremely intuitive artificial intelligence with machine learning, chatbots can be programmed to communicate as if human beings. They can also be programmed to identify where the customers’ physical locations are, what hobbies they have, what food they like, and what similar websites they have visited. Utilizing this data can improve the manner by which a business is able to identify their target customers.
With more than a decade of providing the best Outsourcing Solutions in the Philippines, Infinit-O has successfully partnered with many organizations that have since attained financial success in their respective industries. These organizations belong to major industries that have provided substantially for the country’s economy such as:
- Contact Center
- Data and Research
For more information about Conversational Commerce, feel free to contact us today!