Conversational commerce likely heralds the future of shopping, where every consumer will be assisted daily by an ultra-competent and ultra-personal digital assistant.
The Rise of Conversational Commerce
Born a little over ten years ago, the concept of conversational commerce refers to the way in which brands use conversational technologies (voice assistants, chatbots, messaging) to improve the e-commerce experience, by facilitating product searches, ordering, payment, delivery tracking, and returns management.
While the concept is not yet unanimously accepted today, it is gaining ground. In a study published in 2023, Juniper Research predicted growth of 280% by 2028, when the market could reach $43 billion. But these projections could be way off the mark. Even as recently as 2023 (let alone a decade ago), the technology needed to take conversational commerce to the next level didn't exist. But, with the rapid evolution of large language models (LLM) and generative AI applications, the widespread adoption of "conversational commerce" now seems much closer than we imagine.
Can a digital assistant be truly personal?
The psychological drivers of commerce are subtle. Certain immutable rules have certainly been conceptualized (notably in Robert Cialdini's famous book "Influence and Manipulation"), but purchase triggers or sources of satisfaction vary greatly from one individual to another. Especially since there are a multitude of types of purchases: pleasure, necessity, one-off, recurring, obsessive, etc.
This is undoubtedly why conversational technologies (for now) are showing their limits. Limitations that we have all already experienced. For example, when we "chat" with chatbots: although they can correctly answer simple, structured questions, the experience they generate is often frustrating and can hardly be described as truly "personalized."
But what are they missing? In the film "Her" (2013), an AI develops a close relationship with a human (played by Joaquin Phoenix), to the point where feelings and a real mutual attachment emerge. By learning, the AI ends up understanding the deep psychological underpinnings of the character.
Could an ultra-personal digital assistant, as imagined by Spike Jonze, prefigure the shopping experience of tomorrow? Given the rapid progress of generative AI and the direct influence it already has on consumer behavior, it wouldn't be unreasonable to think we're heading towards a similar future.
What impact on omnichannel commerce?
The idea is easy to imagine: soon, everyone could have their own personal, intelligent, and proactive digital assistant, integrated into their smartphone as well as into brands' websites, apps, and even social platforms. A hyper-personalized experience available across a plethora of channels, capable of responding to all kinds of requests accurately and reliably.
The technologies that exist today make conversational commerce possible, giving brands the ability to further personalize the relationship between the brand and the consumer across all digital channels. Tomorrow, this relationship could evolve into a new dimension where digital shopping assistants become true anchors in the customer experience and the trust contract between a brand and its consumers.
This means that brands will have to strengthen their ability to offer an ultra-individualized, relevant, and contextual relationship. But to do this, they will have to master the technology and potential applications of generative AI to create precise, seamless, and trusted experiences.
Traditional, limited and rigid chatbots will give way to conversational agents powered by sophisticated generative AI that can handle more than 50% of customer inquiries, resolve complex issues, access detailed purchase histories, and significantly reduce both user frustration and contact center costs.
As the shift toward increasingly conversational and personalized commerce continues, this deep understanding of the consumer will not only improve the shopping experience, but also create targeted up-sell and cross-sell opportunities, driving long-term customer lifetime value.
However, this vision can only truly work if all the interconnected systems, platforms, and business tools that power commerce today work together in harmony and communicate with each other at every stage of the customer journey. That's why a solid omnichannel strategy remains the key to unlocking the full potential of conversational commerce.
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