{"id":4305,"date":"2019-04-09T11:06:35","date_gmt":"2019-04-09T05:36:35","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=4305"},"modified":"2023-10-19T16:29:39","modified_gmt":"2023-10-19T10:59:39","slug":"conversational-commerce-the-emerging-frontier-of-shopping-experiences","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/","title":{"rendered":"Conversational Commerce: The Emerging Frontier of Shopping Experiences"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f33feb7f9d7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f33feb7f9d7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/#establish-multiple-conversational-channels\" title=\"Establish multiple conversational channels\">Establish multiple conversational channels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/#create-a-personalized-experience-at-scale-in-real-time-using-chatbots\" title=\"Create a personalized experience at scale in real-time using chatbots\">Create a personalized experience at scale in real-time using chatbots<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/#conversational-commerce-perfect-for-innovation-hungry-consumers\" title=\"Conversational Commerce: Perfect For Innovation-Hungry Consumers\">Conversational Commerce: Perfect For Innovation-Hungry Consumers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/#barriers-to-growth-of-conversational-commerce\" title=\"Barriers to Growth of Conversational Commerce\">Barriers to Growth of Conversational Commerce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/#the-future-of-business-its-all-about-conversations\" title=\"The Future of Business: It&#8217;s All About Conversations\">The Future of Business: It&#8217;s All About Conversations<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">9<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><span style=\"font-weight: 400;\">The word A.I today probably conjures up images of robots stealing your jobs. News headlines tell you the useful life of the human brain is coming to an end. Absolutely not. Instead, artificial intelligence or A.I can enhance a person\u2019s interaction with an organization, and even humanize it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, it may be hard to believe that even today <\/span><a href=\"https:\/\/www.martechadvisor.com\/articles\/customer-experience-2\/conversational-commerce-bringing-the-instore-experience-home\/\"><span style=\"font-weight: 400;\">most Americans that shop online<\/span><\/a><span style=\"font-weight: 400;\"> are spending their dollars in-store. But that\u2019s probably because the salesperson makes them feel comfortable. Retail has indeed become a battleground for the machine learning and AI revolution. And, it\u2019s no surprise that more and more companies are leveraging technology to offer personalized experiences to shoppers wherever they are. This is <\/span><strong>conversational commerce.<\/strong><\/p>\n<figure id=\"attachment_4306\" aria-describedby=\"caption-attachment-4306\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4306\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1136107499-300x200.jpg\" alt=\"\" width=\"750\" height=\"500\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1136107499-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1136107499-768x512.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1136107499-1024x683.jpg 1024w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-4306\" class=\"wp-caption-text\">Source: Shutterstock<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Conversational commerce is the use of AI chatbots or virtual assistants, messaging apps and live chat in the shopping experience. Through these channels, consumers are given the same hand-holding, as they would experience when they walk into a brick-and-mortar store.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Three of the five largest social networks in the world \u2013 WeChat, WhatsApp, and Facebook Messenger \u2013 are messaging apps. They each have <\/span><a href=\"https:\/\/www.statista.com\/statistics\/272014\/global-social-networks-ranked-by-number-of-users\/\"><span style=\"font-weight: 400;\">over a billion active users<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Joshua March, CEO of Conversocial, <\/span><a href=\"https:\/\/www.martechadvisor.com\/articles\/customer-experience-2\/beyond-chatbots-how-artificial-intelligence-can-humanize-the-customer-experience\/\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> that he believed messaging apps were \u201cthe future of\u00a0customer\u00a0service.\u201d According to him, messaging apps have two main advantages over \u201ctraditional\u201d social networks: they\u2019re private (which brands love because it keeps customer complaints private) and they\u2019re persistent (customers love this because they don\u2019t have to repeat their issue or even their account details to multiple agents). <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most recently, Conversocial acquired Assist, a company that focuses on chatbots and next-generation messaging automation. According to CEO March, Conversocial has seen the volume of conversations taking place over its messaging channels grow by more than 900% in the past few years.<\/span><\/p>\n<figure id=\"attachment_4307\" aria-describedby=\"caption-attachment-4307\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4307\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-300x300.jpg\" alt=\"\" width=\"750\" height=\"750\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-300x300.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-150x150.jpg 150w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-768x768.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-1024x1024.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-75x75.jpg 75w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1180756642-80x80.jpg 80w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-4307\" class=\"wp-caption-text\">Source: Shutterstock<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">\u201cThe future isn\u2019t about downloading another app. We are moving into a world where you can do everything with a brand with simply a conversation. A conversation that remembers your preferences; learns over time; and creates the best customer experience: a conversational customer experience. We now have the resources and an end-to-end solution to own the customer experience from marketing and sales all the way to service,\u201d said Shane Mac, Conversocial\u2019s Chief Automation Officer. \u201cThe truth is humans don\u2019t scale and bots don\u2019t build relationships, but when working together optimally the benefits are exponential and the ROI significant. Our clients see, on average, open rates eight times that of email and a 36% uptick in revenue.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversational commerce offers accessibility and the necessary nudge to customers during checkout when they\u2019re about to abandon their shopping carts (<a href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/shopping-cart-abandonment-ultimate-guide\/\">shopping cart abandonment<\/a>) . For example, if you have a complaint you can submit your complaint right through Facebook Messenger and get responses quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAI gives retailers in the fashion industry the ability to create the digital version of the salesperson,\u201d <\/span><span style=\"font-weight: 400;\">said<\/span><span style=\"font-weight: 400;\"> Patrick Giusti, Head of Business Development at <\/span><a href=\"https:\/\/www.vue.ai\/\"><span style=\"font-weight: 400;\">Vue.ai<\/span><\/a><span style=\"font-weight: 400;\">, in a recent webinar, <\/span><a href=\"https:\/\/event.on24.com\/eventRegistration\/EventLobbyServlet?target=reg20.jsp&amp;mode&amp;eventid=1887462&amp;sessionid=1&amp;key=AA90EE25FC87628E5C20BEC378F77DE3&amp;regTag=&amp;sourcepage=register\"><i><span style=\"font-weight: 400;\">Conversational Commerce: How to drive next generation shopping experiences with AI.<\/span><\/i><\/a><span style=\"font-weight: 400;\"> \u201cThe personal stylist was relatively exclusive but with technology we can bring these capabilities to all customers, creating a higher level of engagement; leading to more clicks, higher average order value, more engagement, more loyalty.\u201d<\/span><\/p>\n<figure id=\"attachment_4309\" aria-describedby=\"caption-attachment-4309\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4309\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1168788448-1-300x200.jpg\" alt=\"\" width=\"750\" height=\"500\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1168788448-1-300x200.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1168788448-1-768x512.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1168788448-1.jpg 1000w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-4309\" class=\"wp-caption-text\">Source: Shutterstock<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">In fact, purchases made through voice assistants like Amazon\u2019s Echo and Google Home are set to hit $40 billion by 2022 as the technology becomes better, as smart speakers become ubiquitous in homes, and consumers become more comfortable with technology. There are <\/span><a href=\"https:\/\/searchengineland.com\/analyst-8-billion-voice-assistants-by-2023-312035\"><span style=\"font-weight: 400;\">more than 1.5 billion<\/span><\/a><span style=\"font-weight: 400;\"> assistant devices today and this number is set to grow to 8 billion by 2023.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among the U.S. residents who have a smart speaker, 62% have used it to buy groceries or other products. \u201cThat number has been going up incredibly rapidly over the last two years,\u201d <\/span><a href=\"https:\/\/www.usatoday.com\/story\/money\/2018\/02\/28\/alexa-need-everything-voice-shopping-becomes-common-sales-through-amazons-alexa-others-could-reach-4\/367426002\/\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> John Franklin of OC&amp;C Strategy Consultants. \u201cThat&#8217;s clearly a big driver in the overall potential in voice shopping. We then expect household spending with smart speakers will increase also.\u201d<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">So, what defines a great conversational commerce experience? <\/span><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"establish-multiple-conversational-channels\"><\/span><b>Establish multiple conversational channels<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your website may be a one-stop-shop for your customers\u2019 needs but other channels like Facebook Messenger and voice-based applications like Alexa can extend your reach. These systems can function like traveling salespeople. Note, however, these are just the beginning of the conversational commerce journey. Chatbots, for example, shouldn\u2019t be the end for consumer interactions; they should be designed to be part of the customer journey.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"create-a-personalized-experience-at-scale-in-real-time-using-chatbots\"><\/span><b><b><b>Create a personalized experience at scale in real-time using chatbots<\/b><\/b><\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Modern chatbots built with natural language processing (NLP) understand the intent of your customer\u2019s query \u2013 regardless of how it\u2019s asked. This makes chatting with bots more seamless and more effective. Additionally, companies should reflect on how chatbots and conversational AI fit within the larger marketing and customer service experience.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"conversational-commerce-perfect-for-innovation-hungry-consumers\"><\/span><b>Conversational Commerce: Perfect For Innovation-Hungry Consumers<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cTechnology is enabling us to evolve the consumer experience in exciting new ways. From virtual try-on to customized makeup, technology allows us to create an interactive and innovative experience for personalized beauty,\u201d <\/span><span style=\"font-weight: 400;\">said<\/span><span style=\"font-weight: 400;\"> Samantha Bort, manager of digital innovation and entrepreneurship for L&#8217;Or\u00e9al USA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2017, L&#8217;Or\u00e9al partnered with Automat to explore the world of AI and conversational marketing. It rolled out a series of beauty-focused services on Facebook Messenger as a way to experiment with virtual assistants and chatbots.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf I search for ingredients on Google, I\u2019m searching based on keywords,\u201d <\/span><span style=\"font-weight: 400;\">said<\/span><span style=\"font-weight: 400;\"> St\u00e9phane B\u00e9rub\u00e9, CMO of L\u2019Oreal Canada. \u201cA bot can offer information that is personalized based on a user\u2019s questions. The marketer\u2019s dream is to engage one-to-one. With search, people are reading generic information that isn\u2019t personalized to their questions or needs. The only way to do that is a conversation, and\u00a0a bot lets us scale those conversations.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As L\u2019Oreal takes the lead in the beauty industry and bets on AI and machine learning, it\u2019s also aware of the challenges that await it down the road. For example, one potential speed bump is that many consumers may not know how to pronounce the name of L\u2019Oreal\u2019s Maybelline brand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhen it comes to voice \u2026 how do you pronounce the name?\u201d <\/span><span style=\"font-weight: 400;\">asked<\/span><span style=\"font-weight: 400;\"> Antoine Borde, L&#8217;Or\u00e9al\u2019s global e-commerce acceleration director. \u201cWe need to understand how people talk \u2026 What are they going to tell Alexa? \u2018Buy mascara.\u2019 Or, \u2018Buy Maybelline.\u2019 Or \u2018Maybelline.\u2019 I don&#8217;t know.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In light of this fact, Borde believes marketers in the beauty space may have to adjust their preference for \u201cfancy names.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe not only need to understand what people are going to write [and] search, but now we need to understand what people are going to say to their device,\u201d Borde said. \u201cPeople don&#8217;t even know how to [spell] Maybelline \u2026 [Is it] double \u2018n\u2019? One \u2018n\u2019? An \u2018i\u2019? It requires that we rethink the way we write the name of our brands, [and how] you write the product descriptions.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among companies spearheading conversational AI innovation is Stockholm-based Furhat Robotics that launched the \u201cworld\u2019s most advanced conversational AI and social robotics platform\u201d in late 2018. Furhat is a unique device that goes beyond chatbots and digital assistants; it combines technology akin to Siri or Alexa and humanoid robots like Pepper.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe\u2019ve seen research that shows that in certain situations people are more comfortable opening up and talking about difficult issues with a robot than with a human,\u201d <\/span><a href=\"https:\/\/www.dailymail.co.uk\/sciencetech\/article-6437215\/Furhat-robot-human-touch-wants-hear-woes.html\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> Samer Al Moubayed, CEO, Furhat Robotics. \u201cThat&#8217;s because a robot\u2019s personality can mirror the personality of the person interacting with it and because people don&#8217;t feel judged,\u201d he added.<\/span><\/p>\n<figure id=\"attachment_4312\" aria-describedby=\"caption-attachment-4312\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4312\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/dims-300x273.jpg\" alt=\"\" width=\"750\" height=\"682\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/dims-300x273.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/dims-768x699.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/dims-1024x932.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/dims.jpg 1599w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-4312\" class=\"wp-caption-text\">Source: Furhat Robotics<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Furhat has been used in multiple ways: as a <\/span><a href=\"https:\/\/www.engadget.com\/2018\/11\/23\/furhat-social-robot-impressions\/\"><span style=\"font-weight: 400;\">multi-lingual concierge<\/span><\/a><span style=\"font-weight: 400;\"> in Frankfurt airport to assist travellers, as a teaching assistant in a few of Stockholm\u2019s schools, and as an interviewer for a Swedish employment agency. It\u2019s a social robot that communicates with people just as they do with each other \u2013 by showing emotions, listening, maintaining eye contact, and speaking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, tech giants Alibaba and Google aren\u2019t far behind when it comes to expanding access to conversational AI. <\/span><a href=\"https:\/\/www.adweek.com\/digital\/google-will-expand-access-to-conversational-ai-that-makes-reservations-over-the-phone\/\"><span style=\"font-weight: 400;\">Google Duplex<\/span><\/a><span style=\"font-weight: 400;\"> is a new Google Assistant feature that\u2019ll be widely available to Pixel users soon; this AI-powered feature will be able to call businesses and make reservations with a human voice. Isn\u2019t that cool? Alibaba\u2019s AI-driven chatbot Dian Xiaomi, too, can understand a customer\u2019s emotions and can notify human customer service executives to intervene. Fun fact: the chatbot <\/span><a href=\"https:\/\/www.forbes.com\/sites\/bernardmarr\/2018\/07\/23\/the-amazing-ways-chinese-tech-giant-alibaba-uses-artificial-intelligence-and-machine-learning\/#3de0634c117a\"><span style=\"font-weight: 400;\">serves more than 3.5 million users a day<\/span><\/a><span style=\"font-weight: 400;\"> and processes 90% of a customer\u2019s queries. This chatbot along with Alibaba\u2019s other technological advances in machine learning and natural language processing helped generate $25 billion in sales on Single\u2019s Day in 2017 (this is nearly $20 billion more than Cyber Monday in the U.S.).<\/span><\/p>\n<figure id=\"attachment_4313\" aria-describedby=\"caption-attachment-4313\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4313\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/6b4b5eb1b9e4dbb0539bf98fe6e0eaaf-300x141.jpg\" alt=\"\" width=\"750\" height=\"354\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/6b4b5eb1b9e4dbb0539bf98fe6e0eaaf-300x141.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/6b4b5eb1b9e4dbb0539bf98fe6e0eaaf-768x362.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/6b4b5eb1b9e4dbb0539bf98fe6e0eaaf.jpg 770w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-4313\" class=\"wp-caption-text\">Source: Adidas<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Conversational AI, including chatbots, is gradually becoming a vital tool in enhancing businesses\u2019 capacity for <a href=\"https:\/\/www.vue.ai\/solutions\/ai-personalization-engine\/\">personalization<\/a> and efficiency. For example, Adidas uses chatbots for its online stores in delivering personalized engagement for post-sales service. The chatbot delivers personalized service to customers and when there\u2019s a need for human interaction, it hands over the task to <\/span><a href=\"https:\/\/www.marketingmag.com.au\/hubs-c\/opinion-paul-baptist-chatbots\/\"><span style=\"font-weight: 400;\">one of Adidas\u2019 1,100 human agents<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"barriers-to-growth-of-conversational-commerce\"><\/span><b>Barriers to Growth of Conversational Commerce<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While enthusiasm for conversational AI is high, exactly how long it will take for companies and brands to fully leverage it is up for debate. For instance, there are hurdles that prevent people from making voice commerce a consistent habit. For many people, they\u2019re still in the learning curve phase when it comes to voice assistants. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFirst, people need to become more comfortable interacting with voice devices in general, then comfort in purchasing will follow,\u201d <\/span><span style=\"font-weight: 400;\">said<\/span><span style=\"font-weight: 400;\"> Mark Taylor, EVP and Chief Experience Officer, Capgemini DCX Practice. \u201cOur research on conversational commerce from earlier this year confirms this: 24% of shoppers said they would use a voice assistant rather than a web site. However, three years from now, that rises to 40%.\u201d<\/span><\/p>\n<figure id=\"attachment_4314\" aria-describedby=\"caption-attachment-4314\" style=\"width: 750px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4314\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1120905176-300x231.jpg\" alt=\"\" width=\"750\" height=\"577\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1120905176-300x231.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1120905176-768x591.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2019\/04\/shutterstock_1120905176-1024x788.jpg 1024w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><figcaption id=\"caption-attachment-4314\" class=\"wp-caption-text\">Source: Shutterstock<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Voice adoption won\u2019t be easy. One reason is difficulty and the second is trust. Price comparisons may even prove difficult when you\u2019re placing your order via a voice assistant. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe\u2019ve been conditioned over the past 10 years to put certain keywords next to each other in a search bar to make sure we get optimal results,\u201d said Ryan MacInnis, Director of Marketing at Voysis. \u201cWe know that if we type in\u00a0\u2018red shoes\u2019\u00a0versus\u00a0\u2018shoes that are red,\u2019\u00a0the latter might get you no results. If you say something through voice instead, asking about\u00a0\u2018shoes that are red that are size 12\u2019, the voice should be able to extract what you\u2019re looking for due to the data available now.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case of chatbots, customers could be confused as to whether they\u2019re interacting with a real human or a bot. This lack of clarity could discourage them from proceeding with the shopping experience even though the technology can actually help them. Here, transparency is essential. Retailers have to figure out whether they want their customers to know they\u2019re talking to a device or a real human being.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Knowing that voice technology and chatbots are bound to cause some bumps in the road, retailers need to understand the change in shopper habits, conduct more tests to understand how consumers respond to conversational AI, and find ways to engage with a young audience \u2013 more specifically early technology adopters.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All\u2019s not bad either. If you\u2019re a retailer selling commodities, your customers can easily say, \u201cAlexa, buy toothpaste\u201d or type \u201cbuy toothpaste\u201d into a chat. But if you offer luxury or bespoke items that require a more sophisticated search, then conversational commerce may require more technology to be integrated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cConversations are happening very frequently \u2013 when they are happening \u2013 but they are only happening within category leaders,\u201d said Mukund\u00a0Ramachandran, CMO of Dynamic Yield. \u201cPeople realize that the way conversational commerce is going to work today is that it\u2019s going to work for categories that have repeat purchases and kind of a loyalty-esque behavior, versus behavior around discovery.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Among people who do shop via voice, 83% said they have confidence in the virtual assistant&#8217;s\u00a0suggestions. This implies that once customers try the new way of buying goods and services, they often like it.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"the-future-of-business-its-all-about-conversations\"><\/span><b>The Future of Business: It&#8217;s All About Conversations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">\u201cCommerce is not limited to the transaction \u2013 the role of voice in accompanying consumers on their journey to the transaction (and beyond) is starting to take shape,\u201d <\/span><a href=\"https:\/\/www.retailtouchpoints.com\/features\/trend-watch\/can-conversational-commerce-fulfill-its-potential-in-retail\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\"> Mark Taylor of Capgemini. \u201cVoice will be an extraordinary vector of brand differentiation, and this differentiation will drive preference.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While chatbots can serve as an efficient way to offer shoppers solutions to their problems, their future success will depend on how companies and retailers integrate them into a seamless customer experience strategy, which puts humans in charge of the moments that matter. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But one thing is certain \u2013 voice and chatbots are far from being irrelevant; they\u2019re innovations with real potential. They\u2019re not a fad. Instead, they\u2019ll continue to disrupt retail over the next few years and beyond. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">9<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> The word A.I today probably conjures up images of robots stealing your jobs. News headlines tell you the useful life of the human brain is coming to an end. Absolutely not. Instead, artificial intelligence or A.I can enhance a person\u2019s interaction with an organization, and even humanize it. Now, it may be hard to believe  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":4317,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1160,1522],"tags":[27,248,34,171],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Conversational Commerce: Emerging Frontier of Shopping Experiences<\/title>\n<meta name=\"description\" content=\"Conversational commerce is the use of AI chatbots or virtual assistants to give shoppers the in-store experience online.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vue.ai\/blog\/leaders-in-retail\/conversational-commerce-the-emerging-frontier-of-shopping-experiences\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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