Conversational commerce has revolutionized how we shop and interact with brands. Now, businesses can use powerful channels—like SMS, chatbots, and more—to reach customers faster and prompt purchases with just a few short text exchanges. It’s where online shopping meets instant messaging, creating a convenient touchpoint that empowers consumers to make purchases through conversation. So how does it work and what are some of the key benefits? Let’s dig in!
What is conversational commerce?
Conversational commerce refers to how companies use technology like chatbots, messaging apps, and AI assistants to engage with their customers in real-time. It can involve interacting with an agent, a chatbot, or a mix of both, always focused on delivering timely support and simplifying the shopping experience. Through instant messaging, brands can reach customers around the clock and keep them engaged for longer.
The evolution of commercial commerce
Chris Messina, the inventor of the hashtag, coined the term “conversational commerce” in a 2015 Medium post that quickly went viral. But he wasn’t revealing something completely novel—he was just shining a light on what was already taking shape.
In that short post, Messina put the spotlight on companies like Apple, Facebook (now Meta), and Better as early adopters of conversational technology, helping to pave the path to purchase.
Messina even boldly predicted that 2016 would be the year of conversational commerce—and he wasn’t far off. Today, more companies are integrating SMS, chatbots, and instant messaging to close sales faster than ever.
Fast forward to today, and global spending on conversational commerce is projected to hit $290 billion by 2025. What started as a simple concept has grown into personalized, real-time conversations between customers and brands across industries such as retail, travel, and finance.
The power of conversational commerce
Conversational commerce reimagines the shopping process, offering customers a seamless omnichannel experience that lets them shop anytime, anywhere, just through text—whether they’re stuck in line or curled up on the couch!
It adds a human touch to online shopping, making customers feel like they’re chatting directly with the brand—just like they would with a sales assistant in the brick-and-mortar store. This back-and-forth exchange allows brands to guide customers to the right answers, helping them make the best purchase possible.
This customer-first approach unlocks exciting opportunities for cross-selling and personalized recommendations, too.
Picture this: a customer lands on an online clothing shop and adds a few items to their cart. While browsing for that final accessory to complete their look, a chatbot swoops in like a digital stylist, suggesting must-have items based on their cart and browsing history—think Cher’s iconic digital closet in Clueless meets texting. Once the customer reviews the chatbot’s suggestions, they decide to add one more item to the cart, delighted to find the final piece that complements their look. Welcome to the future of online shopping!
By analyzing text chats, browsing habits, and purchase history, brands can tap into valuable insights to recommend products that resonate with each individual. This frictionless experience—asking questions, receiving tailored recommendations, and checking out with a simple text—makes shopping as easy as chatting with a friend, boosting the likelihood of repeat purchases.
How does conversational commerce work?
Conversational commerce involves communicating with your customers at just the right moment—using messaging channels to engage with them across any stage of the customer journey. A chatbot reminds them of their forgotten cart, a live agent fixes a delivery hiccup, or a well-timed SMS with a promo nudges them to buy. These interactions bring brands closer to their customers, one message at a time!
From SMS and live chat to social media messaging, and more, conversational commerce happens across multiple touchpoints. The key is providing customers with convenience and attention—starting with a simple conversation.
Examples of conversational commerce
Conversational commerce is a channel of communication that is always evolving. Here are a few examples of how businesses are using it right now.
- Proactive chat: Brands initiate these live conversations on websites or apps to offer personalized recommendations or support—inviting customers to engage without waiting for them to ask.
- Click-to-message ads: Ads that instantly connect customers to messaging apps like Instagram Messenger or WhatsApp, giving brands a direct line to chat.
- In-app messaging: These messages are sent during app use to encourage visitors to interact more and keep them engaged with the overall app experience.
- Text-to-pay: Mobile messaging that offers a secure, convenient way for consumers to pay for goods or services directly via text.
- Text-to-buy: A service that allows consumers to purchase items or services in just a short exchange of texts. Think of it as a modern concierge service at your fingertips.
Benefits of conversational commerce for business
Conversational commerce allows brands to tap into valuable customer data through various touchpoints, strengthening relationships and driving repeat business. Dive into this section to discover how your business can win with conversational commerce tools by your side.
Enhanced customer retention
Conversational commerce helps brands keep the conversation going, building relationships through real-time chats. By proactively suggesting products based on a customer’s preferences and past purchases, brands demonstrate a deep understanding of their tastes—without waiting for the customer to make the first move.
Chatting through these channels is much quicker and more personal than waiting days or sometimes even weeks for an email response. When brands take the initiative and offer 24/7 availability—whether it’s providing support, asking for feedback, or solving a shipping issue—they create a positive experience that keeps customers engaged and makes them more likely to repeat purchases.
Conversational commerce meets customers where they are, turning everyday interactions into meaningful dialogues that help brands get a real sense of what customers expect. After all, who doesn’t love a brand that truly listens?
Increased engagement and sales opportunities
Cart abandonment is a never-ending battle in the world of online shopping, but conversational commerce tech is here to turn that frustration into opportunity! For example, in-app notifications can serve as friendly reminders that gently nudge customers to take another look at the items still left in their carts. You could even throw in a promo code to sweeten the deal and coax them back to complete their purchase!
But that’s not all—another strategy is sending complimentary recommendations based on browsing history and convincing shoppers to purchase another, sometimes more expensive item than what they already have in their cart. This approach, known as cross-selling, is a marvelous strategy to use in conversational commerce.
Why? Customers have already shown interest in similar items, so catching them when they’re in that “buying mode” can make a massive difference. A well-timed suggestion from a chatbot might just be the push they need to go from “maybe later” to “yes, please!”
Collecting data and insights
Conversational commerce helps brands unearth gems of valuable data for cross-selling and upselling. Through regular exchanges with customers, brands gather insights into their interactions, gaining a clearer understanding of each customer’s journey.
This knowledge allows brands to make personalized and relevant recommendations based on browsing habits, purchase history, and past conversations through conversational commerce technology.
Start elevating customer engagement today
Conversational commerce is reshaping the way brands connect, turning simple exchanges into opportunities for lasting engagement. From instant support through SMS to seamless text-to-buy experiences, every interaction can build loyalty and drive sales in real-time.
At Bitly, we’re lucky to have some incredible partners that make it easy for brands to bring text-to-buy, text-to-pay, and other powerful tools to their customers, creating memorable experiences along the way. Ready to see how Bitly can elevate your customer connections? Explore our conversational commerce integrations and discover new ways to reach your audience.
