Conversational commerce is transforming the e-commerce industry. Chatbots and other forms of artificial intelligence (AI) are used to interact with customers and help them make purchases through their preferred channels. The spectrum ranges from WhatsApp and SMS to Facebook Messenger and Instagram.
With the advent of messaging platforms and mobile devices, consumers are increasingly using chat as a way to communicate with and shop from businesses. These changing consumer behaviors have led to new technologies and strategies that enable companies to communicate with their customers in a conversational and personalized way.
We are only at the beginning of a communications revolution: companies around the world are accelerating their digital transformation to improve the customer experience across the board. Google is phasing out third-party cookies in 2024, while new privacy regulations force advertisers to get their customer data from new sources. Companies need to change their marketing strategies.
Navigating the era of no third-party cookies
With the end of third-party cookies, the use of conversational commerce will skyrocket over the next few years. Cookies are traditionally used to track user behavior on websites and apps. This allows companies to collect data about their customers and target them with personalized advertising and offers. The increased focus on privacy and the move away from third-party cookies towards a more transparent digital age are forcing advertisers to find new ways of collecting customer data.
With third-party cookies ending, businesses will have to rely more on first-party data, such as information that customers provide when registering on a website or at checkout in-store. This could make it more difficult for advertisers to understand consumers and target them with personalized offers.
In addition, controllers may need to use alternative methods of tracking user behavior, such as device browser footprints. These methods can be used to identify a specific device or browser but come with a number of privacy concerns.
Conversational commerce solutions are less affected by the elimination of third-party cookies, as they rely on direct interactions with customers. However, companies may need to rely more heavily on other data sources, such as customer demographics and purchase histories, to personalize their interactions with consumers. They also need to be more transparent about their data collection practices and obtain explicit consent from customers to track their behavior on a website.
The end of third-party cookies poses new challenges, especially for those companies that rely on tracking user behavior and personalizing their interactions with customers. But it can also open up new opportunities for companies when they are able to create personalized experiences without relying on third-party cookie data. Either way, advertisers will need to recalibrate their digital marketing strategies if they want to continue reaching their audiences.
Innovative e-commerce strategies for a changing market
Teams responsible for developing software should reorient themselves. They should focus on creating an infrastructure that allows conversational AI to build on top of messages. Only natural-looking dialogues lead to sales.
Conversational AI not only makes chatbots smarter, it also forms the basis for personal virtual assistants. The technology uses automatic speech recognition and natural language understanding. The customer can converse with a bot in real time as if he were speaking to a human. The AI technology working behind the scenes is able to analyze human understanding and written text in different languages, interpret meaning and context, and respond in a way that mimics human dialogue.
Teams developing websites should use it to create quick and easy conversation flows that adapt to a variety of social media platforms and news channels.
Communication APIs make it possible: They serve as a software tool for program control and as the basis for customer care solutions via video, telephone and messaging.
Conversational Commerce is the future
Customers often need assistance when browsing a company’s website and browsing the product offering. In such cases, it is important to help them in a timely manner and to make it as comfortable as possible for them. This increases the likelihood that the exchange will result in a sale.
Conversational Commerce allows businesses to offer customer support through messaging and social media apps. By engaging with people, brands can market their products in a tailored and supportive way without accessing consumers’ data as they browse the web.
Businesses need to recognize that consumers want instant communication across chat and social media platforms. The former can capitalize on this desire by setting up the necessary infrastructure to allow end-users to make purchases during the conversation. For example, a consumer can find out about a company’s product on Instagram and ask a question. After receiving a positive response, the conversation can be continued with, for example, a payment option or other information.
Getting rid of third-party cookies will change the way businesses connect with their customers. Companies have to evolve and rely on conversational commerce, otherwise, they risk being left behind.