Key Takeaways
- Conversational commerce tools, such as AI chatbots and virtual assistants, are simple to implement yet significantly elevate customer experiences via more personalized recommendations and convenience.
- Messaging apps, such as WhatsApp, can either replace (traditionally) in-person services or eliminate common pain points to help create a more frictionless omnichannel retail experience.
- Live conversational commerce, either 1:1 or via live shopping, is a powerful tool for providing brand education, offering a humanized buying experience, and fostering a sense of community.
Listen: Why conversational commerce is the new big shift in retail.
Want a personalized customer experience without shopping in person or picking up the phone? Conversational commerce is a type of e-commerce that uses AI chatbots, messaging apps, and live chat messaging services to lend a personalized touch to a buyer’s purchasing journey without all the drawbacks.
Some of the main benefits of conversational commerce include real-time shopping assistance, elevated customer experiences, streamlined buying journeys, and increased personalization. Retailers can enhance the shopping experience for consumers at little to no cost while catering to those who prefer online shopping to avoid the social pressures and inconveniences of in-person shopping. Conversational commerce makes customers feel understood, offers rapid responses, and creates more frictionless omnichannel shopping experiences. While it may seem counterintuitive, the hyper-digitalization of e-commerce has enabled more humanized customer journeys.
As a result, customers are more likely to encounter fewer pain points, increasing sales and buyer engagement. By optimizing the customer journey, conversational commerce helps build trust and community. These achievements from various modes of conversational commerce are the foundation of creating a cult following.
See all the ways conversational commerce gives fashion and beauty retailers an advantage to boost customer loyalty.
Elevate customer service experience via personalization and automation
Personalizing customers’ shopping experiences can make all the difference in converting prospective buyers. 81% of consumers say they prefer companies that personalize the buying journey. And 70% of customers value retailers with employees who know who they are and their shopping history. What’s even better? Having these personalization capabilities accessible anytime, anywhere, and making it as simple as sending a text.
Cue the ascendence of the AI chatbot. Since around 2016, fashion and beauty e-commerce retailers have embraced this transformative tool to offer elevated client experiences to the masses. Every AI chatbot has a unique flair. Yet, SSENSE stands out for its innovative integration of ChatGPT to power its customers’ styling and shopping questions. Launched in 2023, this shopping assistant was revolutionary. While preceding AI fashion stylists could only offer pre-programmed answers, SSENSE’s ChatGPT integration allowed customers to get real-time, human-like recommendations. Simply share a desired aesthetic, occasion, cut of shirt, or preferred color palette, and get instant curated options.
While SSENSE’s AI chatbot is a problem-solver that’s practical past the “wow” factor, it’s important to remember that conversational commerce elevates rather than creates the customer service experience. Nordstrom is known to use digital tools to create an overall enhanced and more seamless omnichannel buying experience. Nordstrom offers various conversational commerce tools that allow shoppers to choose how hands-on (or hands-off) they want their customer service experience to be. The retailer has its own AI chatbot that customers can use for simple inquiries, such as tracking an order or returning an item. For shoppers seeking a more personalized experience, Nordstrom leverages conversational commerce to provide three ways to access their stylists:
- Personal shopping services: Through their “Request a Look” program, Nordstrom allows customers to answer a series of questions on their e-commerce site or app so a stylist can customize a look that's shipped to their door.
- Chat with a stylist online: Nordstrom enables shoppers to use their live chat feature to discuss their needs with a stylist in real time to help them make purchasing decisions.
- Book an in-store styling session: The retailer leverages conversational commerce to make it simpler for customers to book appointments without having to worry about store hours or any phone-related anxiety.
According to their own internal reports, Nordstrom shared that customers who used the retailer’s styling services spend 60% more than shoppers who made their purchases independently. From these impressive numbers, it’s clear that personalization via conversational commerce can significantly increase average order value (AOV), whether customers prefer to purchase online or in-store. Nordstrom’s success in this arena highlights another benefit of conversational commerce: Its ability to streamline the customer journey.
Create frictionless omnichannel retail experiences
Conversational commerce seamlessly integrates online and in-store product or service-based purchases. In addition to personal styling services, conversational commerce enables brands to create custom beauty regimens and consultation services without the in-person counter.
Estée Lauder was one of the first companies to leverage conversational commerce within this niche. In 2020, it partnered with the creative agency Rehab to create Liv, an AI chatbot powered by WhatsApp. Amid the COVID-19 lockdowns, Liv was able to offer customers personalized skincare routines and tailored advice based on a series of WhatsApp messages.
In the beauty space, another place where conversational commerce shines is helping customers to book in-person appointments seamlessly. Whether it’s time in the books with your dentist, the DMV, or a wax technician, any adult knows that the most dreadful part of this whole charade is booking the appointment. And having to initiate human contact to do said dreadful task is even worse.
Fortunately, Benefit Cosmetics saw an opportunity to let customers book their appointments via WhatsApp. The proof is in the results: Benefit Cosmetics saw a 30% uptick in lip and brow waxing appointments. Plus, WhatsApp customers enjoyed 60% faster response rates to their messages than those who communicated with the beauty brand’s agents via email.
Whether seeking a personalized experience or booking an appointment, conversational commerce makes the omnichannel experience more convenient. Low-effort modes of conversational commerce, like sending a message via WhatsApp, eliminate the friction through the customer journey while humanizing the shopping experience. It genuinely feels seamless.
Live conversational commerce drives human connection —and significant sales
Aside from AI-powered tools, many brands are seeing how powerful human-to-human conversations can be for their customers’ experiences—especially through a screen. Live chat is a popular way for consumers to interact with a brand expert while shopping in real time.
During their business hours, Bobbi Brown Cosmetics lets buyers chat with their virtual agents to get expert beauty advice and product recommendations as they shop. The brand’s virtual agents will inquire about your preferences, fill in any beauty knowledge gap you may have, and offer shade suggestions. Once you share your needs, your agent will drop a shoppable link into the chat. They’ll inquire about your feedback on their recommendation. Before you know it, a new makeup routine could be selected for you, with matching products added to your cart.
While 1:1 conversational commerce is incredibly powerful (and profitable), social commerce should never be underestimated. Live shopping, a type of social commerce, occupies a unique domain in conversational commerce. Brands typically partner with influencers for special, scheduled live shopping events. During these events, audience members can feel like they’re FaceTiming with a friend about a product they’re debating purchasing or that was not previously on their radar. Talent hired to host live shopping events offer in-depth reviews and tutorials, and those products are available to shop on the screen in real time.
Many fashion and beauty companies are seeing success with live shopping via TikTok’s live shopping platform. Made By Mitchell, a U.K.-based beauty brand, earned over $1M in sales over 12 hours through their TikTok Live episodes. The venture was so successful that TikTok released a case study to share the results. According to TikTok, Made By Mitchell’s TikTok Live campaign boosted sales by 106% with 10.5M impressions and 4x growth in their brand account’s following in three months.
Conversational commerce promotes trust and a sense of community
Shoppers are social creatures. As with all relationships, customers are loyal to brands they trust. Customer loyalty stems from shoppers consistently feeling heard, supported, and informed throughout their buying journeys when making purchasing decisions. Conversational commerce fills this need for reliability and a personal touch in the customer experience. Features like customized recommendations through a chatbot or a WhatsApp message save customers time and make them feel understood. Plus, many conversational commerce tools are available either 24 / 7 or at very predictable hours. This level of reliability builds trust among users. Inviting customers to chat with one of your company’s experts or to RSVP to a live shopping experience helps usher them into your brand’s community.
Conversational commerce proves that customer trust and a budding sense of community are only one thoughtful message away.
About the author
As a seasoned business development executive, Laura excels at building and leading high-performing teams, driving growth in professional services, and nurturing complex enterprise deals from inception to closure. Her strategic mindset and relentless curiosity fuel her ability to uncover innovative solutions for the ever-evolving beauty and fashion landscapes. With a robust background in enterprise B2B sales, Laura has thrived within the beauty, consumer products, retail, fashion, apparel, travel, and e-commerce sectors. She is adept at crafting sustainable business practices, fostering deep relationships, and presenting transformative strategies to executives across all levels. Her dedication to integrity and professional excellence is evident in her approach to solving complex client challenges with creativity and insight. As a thought leader, she continually seeks to identify business opportunities that align with human capital needs and market demand, ensuring her contributions enhance people, innovation, and profit. Whether she's exploring the latest trends or delving into strategic initiatives, Laura offers a fresh perspective that captivates and educates her readers.
Latest.
Stop the price walk: keep more of your clients.
Consulting & Operations, Content & Creative, Experience & Product, Financial Services
How to reset culture through Creative Operations.
Insights from InsideOut, Leadership & Management, Consulting & Operations, Content & Creative
Why mental health benefits matter to freelancers.
Diversity, Equity & Inclusion, Leadership & Management, Retention Strategies, Talent Acquisition & Recruitment
