What is conversational commerce? Complete guide with examples + tips

Definition of conversational commerce

When we talk about conversational commerce, we’re referring to the junction of messaging apps, voice assistants, and online shopping, allowing consumers to interact with brands and make purchases through real-time conversations. 

It enables businesses to sell products, answer questions, and offer support via chatbots, live agents, or AI-powered tools on platforms like WhatsApp, Facebook Messenger, or voice-enabled devices. 

By mimicking natural conversations, it creates a more personalized, convenient shopping experience that enhances customer engagement and shortens the path to purchase.

How conversational commerce works

Conversational commerce works by integrating real-time communication tools into the shopping experience, allowing consumers to browse, ask questions, and make purchases through conversations on messaging platforms or voice assistants. 

At the core of this technology are chatbots and virtual assistants powered by artificial intelligence (AI) and natural language processing (NLP), which interpret and respond to user input in a human-like manner.

Businesses deploy these bots on platforms like WhatsApp, Facebook Messenger, or their own websites. Some also integrate voice recognition technology through smart speakers like Amazon Alexa or Google Assistant, enabling hands-free shopping. 

APIs connect these conversational tools with ecommerce platforms, payment gateways, and customer databases, allowing for personalized recommendations, order tracking, and secure transactions.

Furthermore, machine learning enables these systems to improve over time by analyzing user behavior and preferences. Together, these technologies create seamless, engaging, and efficient shopping experiences that mimic in-store interactions.

Types of conversational commerce

There are numerous kinds of conversational commerce you can use to connect with your customers and improve the shopping experience with your business.

• Live chat with human agents on the website: Direct, real-time communication occurs between customers and customer service representatives through the company’s website. Unlike chatbots, these interactions provide personalized support, nuanced answers, and emotional intelligence, helping to build trust and guide purchasing decisions more effectively.
• Website-based AI chatbots: These are automated systems that use artificial intelligence and natural language processing to engage with customers through text or voice. They can answer questions, recommend products, handle transactions, and provide support 24/7, delivering a personalized and efficient shopping experience without human intervention.
• Social messaging apps: Brands use platforms like WhatsApp, Facebook Messenger, or WeChat to interact with customers, promote products, and facilitate purchases. Businesses can engage users through chatbots or live agents, offering a seamless shopping experience within the apps people already use daily.
• SMS marketing: Through text messaging, companies can communicate directly with customers, sending personalized promotions, order updates, and support messages. It enables two-way interactions, allowing customers to ask questions or complete purchases quickly through simple text replies.
• Voice assistants: Users can interact with brands and make purchases using voice commands through devices like Amazon Alexa, Google Assistant, or Apple’s Siri. These assistants can help users search for products, place orders, track deliveries, and receive personalized recommendations, all through hands-free, conversational interactions.

Benefits of conversational commerce

If your ecommerce business is already functioning well as is, why implement a new strategy like conversational commerce? 

Here are some of the top benefits that will help convince you!

24/7 customer engagement

With conversational commerce, particularly that which involves AI-powered chatbots and messaging platforms, brands can interact with customers anytime, anywhere. 

This constant availability ensures that customers can ask questions, get product recommendations, and make purchases even outside regular business hours. 

It enhances convenience, builds trust, and reduces response time, leading to higher customer satisfaction and loyalty.

Personalized shopping experience

Because conversational commerce avails of customer data, preferences, and behavior, it allows you to tailor interactions in real time. 

Through AI-powered chatbots or live messaging, your business can recommend products, offer tailored promotions, and answer specific questions based on individual needs, creating a more engaging and relevant shopping journey and increasing the likelihood of conversion and customer satisfaction.

Need further convincing of the importance of personalization in the customer journey? 

Consider that a 2024 Forbes study that surveyed 1,000 consumers in the US, 81% of respondents stated that they prefer companies that provide a personalized experience.

In addition, Business Dasher reports that personalization tends to boost revenue 10% to 15%.

By making customers feel understood and valued, conversational commerce turns routine transactions into meaningful, customized experiences that drive loyalty and boost overall sales performance.

Shorter sales funnels and quicker conversions

Conversational commerce also makes it possible to shorten sales funnels and speed up conversions by providing immediate, interactive support throughout the buying journey. 

Customers can ask questions, receive product recommendations, and complete purchases all within a single chat interface, reducing the need to navigate multiple pages or wait for follow-up. 

This real-time assistance removes friction, addresses objections instantly, and streamlines decision-making. 

Conversational tools guide customers efficiently from interest to purchase conversational tools, reducing drop-offs and increasing conversion rates. 

Reduced costs related to customer support

Automating common customer service tasks through AI chatbots and messaging platforms can help your business save money when it comes to customer support. 

These tools handle FAQs, order tracking, returns, and other routine inquiries without human intervention, freeing up support staff for more complex issues, leading to lower labor costs, faster response times, and improved efficiency. 

This means being able to scale customer support without significantly increasing overhead. 

In addition, automation reduces errors and ensures consistent service quality. According to a report by MIT Technology Review, almost 90% of the global respondents surveyed declared having achieved noticeable improvements in how quickly complaints are resolved.

The cost savings and operational improvements allow companies to invest more in growth, ecommerce innovations, and better overall shopping experiences.

Data collection and insights for businesses

By tracking customer interactions, preferences, purchase history, and feedback in real time, conversational commerce enables seamless data collection. 

Every conversation provides valuable insights into customer behavior, common questions, and pain points. 

Businesses can analyze this data to identify trends, improve products or services, personalize marketing, and enhance the customer experience in general. 

This level of insight can aid you in making data-driven decisions, optimizing sales strategies, and better anticipating customer needs.

Real-world examples of conversational commerce

Casper: Supplying product recommendations with the Luna chatbot

Mattress retailer Casper’s Luna chatbot has various capabilities, but one of its best features is being able to recommend items to potential customers. 

Through natural conversation, Luna offers personalized product guidance and recommends mattresses, pillows, frames, and accessories tailored to users’ needs.

Source: Casper

Fluent in multiple languages and constantly refined by human oversight, it creates a helpful, scalable “sleep journey” experience. Via this conversational, guided approach, the chatbot simplifies buying decisions, deepens customer trust, and strengthens brand loyalty.

Domino’s Pizza: Allowing customers to order via Messenger

Domino’s integration with Facebook Messenger lets customers order pizza through a simple chat interface. 

This convenient, familiar platform eliminates the need to visit a website or call, speeding up the ordering process.

Customers can reorder favorites, track deliveries, and get support—all within Messenger.

Source: Domino’s

It’s fast, personalized, and frictionless, enhancing customer satisfaction while boosting order frequency through an engaging, on-demand digital experience that fits seamlessly into daily communication habits.

Chewy: Offering 24/7 live chat

Chewy’s 24/7 live chat enables real-time, empathetic conversations that drive sales and loyalty. 

Their agents, who are often pet parents themselves, offer expert guidance on products like food or medication, creating personal connections that ease purchase decisions.

Source: Chewy

Available anytime, human support addresses concerns immediately, reducing cart abandonment and increasing customer satisfaction, creating a seamless, emotionally intelligent experience that turns everyday shopping into a trusted, conversational journey.

Decathlon: Using WhatsApp Business for customer service

International sporting goods retailer Decathlon handles its fair share of customer service inquiries, due to having more than 1,700 physical and online stores worldwide.

Previously relying on phone and email support to assist customers, the company later began using WhatsApp to speed up response times, beginning with simple automation flows and agent support.

Source: Hubtype

Through WhatsApp, Decathlon has been able to significantly boost efficiency—bots now handle 22 % of queries and average handling time has fallen by 50 %.

Furthermore, as shoppers are able to multitask while chatting with customer service on WhatsApp, agents can often take care of multiple tickets simultaneously.

Target: Featuring voice search on the website

In addition to standard site search, voice search is available for use on Target’s website, making shopping more natural, fast, and hands‑free. 

Customers can simply speak requests—such as checking local stock or finding products—instead of typing, which streamlines the path to purchase.

It also enhances accessibility for users multitasking or with mobility constraints, and improves product discoverability and personalized recommendations through natural language queries.

Source: Target

This friction‑free experience boosts conversion rates, lowers cart abandonment, and fosters customer loyalty.

Challenges of conversational commerce

As we’ve seen in the real-world examples, just like with mobile commerce, well-done conversational commerce offers a number of perks to both brands and their customers. However, the path to success isn’t always easy, as there are several challenges to consider.

Maintaining privacy and data security

Whenever you’re collecting and processing sensitive customer information, such as payment details, personal preferences, and contact data, maintaining privacy and data security is going to be an issue.

According to KPMG, data privacy is a growing concern for 86% of the general U.S. population. 

As conversational commerce interactions happen over messaging platforms or chatbots, there’s a risk of data breaches, unauthorized access, or misuse if proper safeguards aren’t in place. 

Ensuring compliance with data protection regulations like the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA) adds complexity.

Businesses must implement robust encryption, authentication, and monitoring systems to protect customer data. Failing to do so can damage trust, lead to legal consequences, and harm a company’s reputation, making security a critical priority.

Balancing automation with human touch

Although AI-powered chatbots improve efficiency and handle routine inquiries, they can lack empathy, nuance, and the ability to solve complex issues. 

Customers may become frustrated if they can't easily reach a human when needed. 

Striking the right balance means knowing when to automate and when to involve human agents to ensure a smooth, personalized experience. 

Over-automation can feel impersonal, while under-automation reduces efficiency. 

When utilizing automated conversation-related tools for your digital store, it’s crucial to design seamless transitions between bots and humans to maintain customer satisfaction and build trust without sacrificing speed or scalability.

Language and cultural barriers

One of the great things about having an ecommerce business is the ability to sell to shoppers all around the world. That being said, if you’re operating globally, conversational commerce can be tricky due to language and cultural differences.

Customers expect to communicate in their preferred language and receive responses that reflect their cultural norms and values. Misunderstandings, mistranslations, or culturally inappropriate responses can lead to frustration and damage brand reputation. 

Automated systems may struggle with slang, idioms, or local customs, reducing the effectiveness of conversations. To overcome this, businesses must invest in multilingual support and culturally aware AI or human agents. 

Addressing these barriers is essential for delivering personalized, respectful experiences that build trust and expand a company’s reach in diverse markets.

Integration complexity and cost

Connecting chatbots and messaging platforms with existing systems—such as inventory management, CRM, and payment gateways—can be technically demanding and time-consuming.

Businesses may need to invest in specialized software, custom development, or third-party services, which can drive up costs. Ongoing maintenance, updates, and staff training add to the burden. 

For smaller companies, these hurdles may delay adoption or limit functionality. Without smooth integration, the ecommerce customer experience can suffer from delays or errors.

5 Tips for getting started with conversational commerce

Ready to begin using conversational commerce for your own online store? Here are a few tips to help boost your chances of success!

1. Start with clear objectives

It’s important to begin with clear objectives when using conversational commerce because it ensures your strategy is focused, measurable, and aligned with your overall business goals. 

Without defined objectives, you risk implementing tools or processes that don't deliver real value or meet customer needs. 

Clear goals guide the design of chatbot flows, choice of platforms, and integration with existing systems, making implementation more efficient and effective. They also help measure success and identify areas for improvement. 

Your objectives might include any of the following, for example:

• Increasing online sales or average order value
• Improving customer service response time
• Reducing customer support costs
• Boosting customer engagement and retention
• Collecting customer feedback and insights
• Enhancing product discovery through recommendations
• Streamlining order tracking and returns
• Expanding into new markets with multilingual support

With the right objectives, your conversational commerce efforts can drive better customer experiences and business outcomes.

Having a clear direction from the very beginning sets your business up for long-term success!

2. Use AI and human support together

Using both chatbots and human agents in conversational commerce is essential for delivering both efficiency and personalized service. 

AI-powered chatbots can handle routine tasks—such as answering FAQs, processing orders, or providing tracking updates—instantly and at scale, saving time and reducing operational costs. 

However, they may struggle with complex issues or emotionally sensitive situations where human empathy and judgment are needed.

Combining AI with human support ensures a smooth, responsive customer experience across all scenarios.

To implement this effectively, set clear boundaries for when bots should escalate conversations to human agents: 

• Use AI for initial triage, capturing customer information and identifying intent. 
• Then, route more complex cases to trained staff seamlessly, without making the customer repeat themselves.
• Ensure both AI and human teams have access to shared customer data for continuity. 

This hybrid approach balances speed and quality, building trust, improving satisfaction, and allowing you to get the most out of your conversational commerce efforts.

3. Personalize customer interactions

Prioritizing personalization in your customer interactions is vital for creating meaningful, engaging experiences that drive loyalty and sales. After all, your customers are more likely to buy and return when they feel understood and valued! 

Personalization helps tailor product recommendations, promotions, and responses based on individual preferences, behavior, and purchase history.

Be sure to integrate your chatbot or messaging platform with your CRM and ecommerce systems. 

You can use collected data—such as past purchases, browsing habits, or location—to customize conversations in real time. For example, a chatbot can greet returning customers by name, suggest items based on previous orders, or offer location-specific deals. 

Implementing personalization not only improves the customer experience but also boosts conversion rates, strengthens brand relationships, and helps your business stand out in a competitive market.

4. Be present on channels popular with your audience

Of course, to optimize your conversational commerce strategy, you will need to engage customers where they already are, making it easier and more natural for them to engage with your business. 

Popular channels vary by audience but often include WhatsApp, Facebook Messenger, Instagram, SMS, and live chat on websites. 

For younger audiences, platforms like Instagram or TikTok may be more effective, while older customers might prefer email or SMS.

Research where your customers are most active and focus on those platforms. 

You may even wish to start with just one or two key platforms, optimize performance, then expand.

Remember to ensure a consistent brand voice across all channels and integrate them with your CRM and sales systems for smooth, personalized interactions. 

5. Monitor and optimize regularly

Even with the best plan in place, you’ll likely need to modify your conversational commerce strategy at some point down the road to make sure that your system stays effective, relevant, and user-friendly.

Customer behaviors, preferences, and ecommerce trends in the market change, so your chatbot or messaging strategy must evolve to meet these shifts. 

Monitoring helps identify pain points, dropped conversations, or missed opportunities, allowing you to fix issues before they impact customer satisfaction or sales.C

Keep an eye on your strategy’s performance by tracking key metrics such as response time, conversion rates, customer satisfaction, and common queries. You can then use analytics tools to gain insights, test different messages or flows (A/B testing), and refine based on real user data. 

In addition, collect feedback directly from customers to understand their experience. Lastly, aim to regularly update content, improve AI training, and enhance human-agent workflows. 

By continuously optimizing, you keep your conversational commerce experience smooth, engaging, and aligned with your business goals, leading to better results over the long haul.