{"id":22869,"date":"2025-10-01T22:14:15","date_gmt":"2025-10-01T22:14:15","guid":{"rendered":"https:\/\/www.bloomreach.com\/library\/what-is-conversational-commerce"},"modified":"2025-11-13T20:21:54","modified_gmt":"2025-11-13T20:21:54","slug":"conversational-commerce","status":"publish","type":"library","link":"https:\/\/www.bloomreach.com\/en\/blog\/conversational-commerce","title":{"rendered":"What Is Conversational Commerce? 5 Best Practices, Examples & AI Benefits"},"content":{"rendered":"

Conversational commerce has become increasingly important for online retailers, especially as advancements in generative AI have greatly increased the impact these conversations can now have on ecommerce.<\/span><\/p>\n

By facilitating engagement through AI-based text and voice assistants, social messaging apps, and other innovative conversational commerce tools, ecommerce websites have a seamless way to connect with potential customers while also providing them with a personalized experience.<\/span><\/p>\n

Natural language processing<\/span><\/a> techniques turn these conversations into structured data that can be used to gain further insights into what customers are expecting from online stores. With AI-enabled chat apps and other conversational commerce tools, businesses are able to better understand their customers, provide personalized services, and even upsell and cross-sell products.<\/span><\/p>\n

At its core, <\/span>conversational commerce<\/span><\/a> is about leveraging technology to create engaging customer experiences, which in turn leads to increased loyalty and satisfaction for brands over time. This makes it an integral part of any successful digital marketing strategy for online stores.<\/span><\/p>\n

In order to reap the full benefits of a <\/span>conversational commerce<\/span><\/a> strategy, retailers need to make sure they have a robust plan in place that takes into account the various types of conversational commerce platforms available. They also must consider what their potential customers might be looking for on their websites or platforms and what might make online customer journeys the most seamless.<\/span><\/p>\n

By integrating AI technology into their shopping experience, <\/span>digital commerce<\/span><\/a> businesses can make sure that they maximize the potential of conversational commerce and use it to enhance customer service experiences and increase sales. Brands have learned that they can engage customers and ensure they have a positive customer experience thanks to conversational commerce.<\/span><\/p>\n

\"How<\/a><\/p>\n

Defining Conversational Commerce<\/b><\/h2>\n

Conversational commerce is quickly becoming a key component of the <\/span>ecommerce customer experience<\/span><\/a>. Companies are now using conversational commerce to better understand their customers and, in turn, offer them a better experience online.<\/span><\/p>\n

By providing end consumers with a simple way to interact, companies are able to serve customers more effectively and collect valuable <\/span>zero-party data<\/span><\/a>.<\/span><\/p>\n

\"Conversational<\/p>\n

What Is Conversational Commerce in Ecommerce?<\/b><\/h2>\n

Conversational commerce is the process of using automated conversations and technologies with the help of AI and machine learning to create more engaging customer experiences when shopping online. It has been greatly advanced and technologically upgraded recently, thanks to the advancements of generative AI.<\/span><\/p>\n

With conversational commerce, customers can get quick answers to important questions, easily purchase items without having to navigate through entire websites, and receive helpful suggestions based on their previously collected customer data, including <\/span>personalized product recommendations<\/span><\/a>.<\/span><\/p>\n

At <\/span>Bloomreach<\/span><\/a>, we’re keen to not forget the ultimate focus of conversational commerce when we collectively define the term \u2014 the customer, of course. We believe that conversational commerce should personalize ecommerce shopping experiences across all channels (apps, mobile, desktop, social) with the goal of providing an optimally personalized experience to end customers.<\/span><\/p>\n

Having ample amounts of <\/span>commerce data<\/span><\/a> (the combination of product and customer data) makes these AI-driven conversations even more beneficial for customers and ultimately gets them to their most desired product or service faster and more seamlessly.<\/span><\/p>\n

How Does Conversational Commerce Work?<\/b><\/h3>\n

Conversational commerce utilizes a myriad of tools to create an interactive dialogue and experience between ecommerce businesses and their customers.<\/span><\/p>\n

Through these tools \u2014 powered by <\/span>artificial intelligence<\/span><\/a>, machine learning, and natural language processing \u2014 companies are able to quickly diagnose customer demands and provide the information that customers need to solve their problems.<\/span><\/p>\n

These can be taken even further with advancements like <\/span>agentic AI<\/span><\/a>. This technology uses the power of <\/span>AI agents<\/span><\/a> to autonomously engage users and make decisions, leading to more seamless and organic interactions on your site.<\/span><\/p>\n

Conversational commerce tools also allow businesses to gather key insights from these customer conversations and use them to personalize future customer experiences. This will lead to stronger brand loyalty among customers who are engaging with the AI.<\/span><\/p>\n

\"Artificial<\/p>\n

Conversational Commerce vs. Social Commerce<\/b><\/h3>\n

While they may seem similar in practice, conversational commerce and social commerce are two different strategies for ecommerce businesses.<\/span><\/p>\n

Social commerce<\/span><\/a> specifically uses social media platforms (like Facebook or Instagram) to market and sell services or products online. This selling model allows customers to complete the entire sales cycle without leaving their social media app.<\/span><\/p>\n

While conversational commerce is similar in that the brand’s end goal is still facilitating sales, this type of commerce specifically uses AI to generate conversations that provide customers with personalized experiences and the opportunity to purchase what they need. This doesn’t necessarily happen on social media, but it can.<\/span><\/p>\n

The Rapid Growth of Conversational Commerce<\/b><\/h2>\n

Consider your own personal communication style for a moment \u2014 how often are you personally relying on messaging or a two-way conversation to communicate or acquire knowledge? Probably much more so in today’s world than you were a few years ago.<\/span><\/p>\n

It’s no different with conversational commerce, and that’s why it has seen significant growth, with projects expected to grow even more rapidly over the next few years. Global spending for conversational commerce was $41 billion in 2021, but is <\/span>projected to increase to $290 billion by 2025<\/span><\/a>. That’s over a sevenfold increase in just four years.<\/span><\/p>\n

One of the key explanations of the rapid growth? Convenience.<\/span><\/p>\n

Customers no longer have to worry about picking up the phone, returning an email, or even driving to a brick-and-mortar store to complete a purchase anymore. Everything \u2014 from product discovery to payment \u2014 can now happen via two-way communication thanks to AI-powered conversational commerce.<\/span><\/p>\n

Another key explanation? Generative AI.<\/span><\/p>\n

Advancements in Generative AI and Conversational Commerce Strategy<\/b><\/h3>\n

Generative AI<\/span><\/a> is a form of artificial intelligence that enables computers to generate content without being explicitly programmed.<\/span><\/p>\n

Generative AI’s ability to automate customer interactions, create personalized product recommendations, and respond to customer-specific requests by mimicking natural language is the backbone of conversational commerce. It represents the future of ecommerce as brands race to offer the most personalized experiences for customers without putting all the heavy lifting on their own internal marketers and merchandisers.<\/span><\/p>\n

More recently, innovations in generative AI have led to the development of agentic AI. Once you set a goal, these AI agents can work autonomously to make decisions, learn and adapt, and collaborate with other agents to complete that objective. This allows brands to implement new ways to engage customers while streamlining and scaling up their internal efficiency.<\/span><\/p>\n

Prior to the incredible recent advancements in generative AI, conversational commerce was limited in the types of interactions it could offer to customers. The AI may have been able to match some of the keywords, but that didn’t always guarantee a relevant or helpful response to customers, as the technology was not yet fully mature.<\/span><\/p>\n

For example, searching with stilted language such as “make a return” would likely produce much better results than searching “can you please help me return these jeans that I bought last week?”<\/span><\/p>\n

Now, thanks to generative AI and AI agents, those issues pop up far less frequently. Generative AI facilitates actual conversations in conversational commerce and helps brands deliver on the actual promise of being conversational in their strategies.<\/span><\/p>\n

There is so much data informing the process, and generative AI has such a deep understanding of how human beings speak that you can now interact in two-way messaging as you might with a friend or colleague. As a result, conversational commerce can be much more personalized and actually feel like a real conversation.<\/span><\/p>\n

These advancements mark a seismic shift in the ecommerce marketplace. Conversational commerce has been completely changed and upgraded because of generative AI, with innovations far beyond what could even previously be imagined.<\/span><\/p>\n

As OpenAI and LLMs reshape the internet, it may also radically reshape how we think about ecommerce websites, the role of <\/span>the search bar<\/span><\/a>, and all of the one-way communication online that human beings are accustomed to today. Generative AI makes it possible for conversational commerce to become a part of the experience that any company offers its customers, creating new ways for brands to build relationships with shoppers.<\/span><\/p>\n

That being said, the need for controls around this will still remain, and brands will maintain an important role in ensuring their <\/span>AI-powered commerce<\/span><\/a> experience is accurate and consistent with brand standards.<\/span><\/p>\n

\"What<\/a><\/p>\n

5 Real Examples of Conversational Commerce in Action<\/b><\/h2>\n

Now that you know how it works, consider these examples of conversational commerce. Have any of your favorite brands used these channels or tools? If so, how was your experience with them?<\/span><\/p>\n

1. Social Messaging<\/b><\/h3>\n

The rise in popularity of social commerce for marketers working in <\/span>ecommerce marketing automation<\/span><\/a> does intersect with conversational commerce. Companies are now using the two-way messaging offered by Facebook Messenger and other social media platforms to communicate with customers in a more personal and engaging way and to offer personalized product recommendations.<\/span><\/p>\n

Industry Example:<\/b> A leading fashion retailer implemented Facebook Messenger chatbots to help customers find the perfect outfit based on their style preferences and occasion needs. By integrating their product catalog with AI-powered recommendations, they achieved significant improvements in conversion rates compared to traditional browsing experiences.<\/span><\/p>\n

2. Virtual Shopping Assistants<\/b><\/h3>\n

Virtual shopping assistants<\/span><\/a> are one of the most common examples of conversational commerce. They do more than chatbots, which often follow preset rules or scripts. Instead, they use <\/span>conversational AI<\/span><\/a> to understand (and even predict) what customers are looking for, proactively provide guidance and recommendations, and adapt to their changing preferences.<\/span><\/p>\n

Industry Example:<\/b> A major home improvement retailer deployed virtual shopping assistants that help customers navigate complex project planning. The AI assistant asks questions about room dimensions, style preferences, and budget constraints, then provides personalized product bundles and installation guidance, resulting in improved customer experience and increased average order values.<\/span><\/p>\n

3. SMS for Two-Way Customer Conversations<\/b><\/h3>\n

SMS marketing<\/span><\/a> lets marketers use text messaging as an additional marketing channel. <\/span>Building an effective SMS strategy<\/span><\/a> should absolutely involve conversational commerce. Being able to have two-way conversations with your customers via text can truly elevate your brand’s personalization pursuits and the customer experience it can offer.<\/span><\/p>\n

Industry Example:<\/b> A travel booking platform uses SMS conversational commerce to help customers manage their trips. When travelers text questions about flight changes or hotel amenities, AI agents respond with personalized solutions and can instantly process booking modifications, leading to <\/span>significantly faster resolution times<\/span><\/a>.<\/span><\/p>\n

4. MMS for Rich Media Customer Engagement<\/b><\/h3>\n

Sending media files that SMS can’t support is what makes <\/span>MMS marketing<\/span><\/a> so valuable to your brand. Being able to have a two-way conversation after sending those multimedia messages to opted-in customers? Even more valuable.<\/span><\/p>\n

Industry Example:<\/b> A luxury jewelry brand sends MMS messages featuring high-resolution images and videos of new collections. Customers can reply with questions or requests to see similar pieces, triggering personalized conversations that guide them toward purchase decisions.<\/span><\/p>\n

5. AI-Enhanced Search Bars for Interactive Discovery<\/b><\/h3>\n

Is this a new one to you? Our interactions with the search bar may grow to include options for two-way conversation thanks to the impact that conversational AI will have on commerce search. In addition to its traditional one-way use, businesses may now also offer a two-way conversation prompted by a customer’s search. For example, a customer searching for a bike may see conversation-starter questions directly in the search bar, and clicking on one will bring up a chat window so they can ask further questions.<\/span><\/p>\n

\"Customer<\/p>\n

The Benefits of Conversational Commerce<\/b><\/h2>\n

The ultimate benefit of conversational commerce is that it provides customers with an easier and more efficient way to purchase products online. It gives them the ability to participate in two-way conversations with brands in a natural and conversational manner. This ultimately leads to a better shopping experience.<\/span><\/p>\n

But what about the benefit for brands? Think for a second about your <\/span>omnichannel<\/span><\/a> strategy. Would it benefit from not only customer engagement but also customer interaction? That answer is likely a resounding yes.<\/span><\/p>\n

Conversational commerce facilitates the ability to send an SMS, get a response, and then follow up via email. Or, you can create a conversation to reengage a shopper with an abandoned basket campaign. It’s an open flow of communication fueled by more personalization \u2014 created with less effort.<\/span><\/p>\n

Additionally, conversational commerce is another avenue for brands to leverage customer data to increase customer satisfaction and keep customers coming back to buy again. Using generative AI to automate customer interactions makes everything on the customers’ end more user-friendly.<\/span><\/p>\n