According to PwC, customers are willing to pay up to 16% more for products if they receive excellent customer service. To improve customer experience many companies use conversational commerce as a strategy today. This e-commerce strategy aims to communicate with customers on messaging applications via conversational AI technologies and live chat to guide shoppers find what they are looking for and to simplify their purchasing experience.
AIMultiple believes that conversational commerce can help business professionals to:
- Identify new e-marketing/sales strategies,
- Adapt to today’s customers’ demands who wish to have quick access to digital sales channels.
- And deploy chatbots to automate and optimize their customer engagement process while reducing costs.
To point out possible investment strategies for executives, in this article, we provide 5 real life examples that firms have successfully leveraged conversational commerce.
1- CEAT reached around 5.4 times more leads thanks to personalized recommendations
CEAT is an Indian tire producer that exports goods to around 100 nations across the globe.
CEAT aimed to increase its sales while enhancing customer satisfaction. In this regard, CEAT launched its conversational commerce strategy in 2021.
By deploying a WhatsApp chatbot and using live agents, CEAT aimed to increase and facilitate its engagement with customers. Specifically, Haptik helped them design a bot that could:
- Understand user intent to offer customers product’s from CEAT’s catalog. For instance, if the user wanted an ESG-conscious recommendation, the chatbot suggested tires that lowered fuel usage and the entity’s carbon emission (see Figure 1).
- Collect leads through AI-powered interactions to increase conversion rates.
- Facilitate easy complaint-ticket registration and tracking.
- Provide 7/24 answers for customers’ frequently asked questions.
- Redirect difficult customer queries to live agents to optimize customer satisfaction.
Figure 1: CEAT’s chatbot recommends products according to the personal preference of the customers.
- Initiative increased CEAT’s sales thanks to AI driven lead generation. Company reached 21% lead to conversion rate.
- Chatbot automated 75% of customer queries. Thus, it augmented the live agents, meaning the chatbot handled most of the routine queries and only redirected the critical ones to the agents.
- Chatbot reached more than 200k customers on WhatsApp and increased engagement. Thus, the conversational commerce initiative enhanced CEAT’s brand awareness.
2- Tata Cliq improve its chart addition rate 2.4 times within 3 months
Tata Cliq is an e-commerce initiative of Indian conglomerate Tata group with over +$100Bn revenue.
When COVID-19 regulations began to affect offline sales in August 2020 all over the world, Tata Cliq made the decision to transform their existing e-commerce strategy via conversational commerce in a way that Tata could replicate interactive offline shopping experience in digital channels.
By offering a welcoming and engaging online buying experience, Tata Cliq intended to raise its unsatisfactory total visitor/chart addition ratio. Tata’s team gained the following insights after studying client behavior:
- People tended to purchase high-value categories such as electronics less frequently than expected because they wanted rapid and dependable buying assistance to help them choose between confusing and expensive options.
- People expected tailored recommendations based on their demands for product categories such as clothing and accessories.
As a solution for these challenges, Tata Cliq collaborated with Haptik. Haptik built an AI driven chatbot for Tata Cliq that could understand user intent. In addition, the chatbot:
- Offered 7/24 support to customers in their purchasing experience. This cleared their confusion about different products, delivery timelines, and purchase details.
- Recommended suitable products by understanding users’ needs (see Figure 2).
Figure 2: Chatbot introduces features of products.
- Chart addition rate increased 2.4 times within 3 months.
- Almost 95% of queries were automatically answered by the chatbot.
- In an average interaction, chatbot answered 6 different queries of the same customer.
3- Car24 generates ⅓ of its sales via conversational commerce
Cars24 is a second hand vehicle seller.
In 2021, company decided to implement conversational commerce to:
- Increase revenue by generating leads from personal information that is supplied by users such as:
- Contact information,
- Model/brand they are looking for and so on.
- Automate customer support to answer as many customer queries as possible. Prior to the campaign, Cars24 struggled to respond to all customer inquiries because COVID-19 caused a two-fold rise in customer traffic. On the other hand, given that automobiles are not, an average, inexpensive consumables, convincing customers to buy them requires a quick and trustworthy response to their questions. Prior to purchasing a car, the average customer usually needs these questions answered:
- Car’s age.
- Model/brand and features of the vehicle.
- Accident and car maintenance history.
- Aftermarket auto parts.
- Price and its placement relative to substitute models.
- Questions regarding payment (i.e. has the previous owner paid its installments? Is it collectible by the bank? Is it a collateral?).
- Inspection possibilities, and so on.
- Decrease the customer service cost.
As a solution for all these challenges, Cars24 collaborated with Haptik to implement a conversational commerce strategy. Haptik developed a chatbot for Cars24’s mobile app and WhatsApp to assist Cars24 to communicate with customers around-the-clock (see Figure 3).
Figure 3: An example of chatbot answers customers’ queries.
- Thanks to the initiative, 33% of sales were made via the chatbot.
- The chatbot handled more than 100k conversations with customers.
- Initiative reduced customer service related costs by 75%.
4- House of Tours increased its lead generation 1.5 times
House of Tours is a company that works in the travel and tourism sector. Customers can choose from a variety of vacation packages in addition to receiving information on subjects like visa eligibility and application procedures via House of Tours.
House of Tours planned to boost sales and provide consumers with a seamless experience in 2019. It was challenging for customer care representatives to respond to consumer inquiries quickly due to their monthly half-a-million traffic. Consequently, they were seeking a remedy that could:
- Communicate and understand users’ intents to offer them vacation packages.
- Decrease wait times to reach a customer representative.
As a solution to each of these problems, House of Tours introduced conversational commerce. They decided that the best line of action would be to add a hospitality chatbot to their website and application, where they already attracted a considerable amount of traffic.
They collaborated with Haptik to create a chatbot that could quickly respond to consumer questions and recommended relevant vacation packages (see Figure 4).
Figure 4: Chatbot collects data to recommend the best vacation package for a customer.
- Lead to conversion rate were enhanced by 146%.
- 80% of customer queries were automated.
- 80% of customers positively evaluated House of Tours’ conversational commerce strategy.
5- Mondelēz increased its sales 67% during valentine’s day
Mondelēz International, is a world-famous producer of biscuits, chocolate, gum, candy and other types of sweets.
Valentine’s Day is the third most common occasion in India. In 2018, Mondelēz India was looking for a way to boost sales and brand recognition around Valentine’s day. They specifically targeted the more technologically savvy age groups of 25 to 40.
Mondelēz India partnered with Haptik for the development of a chatbot called “Valentine’s Day Special Store” to connect and engage with users. They wanted their chatbot to:
- Offer gifting options,
- Provide romantic tips,
- Direct users to checkout by clicking a button to ensure ease of payment.
You can watch the video below to find out more regarding the Mondelēz’s valentine day conversational commerce initiative:
- Mondelēz reached almost 13% conversion rate.
- The campaign allowed Mondelēz to improve its brand awareness thanks to its engagement with more than 5 million people within one week and provided them with sincere romantic advice.
- Surpassing expectation of Mondelez’s expected sales for Valentine’s Day week by 56%.
To learn about conversational commerce use cases read our 10 Conversational Commerce Use Cases for Different Industries article.
To identify a suitable vendor you can work with, read our benchmarking of conversational commerce platforms.
To learn more about eCommerce technologies that help you to compete with eCommerce giants you can read our Top 10 eCommerce Technologies with Applications & Examples article.
Finally, To learn more about conversational commerce and chatbot vendors you can reach us:
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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