More organizations are adopting new technologies that improve online commerce automation. Conversational commerce is the process by which end-users of smart devices are able to leverage them for commercial purposes, including applications within the retail and banking sectors.
The ecosystem for conversational commerce has evolved with many telecom providers acting as the primary point of connection between the end-users of these devices and the brands, enterprises and financial institutions that provide them to their customers.
According to the latest worldwide market study by Juniper Research, the total spending over conversational commerce channels will reach $290 billion by 2025 -- that's an increase from $41 billion in 2021. This forecast growth represents a rise of 590 percent over the next four years.
The Juniper study predicts that three countries in the Asia-Pacific region will account for over 90 percent of chatbot spend by 2025: China, Japan, and South Korea.
Mobile messaging apps popular in these countries -- such as WeChat, LINE, and Kakao Talk -- have all established chatbot ecosystems in which retailers play a significant role in the development of chatbot and conversational commerce functionality.
The Juniper analyst urges other emerging conversational commerce channels to emulate the chatbots ecosystems in these countries. They have demonstrated the proven path to meaningful progress.
Today's eCommerce chatbots can benefit organizations by automating sales and after-sales support. In the role of a customer service agent, chatbots can answer simple questions such as store locations and opening hours.
In addition, they can confirm and track customer orders, as well as answering questions about products, warranties, invoices and returns. Chatbots can also help users searching for products, thereby removing the need for consumers to sift through irrelevant search results.
I believe that chatbots have also been proven to help increase sales by taking payments within the chat interface, therefore streamlining the online payment process. The entire sales process, from product discovery to checkout can now be automated by chatbots, via conversational commerce use cases.
The ecosystem for conversational commerce has evolved with many telecom providers acting as the primary point of connection between the end-users of these devices and the brands, enterprises and financial institutions that provide them to their customers.
According to the latest worldwide market study by Juniper Research, the total spending over conversational commerce channels will reach $290 billion by 2025 -- that's an increase from $41 billion in 2021. This forecast growth represents a rise of 590 percent over the next four years.
Conversational Commerce Market Development
Juniper analysts predict that communications platforms that provide the connection between brands and end-users will be crucial in increasing the adoption of conversational commerce channels.
The new study findings highlighted that the ability to offer conversational commerce as a component of an omnichannel retail strategy will increase confidence in the channels among retailers.
The new study findings highlighted that the ability to offer conversational commerce as a component of an omnichannel retail strategy will increase confidence in the channels among retailers.
This strategy enables these retailers to expand their reach while allowing a fallback on more established commerce channels. Conversational commerce leverages artificial intelligence (AI) to automate retail transactions and payments through channels including chatbots, messaging, and digital voice assistants.
The Juniper study predicts that three countries in the Asia-Pacific region will account for over 90 percent of chatbot spend by 2025: China, Japan, and South Korea.
Mobile messaging apps popular in these countries -- such as WeChat, LINE, and Kakao Talk -- have all established chatbot ecosystems in which retailers play a significant role in the development of chatbot and conversational commerce functionality.
The Juniper analyst urges other emerging conversational commerce channels to emulate the chatbots ecosystems in these countries. They have demonstrated the proven path to meaningful progress.
To maximize the potential of other conversational commerce channels, such as voice commerce and RCS messaging, Juniper recommends that retailers and communications platforms explore the possibility of a revenue-sharing model, in which a small proportion of the transaction value is paid to the conversational commerce service provider.
Outlook for Conversational Commerce Growth
"Revenue-sharing models will enable conversational commerce channels to monetize their services by levying costs on brands and enterprises, rather than the end-users themselves. This revenue can be used to improve commerce channels to generate further investment from brands and enterprises," said Sam Barker, lead analyst at Juniper Research.
Outlook for Conversational Commerce Growth
"Revenue-sharing models will enable conversational commerce channels to monetize their services by levying costs on brands and enterprises, rather than the end-users themselves. This revenue can be used to improve commerce channels to generate further investment from brands and enterprises," said Sam Barker, lead analyst at Juniper Research.
In addition, they can confirm and track customer orders, as well as answering questions about products, warranties, invoices and returns. Chatbots can also help users searching for products, thereby removing the need for consumers to sift through irrelevant search results.
I believe that chatbots have also been proven to help increase sales by taking payments within the chat interface, therefore streamlining the online payment process. The entire sales process, from product discovery to checkout can now be automated by chatbots, via conversational commerce use cases.