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Facebook Business
·
25 January 2021

Conversational Commerce: Fuel business growth by cutting friction

Simplify chat-based transactions by removing hurdles to conversion

More people are shopping online than ever before, and many customers in Southeast Asia are using messaging platforms to communicate with brands. The shift to increased online shopping seems to be not just permanent, but global: Over 40% of survey respondents say they will shop online more frequently after the COVID-19 pandemic1 and 30% of people who are aware of conversational commerce have made a purchase.2

What’s more, the upward trends of online shopping and conversational commerce are set for further growth:

94%

Of chat-first shoppers in Southeast Asia are expected to maintain or increase their spending 3

3x

Expected increase in online shopping in Southeast Asia by 2025 4

Due to the rise of conversational commerce, businesses need to be able to not only chat with customers, but provide a seamless shopping experience that turns the conversation into a sale. In this piece, we explore tools brands can use to remove hurdles to conversion — by simplifying chat-based transactions and streamlining customer orders.

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Selling through messaging apps
Brands can use conversational commerce as a new sales channel by incorporating payment automation in Messenger. This business tool is available to brands that have enabled checkout through Commerce Manager and allows them to request and manage payments seamlessly and securely within a Messenger conversation.

To go a step further, businesses that use checkout through Commerce Manager can also use Messenger to mark orders as placed, conversations as paid, and send shipping alerts and updates via automated order updates. This allows both brands and customers to find the order information in one place.

For brands looking for assistance with using Messenger as a sales channel, working with a trusted Facebook Marketing Partner can provide you with valuable insight from an expert. It can help you:

  • Sync real-time inventory and organise shopping catalogues
  • Integrate flexible, secure payment methods that customers will trust, including cash on delivery and bank transfers

A good example is when skincare brand Kiehl's was building its conversational commerce sales channel. The brand chose to work with a Facebook Marketing Partner, Haravan, to build an automated experience for Messenger and ran an eight-day campaign to promote the new sales channel. By the end of the 2019 campaign, it had successfully increased sales and its return on ad spend.

1.8x

Return on ad-spend (compared to non-campaign period)

22%

Growth in sales

4x

More new Messenger conversations within first week of launch than in previous 10 weeks

By working with a Facebook Marketing Partner, setting up a Messenger-powered digital assistant to help automate sales is easy. However, businesses can also implement native tools such as payment automation and order tracking automation into Messenger that can help to not only chat with customers, but allows them to make payments, and manages and tracks orders, all within the messaging platform.

To learn more about how businesses like Kiehl’s have used conversational commerce to earn great lead generation results, visit the conversational commerce hub.

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