The Complete Guide to Conversational Commerce: Definition, Tools and Examples

“Hey Siri, find me the best deals on a winter coat in my area.”

Apple’s virtual assistant is just one example of how conversational commerce companies have brought conversation into today’s shopping experience. Shoppers can easily use these tools (e.g., chatbots, messaging apps, voice assistants, etc.) to find new products or buy something online.

If you’re in the retail space, you need to embrace conversational commerce trends. Doing so will help you connect with your customers in a way that feels more natural and more personalized than traditional methods. Essentially, your customers will feel like they’re chatting with a friend rather than just another ecommerce company.

Knowing what conversational commerce is and how you can use it as part of your own selling strategies can greatly benefit your business.

What is conversational commerce? A look into the new approach

Conversational commerce essentially fuses shopping and communication together. It’s a way for your business to engage with customers through messaging platforms, chat apps, or voice assistants rather than navigating through a website or app. For example, customers can ask questions about your products, get recommendations, and even make purchases—directly within the conversational commerce platform. It’s like having a personal shopping assistant available anytime, creating a more interactive and convenient buying experience.

How can conversational commerce include AI?

AI is what makes conversational commerce smart and effective. Conversational commerce AI chatbots and virtual assistants help you deliver more personalized recommendations that are based on a customer’s preferences, past purchases, browsing history, behaviors, and more. This kind of personalization feels more natural and tailored to users, improving their overall shopping experience.

AI also speeds up your response times, handling multiple conversations at once without losing quality. Whether it’s answering questions about your product or helping with checkout or other tasks, conversational commerce AI platforms ensure your customers get what they need without waiting.

What are the different types of conversational commerce?

An important distinction to make about conversational commerce is that there’s more than one type. We’ve mentioned a few of them above, but let’s take a closer look at the different types of conversational commerce.

Messaging and Chat Apps

Messaging and chat apps like WhatsApp, Facebook Messenger, and Instagram DMs are considered to be the cornerstone of conversational commerce. These platforms allow you to connect with customers on platforms they’re already spending large amounts of time on. Placing a conversational ecommerce chatbot on these sites allows you to answer questions, send order updates, or close a sale.

Chatbots and AI

Chatbots take conversational commerce to the next level by handling common customer questions automatically. Unlike messaging apps, where a human usually responds, chatbots use AI to provide quick, accurate answers or guide shoppers through the buying process. They’re available 24/7, so your customers don’t have to wait for help—even after hours.

Want to see how an AI chatbot can work for your business? Try Podium’s AI Employee—a tool that perfectly balances automation and personalization.

Copilots and Concierges for Shoppers

Think of copilots and concierges as your shoppers’ personal assistants. These tools aren’t just about answering questions—they help your customers navigate through more complex purchases, compare options, or even set up a subscription.

Voice Assistants

Voice assistants like Alexa, Google Assistant, or Siri bring convenience to conversational commerce by letting your customers shop hands-free. For example, a simple voice command can let someone reorder household essentials, book a service, or even get product recommendations.

Benefits of Conversational Commerce

Enhanced Customer Engagement

Conversational commerce helps you connect with your customers in a more personal way. Rather than generic marketing messages full of jargon, you can engage in real, two-way conversations. It builds trust, keeps customers coming back, and creates a sense of loyalty that’s hard to achieve through traditional methods.

Improved Customer Service

Quick and effective communication is key to great customer service—and conversational commerce platforms make this easier than ever. Whether it’s answering questions instantly through a chatbot or resolving an issue via a messaging app, customers get the help they need without frustration.

Increased Sales

By offering your shoppers personalized recommendations and removing obstacles from the buying process, conversational commerce drives more sales. Customers are more likely to purchase when they feel supported and understood, especially when it happens in real time. It’s a win-win for both businesses and shoppers.

Streamlined Shopping Experience

Conversational commerce makes shopping feel effortless. From discovering products to completing the buying process, your shoppers can do it all in one seamless conversation. That ease of use reduces friction and encourages repeat purchases.

Improved Data Collection and Insights

Every interaction gives you valuable insights into your customers’ preferences, needs, and behaviors—essentially, what gets them to buy. You can then use this data to refine your marketing strategies, improve offerings, and deliver even more tailored experiences.

Use Cases for Conversational Commerce

Now that you know what conversational commerce is and how it can benefit your business, let’s look at actual use cases for the approach.

Customer Support

Conversational commerce is perfect for offering quick, responsive customer support. Whether you use a chatbot or messaging app, you can easily fix common issues like tracking orders and handling returns—even answering product inquiries. A messaging tool keeps customers satisfied without having to wait on hold, enhancing their overall customer support experience.

Personal Shopping Assistants

Imagine a digital assistant helping you find the perfect pair of shoes or a new laptop. Personal shopping assistants guide customers through the decision-making process, asking the right questions to narrow down options and even suggesting items based on preferences.

Order Placement and Management

Using conversational commerce platforms, shoppers can place orders directly through chat apps or messaging platforms, making the whole buying process so much simpler. If there are changes to someone’s order, such as adjustments to quantity or shipping details, customers can manage it in real time, making everything more efficient and seamless.

Payment Processing

With conversational commerce, payments can be processed securely within the same chat. Whether it’s paying for a product or a service, customers can complete transactions quickly, without needing to leave the messaging app or website.

Feedback and Reviews

After someone makes a purchase, you can use conversational commerce to request feedback or reviews from customers. This step can be automated through chat, prompting customers to rate their experience or provide detailed feedback, helping you improve your products or services.

Appointment Scheduling

Whether you’re a salon, healthcare provider, or even a consultant, conversational commerce makes appointment scheduling easier. Customers can check availability, book appointments, and even reschedule—all with a single conversation, saving time and avoiding scheduling hassles.

Product Recommendations

Conversational commerce lets you recommend products based on customer preferences and past behavior. For example, a virtual assistant might suggest a new skincare product based on someone’s skin type or recommend accessories that go perfectly with a recent purchase.

Post-Purchase Support

After someone’s bought from you, you can continue the conversation by offering support, such as answering any usage questions or providing troubleshooting assistance. Post-purchase support adds value to the customer experience and keeps customers engaged long after the sale.

Subscription Management

If you offer subscription services, conversational commerce simplifies your subscription management. Customers can easily adjust their plans, pause subscriptions, update payment details, and more—all without needing to navigate a complicated website.

Top 6 Conversational Commerce Tools To Use in Your Business

1. Podium AI Employee

Podium AI Employee is a powerful tool that brings automation into your customer interactions. Podium allows you to deploy AI-powered chatbots that handle everything from answering questions about your product to providing personalized customer support. It’s great if you’re looking to scale customer service without sacrificing personalization.

2. Botsonic

Botsonic is a conversational AI tool designed to provide a seamless experience for customers across various platforms. It uses natural language processing (NLP) to understand customer intent and respond accurately.

3. Drift

Drift is a popular conversational marketing tool that helps you engage with shoppers in real time. It uses conversational commerce chatbots and live chat to capture leads, qualify prospects, and even book meetings automatically.

4. Intercom

Intercom is an all-in-one messaging platform designed to help businesses communicate with customers at every stage of the journey. It includes live chat, automated chatbots, and in-app messaging, allowing you to manage everything from customer support to sales conversations.

5. LiveChat

LiveChat is an easy-to-use tool that integrates with ecommerce platforms and provides real-time customer support. It also helps you deliver a smooth, interactive experience.

6. LivePerson

LivePerson is a conversational commerce platform that helps you engage with customers via messaging, voice, and even SMS text messaging. With LivePerson, you can handle customer inquiries, provide personalized product recommendations, and assist with post-purchase support.

Great Conversational Commerce Examples: Starbucks, Domino’s, and Sephora

Finally, let’s take a look at three conversational commerce examples:

1. Starbucks

Starbucks uses conversational commerce through its mobile app and voice assistants. Customers place orders via the app, choose their favorite drinks, and even reorder previous drinks—all with one tap. Plus, the coffee company integrates with voice assistants like Alexa, allowing customers to order hands-free.

2. Domino’s

Domino’s “Dom” chatbot allows customers to order pizza through text, social media, or voice commands. The chatbot even remembers past orders, making reordering incredibly fast and easy.

3. Sephora

Sephora’s virtual assistant, Sephora Virtual Artist, lets customers try on makeup virtually through their phone or website. Shoppers can even ask for product recommendations and get personalized advice.

Elevate Your Business with Conversational Commerce

Conversational commerce is changing the way businesses connect with customers—offering more personalized, real-time experiences that drive sales and loyalty. Chatbots, AI-powered assistants, messaging apps, voice tools are all making shopping smoother and more interactive.

And with Podium’s AI Employee, you can easily step up your conversational commerce game. The easy-to-use interface and seamless integration help you automate customer responses and provide that personal touch that today’s customers love.

Watch a demo to see how Podium can take your customer experience to the next level.