In future, he reckons, AI will be able to answer customer requests as fuzzy as “get me a birthday toy for a five-year-old around science education for roughly $40”, suggesting choices and completing the transaction in seconds. Artificial intelligence ( AI) is getting better at unstructured exchanges that shoppers used to have with expert retail assistants.įor now, says Marc Lore, who led Walmart’s digital efforts, a lot of business messaging has humans in the loop. Automatic messaging is moving beyond rudimentary chatbots, which have been around since the mid-2010s.
It is more personalised than SMS marketing, which has itself had success in recent years in America and Europe. Yet business messaging does have new elements. Apart from mail order and its modern guise, online shopping, trade has relied on conversation for millennia.
In some ways c-commerce is a throwback to the past. Most messaging conversations between large firms and consumers start from corporate e-commerce websites equipped with a “click to message” button. But messaging is best understood as a refinement of e-commerce, and a sibling of “social commerce” (shopping on social media). For firms, the return on investment seems higher for messaging than for call-centre exchanges or email chains, says Emile Litvak, head of business messaging at Facebook.īoosters of business messaging claim that c-commerce will displace e-commerce within a decade or two. Now Western consumers are beginning to embrace the ease, speed, personalisation and convenience of messaging.
“C-commerce” is already entrenched in Asia and Latin America, where spotty access to broadband and high-quality devices puts e-commerce and company-specific apps out of reach for many. LVMH, a French luxury-goods conglomerate, is testing out messaging, according to Jeroen van Glabbeek, chief executive of CM.com, a Dutch conversational-commerce platform. Facebook’s roster includes Sephora, a cosmetics retailer, and IKEA, a furniture giant. Apple Business Chat, which started in 2017, is used by Home Depot DIY stores, Hilton hotels and Burberry, a fashion brand. Yalo’s customers include consumer-goods giants such as Coca-Cola, Nestlé, PepsiCo and Unilever, as well as Walmart, the world’s biggest retailer. Each day 175m people send a message to WhatsApp business accounts (WhatsApp channels designed for companies). Over 1bn people now interact with businesses via chat, not counting China.
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