Impact of conversation commerce in business

Abstract

The project is aimed at understanding the relevance of conversational commerce in businesses and its impact on customer experience and revenue. By the end of the project, we wish to know if the customers’ purchase intent increases after using conversational commerce options like chatbots, voice and virtual assistants, etc. To understand conversational commerce better, we also plan to know if the convenience in shopping resulting from conversational commerce increases the conversion rate for the businesses. We aim to verify the correlation between convenience in shopping and the customers! purchase intent after using a chatbot, a proxy used for conversational commerce options. We have devised a couple of hypotheses to prove that conversational commerce helps increase revenues for businesses. The first hypothesis is that personalised experience to the customer leads to an increase in sales, while the second hypothesis is if convenience in placing the order has a positive influence on order conversion rate. We conducted an experiment and a survey to prove that the stated hypotheses are true. Both results help us understand if conversational commerce will help businesses improve customer experience and increase revenues due to the increased conversion rate of ordering. The experiment that we have conducted is causal. We used a questionnaire to understand customers' purchase intentions while using a chatbot. We also included an analysis of customer demographics and their convenience during purchase to understand their purchase intent. The data was collected using the survey tool, Qualtrics, and we used the software SPSS to analyse the obtained data. We have also conducted secondary research to understand conversational commerce and data analysis better to understand the concepts better before working on the analysis. We also investigated those firms that have already implemented conversational commerce like chatbots and voice assistants. We studied the benefits that their firms derived from using such solutions and the significant areas where they have implemented these services. Descriptive analyses like one way ANOVA and one sample t-test have been used to analyse and draw insights from the data collected using primary research. By examining the data collected from primary research, we proved our proposed hypotheses that convenience in ordering and personalised experience to the customer increases order conversion rate and revenue to the businesses. Hence, we were able to prove that companies implementing conversational commerce will benefit and have increased sales. We also discussed a few limitations from the analysis, like homogenous sample considered, limited sample size, etc. By considering a large sample from respondents of various backgrounds, the credibility of the study increases further.