A new study from Juniper Research forecasts that the total spend over conversational commerce channels will reach $290 billion by 2025; rising from $41 billion in 2021 or a rise of 590% over the next four years. It predicts communications platforms that provide the connection between brands and end-users will be crucial in increasing the adoption of conversational commerce channels.
The study indicates that the ability to offer conversational commerce as a component of an omnichannel retail strategy will increase confidence amongst retailers. This enables these retailers to expand their reach, whilst allowing a fallback on more established commerce channels. Conversational commerce leverages AI to automate retail transactions and payments through channels including chatbots, messaging and digital voice assistants.
Furthermore, chatbots will process $145 Billion of spend by 2025 (half of the total forecast amount). 90% of that spend will be in China, Japan and South Korea where messaging apps such as WeChat, LINE and Kakao Talk, have all established chatbot ecosystems in which retailers play a significant role.
The report urges emerging channels, such as voice commerce and RCS messaging, emulate the chatbots ecosystems in these countries, recommending new models like revenue sharing where a small proportion of the transaction value is paid to the conversational commerce service provider.
Revenue-sharing models will enable conversational commerce channels to monetise 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
Juniper Research author Sam Barker