How Conversational Checkout Can Boost Ecommerce Sales

Josephine Tsay • Jan 02, 2022

Marketing channels like SMS and Facebook Messenger are becoming ideal destinations for seamless ecommerce checkout. Enabling checkout through these channels can more than double your conversion rates. Interested in learning more? Keep reading.


What Is Conversational Commerce and Conversational Checkout?

Conversational commerce is the process of buying goods and services over messaging channels like SMS, Messenger, Instagram Messaging, and WhatsApp.


While Conversational commerce refers to the use of messaging channels to engage the user throughout the e-commerce journey - starting from an ad all the way to post-purchase support, conversational checkout specifically refers to the use of messaging channels to facilitate the purchase action. Conversational checkout allows consumers to purchase goods within messaging channels like SMS or Facebook Messenger without ever having to leave the app. This is in contrast to redirecting users to a brand’s website to make a purchase.


Conversational Checkout: A Seamless Ecommerce Experience

Fifty-six (56) percent of customers indicate that they're likely to shop at a retailer that provides a shared cart across digital channels (for example, a mobile device and desktop). 


Mobile phones have become the primary device used by consumers to interact with e-commerce brands. Worldwide,
more than half (about 55%) of web traffic comes from a mobile device. In 2021, about 54% of all retail e-commerce is expected to be generated via mobile commerce.


Channels like SMS and Facebook Messenger have become the most important channels to reach and connect with these mobile users. By 2022, it is estimated there will be
3 billion mobile phone users accessing messaging apps to communicate. 


These channels already have some pretty amazing engagement rates. For example, in our experience, SMS response rates range between 10% and 30% (depending on vertical, use-case and promotion type. Other industry data shows
the average SMS marketing conversion rate is 29%.


But the problem is that most ecommerce marketing campaigns within these channels redirect users to the brand’s website for the actual checkout. And, unfortunately, the checkout experience on a mobile device is full of friction. 


Research shows that mobile devices have a cart abandonment rate of about
86%. The average conversion rate on a mobile phone as of Q2 2021 was 2.2%, according to Kibo Commerce. That is compared to 3.9% on a desktop device.


Enabling a frictionless checkout experience inside channels like SMS or Facebook Messenger solves this problem. 


For example, users who already have their payment information saved with you (like repeat customers) can place an order by just replying to your marketing notification as opposed to having to go to your website, then login and then check out. 


In our experience here at Radiance Commerce, this can more than double the conversion rate of your marketing campaigns.


How to Get Started with Conversational Checkout

Choosing the Platform

If you are planning on using messaging channels like SMS and Facebook Messenger for marketing, explore the possibility of enabling conversational checkout, too. 


To make this type of checkout experience possible, your conversational marketing platform for these channels has to seamlessly integrate with your e-commerce and payment platforms.


So, as you choose your conversational marketing platform, select one one that can enable checkout (not every platform does). Also confirm that they support your e-commerce and payment platforms (if applicable).


Payment Vaults

Conversational checkout is most effective for a user whose payment method is already saved, and you are able to charge the payment method using a backend API call. For such a user, you can complete the order process entirely within messaging after confirming the order details with the user. Many ecommerce platforms like Salesforce Commerce Cloud and BigCommerce allow users to save their payment method while checking on the website. An SMS Commerce platform like Radiance Commerce can integrate with and leverage this merchant-private payment vault built inside the ecommerce platform. Another option supported by Radiance Commerce is to create a saved payment vault outside of the ecommerce platform, using integrations with payment gateways like Stripe or Braintree. Yet another option is to power checkout using 3rd party cross-merchant vaults like Shop Pay, Bolt, or Fast.


Designing the Conversational Checkout Experience

Once you have the platform, you need to design the checkout experience. You will need to build out two separate experiences: One for users who already have payment information saved with you, and one for new customers who don’t. For the latter, you may have to guide them to the website checkout experience. For some messaging channels, native payment methods e.g. Apple Pay may be available as well. 


You want the conversational checkout experience  to be a frictionless and intuitive experience, leveraging the identity of the user that is already known from their SMS number or FB identity, while making sure that the user has an opportunity to fully review and confirm the order they are placing. To learn more about best practices for designing the conversational checkout experience, check out:
5 Best Practices for Conversational Checkout


If you’re interested in learning why ecommerce brands should explore these messaging channels in the first place, check out: 3 Reasons to Explore SMS and Facebook Messenger for Your Ecommerce Marketing

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