Contextual commerce powered by in-chat payments will transform retail

Smart omni-channel strategies have elevated how brands engage with their customers. Taking the next step, contextual commerce allows brands to create purchasing opportunities throughout the customer journey and at every stage from purchase to delivery, revolutionizing how brands and customers connect, interact, and transact converting mobile moments into money.  

Contextual commerce enables consumers to make a purchase in the moment, while doing other things, such as commuting, scrolling through social media, or simply chatting with friends. For example, I could text my favorite restaurant to see if they have a table open for my anniversary next week. They could reply confirming my booking, but also alert me to a lunchtime special. Since I left my lunch at home that day, I jump at the chance to try the new chef’s take on my favorite for lunch. They text back with a secure link for me to pay in chat, and 30 minutes later I’m enjoying a grilled chicken sandwich delivered to my office. In essence, contextual commerce allows customers to get what they want, when they want it, and in context even while multi-tasking or having to pause and return to a conversation because of a sudden interruption.  

Customer-centricity now achievable  

Contextual commerce may be focused on transactions, but it also gives brands a unique opportunity to create a more personalized interaction with their customers. The convergence of automation and personalization means customers receive an experience that is tailored to their immediate needs. This is especially valuable for younger generations who want to engage with brands via their favorite chat channels and social media platforms and already are used to seeing Buy buttons on platforms like Instagram.   

We know from our conversations with retailers that they are increasingly hearing that their customers want a personalized experience. As hyper-connected consumers, we don’t just want to see what retailers have to offer, we want recommendations tailored to our preferences. Plus, we want it on our terms and immediately. These new demands are driven by how we have become accustomed to viewing the world through a screen that comes with all the power of advanced algorithms.    

In-chat payments are key to contextual commerce   

How businesses connect and communicate with their customers is becoming increasingly important. In an age where there are 6.5 billion smartphones with individuals 24/7, two-way advanced messaging is becoming one of the most powerful marketing tools available. Chat platforms such as WhatsApp have proven especially effective for retailers who use it to communicate updates, delivery information, time-sensitive offers, promotions, and other business alerts to their customers. In fact, Gartner predicts that “By 2025, 80% of customer service organizations will have abandoned native mobile apps in favor of messaging for a better customer experience.” 

With customers already opting for chat channels as their primary and preferred method of communicating with their favorite brands, using chat to create messaging moments and sales should be a priority for companies looking to boost their CX and nurture a loyal customer base.  

What’s more, by enabling customers to complete the entire customer journey, including payments within their favorite chat channel, brands are afforded a unique opportunity to meet and exceed their customer expectations. Real time, in-chat payments also allow brands to turn a customer conversation into a repeat-sales conversion on a lower-cost, more efficient channel.  

Fortunately, deploying a contextual commerce strategy is less complicated than many believe. Companies can now roll out in-chat payment functionality with little to no code required and without the cost, time, and complexity of building their own pay-by-link feature.    

To sum up, contextual commerce stands to make a significant impact on retailers' bottom lines. Research from PwC shows that customers don’t only value speed, convenience, as well as helpful and friendly service, they are prepared to pay up to a 16% premium for businesses that can provide these. By making buying seamless inside of environments that consumers use daily, especially chat, retailers can make themselves an invaluable part of their customers’ lives – a brand that knows what they want, sometimes even before they do.