Chapter 4

Predictions and tips for success

Prediction #1:

In order to scale conversational messaging and build customer trust, businesses will continue to invest in chatbot improvements.

Distributed storefronts today offer personalization and accessibility, but in order for a business to widely implement conversational messaging, it has to strike the right balance between chatbots and real-time agents. And although consumers use chatbots often (on average, consumers had three conversations via chatbot with brands in the past month), they often don’t complete the entire task. More than half of consumers (51%) still needed to speak with an agent after using a chatbot.

Tip:

Make sure your agents have the context from the chatbot conversation. Ensure that the handoff from bot to agent is as seamless as possible for the customer so they can quickly get more help if they need it. And continue to optimize your workflow by surveying customers and analyzing their interactions with your bot and agents.

Prediction #2:

New entry points like click-to-message ads in social and search will gain popularity as businesses discover them as a faster way to connect with consumers on mobile and improve conversion rates.

Sixty-four percent of all consumers say they are likely to message a brand directly through an advertisement, with Millennials and Gen Z having the strongest likelihood (68%). Consumers in Indonesia, India, Brazil, Mexico, and Singapore have the highest likelihood of engaging with click-to-message ads (70%).

Similarly, 54% of consumers say they’re likely to message brands directly through search results or a social media ad.

64% of consumers likely to message a brand through an advertisement.

Tip:

Consider the demographics of your audience and where they spend their time when investing in new advertising opportunities. Click-to-message ads are available within channels like Messenger, Instagram, and WhatsApp, and were recently announced on Google. Nearly half of consumers turn to Google to search for products, so being available for instant conversations in search opens you up to new potential customers

Prediction #3:

Shopping experiences will continue evolving.

Brick-and-mortar stores have reopened across the globe, but consumers have grown used to the convenience of digital experiences. On top of that, high inflation is forcing consumers to be more thoughtful about the purchases they make. In response, we predict that more businesses will invest in meeting consumers where they are and delivering the real-time answers they need to feel confident about progressing and completing purchases.

Tip:

Your customers may be more anxious about spending right now — give them the 1:1 support they need to inspire confidence, grow loyalty, and make informed purchasing decisions. And make the most of your advertising budget by investing in alternative ways to get customers into your database, like click-to-message ads.

store manager making the most of his advertising budget by investing in alternative ways to get customers into their database, like click-to-message ads.
Business representative having a conversation with a customer to collect information beyond what would be submitted in a lead-gen form.

Prediction #4:

As businesses scramble to understand their customers in a cookieless world, conversations will present a valuable opportunity to collect zero-party data.

Conversations give businesses an opportunity to learn more about their customers and collect information beyond what would be submitted in a lead-gen form. As third-party cookies disappear, collecting this kind of data directly from customers will be more important than ever.

Tip:

Consider how you can use conversations to learn more about your customers and synthesize that data to deliver more personalized experiences across every touchpoint.

Prediction #5:

Demand for conversational messaging will continue to grow as Gen Z’s spending power rises.

Gen Z has $360 billion in disposable income, but as the generation of digital natives, they’re more resistant to traditional ads. To connect with Gen Z, brands have to invest in the channels these customers prefer. As our research reveals, Gen Z customers are more likely to want to make purchases through messaging channels and are likely to spend more with brands that offer those channels.

Tip:

If your click-through rates on traditional digital ads are low for your Gen Z audience, try testing click-to-message ads against your display ads and compare your conversion rates. A customer data platform (CDP) can help you synthesize your data and run more effective targeted campaigns.

Gen Z customers purchasing products through messaging channels.

The evolution of conversational messaging is here

Consumer preferences for the storefront experience have shifted toward conversational messaging. Whether they’re researching options, getting support, or placing an order, many shoppers want to talk to a person as easily as they can click a button.

This definitive shift in favor of two-way interactions has created opportunities for progressive businesses to meet people’s needs across the customer journey and to develop methods of personalizing experiences based on each customer’s needs, interests, and history. As distributed storefronts open new lines of communication in the same windows where people are chatting with friends and family, businesses can show up with welcome, timely, and helpful exchanges.

Doing so will build consumer trust in the business and its offerings, foster brand loyalty, and drive revenue.

Looking for a conversational solution to support modern sales? Talk to our sales team to learn how Twilio can help you choose the right conversational tool for your business.

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Table of contents

Methodology

This research was conducted with a 10-minute online survey using Full Circle’s consumer panel, fielded from April 14, 2022 to May 11, 2022. Respondents did not know that Twilio was the sponsor. Lawless Research designed and analyzed the survey, which had 3,900 respondents (between 300 to 1,000 each in Australia, Brazil, France, Germany, India, Indonesia, Mexico, Singapore, United Kingdom, and the United States).

All respondents met the following criteria:

  • 18-75 years old.
  • Own a smartphone or mobile phone and used it within the past week.
  • Shopped for a product or service online, or using their smartphone, mobile phone, or tablet in the past month.
  • Received a communication from a business or brand by email, text message, messaging app, social media, phone, or a company’s mobile app in the past month.