Spending for Conversational Commerce to Nearly Double in '23: Juniper

Global spending for conversational commerce over social media messaging apps, including WhatsApp or WeChat, will nearly double to $25.1 billion next year, from $13.3 billion this year, reported Juniper Research Monday. Over-the-top-based conversational commerce, which allows users to make purchases or transfer money directly in messaging apps, will grow “as retailers refine their online customer experience.” Retail will account for over 35% of spend via OTT conversational commerce channels next year, but regional fragmentation is a growth hurdle, it said. Juniper urged conversational commerce vendors to onboard each messaging app individually, while adhering to the varying financial regulations in each country. Variations in payment methods are another obstacle: “Vendors need to account for these differences and support various digital wallets,” it said. The report suggested value-added services within digital loyalty programs as a way for retailers to increase market share by using personalized messages that incentivize purchases.