Contextual Commerce And How It Is Disrupting The Online Retail Industry

Contextual commerce has a lot of potential to benefit your company’s overall digital strategy. It is made possible by the technologies that are either now available or on the horizon. Contextual commerce is important as it can help you keep one step ahead of the competition in either situation.

If you’ve ever ordered from the Starbucks app before walking into the coffee shop or using the Alexa Speaker to purchase from Amazon, you have already had one of the numerous frictionless experiences that contextual commerce can provide for your clients.

Contextual commerce will be accessible in even more ways as a result of emerging technologies like artificial intelligence (AI), augmented reality, and Internet of Things (IoT), and virtual reality.

Here’s how contextual commerce is disrupting the online retail industry:

Personalization

Contextual commerce relies heavily on personalization. It uses data from users’ browsing history, preferences, and behavior to offer relevant product recommendations. This level of personalization enhances user customer segmentation and user engagement and conversion rates by showing customers products they are more likely to buy.

Social commerce

Social media platforms have become significant players in contextual commerce. Features like “shoppable posts” on Instagram or “buy buttons” on Facebook allow users to make purchases directly through these platforms. This reduces friction in the purchasing process and capitalizes on the immediate context of a social media post.

Voice commerce

Voice-activated devices like Amazon’s Alexa and Google Home have introduced voice commerce, where users can order products simply by speaking. These devices can leverage context, such as a user’s previous purchase history and location, to make recommendations and facilitate purchases.

In-video shopping

Contextual commerce is making its way into online video content. For example, some video streaming platforms enable viewers to purchase products they see in videos or TV shows directly. This is especially prominent in the beauty and fashion industries.

Augmented reality (AR) and virtual reality (VR)

AR and VR technologies are being used to offer immersive shopping experiences. Customers can virtually try on clothing, see how furniture fits in their homes, or test cosmetics before purchasing. This technology enhances context by allowing customers to visualize products in their own environments.

Geolocation and beacons

Mobile apps often use geolocation data and beacons to provide customers with location-specific offers and recommendations when they are physically near a retail store. This encourages foot traffic and in-store purchases.

Chatbots and messaging apps

Retailers are increasingly using chatbots and messaging apps for contextual commerce. Customers can inquire about products, get recommendations, and even make purchases through these chat interfaces.

Subscription and auto-replenishment services

Contextual commerce can also involve automatic product replenishment based on usage patterns. For example, a printer might automatically reorder ink when it detects low levels. This anticipatory commerce reduces the need for customers to actively make purchase decisions.

Content-commerce integration

Content creators, such as bloggers and influencers, are incorporating contextual commerce into their content. They can seamlessly link products they mention or use in their content to online retailers, allowing followers to make purchases directly from the content.

Final thoughts

In summary, contextual commerce is disrupting the online retail industry by placing a strong emphasis on personalization, integration with various digital touchpoints, innovative technologies, and data-driven Insights. It aims to make online shopping more convenient, engaging, and tailored to individual customer preferences, ultimately driving higher conversion rates and customer loyalty.

As technology continues to advance, contextual commerce is likely to evolve further, reshaping the e-commerce landscape and promoting new trends like customer segmentation. Given that businesses can use it to perform sales performance analysis, contextual commerce is definitely the future.