To drive revenue growth, build customer loyalty, and boost customer engagement, restaurants are seeking ways to remove friction from experiences. Conversational commerce is emerging as an innovative way for restaurants to achieve this, while also enabling them to overcome the significant labor challenges faced.
Many of the leading brands, in the quick-service restaurant space, have already deployed conversational commerce capabilities into their operational mix to drive innovative customer experiences.
Before launching the conversational commerce service, Panera worked with Amazon to help Alexa learn the menu. The feature also enables customers to ask for customizations, if needed. Furthermore, Alexa can also assist customers in tracking their deliveries. Currently, conversational commerce capabilities have been launched only for MyPanera members.
Alongside Panera Bread, Chipotle, Domino’s, and Checkers & Rally’s are among the other fast-food restaurant chains that are using artificial intelligence-powered voice bots to take customer orders. This trend is projected to pick up further momentum in the United States in 2023, as conversational commerce continues to become widely popular among shoppers in the North American market.
Yum Brands, the parent firm that operates KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, has significantly invested in the conversational commerce segment. This investment has driven positive results for the quick-service restaurant giant.
At a time when inflation is rising and consumers are subsequently cutting down on their restaurant spending, such conversational commerce capabilities have been shown to drive incremental revenue by creating innovative experiences for customers. Consequently, PayNXT360 expects more players in the quick-service restaurant industry to implement conversational commerce strategy into their marketing mix to drive revenue and sales growth, while also enhancing engagement with customers.
Not just restaurant brands, but even retail giants such as Walmart are launching conversational commerce capabilities. This shows that the new way of commerce is certainly on the rise.
The entry of all of these big retailers and quick-service restaurant brands in the segment means that the investment in the conversational commerce space is expected to grow significantly over the next three to four years. This will subsequently also lead to the growth of the overall social commerce market from the short to medium-term perspective, while also driving innovation and a competitive landscape in the segment.
To know more and gain a deeper understanding of the social commerce market in the United States, click here.