What is conversational marketing & why are retail brands investing in it?
As customer expectations shift towards real-time, personalised communication, conversational marketing has rapidly become the go-to strategy for retail brands looking to cut through the noise and build meaningful connections.
A 2025 survey by global cloud communications firm Infobip and economic research consultancy Retail Economics, headed by retail expert Richard Lim, found that 61% of UK consumers find communications from many retailers and brands irrelevant to them. Also, more than half (56%) report that communications are not personalised.
Subscribe to TRBBrands can no longer use demographics to guide communication strategy; the emphasis is on the growing need for increased personalisation. Customers have stopped relying on traditional campaigns or automated messages and expect retailers to use modern digital channels, like chat tools, messaging apps, AI-powered assistants, social media messaging, personalised email marketing, and SMS notifications that allow them to engage directly.
In this blog, we look into what conversational marketing is and describe how retailers can use messaging tools, real-time conversations, and AI-powered interactions to improve customer experiences, generate leads, and drive conversions.
What is conversational marketing?
Conversational marketing is an approach that prioritises one-on-one interactions with clients in real time. It enables retailers to create personalised experiences by answering questions instantly and guiding their customers throughout their purchase journey.
Imagine a website visitor browsing a retailer’s website late in the evening. They might have a quick question about delivery times or product availability. Conversational tools can answer those questions instantly and stop this customer from leaving the site and searching somewhere else.
Conversational marketing can help retailers understand their customers better, as it can provide a valuable and realistic sneak peek into what customers want, what questions they frequently ask and what concerns might be stopping them from completing a purchase.
Common platforms include live chat, WhatsApp, Facebook Messenger, SMS, and email, but also B2B platforms, like HelloDone, which enables retailers to automate responses to customer queries via AI-powered chat. These platforms provide human-like conversations that are specifically adjusted to your customers’ needs.
The benefits of conversational marketing for retailers
A successful conversational marketing strategy offers numerous benefits for retailers.
- Improved customer experiences
- Increased lead generation
- Shorter sales cycles
- Better customer support and service
- Stronger brand loyalty and retention
- Seamless omnichannel retailing
- Data-driven insights
Improved customer experiences
One of the greatest advantages of conversational marketing is personalised interactions. Today, customers value responsive brands that offer a helping hand when needed.
For example, if a shopper asks for product sizing information through live chat, a retailer can immediately recommend the best available option or share additional product details.
It is these types of conversations that have the ability to create a seamless and engaging shopping experience that your customers will appreciate.
Conversational marketing means that customers don’t have to wait for email responses or search through various pages to find what they need. Instead, they can have their question answered within seconds. Over time, interactions that provide personalised service can result in loyal customers who advocate for your business.
Increased lead generation
Retailers can also leverage conversational marketing tools to engage potential shoppers earlier in the customer journey. A simple chat prompt, when they visit your product page, can motivate them to engage in a conversation.
Retailers can then use this information to follow up with personalised product recommendations or targeted email marketing campaigns. Brands that interact with visitors at the right moment and keep customers engaged have a better chance of converting interest into a sale.
Shorter sales cycles
When it comes to online shopping, many customers may hesitate before finalising their purchases because they still have questions about the products. This could include delivery options, features or even return policies.
Through using conversational marketing, retailers can answer these questions in a matter of seconds. Instead of leaving the site to search for information elsewhere, customers can simply ask a quick question through live chat or messaging apps. As a result of this immediate assistance, customers are able to make quicker decisions with less hesitancy. Which means sales cycles and conversion rates can be shortened for retailers.
Better customer support and service
Customer service teams often spend a significant amount of time answering routine questions. Conversational marketing can help manage those questions in a more efficient way.
For example, an AI-powered chatbot can automate answering questions that are frequently asked, while the customer service teams can focus their efforts on solving more complicated issues that need human attention. A customer support system that can combine automated responses with human support is more effective. Through it, customers can have their questions answered quickly, leaving the customer support team focused on solving those issues that require their expertise.
For more expert insights on delivering great customer service in this digital era, read the review of the last Customer Centric Retail event.
Stronger brand loyalty and retention
One of the best ways to establish customer loyalty is through responsive communication. When customers feel heard and get their responses back quickly, they are more likely to return.
Over time, retailers can build customer trust through personalized conversations. If you provide your customers with helpful advice through personalised messaging or chat, they will feel more confident about purchasing from your business in the future. And by creating a loyalty programme that rewards customers for repeat purchases, you can encourage long-term engagement.
Seamless omnichannel retailing
Modern customers communicate with retailers across many different channels, including websites, social media, mobile apps and messages. A customer can ask a question through social media, continue communication through a messaging app and finally complete their purchase on the website.
Conversational marketing empowers this type of communication because of its ability to function across several touchpoints, and this kind of communication is an important part of modern and seamless omnichannel retail strategies.
Data-driven insights
Retailers can get useful real-time data from communicating with customers, and this information can be essential in creating a successful retail business strategy. Conversational marketing tools are a perfect way to collect valuable data on common questions or concerns. By using this direct data, retailers can adjust their strategies when refining product offerings or improving marketing campaigns.
If many customers have the same question about a specific product feature, retailers can decide to make this information more accessible and visible to provide clear information. For example, if many customers ask about the same product feature, retailers may decide to highlight that information more clearly on their website or update their FAQs.
Examples of conversational marketing
There are a number of channels that allow retailers to create conversational marketing campaigns. From chatbots and messaging apps to personalised emails and social media, these tools can help brands create real-time conversations.
- AI-driven chatbots for customer support
- Messaging applications
- Social media and influencers
- Personalised email marketing
- SMS marketing
AI-driven chatbots for customer support
The use of AI-powered chatbots to quickly answer common customer questions has become a norm within the retail sector. Their capacity to provide round-the-clock support in response to enquiries regarding store locations, refund policies, product availability, and estimated shipping timeframes is a major factor in their immense popularity. By using chatbots to handle routine enquiries, retailers are freeing customer service staff to deal with more complicated issues.
Messaging applications
The use of messaging applications such as WhatsApp, Telegram and Snapchat to communicate directly with customers is becoming increasingly popular in retail. The reason for this is the speed with which brands can inform customers, offer personalised discounts, for example, by running WhatsApp loyalty programmes, and respond to questions.
Since many customers rely on daily messaging through these apps, it is often less formal and easier than traditional communication methods.
Social media and influencers
Social media platforms also play an important role in conversational marketing, as they allow customers to send direct messages (DMs), comments, or replies to posts. Partnerships with social media influencers elevate this platform to a completely new level because they enable retailers to engage with their customers in a more casual and approachable way.
Influencers can easily create buzz around your product by sharing reviews, demonstrations and recommendations with their followers. Many retailers are now investing in influencer marketing for the simple reason that influencers may bring a brand closer to its target demographic and earn their trust.
This shift toward social media-powered marketing separates modern marketing from conventional advertising and creates a genuine dialogue in which companies centre on influencer marketing that prioritises sharing and engagement rather than direct selling.
Personalised email marketing
Email marketing becomes more effective when it uses information gathered from customer conversations. When a retailer interacts with a customer through live chat, messaging apps, or other conversational tools, they learn what the customer is interested in, what questions they asked, or which products they viewed. Retailers can then use this information to send triggered email messages
SMS marketing
SMS marketing allows retailers to send short text messages directly to customers’ mobile phones. Retailers often use SMS to inform their customers about order confirmations, delivery notifications, or alerts about limited-time promotions and flash sales.
Time-sensitive communication particularly benefits from SMS, as customers typically open and read text messages within minutes. This is an excellent channel through which retailers can quickly inform customers about updates or special offers that need immediate attention.
Final thoughts
Customer expectations in retail are changing, and retailers have more pressure than ever to act quickly and communicate on a more personal level. Conversational marketing helps retailers meet these expectations.
From live chat, messaging apps and social media to AI-powered tools, this communication gives retailers insight into what their current and potential customers prefer and expect. Prompt responses, tailored messages and data-driven perceptions all have a rewarding place in improving customer service.
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