New report finds 83% of consumers worldwide would browse or buy products in messaging conversations

Rhea-AI Summary

LivePerson, Inc. (Nasdaq: LPSN) has released its 2021 report on consumer preferences regarding conversational commerce, highlighting a shift towards messaging as a preferred shopping method. The survey of over 5,000 participants reveals that 78% of consumers desire secure messaging options with businesses, while 83% would browse or buy through messaging. Positive sentiment towards AI chatbots has increased, yet 41% of consumers feel they lack a human touch. The report emphasizes the importance of personalization, with 79% more likely to purchase from brands they connect with personally.

Positive

• 78% of consumers want secure messaging options with businesses.
• 83% of respondents would browse or buy products through messaging.
• Sentiment towards AI chatbots nearly doubled from 31% in 2020 to 61% in 2021.
• 62% of consumers are comfortable sharing information via messaging, indicating a trust in conversational interactions.

Negative

• 41% of consumers feel AI chatbots lack a human touch, indicating a need for improvement in customer interaction.

NEW YORK, Oct. 13, 2021 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN), a global leader in Conversational AI, today revealed the 2021 results from its Consumer Preferences for Conversational Commerce & AI report, providing a global outlook on how consumers view conversational commerce, customer care, and Conversational AI. The survey, which fielded responses from over 5,000 participants worldwide, found that consumers are looking to browse and buy through messaging now more than ever before.

According to the global survey, consumers are looking to browse and buy through messaging now more than ever before.

Consumers say they're ready for brands to put the "commerce" in conversational commerce
Over three-quarters (78%) of shoppers reported they would like the ability to securely message with any business, and 74% said they are more likely to do business with a company if they could message rather than call them. Consumers reported the channels they currently use to communicate with a business include email (76%), text messaging (41%) and social media (33%), indicating a large gap between the channels available to consumers and those they'd like to use.

This preference for messaging is increasingly driving shopping preferences. A large majority of respondents (83%) said that they would browse or buy products in messaging conversations. A further 77% of consumers noted that they are more likely to make a purchase if they could browse or get answers over messaging, presenting an opportunity for brands to drive increased revenue by offering this communication option to customers.

"The overwhelming majority of consumers want to shop via messaging, whether that's on brand apps and websites or popular channels like SMS, WhatsApp, Facebook Messenger, or Apple's Messages app. Brands that don't open up these options to their customers are leaving money on the table," said Rob LoCascio, founder and CEO of LivePerson. "We're seeing this trend reflected in our own business as more and more brands that initially came to us for customer care are adding sales and marketing journeys to their conversational strategies."

Conversations, not cookies, can help brands provide trusted personalization
As consumer comfort with conversational commerce increases, so too does the opportunity for brands to fulfill their desire for personalized experiences. Seventy-nine percent of consumers reported they are more likely to make a purchase from a brand with which they feel a personal connection, and 63% of consumers said messaging with a company makes them feel a more personal connection.

While many brands still use cookies to track customer data to develop these personalized experiences, over three-quarters of consumers (76%) said they are wary of this approach. However, 62% of consumers are comfortable sharing information with a brand when asked directly in a messaging conversation. What's more, 58% of consumers said they are comfortable with brands proactively reaching out to them via messaging with customized sales, coupons, or offers.

"The 'cookieless' world is coming, meaning balancing personalization with privacy will require new approaches. It's clear that consumers trust conversations over cookies when it comes to creating trusted personalized experiences," said LivePerson CMO Amber Armstrong.

Conversational AI is gaining favorability, but empathy remains key
In the last year, positive customer sentiment toward AI-powered conversational automations, better known as "chatbots," has nearly doubled (31% in 2020 versus 61% in 2021). Brands commonly use Conversational AI to scale messaging experiences.

This marked improvement comes as consumers said the top strengths of chatbots include:

• Convenience (52%)
• Speed versus human agents (43%)
• Ease of use (42%)

Consumers also report that they would rather interact with a chatbot instead of a human for routine activities such as:

• Looking up their account balance (60%)
• Updating their address (56%)
• Booking an appointment (53%)
• Finding a product for them (50%)

Consumers have also become more comfortable with using chatbots to handle common interactions with brands such as:

• Reordering regularly purchased products (60%, up 7% year over year)
• Reminding them to order presents for upcoming holidays (54%, up 6% year over year)
• Renewing a contract (51%, up 6% year over year)

Consumer sentiment also indicates there is room for improvement with AI-powered experiences, with 41% reporting that chatbots lack a human touch. This underscores the need for brands using Conversational AI and automation to lead with empathy as they design conversations. Doing so will allow brands to take advantage of the opportunity to create "ideal shopping experiences," with 77% of consumers saying these ideal experiences should be at least partly digital, and nearly one-quarter (22%) saying they prefer not to interact with humans at all.  

To download the full Consumer Preferences for Conversational Commerce & AI report, please visit LivePerson's website.

About the survey
In September 2021, LivePerson commissioned an online survey of 5,172 consumers aged 18 and older across the USA, UK, France, Germany, Japan and Australia.

About LivePerson, Inc.
LivePerson makes life easier for people and brands everywhere through trusted Conversational AI. Our 18,000 customers, including leading brands like HSBC, Orange, GM Financial, and The Home Depot, use our conversational solutions to orchestrate humans and AI at scale and create a convenient, deeply personal relationship — a conversational relationship — with their millions of consumers. LivePerson has been named to Fast Company's World's Most Innovative Companies list for its leadership in artificial intelligence. For more information about LivePerson (NASDAQ: LPSN), please visit www.liveperson.com.

CONTACT: Mike Tague, mtague@liveperson.com

 

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SOURCE LivePerson, Inc.

FAQ

What does LivePerson's 2021 report reveal about consumer preferences for messaging?

LivePerson's report shows that 83% of consumers prefer to browse or buy products via messaging.

What percentage of consumers want secure messaging options with businesses?

78% of consumers expressed a desire for secure messaging options with businesses.

How has consumer sentiment towards AI chatbots changed according to LivePerson's report?

Sentiment toward AI chatbots has increased from 31% in 2020 to 61% in 2021.

What key factor do consumers value when interacting with brands through messaging?

79% of consumers are more likely to purchase from brands they feel a personal connection with.

What challenge do brands face in improving AI chatbots for customer interactions?

41% of consumers believe that AI chatbots lack a human touch, highlighting a need for more empathetic interactions.