Article

Chike Agbai
Chike Agbai 27 October 2016

Can Messaging and Chatbots become a $40+ Billion Market Opportunity?

Messaging platforms like FB Messenger, Slack, Kik, and Telegram have embedded themselves within the flow of people’s daily lives. Its no wonder why chatbots should represent the future of e-commerce.

With consumers spending more time on messaging platforms, businesses looking to get close to their customers need to look beyond mobile apps and websites. Messaging, chatbots and smart agents allow brands to reach their customers where they spend most of their time.

The reliance on mobile apps as the primary means for engaging with their mobile customers is an ageing strategy, rapidly fading in relevance. Customers no longer flock to the app stores on their iPhones and Android devices. At least not with the frenzy of the early days.

What’s more is that while millions of mobile apps are still downloaded every year, 1-in-4 are abandoned after just a single use. Roughly half of mobile customers don’t download any apps whatsoever in a given month.

1amedium.png

What happened?

Well, most people are spending their time on messaging platforms. They easily connect with their families and friends there. And these platforms provide more than just instant messaging and games. Already users can trade video clips, photos, news, and make video calls.

It does not take much imagination to see how messaging and chatbots can emerge as the place for e-commerce and consumer transactions. The top four global messaging platforms — WhatsApp, Facebook Messenger, WeChat, and Viber — have 2.1 billion monthly active users.

Businesses that offer chatbots for Facebook Messenger alone will find themselves with access to one billion monthly active users. Building a chatbot for your Facebook page then becomes a logical extension of your social media and e-commerce strategies.

Messaging platforms have embedded themselves within the flow of people’s daily lives.

And while much needs to happen to accommodate the commercial opportunity, chatbots and messaging could be a massive market. Ben Wilson of Pacific Crest estimates that it could represent a $44.5 billion addressable market just within the U.S.

Even a more conservative estimate would still peg the opportunity for e-commerce use cases alone at approximately $2–3 billion in the short-term.

Overall total retail sales were $4.6 trillion for the US in 2015. Benchmarked against total online sales of $342 billion and mobile e-commerce of $104 billion, it’s easy to see why all brands should have a messaging / chatbot presence. Brands should skate to where the puck is going! Its just good business to shift strategies and follow the customer.

At Azumo we’ve been sharing our views and building chatbots and intelligent applications for our customers for some time now. We are passionate about using new technologies to solve complex problems for customers around the globe. If you enjoyed what you read pls like and share with your colleagues.

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Promote Your Blog On These 30 Places

Promote Your Blog On These 30 Places

Social Media channels are one of the best ways to promote your blog content, but you shouldn’t stop there. Besides Social Media, there are more available places on the web which can be a great marketing tool for your blog promotion. I’m bringing you 30 proven places where you can promote your blog content and get great results.

Aleksej Durdevic
Aleksej Durdevic 7 December 2016
Read more
Top 10 Digital Branding & Marketing Trends for 2017

Top 10 Digital Branding & Marketing Trends for 2017

It’s time to re-evaluate and rebalance the digital approach for your company. Here are the Top Digital Branding & Marketing Trends for 2017 to watch for. The probing minds at the Borenstein Group, a Top Washington DC Digital Marketing and Branding Agency, have done the homework for you. Use it or lose it.

Gal Borenstein
Gal Borenstein 7 December 2016
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
What Mobile App Design Looks like in 2017

What Mobile App Design Looks like in 2017

They say ‘move with the time or the time will leave you behind’. Being a startup it is important for you that you understand the trends, and amalgamate them in your business in order to attain the targets.

Nasrullah Patel
Nasrullah Patel 6 December 2016
Read more