Why You Should Pay Attention to Contextual Commerce: Part 2

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The previous post discusses how contextual commerce is defined and how it matters for retailers. It opens new opportunities for retailers, since the commerce system allows the consumers to make a purchase anywhere. The previous focuses on social media users as the potential consumers. They can make a purchase anytime they see great items on the social media feeds.

How Contextual Commerce Will Change the System

If the consumers can make a purchase anywhere, the contextual commerce requires the retailers to more proactive and creative. These qualities are the keys to providing the consumers with the ultimate journey upstream. Accordingly, the new commerce system will require the following things:

New Technologies

The contextual commerce system is possible only when it is supported by the necessary technology. For instance, there must be technologies that the consumers can use to make a purchase. They may include:

contextual commerce 2

  • Voice command
  • Buy buttons on social media platforms
  • Facial recognition
  • Eye movement features
  • VR and AR platforms,
  • Many more

Let’s take voice command technology as an example. The technology is emerging and the potential is promising, thanks to its simplicity, real-time use, and speed. When the technology is widely applied, the users will need a smart speaker, which they can use to make a purchase and confirm orders.

Use of other technologies like facial recognition or eye movement features is also growing. A number of studies on the use of facial recognition technology have been conducted by renowned e-commerce like Alibaba. Its Alipay now allows the consumers to make payment using facial recognition at KFC.

New Level of Data Use

The contextual commerce will drive personalization in transaction; Again, this will require new level of data use. Artificial Intelligence (AI) technology and data analytics will play important roles. These technologies provide the retailers with information on the customers’ past purchase, purchasing behavior, and many more. Then, the retailers can suggest products and services based on the information obtained from AI technology.

Why do data matter most in this new commerce system? A study by Criteo (an ad tech firm) found that returning customers (repeated purchases) are the largest contributor for a retailers’ profitability. They can make up to two-thirds of the retailers’ profits. By offering or recommending products or services that suits the customers’ behavior, the retailers can enhance the customers’ shopping experience.


Only when the retailers understand the customers’ needs can they provide the right solution. On the other hand, the customers can realize the retailers’ values, culture, and personality based on the way they serve the customers. For instance, Starbucks has been in the process of using AI technology to offer personalized services for the customers.

Starbucks is using a real-time engine to customize offers for the customers based upon information obtained from different channels. They include the data collected from loyalty program. Obtaining data from different programs and channels is certainly not a simple task. However, it is essential if the retailers want provide the customers with the ultimate shopping journey and experience.

Yes,, the customers’ expectations have risen. The retailers have to get in line with them to stand out from the crowd. This is where contextual commerce plays the roles.

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