Chat Commerce

From Text to Checkout: How Chat Commerce is Transforming Loyalty Programs

As technology continues to advance, so do the ways in which businesses engage with their customers. Chat commerce, also known as messaging commerce, is a prime example of this evolution. By allowing customers to interact with businesses through messaging apps, businesses can provide personalized and efficient customer service. This technology is also transforming loyalty programs, by creating more engaging and convenient ways for customers to participate. In this article, we’ll explore the benefits of messaging commerce for loyalty programs, best practices for implementing it, and the future of this innovative technology.

Introduction to Chat Commerce / Messaging Commerce

Messaging commerce is the practice of using messaging apps, such as WhatsApp, Apple Messages, and SMS, to conduct business transactions. Messaging commerce combines capabilities such as campaign management, automation (chatbots), live agent enablement, and payments to deliver full commerce experiences within messaging apps. This provides a more conversational, personalized, and convenient experience for customers, as opposed to legacy formats such as website, mobile app, phone, or email.

By using messaging apps, businesses can reach customers in a way that is more natural to them. People are already spending a significant amount of time on messaging apps, so it makes sense for businesses to meet them where they are. For example, if a customer has a question about a product, they can simply send a message to the business’s messaging channel and receive an immediate response. This convenience can lead to increased customer satisfaction and ultimately, loyalty.

The Rise of Loyalty Programs and Their Impact on Customer Retention

Loyalty programs have been around for decades, but their popularity has skyrocketed in recent years. These programs are designed to incentivize customers to continue doing business with a particular brand, by offering rewards such as discounts, free products, or exclusive access. According to a *study by Bond Brand Loyalty, 78% of consumers say they are more likely to stick with a brand that has a loyalty program.

The impact of loyalty programs on customer retention cannot be understated. When customers feel appreciated and valued, they are more likely to continue doing business with a brand. Not only that, but loyal customers are more likely to refer their friends and family to the brand, resulting in even more business. However, loyalty programs are only effective if they are engaging and convenient for customers.

The Benefits of Messaging Commerce for Loyalty Programs

Messaging commerce has several benefits for loyalty programs. First and foremost, it provides a more personalized and conversational experience for customers. By using chatbots or live chat, businesses can offer tailored recommendations and assistance to customers. This can lead to increased engagement with the loyalty program and ultimately, more loyal customers.

Messaging commerce can also make it easier for customers to participate in loyalty programs. For example, customers can receive notifications about their points balance or rewards directly through messaging apps. They can also redeem rewards or make purchases through the chatbot, without having to navigate to a separate website. This convenience can make it more likely for customers to participate in the program and earn rewards.

Finally, messaging commerce can provide businesses with valuable data about their customers. By tracking customer interactions with the chatbot, businesses can gain insights into customer preferences and behavior. This data can be used to improve the overall customer experience and make the loyalty program even more effective.

Best Practices for Implementing Messaging Commerce in Loyalty Programs

Implementing messaging commerce into a loyalty program requires careful planning and execution. Here are some best practices to keep in mind:

  1. Start small - Begin with a limited set of features and gradually expand as you gather data and feedback from customers.

  2. Provide clear instructions - Make it easy for customers to understand how to access their loyalty account through messaging, with easy-to-understand menus and clear actions they can take.

  3. Offer real-time assistance - Ensure that customers can receive immediate assistance from a live chat agent if they need it.

  4. Personalize the experience - Use customer data to offer tailored recommendations and rewards.

  5. Test and iterate - Continuously test and iterate the chatbot to improve its effectiveness and customer satisfaction.

How Messaging Commerce Improves the Customer Experience

Messaging commerce can greatly improve the overall customer experience. By providing a more conversational and personalized experience, customers are more likely to feel valued and appreciated. Messaging apps also offer a more convenient way for customers to engage with a loyalty program, which can lead to increased participation and loyalty.

Messaging commerce can also improve the speed and efficiency of customer service. By using chatbots in concert with live chat, businesses can provide immediate assistance to customers, without the need for phone calls or emails. This can lead to faster resolution of issues and ultimately, more satisfied customers.

Key Metrics to Measure the Success of Using Messaging Commerce for Loyalty Programs

Measuring the success of using messaging commerce for a loyalty program requires careful monitoring of key metrics. Here are some metrics to consider:

  1. Participation rate - The percentage of customers who access their loyalty account via messaging.

  2. Engagement rate - The frequency of customers accessing their loyalty account via messaging.

  3. Conversion rate - The percentage of customers who respond to loyalty notifications or redeem loyalty offers via messaging.

  4. Customer satisfaction - Measured through surveys or feedback from live chat agents.

  5. Retention rate - The percentage of customers who continue to do business with the brand after participating in the loyalty program via messaging.


Messaging commerce is transforming the way businesses engage with their customers, and loyalty programs are no exception. By providing a more personalized and convenient experience, messaging commerce can increase customer engagement and loyalty. However, implementing messaging for a loyalty program requires careful planning and execution. By following best practices and measuring key metrics, businesses can ensure the success of their messaging commerce-enabled loyalty programs.

*Bond Loyalty Report 2020

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