Chat Commerce Is Here. Are You Ready?

Kik (the chat app used by 40% of American teens) recently launched chat commerce, with brands like H&M already on board.

What the heck is chat commerce? It’s a way for consumers to quickly and easily buy an item, without ever leaving their chat app.

Here’s how it works. Brands set up a bot and program it to engage in conversations. These bots are easy to find, right in the Bot Store of the app. Consumers simply click on the bot profile picture to start chatting. Bots ask questions, make recommendations, and lead consumers through a purchase process. Their names stay in users’ contact lists, alongside friends.

The potential of chat commerce is huge. First, it’s incredibly easy. Need convincing? Download Kik and chat with the H&M bot. You will be seriously amazed. (And yes, you should buy those jeans.) Second, it fits seamlessly into everyday life. One tap toggles between texting a friend and shopping. Third, it has viral written all over it. Just message the bot name to a friend, and they can engage right away.

How big could this be? Almost a third of Kik users have interacted with a brand on the app. Core users of Kik—US teenagers—influence $44B in spending.