6thStreet, an e-commerce platform under the Apparel Group, claims to have achieved a 5-8x return on ad spend (ROAS) as a result of its partnership with Gupshup.
Using personalised, segment-based marketing on rich channels like WhatsApp, Gupshup claims its conversational engagement platform enabled the brand to deliver an enhanced shopping experience.
According to the tech-provider, the brand’s automated campaigns based on shopper behavior led to a 5x increase in abandoned cart recovery and an 8 per cent boost in the recency score of its active customer base.
“Conversational marketing has unlocked a new frontier in how we connect with our customers. With WhatsApp, we’ve been able to engage even those who previously overlooked SMS or email,” said Hitesh Malhotra, Marketing Head, 6thStreet. “Collaborating with Gupshup has meant we can create tailored experiences for various customer segments – whether it’s reactivating dormant customers or deepening relationships with our most loyal shoppers.”
Essential factors for conversational AI marketing
Beerud Sheth, CEO of Gupshup, shared key insights into the core elements of AI conversational marketing with Campaign Middle East, highlighting the specific factors that contributed to 6thStreet’s impressive ROAS.
“AI-driven conversational marketing hinges on sophisticated personalisation and intelligent interaction,” he said.
According to Sheth, customer intent, context, and emotional nuances are non-negotiable factors that AI assistants must understand to transform traditional marketing approaches into dynamic, responsive dialogue.
“Context is very important in customer conversations,” he said, and listed several avenues throughout the customer journey that provide essential data points to build this context. That includes “all the activities done by a customer, whether interacting through email or social media campaigns, browsing through a page on the website, buying a product at a store or online, attending an event, redeeming a promotion, or engaging in a conversation on any conversational channel,” he said.
When leveraged effectively for marketing, Sheth explained, AI systems can intelligently qualify leads by autonomously evaluating potential customer interactions, directing high-value prospects, and delivering instant, personalised engagement.
“The ultimate goal is to create a conversational ecosystem that feels natural, anticipatory, and uniquely attuned to individual customer journeys, blending technological sophistication with human-like empathy and understanding,” Sheth explained.
How 6thStreet and Gupshup strategised the use of conversational AI
Understanding how AI assistants can optimally operate within a marketing framework is important. However, it’s even more crucial to know exactly how to strategise the application of the technology to drive successful results.
“At the core of their [6thStreet’s] success was the deliberate choice to leverage WhatsApp, a platform where 97 per cent of their customer base was already active,” said Sheth.
The brand implemented RFM (Recency, Frequency, Monetary) based segmentation instead of generic broadcast campaigns. This allowed them to create highly targeted campaigns for both active and inactive customer groups. This nuanced approach meant that each customer received messaging tailored specifically to their engagement history and potential value.
Through these contextual, triggered campaigns. 6thStreet transformed its marketing from a one-way broadcast to a responsive, interactive experience by developing automated messaging systems on their website and app. Whether a customer abandoned a cart or completed a purchase, they received timely, relevant communications that felt personal and helpful.
“The result was a dramatic improvement in customer engagement metrics. Cart abandonment rates plummeted, with recovery rates increasing five-fold. The key ‘Champions’ segment – customers who purchased within the last 30 days – grew by 8 per cent,” said Sheth.
Other methods to consider for AI-powered marketing
As a tool, AI can assist with several stages of the marketing funnel to ensure high-impact results.
This includes processes like cross-platform data integration, advanced customer segmentation and sourcing specific ROI data from previous use cases.
“Brands can generate leads, qualify them, remarket and create segments based on 3rd party and chat signals,” said Sheth. This helps brands engage with customers in their language and personalise offers based on their intent signals. Conversational AI marketing assistants can make product recommendations, assist with sales and also provide self-service customer support.
AI can also leverage data from third-party platforms like CRM software, apps, and e-commerce websites to automatically trigger campaigns or assist agents with contextualised customer history so a customer doesn’t have to repeat what a business already knows.
AI assistants can also be used to make personalised upsell recommendations by analysing individual customer data, preferences, and purchase history to deliver tailored product suggestions.
“This level of personalisation not only makes customers feel understood and valued, but also encourages them to explore additional products that genuinely meet their needs,” said Sheth.
He explained that conversational AI marketing also enables real-time interactions, allowing customers to ask questions and receive instant feedback on upsell options.
“This immediacy can lead to higher conversion rates, as customers are more likely to act on recommendations when they feel supported throughout their decision-making process,” Sheth said.
Where conversational AI marketing is now and where it’s going
As it stands, AI, when used well, can intelligently guide customers through their purchasing journey, recommend complementary products, and provide real-time support.
“It naturally drives up the average order value. It’s not just about selling more; it’s about creating an experience that makes customers want to spend more and return repeatedly,” said Sheth.
“The ripple effect is profound. By reducing friction, it transforms cold transactions into warm interactions, turning one-time buyers into loyal brand advocates and significantly impacting key performance indicators like customer lifetime value, repeat purchase rates, and overall customer satisfaction,” he said.
On an average, Gupshup claims it has seen conversational marketing lead to 55per cent higher engagement than traditional channels. “We’ve also seen 18 per cent higher customer satisfaction scores. Naturally, satisfied customers would retain more and come back for more purchases resulting in a higher average order value,” said Sheth.
He explained that the future holds further sophistication for AI-powered conversational marketing.
“Think of systems that can not just understand language, but comprehend emotional nuances, cultural contexts, and even predict customer needs before they’re articulated. Advanced machine learning models will enable hyper-personalisation that feels almost telepathic in its precision,” he said.
According to Sheth, he future of conversational marketing is poised to redefine the relationship between businesses and technology, with platforms evolving into genuine strategic partners. When customer understanding, engagement, and personalisation improve, the results will speak for themselves: higher conversions and stronger revenues.
