Live chat has been a popular customer service tool for some time now. And that shows no sign of stopping. In fact, the live chat market is expected to grow 7.28 percent per year from 2020 to 2027, to reach $1.28 billion, according to Verified Market Research.
That’s because chat is an easy way to offer fast customer service with a personal touch. And with all this growth, there’s still plenty of room for companies to try new solutions or make improvements to how they offer live chat support services to their customers.
If you’re thinking about how to get the most out of live chat or how to choose the right live chat technology, here’s everything you need to know.
Live chat is an app or platform that enables real-time, online communication via written messages. If you've ever noticed the little pop-up window that appears at the bottom right of webpages, that's a live chat widget. Businesses can also offer live chat inside mobile apps.
For customer service, it’s an effective way of rapid support, as customers can easily reach out to agents from a business’ website and receive immediate answers.
While we’re talking about the definition of live chat, a certain question may have entered your mind: how is this tool different from the type of messaging most of us are using? In fact, if you already have the option to message a company over WhatsApp or Facebook Messenger, why use live chat at all?
Here are the two main differences between live chat and messaging:
In reality, most companies will need to maintain a presence on messaging platforms and have a live chat option. The challenge is integrating the customer communication journey across both.
With the right technology, they can even be integrated to weave a single interaction history that helps you service customers even better.
Live chat has long been seen as an alternative to calling in for customer service. Typing a question in a chat is much more convenient than picking up the phone and then being forced to listen to lounge music for half an hour before anyone even answers. And, there’s ample evidence that the younger generations, at least, generally prefer to text rather than call.
But, phone calls offer a very different type of service, in many ways better than live chat. Here are some key differences between live chat and phone support in the table below:
Live chat
Phone
As is the case with messaging, both live chat and phone support should be readily available side by side to serve your customers. And that’s easy to do if you have an omnichannel customer service platform at your fingertips. Not only can you set the channels up in the first place, but you can also integrate them so it’s easy to transition smoothly from one to the other when needed.
There are many benefits of having live chat on your website or app, regardless of how you use it. Here are the most common ones we encounter:
We already mentioned that agents are able to handle multiple chats simultaneously. This represents a reduction in service costs compared to phone calls (which have to be dealt with one at a time for obvious reasons!)
Of course, in order for your company to reap this benefit, you need to be careful about how juggling multiple chats impacts customer experience. If, for example, an agent is chatting with two customers who are taking a long time to respond, they can easily pick up a third chat. But, if the existing chats are complex or fast-paced, it might be better to focus solely on them. Routing rules can also help you avoid having agents getting overwhelmed — for example, with Acquire, you can set up every chat to go to the next available agent if one is busy.
After years of using chat, people now expect you to offer it — many use it first before they consider other options. For example, a survey among U.S. female Internet users found that people from 18 to 49 years of age prefer live chat over phone, email, and other channels.
Live chat also seems to produce decent levels of customer satisfaction — steadily at around 85 percent in the past five years. Older surveys have even suggested that live chat has the highest customer satisfaction rate among channels, surpassing emails and phone.
We say “better” not “faster”. That’s because there are interesting nuances when it comes to response times. For example, live chat decreases response times compared to channels like email, because it’s real-time.
But, when it comes to benchmarking live chat response times themselves, it seems that a faster response time isn’t necessarily better. A 2019 report found that organizations that scored 90 percent or higher for customer satisfaction had an average response time of 46 seconds while those with the lowest customer satisfaction had an average response time of 25 seconds.
While correlation isn’t necessarily causation, this insight makes sense. If you take some time to assess the issue correctly before responding, you’re better equipped to help customers.
That’s especially true if you’ve coupled live chat with a chatbot. Automation will take care of routine issues that don’t take a long time to resolve, but your team will use live chat to handle the more complex requests that require a human touch — and this will take more thought and preparation.
Live chat can increase conversion rates because it helps your business provide instant information customers need to make a purchase. Imagine a customer wants to buy an item, but has questions about delivery in their area or shipping costs. Instead of leaving the site without buying, they can get answers by chatting instantly.
In fact, according to Forrester, visitors who use live chat are 2.8 times more likely to convert, and spend 60 percent more with a brand.
Although people do like self-service options and chatbots, we still can’t understate the importance of having the option to talk to a human. People prefer it for issues that aren’t easy to answer with a simple FAQ page.
So, live chat is a window to more human service and that helps you build trust with customers. They see you’re available for them as humans and won’t just leave their service to machines.
If you’re wondering how exactly you can use live chat as part of your customer service strategy, here are the best live chat examples to take inspiration from.
This is a very common use case. When a customer has an issue, they can drop a question into the live chat widget without wasting time looking for support emails or contact numbers. These questions could be anything from product availability and order returns, to prices and store open times — and many more.
As an example, HLC, a leading bicycle distributor in North America, used live chat to handle thousands of daily customer questions, often on technical queries or shipping issues. This has helped them significantly improve customer experience as a whole.
Live chat can be both a proactive and a reactive sales tool. For example, if a customer is browsing a particular type of item (e.g. sports apparel), a live chat agent can pop up and ask if they need any help. But even if you don’t want to proactively use live chat, the tool can still be there waiting in the wings until a customer decides to get assistance.
For example, take Elevate, a U.S.-based company that’s active in the non-prime lending industry. They used Acquire’s customer service platform that included live chat in combination with cobrowsing technology to help customers submit loan applications. This has enabled them to guide customers easily through the loan process, improving customer experience. Live chat analytics also helped them better assess their service process and identify improvement areas.
RELATED: Read the full Elevate case study to learn more about using live chat and other tools successfully.
Not every live chat conversation has to immediately end up in a sale or an action. Treat it as an important step in the customer journey. With live chat, agents can help customers get information they need, or navigate your site better, even if they don’t plan on making a purchase.
For example, you can use live chat to promote your newsletter subscription, host contests, or rate your products — all activities that can be vital for your brand’s growth.
If you’re keen on collecting visitors’ opinions, demographics, or other information, use live chat. Many chat platforms enable you to launch pre-chat and post-chat forms to collect data.
For example, pre-chat forms will help you collect information about your customers or the reason they’re reaching out, so the right people in your team handle the appropriate conversations.
In general, your live chat helps you cover multiple bases of support and service. Some big companies even make chat a central part of customer service. Consider Dell’s chat options that have different categories based on the type of queries they usually get.
Offering live chat support services should be part of a well-thought-out strategy. In fact, that’s the only way to make the most out of any tool. With that in mind, here are some practices to follow:
RELATED: Learn more about live chat best practices.
Here are a few important considerations when choosing a tool:
Not all live chat software is created equal. To get the best solution for your site, consider looking for features such as:
Chat is but one way to engage customers. Still, it’s one of the most important ones. You get to strike up instant conversations and prevent customers from leaving your site dissatisfied. Just make sure you have the right tech stack and train your team to be live chat champions.
What do you think about live chat? How have you implemented it? Let us know in the comments below.
Nikoletta Bika is an experienced content marketer, writer, and editor, with degrees in business and people management. She writes about data, tech trends, AI, and more.
Customer experience managers around the world understand the importance of focusing on customer rela
Acquire, the first enterprise platform to truly modernize and automate customer communication, has r
With the need to get the customer experience right so pressing, many companies find themselves looki
Add Comment