As online shopping continues to grow in popularity around the world, many consumers are turning to live chat for customer help. Live chat has an average customer response time of 42 seconds. The immediate response time and clarification about products can lead to increased conversions and profits for businesses, making live chat a must-have feature for any business focusing on e-commerce. Although some business owners fail to see the role that live chat can have in conversions, this feature that should not be overlooked.
LiveChat is a tool for online communication between a company and its customers. It easily integrates with platforms like WordPress, Shopify, AdWords, Mailchimp or Facebook.
LiveChat comes with advanced reports, that give you the overview, as well as a detailed look at your customer service activities. Basic reports show you the number of chats you get, tickets you receive, your response time and your customer satisfaction score.
If you run several websites, you can place LiveChat on each of them with no additional charge. Using the work scheduler, you can easily manage your team’s working hours for each day of the week.
With LiveChat you are all set to go and serve your customers. Sign up now for a free 30-day trial.
How common or popular is live chat during an online shopping experience?
A company can handle approximately 1,143 chats per month, and a single operator can handle 274 conversations per month. Live chats are most prevalent between 10 AM and 3 PM local time and over 50% of online conversations occur during this time frame. This shows that over half of users prefer to use live chat during regular business hours. Another fact to consider is that Mexico is the country with has the highest live chat usage in the world. Live chat agents in Mexico have been reported to manage the highest volume of chats. Mexico also has the highest customer satisfaction rating to date at 94.11%. This is followed by Australia’s rating of 93.59% and Canada’s rating of 88.36%.
The wait time before the chat begins and the chat duration time has a direct correlation to customer satisfaction ratings. For example, customer satisfaction peaks at 90% when the wait time is 150 to 200 seconds. In situations where the customer has to wait for 200 to 250 seconds, customer satisfaction ratings drop to 68%. Live chats that last 15 minutes result in a peak rating of 88% customer satisfaction, but if the chat duration is 35 minutes, the customer satisfaction level will drop to 71%. What this data reflects is that it is crucial that consumers receive answers to their questions within a quick time frame. Many individuals value online shopping for its convenience and instant gratification results. Live chat embodies the same values and offers immediate and personalized support online similar to in-person assistance. As consumers turn to live chat to avoid wait times that can be associated with customer service voice calls, it is understandable why long online wait time can lower customer.
The chat volume that companies experience per month affects customer satisfaction. When 1000 chats are conducted per month, customer satisfaction is at 87%. Businesses that experience higher chat volume experience a decline in customer satisfaction. This is evidenced by companies that experience around 8000 chats per month but only attain 68% in customer satisfaction. The reason for this significant decline is likely due to the inability to adequately and quickly address consumer questions due to high chat volume. A lower chat volume means live chat operators can devote the appropriate time to each potential customer instead of rushing to keep up with an hourly quota.
In e-commerce, live chat usage rates have been increasing as time has progressed. In 2009 live chat usage rates were at 38%. This developed to 43% in 2012 and grew to 48% by 2014. As e-commerce continues to evolve and increase in popularity, the live chat trend is predicted to increase in popularity. The longest wait time for businesses in this industry is 1 minute and 13 seconds on average, which is attributed to an average customer satisfaction rating of 87.50% in 2015. However, global customer satisfaction data from 2015 shows that as an industry, e-commerce maintained high-quality live chat experiences throughout Q1 as evidenced by a 95% overall rating.
While many businesses acknowledge that customer service is crucial towards running a successful company and brand, there are some that fail to understand why live chat is better or even equal to alternative modes of communication. Options such as voice chat, web forms, email, Facebook and Twitter all provide opportunities to communicate with customers and answer their questions, which can prompt business professionals to ask why live chat is necessary if these options are available. However, customer satisfaction surveys have revealed that live chat is the highest ranking mode of communication among customers with 92% ranking this option as the best choice. Voice chat was rated 88%, web forms and email were ranked 85% each, Facebook ranked 84%, and Twitter was rated 77%.
It bears noting that even though social media platforms are popular options for customer service and feedback outreach; it is less preferential of an option when live chat is available. This may be for a few reasons. First, communication via social media platforms such as Twitter and Facebook can be limited compared to live chat. This limitation can make it more difficult for potential consumers and current customers to communicate their needs and interests when they can only explain themselves within a particular character threshold. Another reason live chat may be preferred in these circumstances is that this mode of communication is usually on the official company or business website. This is helpful because consumers can contact a live chat agent while browsing products on the website. Customers do not have to search for corresponding social media accounts, and they do not have to worry about trying to set up a social media account to make contact, especially if they do not already have one available.
Voice chat ranked as second-best when compared to live chat online. Some individuals prefer to use live chat instead of voice chat because of feeling uncomfortable talking to a representative over the phone. In situations where it is too noisy, or it is hard to achieve a stable phone signal, live chat can be a great alternative because it ensures that concerns are communicated. Unlike voice chat, live chat can use URLs and images, which users can send to clarify which products they are discussing. In regions where voice chat is not available 24/7, live chat is helpful because it ensures there is a chat agent to assist.
Some of the most well-known companies and brands have demonstrated that live chat provides positive results when implemented. Orbitz reported that it experienced a 40% in the United States consumer brands chat traffic from 2013 to 2014, with 7% of traffic originating from mobile devices. 30% of Dell’s users engage with the company through proactive chat, and this generates 40% of revenue. Dell has noted that they experience a 30% increase in chat usages annually and a third of sales within the United States are achieved through live chat interactions., Total Gym reported 40% of its online sales during Q4 in 2014 resulted from customers that had reached out via chat.
These are a few examples of how live chat can be implemented to lead to increased profits for a company. Regardless of whether a business already offers multiple modes of communication with its customers, live chat should be an essential addition if that company is serious about wanting to improve customer satisfaction levels and transform organic leads into conversions. Maintaining a moderate volume of chats per month can be essential to ensuring there are enough chat agents to answer questions and provide help, besides ensuring that agents do not feel rushed during their interactions with consumers. Providing answers to difficult questions and helping customers find the correct product can make sure that customers will return to make additional purchases.
To learn more about live chat and the difference it can make for online businesses, take a look at the infographic below. The team at Skilled.co created the infographic from data from multiple credible sources.