Key Reasons Chat is growing in Popularity for Businesses and Consumers as a Real-Time Communication Channel
Today’s generation of shoppers want service on their own terms – when they want it, where they want it, and in the form they want. Our on-demand society is comfortable using a variety of communication channels from the phone and e-mail to chat and social media, as long as they provide nearly instant gratification. In fact, according to the recently published report by LivePerson (News 
- Alert) titled Connecting with Customers, 71 percent of consumers surveyed expect to be able to access help when purchasing online within five minutes and 31 percent expected help to be immediate.
This requirement for on-the-spot assistance has fueled the use of live chat as a relatively new, but increasingly popular method of customer interaction.
In simple terms, live chat allows a consumer to type questions into an instant message box within a Web browser, and then an agent types the answers back. Although it is generally agreed that e-mail is still the preferred method for customer communication, a study by the E-tailing Group found that one in five shoppers prefers live chat more than any other communication method.
Lauren Freedman, president of The E-tailing Group confirms, “It’s only been a short time that consumers have truly been able to take advantage of live chat, and to see that it is almost equal in preference to the telephone is exciting and transformative.”
Chatting Can be Good for Business
When done correctly, channels that engage consumers in a meaningful way and provide fast issue resolution can have a powerful, positive influence on a company’s brand reputation. Live chat is a medium that combines efficiency with knowledge. It delivers service in a way that harkens back to the days when the person behind the counter knew exactly what you wanted and was quick to solve your problems.
A few of the reasons live chat is viewed as superior to many other forms of communication are:
Help When Needed
Live chat gives consumers the power to ask for help when (and where) they need it. Chat sessions can be turned on or off at the consumer’s discretion, which puts them in the driver’s seat.
Additionally, with the increase use of mobile devices and tablets, chat can be used for seeking help regardless of a person’s location and without disturbing others. Yet this is also a cost-saving benefit for businesses – especially ones that pay agents according to actual time spent servicing customers. Internal statistics at Arise show that one agent can handle an average of three chat sessions at a time versus the one-to-one ratio of e-mail or telephone media.
This increased productivity translates into substantial bottom-line cost savings for companies.
Answers When Asked
Chat is a very clear and concise form of communication. Simply open up a chat session and a knowledgeable agent is available to respond. Customers have the opportunity to clearly explain their needs without interruptions and agents provide straightforward answers. Both consumers and businesses benefit when less time is spent resolving issues.
According to Arise data, one client experienced an 18-percent increase in customer satisfaction once chat was available as a method of customer communication.
Clear Communication
Live chat centers around the written word. Text-based conversations avoid misunderstandings that often occur over the phone due to language and cultural differences. Also, when agents and consumers are chatting they are not distracted by background noises. In fact, some home-based agents purposely select chat-based programs to work on while children are home, knowing that an occasional dog bark or child outburst will not interrupt customer conversations.
Finally, entire chat conversations can be saved for records or reference at a later date.
Applicable to Many Call Types
From sales and billing to tech support and product questions, incorporating live chat into a merchant’s portfolio of communication paths has been proven to increase sales. Indeed, 51 percent of surveyed consumers said they’re more likely to purchase from a website if they could get answers via live chat (Connecting with Customers).
Human Interaction
Chat has been likened to having an extremely knowledgeable salesperson waiting in the wings ready to help when needed. An agent communicating through chat can guide a visitor through a website, answer product questions or even send links to additional resources.
Unlike other online media, chat enables real-time, two-way communication, which delivers a more satisfying customer experience and strengthens consumer loyalty.
Desirable Demographics
The benefits of chat as a service are helping businesses attract a very profitable segment of the consumer market. According to BoldChat’s Live Chat Effectiveness Report, the type of person most likely to use chat is under 50 years old, college-educated, making an income of over $50,000 and spends a significant amount of money online each year. In other words, chat helps capture consumers with disposable income who are comfortable purchasing in an online environment.
Evidence both anecdotal and quantifiable proves adding chat as a method of customer communication can be beneficial to most organizations. However, it is important to remember that chat should be included as part of a multi-channel strategy. Giving consumers the choice to select the right contact method based on their needs will yield the highest overall value and deliver the best customer experience.
Mr. John Meyer is Co-Chairman and Chief Executive Officer at Arise Virtual Solutions Inc (News - Alert)., one of the leading virtual solutions company in the world. John joined the company in 2011 to drive the organization’s growth, set the strategic vision and manage the global operations of the business. John has over 28 years of leadership experience building high growth organizations in both the United States and internationally. Before entering the business world, John served as a flight commander and was selected as a captain in the U.S. Air Force. He holds a MBA from the University of Missouri and a BS in management from Pennsylvania State University.
Edited by Braden Becker
