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Reading time • 16 mins


What is Live Chat, and Why Your Business Needs It

Authors
Name
Lara Proud
Role
Product Marketer

Learn about the benefits of live chat for businesses, strategies for implementation and tracking success, and future trends.

Have you ever used live chat support as a customer? If so, you know how convenient it can be.

No waiting on hold or waiting for an email. Just pop open the chat window and get your questions answered in real-time. That's the level of convenience you not only need to offer your customers, but it's the level they expect.

In this helter-skelter world of instant gratification, customers want quick solutions to their problems. They don't want to be put on hold, wait for an email response, or get sent to voicemail. They want real-time help, and that's where live chat swoops in as the superhero.

It's like a golden key that can take your business to the next level of real-time customer service. It's a tool that can turn window shoppers into buyers and casual visitors into loyal followers.

Pretty neat, right?

Throughout this post, we'll dive deep into the world of live chat. We'll look at how it works, weigh the benefits, and explore how a business like yours can adopt it and thrive.

So buckle up, and let's get started.

Understanding What is Live Chat

Live chat interface with person looking at flight board

So, what is live chat technology?

Live chat software is an online customer service tool that lets businesses have real-time communication and conversations with customers. It gives you the power to provide instant, one-on-one help through your website or app.

Pretty futuristic, right?

Well, it's tech that's here today, and it's revolutionizing how customer questions get handled. In fact, 73% of customers feel more comfortable using a live chat than they do an email.

Again, if you've ever used live chat solutions yourself, you know just how helpful they can be.

Here's how the magic happens:

  • A chatbox pops up on your site - usually in the bottom right corner. This invites visitors to ask questions or share concerns.
  • Your team (humans, chatbots, or, ideally, a combo of both) stands ready behind the scenes to respond ASAP.
  • They answer questions, fix issues, and provide extra info customers need - in real-time. Smooth, right?

But live chat isn't just about damage control and fixing problems quick. It's also a secret weapon for proactively engaging visitors.

Imagine this: A customer looks confused while browsing your online store. With live chat support, your team can swoop in like a salesperson would in a physical store. They can ask if that visitor needs a hand. Someone who was simply browsing your store casually is now engaged, investing time, and has a very real chance of becoming a customer.

It's not about support. It's about enhancing the entire customer experience in every way possible.

The simplicity and speed of live chat are what make it so great. Customers love how seamless it is.

On top of being a problem solver and a top customer engagement tool, live chat gives you valuable customer insights, like:

  • Common questions
  • Real-time feedback
  • Browsing behavior

Used wisely, these insights can seriously boost your business strategy.

The bottom line?

Live chat is transforming customer service by making businesses more accessible and responsive than ever before.

The Benefits of Live Chat

Man leaning against a bike, messaging on his phone

When connecting with customers in real-time, few things beat good ol' live chat.

Now, we know what you might be thinking - live chat, really? Isn't that just another clunky pop-up window from the early 2000s?

Think again. Modern live chat has come a long way since then. And implementing it on your website can take your business from "meh" to "wow" faster than you can say, "How can I help you today?"

Don't believe us? Let's chat about some of the key benefits live chat offers and how it can level up your business:

Real-time Convenience to Customers

One of the best things about live chat is that it allows you to connect with customers and provide real-time assistance the moment they need it.

No wait times, no phone tag, no emailing back and forth - just instant, back-and-forth conversation.

Customers absolutely love the immediate convenience of chatting with a real person to get their questions answered or issues resolved. No automated phone trees or sitting on hold for an eternity to the same tinny music loop on repeat!

And studies show that live chat gets higher satisfaction ratings than other communication channels like email and phone support.

According to research by Econsultancy, 73% of customers are satisfied with live chat experiences. That's compared to only 61% for email and 44% for dreaded phone calls.

So, if you want improved customer satisfaction and provide next-level convenience, live chat is the way to go. Those real-time conversations can make customers feel valued and give your business an edge.

Convenience is king, after all!

Cost Savings

Jar of money saved with a sapling growing out of it

One of the cooler things about live chat is that it can actually save your business some cold, hard cash. How, you ask?

Well, chat allows agents to juggle multiple customer conversations at once, which means you don't need to hire as much extra staff to handle customer inquiries. Cha-ching!

Plus, live chat cuts down on those pesky customer wait times you get with call centers. And less wait time equals major savings on support costs. No one likes an angry customer stuck on hold!

The research speaks for itself, too. According to the Aberdeen Group, businesses using live chat slash their support costs by 50% (and those figures were all the way back in 2012). or more compared to old-school phone support.

Imagine all you could do with those savings!

Competitive Advantage

Want to get a competitive edge over your rivals in the industry? Offering live chat on your website can help you pull ahead of the pack.

When customers have burning questions or issues, live chat means you can provide real-time support before they bail and run to your competitors. Let's be honest; no one likes waiting around for help.

And the numbers show that most businesses aren't yet using live chat to its full advantage. Research suggests that only 9% of companies use live chat on their website, with 74% using it for sales and 67% primarily using it for support.

Therefore, adopting now puts you ahead of the curve and far in front of your competition, so be a trailblazer!

Bring your business into the future and leapfrog over your competition by providing fast, convenient live chat. Customers will appreciate your commitment to real-time, quality support.

And that appreciation will come back around in the form of sales, loyalty, and word-of-mouth marketing!

Increased Conversions and Sales

A picture of a drawn graph with the line showing upward progress

If you're looking to move more products and boost that revenue, get ready to have a happy chat with your customers! Studies show that live chat can bump up your conversion rates and pad your bottom line.

The proof is in the pudding, too.

According to research, adding live chat leads to a tasty 12% increase in conversion rates on average. Turns out that when you provide real-time advice, customers are much more likely to pull the trigger on purchases.

And those sales add up to higher order values and revenues.

Long-term Customer Relationships

Want to foster meaningful, lasting relationships with your customers?

Well, pulling up a chair and having a friendly chat can help!

Live chat allows you to provide that personal, human touch that makes customers feel truly valued. When you can answer questions and resolve issues in real-time, customers are so much more satisfied.

And satisfied customers tend to stick around and buy again and again.

It's a beautiful cycle!

In fact, 63% of customers who've used live chat before are more likely to return compared to those who haven't chatted.

Like all good businesses, if you're trying to figure out ways to build loyal, long-term relationships that stand the test of time, live chat is key. Have one conversation at a time, provide exceptional support, and watch as your community grows.

Your customers will thank you!

24/7 Support

In today's always-on world, customers expect businesses to be available around the clock. However, providing 24/7 support can be challenging without burning out your team.

Well, live chat offers the perfect solution! With chatbots, you can automate responses and provide self-service options, even when human agents are off the clock. Customers can get quick answers on your website at any hour of the day or night.

Pretty cool, right?

And customers definitely dig the convenience of 24/7 assistance. According to research by Ubisend, over half of consumers think brands should always be available without taking breaks.

So be where your customers are - anytime, anywhere!

With live chat, you can offer always-on support and meet those 24/7 expectations without running your agents ragged.

Let the chatbots handle the overnight shift!

Improved Customer Service Productivity

When it comes to providing fantastic customer service, working smarter is key. And live chat can help your team do just that!

With chat, agents can juggle multiple conversations at once, bouncing between different customer inquiries with ease. No more playing frustrating phone tag or getting overwhelmed by email overload. Hello, multitasking!

Plus, with canned quick-response messages, agents can save oodles of time providing prompt support. No need to rewrite repetitive responses. Hallelujah!

The numbers speak volumes, too, as chat representatives can averagely handle between three to five chats at once, depending on the complexity of the questions.

That's a lot of happy customers in one sitting!

Improved Customer Experience (CX)

Want to take your customer experience to rockstar levels? Well, live chat opens up a whole world of possibilities to engage visitors and create WOW moments.

With proactive chat invitations, you can turn casual browsers into lifelong customers. How? By providing personalized offers tailored just for them and starting meaningful conversations. It's like having your own virtual salesperson!

The research says it all - responding quickly to customers gives you a big advantage. According to statistics, 30-50% of sales go to the business that engages first.

That's right, you can win 50% more sales simply by being the first to reply.

In-depth Reports

Reporting Dashboard for Live chat software

If knowledge is power, live chat can give your business superpowers! With robust reporting tools, you gain invaluable insights into customer behavior and agent performance. It's like having a supercomputer in your back pocket!

These built-in analytics let you peek behind the curtain to see what customers are doing on your site and how agents interact with them. And with this intel, you can continuously improve your customer service and craft next-level customer experiences.

Oh, and chatters tend to spend, on average, 60% more per purchase than those who don't, so, you know, bear that in mind.

Fast Customer Inquiry Resolution

When customers have questions or issues, they want answers ASAP. Well, live chat makes it easier than ever to resolve inquiries in record time!

With handy features like link, image, and attachment sharing, agents can provide step-by-step guidance right in the chat window. Send a tutorial video, a how-to article, or visuals that explain precisely how to fix the problem. So helpful!

And you can't argue with the stats - live chat is crazy fast. The average chat inquiry gets resolved in just 11 minutes and 15 seconds. Compare that to the average of 24 hours, and that's what we call lickety-split service.

As you can see, by embracing live chat within your business strategy, you can leverage these benefits to enhance customer service, increase sales, promote customer satisfaction, and secure a competitive edge in the market.

And there's no time like the presence to start making the most of it.

A Step-by-Step Guide to How Live Chat Works

Live chat might seem kinda confusing at first, but trust us; it gets way easier once you see how it actually works! Think of this as your guide to understanding the live chat process from start to finish.

Step 1: Embed Live Chat Software

Alright, step one - we've gotta get live chat set up on your website. This just means choosing a chat software and sticking the website's code on your site.

The software will give you a little live chat widget - maybe an icon, a chat box, or a link. When someone clicks it, it'll pop open a window where they can send you a message. Pretty nifty!

You get to pick where the widget goes and how it looks. Most chat tools let you customize the design so it matches your site. Put it somewhere visitors can easily spot it. The right side or bottom corner of the screen tends to work well.

So, in summary:

  • Pick the best live chat software that's suited for your business
  • Get the embed code for your live chat apps
  • Add the code to your site
  • Customize the widget design
  • Place it somewhere visible

And that's it!

Onward!

Step 2: Ensure Agent Preparedness

Woman and man on computers in an office providing live chat support

Now that we've got the tech side covered, let's talk agents.

Having the right people on the other end of the chat is crucial, or this whole thing just isn't going to work.

Your agents need to really know your business and products. And we mean really know their stuff. Your customers and website visitors will ask them all sorts of questions, so they should have the answers ready to go.

Here are a few tips to prep your support team:

  • Train them on your most frequently asked questions and give them pre-written responses to use. This saves them time and ensures consistency.
  • Make sure they know when to bring in a supervisor for further help. If the question requires specialized expertise, have them pass the chat along to the right person.
  • Give your support agents access to your knowledge base and resources to look up answers if needed. Give them access to everything they need to succeed!
  • Do roleplay exercises so they get comfortable with the live chat interface.

Most importantly, remind them to be friendly and helpful!

That personal touch will really impress customers.

Step 3: Initiation of Chat Conversation

This is the fun part - an actual live chat conversation!

Here's how it goes down:

A customer on your site clicks on your chat widget and types in their question. Could be about a product, an order, technical support, you name it.

As soon as they hit send, your chat software gets to work. It takes that question and shoots it over to an available agent. Ding!

If no human agents are free, no worries - your chatbot can step in to provide an instant answer. Either way, the customer will see a response pop up in their chat window in real-time.

Then, it just becomes a back-and-forth conversation. The customer describes their issue; your agent asks clarifying questions and solutions and options are provided.

Easy peasy!

It's all about delivering quick, personalized service right then and there. No waiting on hold or playing phone tag. Just fast, real-time help via chat.

Step 4: Live Support Interaction

Alright, a question has arrived, and your agent is on it! Their goal here is to provide awesome, speedy, personalized support.

They'll start by reading the question and figuring out what the customer needs. If anything is confusing, they can ask follow-up questions to get all the details.

Then, it's time to put their knowledge to work. They'll give answers, make recommendations, and send over resources. If it's a quick question, hopefully, they can solve it then and there in the chat!

For more complex issues that require special expertise, no worries - the support agent can pass the chat to a supervisor who can better assist.

The key is giving thoughtful, detailed responses so the customer feels their problem was solved. No one likes to be left hanging!

Step 5: Conversation Closure and Follow-Up

We're nearing the finish line here! Once your agent has solved the customer's issue, they gotta stick the landing with a great closing.

Here are a few tips for closing out the chat:

  • Confirm the question was fully answered - ask the customer if they need anything else.
  • Give clear instructions for the next steps, if needed. Don't leave them hanging!
  • Thank them for their time and patience. A little appreciation goes a long way.
  • Let them know how to reach you if they have follow-up questions. Offer to keep helping!
  • End on a friendly note and wish them well. You want them to walk away happy.

Bringing the conversation to a polite close ensures the customer feels satisfied and supported.

And hopefully, they'll remember the awesome service when it comes time for their next purchase!

Step 6: Conversation Transcription

We're at the last step now - transcription. Fancy word for saving a record of the chat.

After your agent wraps up and says goodbye, the chat software will automatically store the conversation. Handy, right?

Saving those chat transcripts is super important for two big reasons:

  • They help you make sure your team is providing great service. You can go back and review the chats to identify areas for improvement.
  • They give you a knowledge base to reference for future questions. If a customer asks something you've answered before, just pull up the transcript!

So, in summary - let the software do the transcript work, then leverage those records to analyze and improve your live chat support.

Alright, we've made it through the step-by-step live chat process! I know that probably sounded like a lot, but breaking it down piece by piece makes it feel more manageable.

The specifics might vary a bit depending on which tools you use, but you've got the foundation now.

Now get implementing!

How to Implement Live Chat in Your Business

Business team of four people smiling after successfully implementing live chat into their business

Okay, so we know how live chat works and how the process is laid out, but how do you actually implement it properly into your business and your existing workflow?

After all, you need to ensure everyone within your business is on the same page, that the complete customer service platform you're using fits your business and its needs, and you have a system in place for feedback so you can streamline and improve the whole process as quickly as possible.

The last thing you want is a poorly set-up system that leaves your customers having a poor experience. That's actually the exact opposite of what we want.

But if you're thinking, "Hmm, sounds complicated..." don't stress! Adding live chat is super straightforward. Just follow these steps:

Integrating Live Chat into Your Business Model

Alright, time to integrate live chat into your biz! Here are the key steps:

First up, we've gotta pick the right instant messaging software or plugin. Think about what features you need, how many chats you expect, and your budget. Once you've picked one, grab the embed code and drop it into your site's backend. This puts the chat widget live.

Next, we configure things.

You can customize when and where the chat box pops up on your site pages. Set up canned responses your team can use for common questions. Create rules for routing chats to the right agents (like by language or department).

This is all about optimizing your live chat functionality.

You'll also want to integrate the chat software with your other systems. Make sure your live chat provider can connect to your CRM to pull up customer data and records seamlessly during chats. Link it to your help desk so tickets get created automatically. The possibilities are endless!

I know that probably sounds like a lot of tech stuff, but the setup is actually pretty straightforward once you dive in.

And the chat provider's support can guide you.

Staffing and Training for Live Chat

Now it's time to think about your live chat squad. Here are some tips:

  • Consider your customers - how many do you have, and how often will they probably chat? This helps decide if you need a large team or just a few multitasking pros. Live chat lets agents handle multiple conversations at once!
  • Training is KEY. Your agents need to be true experts on your offerings. Writing skills are huge, too, since chatting is all written. And they should be great multitaskers to juggle all those chats!
  • Set up ongoing training to keep leveling up your team's skills. Listen to chat recordings and give feedback. Make sure you're providing the best experience possible.

Most importantly, find agents who are super friendly and love helping customers! That kindness and enthusiasm will come through in every chat.

Best Practices for Live Chat

Want your live chat to wow customers? Follow these pro tips:

  • Make the chat box obvious. Pop it right in their path!
  • Answer chats ASAP. Speed impresses!
  • Greet visitors first. Ask, "How can I help?" Don't wait for them.
  • Train your agents to be empathetic. Show you understand their situation.
  • Use canned responses sparingly. They can sound robotic if overdone.
  • Analyze chat data to improve. Look for trends and coaching opportunities.
  • Most importantly, be human! Have fun and show your personality.

Master these best practices, and your customers will rave about your top-notch live chat experience. They'll feel heard, helped, and happy!

Measuring Live Chat Success

We've got chat up and running - but how do we know if it's actually helping customers?

It's super important to track live chat performance. That lets us celebrate wins and find areas for improvement!

Here are some key things we'll want to measure:

  • Chat length - Are convos quick and efficient? Shorter is usually better!
  • First response time - How fast do we initially reply? Faster = happier customers.
  • Abandonment rate - Are people leaving before an agent responds? We want this low!
  • Customer satisfaction - What do users rate the experience? High scores = we're crushing it!

Make sure to check these metrics regularly. They'll show if our chat game is strong or needs work. And customers LOVE it when we ask for their feedback directly.

Strategies for Monitoring and Improvement

We've got the metrics - now let's use them to level up our live chat!

  • Check the KPIs regularly. Stay on top of how we're doing.
  • Train agents and review chats for improved service quality. Help the team improve.
  • Survey customers after each chat. Ask what we can do better!
  • Tweak the approach constantly. Improve things bit by bit.

By putting in this effort, our live chat can go from good to great. Customers will stick around when they see we truly care about helping them.

Live chat isn't slowing down anytime soon, and many are arguing that the age of live chat is only just beginning. Here are some big trends on the horizon:

  • AI chatbots are blowing up. They allow 24/7 support and mega-fast answers. And they take care of basic questions so real agents can tackle the tough stuff. Pretty clever!
  • Mobile chat is a must-have. 82% of customers expect to find chat on mobile devices. Makes sense in our always-on-the-go world!
  • Integration will get even tighter. Find live chat platforms that connect directly with your CRM, social media, payments, and more. One seamless experience!
  • Support will get more personalized. Using visitor data to greet them by name and understand their needs better. Now that's VIP treatment!

The future is bright for live chat and customer service! Expect even faster, smarter, 24/7 support on any device. And more ways to wow your customers with how well you know them. Exciting times ahead!

Conclusion

And there you have it - everything you need to know to transform your customer service with live chat!

We've gone over the many benefits of adding live chat to your business, from boosting sales to saving costs. You're now equipped with strategies to successfully implement chat, train your team, monitor performance, and stay on top of the latest trends.

The key takeaway: live chat allows you to connect with customers instantly and solve problems quickly. This real-time assistance improves satisfaction, loyalty, and your bottom line.

As the digital age advances, live chat has become a must-have for businesses seeking to deliver exceptional experiences. Don't get left behind!

Ready to start reaping the rewards? Sign up for a free trial of Deskpro's helpdesk software today. Our powerful, easy-to-use live chat feature integrates seamlessly with your support workflows.

Join the hundreds of companies that rely on Deskpro to engage customers in real-time, lift CSAT scores, and drive results. All your customer data, responses, and tools in one handy package.

The first step is just a click away.

Let us show you how live chat can transform your business! With Deskpro, you'll win customer trust and boost retention. The support you've been dreaming of is within reach.

Chat soon!

Last updated • October 30, 2023