5 Ways Live Chat Drives Revenue
Using live chat to drive more revenue is just smart business and plenty of companies have embraced this technology as a way to grow their top line. Live chat is always on and at the ready to greet website visitors, field inquiries from prospective customers, and connect consumers to the help they need. It’s really no surprise that live chat has evolved from “nice-to-have” on a website to a necessary feature. There are so many companies currently leveraging the power of live chat and seeing their numbers grow in terms of both revenue and new customers that we felt obliged to highlight 5 of the top ways live chat drives revenue. Looking for a way to build customer loyalty, increase customer retention and boost your average order size? Read on.
Key Stats on Live Chat for Business:
Before we jump into the meat of things, let’s start with a few statistics to whet your appetite on how live chat for business is driving more revenue. Consider these important stats that showcase how valuable this channel is to your business:
- Waiting on hold when calling a business is the reason that 42% of customers prefer live chat (Business2Community)
- Customers who use live chat are 3x more likely to buy according to the American Marketing Association (AMA)
- 79% of businesses have seen a positive effect on sales with chat (Shep Hyken)
How Live Chat Drives Revenue
1. Live Chat Closes More Sales
Online chat provides the opportunity to speak with a customer when the interest in your product or service is at its peak. With chat, customers can get questions answered and concerns addressed before that interest waivers. According to sales consultancy firm, SalesforLife, chat delivers a 20% boost in sales conversions. This can be attributed to the immediate response to specific needs that move the prospect through the buyer’s journey. Consumers know there’s always some risk with a purchase. “Buyer Beware” hasn’t become a saying for nothing. But the ability to have a real-time chat conversation with a representative prior to purchase gives the buyer confidence in doing business with your company because they know help is accessible
2. Live Chat for Business Increases Customer Retention
Live chat is one of the most immediate forms of communication available to online customers. In today’s always-on-the-go world, people want to get answers fast. Your customers will not wait for hours to get an answer through outdated methods, like filling out a form on your website to submit a question and then…you guessed it, waiting for a reply to hit their inbox. When it’s all said and done, meeting your customer’s expectations of delivering fast, personalized service builds customer loyalty and the economics of customer loyalty definitely work in your favor. According to Harvard Business Review, increasing customer retention by as little as 5% can increase profits by 25% – 95%.
3. Live Chat Delivers a More Personal Experience
With the use of live chat for business, you can talk to your customers or potential customers on a much more personal level. Live chat allows you to ask probing questions, provide suggestions, and even offer complementary goods or services based on direct interaction with that customer. Consider this example: A mom is shopping for a bassinet for her newborn. Without any engagement, the customer may just add the item to their cart and checkout, Or, she may get frustrated with all of the choices and tire of reading reviews and look elsewhere. Now, consider the scenario with engagement from a live chat representative. After so many minutes on the product page, a chat window pops up and asks the customer “Can I help you find anything?”. The customer shares what she’s looking for and the agent helps her narrow down choices. In addition to helping her find a bassinet she loves, the representative suggests sheets and some popular sleepwear to add to the cart. This customer-centric approach leads to higher satisfaction rates not only because they are getting fast responses, but also because they are getting the answers that are specifically targeted to helping them with their questions. According to Econsultancy; 73% of their customers were satisfied when they talked engaged on live chat.
4. Live Chat for Business Builds Momentum
You did the work and drove traffic to your website. You’ve got consumers coming in and you need to follow up fast to keep the momentum going. If your shoppers filled out a form so they can be contacted, there’s always a chance that the customer may have failed to provide the right information or made a mistake when entering their contact information. What will you do then if you can’t follow up? You lose the sale. There’s also the chance that a competitor could catch your shopper’s interest while they’re waiting to speak to a representative who can help them make a decision.. Give your customers the opportunity to start a conversation in real-time, when they are most excited about learning more about your product or service and focused on you.
5. Live Chat Increase Order Value
Average order value (AOV) is a key metric to gauge how much revenue a company generates with each transaction. A growing AOV is an indication that either customers are buying larger ticket items per transaction or buying more items in a single transaction. Either way, life is good. Live chat gives trained agents the opportunity to upsell and cross-sell and influence average order value. Agents can present complementary items or higher ticket purchases to consider. Many times, companies decide to implement chat so that help is available when customers need it and chat sessions are initiated when the customer requests it. In some instances, like what an item is added to a cart, some companies have implemented proactive chat to offer customers additional items they may find valuable.