As the use of technology is increasing, businesses are trying to find more ways to communicate with their customers, in order to gain customer loyalty. Firms are likely to benefit from having features such as live chat as it will allow customers to speak to advisors when they have any problems. Businesses such as shopping sites “have launched live chat services to facilitate communication between consumers and sellers”(Zhepeng et al., 2018).
How does live web chat work?
Live web chat is a service on a website and/or mobile app which allows customers to talk to advisors about any queries that they may have. In order for it to work, the company has to ensure that it is secure and has customer service based advisors behind the live chats, in order to gain a competitive advantage and keep the customers loyal to the brand. Live web chat can be costly for a company as the firm needs to put the feature on the website/app, employ the right advisors, ensure its secure and that no details are at risk. However, it is very useful for a business as you can gain customers from using this service which is likely to depend on the service provided from the live web chat.
Benefits of using live web chat
Salesforce UK Blog, 2019 suggests five benefits of having live web chat. These are:
- Customers like chat
Customers are able to chat with an advisor in real time about any problems they may have. Additionally, live chat can be a lot less stressful for customers as some people get nervous when talking to people on the phone.
- Live chat is more efficient than a call centre
Live chat is more efficient than a call centre as an advisor is able to deal with several customers at once instead of just dealing with one customer on the phone.
- Live chat can improve call centre deflection rates
Some queries are best dealt with on the phone however, a lot of queries can be dealt with on live chat as long as there is a knowledgeable advisor. The advisor can help with the most common FAQS.
- Availability builds trust
By having the availability of flexible working hours on the live chat service, it will gain trust from the customers. Using live chat services will allow companies to work at times which are more flexible for the customer’s needs. The usage of live chat will allow the advisor to be responsive and able to answer all enquires which will also gain the trust of the customer.
- Live chat can drive sales as well as service
Having live chat can also drive sales and service because the advisors are able to recommend products to the customer that are on sale or show them a product that they have never seen before. Having customer serviced advisors will also help the service of the business which could lead to customer loyalty.
By using live chat, customers are able to ask questions and speak to an advisor for most hours of the day about any uncertainties that the customer may have. This feature will gain customer confidence as it will allow the consumer to communicate with the business. It is likely to improve customer satisfaction as the advisor would be able to provide excellent customer service whilst helping the customer; making it a memorable experience for the customer.
Risks of using live web chat
There are also risks of using live web chat. Some customers may feel as if the queries are not always resolved and they are not receiving the help that they need, which could potentially resulting in the business losing customers and therefore sales and revenue will be effected. Wolf, D 2010 states that “retailers increasingly embrace online chat for customer service, they open themselves up to security concerns about what is discussed in the chat sessions”.
Another risk of using the live web chat could be that some customers may not even realise that this service is available to them; meaning it needs to be in a clear place where customers are able to access it. To prevent these risks, businesses need to ensure that they have skilled customer service advisors enabling the advisor to help with any queries and provide a safe and secure service.
References:
‘Chat’ Service Risks. By: Wolf, Daniel, American Banker, 00027561, 9/8/2010, Vol. 175, Issue 138
Icmi.com. (2019). The 5 Reasons Live Chat Fails. [online] Available at: https://www.icmi.com/resources/2014/The-5-Reasons-Live-Chat-Fails [Accessed 28 Feb. 2019].
Salesforce UK Blog. (2019). 5 benefits of having live chat on your website. [online] Available at: https://www.salesforce.com/uk/blog/2016/03/5-benefits-of-having-live-chat-on-your-website.html [Accessed 28 Feb. 2019].
Z. Lv et al. / Electronic Commerce Research and Applications 28 (2018) 102–113
