The chat channel is growing as a customer service engagement channel, according to a Forrester Research report.
The report titled, “Market Overview: Chat Solutions For Customer Service,” revealed that chat usage rates grew from 30% in 2009 to 43% in 2012, has been widely adopted by all generational segments, and has high satisfaction ratings.
Nearly all companies (92%) say that a good customer experience is one of their top strategic priorities, and 60% say they want to use customer experience as a competitive differentiator. What’s more, the report shows that customer service is often the cornerstone of a company’s customer experience strategy; 40% say that improving the customer experience is their top customer service goal, with a further 40% saying that it’s their second most important goal.
According to the report, 53% of U.S. online adults say that they are very likely to abandon their online purchase if they cannot find a quick answer to their question, and 71% say that valuing their time is the most important thing a company can do to provide them with good service.
Customers are very comfortable engaging with companies for customer service via chat. After a slow start a decade ago, businesses today have embraced the chat channel, the report notes. Chat can cost less than a voice call, especially for organizations that allow their agents to handle multiple chat sessions simultaneously, the report says.
According to the report, here are some notable chat success stories:
■ Delivering optimized customer experiences. Drugstore.com incorporated Oracle RightNow’s chat solution as a strategic component in supporting the company mission of delivering superior customer experiences. Agents use chat to understand website visitor requirements, educate visitors on available products and product specifications, and guide them to the right products for their needs. Drugstore.com reports a 30% increase in conversion rates, a 20% increase in shopping cart size, reduced abandonment, and increased customer satisfaction.
■ Increasing customer satisfaction. Virgin Atlantic Airways, a U.K.-based carrier, uses chat from LivePerson to increase customer satisfaction and loyalty. Chat has reduced email volume and backlog, allowing customer inquiries to be dealt with at first contact. Customers’ needs are met in real-time and chat has helped raise Customer Satisfaction (CSAT) scores to more than 80%.
Costs per chat are less than both phone and email costs. In addition, customers who chat have an average order value of more than 15% over those who self-serve; customers who chat also purchase products at nearly 3.5 times the rate of those who do not.
■ Decreasing operational costs. Charter Communications, the fourth largest cable operator in the U.S., providing video, Internet, and phone services, uses Next IT’s virtual agent solution in conjunction with an existing chat application to provide a seamless experience on its support site. By using reports to analyze chat sessions, Joe Murray, VP of customer care technology operations, explains: “Charter has been able to optimize operations by deflecting 78% of chats with better self-service content.”
■ Optimizing agent utilization and forecasting. Financial services institution DNB Norway uses a chat solution from Genesys Telecommunications, which is integrated into its email, social, and voice channels, to support customers in completing complex loan and mortgage applications online.
■ Increasing revenue. Abt Electronics is a U.S.-based consumer electronics and appliance retailer that relies on LogMeIn’s BoldChat solution to better engage visitors and increase sales conversion rates. Abt Electronics reports that while only 1% of online shoppers end up making a purchase, more than 20% of visitors who have engaged with Abt Electronics via a chat session convert to a sale. Additionally, about one-quarter of chat buyers end up purchasing additional items during their transaction.