Customer loyalty is the foundation of all thriving businesses. This loyalty is achieved overtime by delivering exceptional products along with a satisfying customer experience during the sales process. In the case of an online B2B or B2C business, the implementation of e-commerce live chat elevates customer service and interaction to a higher standard. Ultimately, this fosters trust and loyalty among customers, leading to significant sales growth.
What is e-commerce live chat?
Live chat is a platform where you can help website visitors in real time. Customers can chat or message with a customer service agent online, and they can receive immediate answers to their questions or recommendations for products that would suit them best. This kind of prompt interaction is gaining popularity, particularly among millennials who lose interest easily when they have to wait for a reply.
Generally, live chat platforms operate in either of two manners.
- Reactive: The user needs to request assistance by clicking a button that says something like “Chat with us” or “Need help?”.
- Proactive: Here the user is invited to chat, usually by a pop-up window which appears when specific criteria are fulfilled, for example, after certain page sequences or if the customer looks likely to abandon their shopping cart.
Six benefits of e-commerce live chat
Now, let’s examine some of the advantages that both your customers and your business can enjoy.
1. Improved customer satisfaction
The highest satisfaction rate across all customer service channels, as reported by Zendesk’s Benchmark report, is achieved by live chat at 92%. This result is not surprising since live chat offers instant responses that are much quicker than those provided by email or social media. Additionally, similar to email or social media, live chat enables customer service agents to share educational links and documents, which is not possible during a phone call.
2. Increased e-commerce sales
- Conversions: When e-commerce customers have questions about their purchase, they tend to abandon it unless they get a quick answer. Online chat allows your service agents to instantly answer questions from wavering customers, helping to close the sale.According to the American Marketing Association, this boosts conversion rates for B2B customers by 20%. Other sources show that live chat converts 3 to 5 times more customers.
- Increase in order values: When a customer is interested in an accessory for the product they are buying, for example, a mobile phone, suggestions from a live chat agent can help make that sale. With full visibility of the purchase as it happens, the agent can up-sell or cross-sell a related item. Either way, these extra sales add to the original order value.When Virgin Airlines deployed live chat, their conversion rates increased by 23% and their average order value by 15%.
3. Shortened sales process
When questions are promptly answered, helpful recommendations can be made and issues can be resolved immediately. As a result, customers find it difficult to hold onto objections and are swiftly led to the checkout stage of the sales cycle.
4. Decreased costs
The implementation of live chat lowers expenses through various means.
- Cost per interaction: As customer service agents can take part in multiple live chat conversations at once (which is far more difficult over the phone), they use their time more effectively, while providing faster support to customers. This translates to a lower cost per interaction.
- Call volume: Once customers have experienced the enhanced service provided by live chat, it quickly becomes their preferred method of communication. Your call centre therefore receives fewer phone calls and emails, and eventually you’ll need far fewer call centre agents.
- Retention: Live chat increases customer retention by between 48 and 63%. Those returning customers are already loyal, which makes selling to them that much easier and more cost effective than converting new customers.
5. Human contact with convenience
Despite the increasing reliance on digital platforms for both our personal and professional lives, there remains a fundamental human desire to be acknowledged and understood as individuals. Concurrently, customers seek rapid and convenient assistance, while we strive to efficiently and expansively manage our online business. Live chat offers an ideal resolution by blending technological advancements with the interpersonal interaction that our clients crave.
6. Higher customer lifetime value
When you combine higher conversions, increased order values, and excellent service that ensures repeat customers, the outcome is an augmented lifetime value obtained from all your sales.
Best practices for providing effective ecommerce customer service
To effectively utilize and obtain the best data, online retailers can follow these best practices, which is one advantage they have due to their access to rich data.
1. Offer multi-channel support
Customers have a preference for utilizing various channels for different purposes. For instance, they might opt for a chatbot when seeking support, while preferring social media for learning about sales. It is important to assess how customers engage with different channels and leverage this information to improve and optimize your communication strategy.
2. Personalize support and marketing
As an online business, you have the ability to monitor and assess customer behavior. When a customer seeks assistance, an agent can access details such as purchase history, returns, and buying patterns. Utilizing this information, the agent can customize their conversation with the customer and provide them with the attention they deserve as a valued client.
3. Offer self-service support
Online retailers benefit from offering a help center that includes frequently asked questions (FAQs), return policies, and more, as many customers prefer to help themselves. By providing self-service support options, your customers are empowered to assist themselves, allowing your team additional time to handle more intricate support issues.
4. Use the right organizational tools
Spreadsheets and emails have limitations in terms of what can be accomplished. An effective customer support system consists of technology tools specifically designed for various administrative tasks. Without such a platform, even a basic task like retrieving an invoice could become a time-consuming process.
5. Offer an avenue for providing feedback
Allowing customers to provide feedback assists in identifying areas of frustration. Reviews also serve as valuable social proof by showcasing specific instances in which your customer service meets expectations.
6. Prepare answers to common questions
To ensure consistent support with room for personalization, templates for emails and call scripts should be prepared to address the common questions many customers have for common issues.
7. Have a comprehensive knowledge base
A knowledge base is a collection of information for customers, serving as a self-service option for those who require assistance with a product or service, but prefer not to communicate with a phone representative. To ensure ease of search and successful implementation, the content should be well-organized and presented in a clear manner that users can easily comprehend and apply.
8. Automate where it makes sense
By utilizing automation, your team can enhance their efficiency on tasks that hold significant importance. With appropriate software, numerous administrative tasks can be automated, enabling your team to save precious time.
