How To Leverage Live Chat for Marketing & User Acquisition

Live chat is nothing new. In fact, it’s been around since the 1970s. But it’s really taken off in the last couple years. 

According to CCW, the number of website visits resulting in live chat sessions has markedly increased since 2015. Interestingly, it’s particularly popular on lower-traffic websites, with around one in seven sessions on sites receiving up to 5,000 visitors a month prompting a conversation via live chat. In other words, live chat isn’t just for the big dogs – it’s absolutely applicable to smaller sites too.

And live chat isn’t just about troubleshooting – it can have a major impact on your bottom line. Site visitors who use web chat are almost three times more likely to convert than those who don’t, while 51% of consumers are more likely to stay with (or buy again from) a company if it offers live chat support. 

Yet there’s a real disconnect emerging. Two-fifths of customers cite live chat as their preferred support channel…

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…whereas businesses mistakenly believe that their customers would rather get in touch with them by phone:

This says to me that there’s still tons of companies out there who either aren’t offering a live chat option on their website, or aren’t make proper use of their existing live chat function.

So today, let’s take a look at why and how live chat can help you in your mission to growth hack your company. Skip down a few sections if you’re ready to implement live chat and just want to find out how to utilize it to the best of its potential.

(Also, as a side note, I’m not going to review individual live chat providers here, as plenty of sites have already done so to great effect. This post, instead, will focus on how to get the most out of the tool you’ve already selected.)

Customers love it

People really like live chat. Customer satisfaction stands at more than 80%, with the number of chat sessions increasing by 1.8x between 2016 and 2017.

It makes absolute sense. Back when we still visited bricks-and mortar-stores (remember those days?!), if we had a question, we’d just ask the nearest member of staff. Quick. Simple. No fuss.

Online, it’s (generally) a lot more difficult to get our questions answered. Sure, we can usually call in or send an email, but both of these approaches have their drawbacks – namely, waiting on hold and lengthy email response times. In fact, a SuperOffice survey found that the average company takes more than 12 hours to respond to handle a customer service request, with 62% failing to respond to customer service emails. Compare that with live chat, which boasts an average response time of just 37 seconds.

It’s little wonder then that 79% of customers said that they prefer to use live chat because they “get their questions answered immediately.”

Or that, of all methods of customer service, live chat was found to have the highest satisfaction levels:

So how does this translate into growth for you? It’s pretty simple really: happy customers spend more and are more likely to become return customers. Translation: happy customers are loyal customers.

Key Takeaway: First of all, get a live chat system set up (customers think it’s very important!). However, don’t actually make it available to customers until you have the resources to manage it properly, and ensure all queries will receive a quick response.

It opens the door to conversational marketing

Conversational marketing – in other words, speaking to your customers naturally via chatbots and live chat tools, and asking them questions rather than directing them to a generic contact form – is the evolution of live chat. 

Sure, it’s not rocket science, but it really works. In fact, I’ve performed tests across multiple companies. Every time, introducing conversational marketing has seen leads increase by 30% or more.

But it’s not just a numbers game; lead quality has improved too. That’s because it allows you to ask more effective questions. 

Think about it: with conversational marketing, you can casually find out about a potential customer’s pain points while helping them find the information they need: 

• Are they in a position to buy from you, or are they just carrying out passive research? 
• Do they have buying power, or do you need to reach out to someone more senior? 
• And what led them to visiting your site in the first place? 

Now, consider the information you can learn from a contact form – probably nothing more than their name, company, and email address. Maybe a phone number, too (although they might give you fake details). It’s pretty clear which is the better option here!

Key Takeaway: Unlike some marketing trends, the value of conversational marketing should be immediately obvious. And time to value is virtually zero – your sales team can start using it right away to have more natural, valuable conversations with potential customers. It’s one of the most compelling reasons to implement a live chat system right now.

It can save you money

Live chat systems enable employees to handle multiple customer queries simultaneously. This boosts workforce productivity, meaning you get increased output with less staff.

In fact, Telus International states that a single customer service agent can handle as many as six simultaneous chats (depending on complexity). Imagine trying to do that on the phone!

That means you need less staff to provide the same – or even better – support. And less staff means reduced operational costs, which means more revenue and profit for the business – or, more money to invest in marketing and growth.

Yes, there will likely be some setup costs involved, and you’re going to be paying your provider a monthly fee, but these costs are negligible when compared with the cost of finding, training, and employing a full-time member of staff.

Key Takeaway: If you want to cut the cost of customer service, implement a live chat system – its management requires significantly less manpower than that needed to answer phone calls or emails.

You can use it to upsell

Let’s start by clarifying something… I’m not suggesting you use live chat to sell products to people who don’t need them. Frankly, that would be immoral, and isn’t going to do you much good in the long run. If, or when, a customer realizes they’ve been sold something they didn’t want or need, do you think they’re going to return? I highly doubt it.

If a customer wants to buy something, and you believe a cheaper alternative would suit them better, take the hit on your revenue and speak up.

Down-selling like this can help a customer to trust you more. After all, you didn’t have to down-sell, so why would you unless you were simply looking out for their best interests? This technique can greatly increase customer loyalty.

However, in addition to using live chat to slash customer service costs, live chat has been shown to significantly increase average order value. Bold360 discovered that customers who engage with live chat are likely to spend 60% more on their purchases.

Use your live chat feature to add value to a customer’s purchase – if an alternative or additional product will serve the customer better, educate them on why and how.

The trick lies in getting “perceived value” to work in your favor: an alternative product may cost more than the customer initially intended to spend, but if the customer believes that this alternative offers them better value for money, they will spend more and go away happy.

In other words, everybody wins.

Key Takeaway: Use live chat to assist your customers in making wise purchasing decisions – if it would be right to upsell, then do. Likewise, if it would be in the customer’s best interests to suggest they purchase something of a lower value, then you should take the revenue hit and advise them accordingly.

Live chat can reduce product returns

It makes sense that the more informed a customer is about a product, the less likely they are to return it.

You can use live chat to monetize on this fact by actively encouraging your customers to ask questions. It’s the digital equivalent of a shop assistant enquiring as to whether there’s anything they can help you with, except this is less intrusive.

While your live chat should not be in any way forceful or aggressive (a customer should be able to minimize or remove the box, and it shouldn’t pop up again unless activated by said customer), it’s fine – helpful, in fact – to let the customer know an operative is there and ready to answer any questions, should they be needed.

Key Takeaway: Don’t be afraid to activate your live chat and let a customer know that someone is there if they have any questions – but don’t be annoying. Once is enough.

You can extract data from your live chat that can help you to make better, more informed decisions

Most live chat platforms incorporate real-time data and analytics tools that can enable you to pinpoint what’s working and what can be improved, as in the image below from Zopim Live Chat:

For starters, you should be able to monitor your agents’ performance on metrics like how many customers each agent is handling and how satisfied those customers are. This can help you to identify each agent’s strengths and weaknesses, so that you can adapt your training and support processes accordingly. From there, you’ll be able to optimize your existing team’s performance and minimize the need to hire additional staff members.

What’s more, this type of data should enable you to determine an optimum customer to agent ratio – i.e. the maximum number of customers an agent can deal with at one time while also maintaining optimum customer satisfaction levels.

However, what I’m really excited about with live chat analytics is the ability to quickly identify common trends that are causing customers to turn to live chat; for example, a problem with your checkout system.

First of all, live chat means that you can actively encourage customers to tell you when something’s wrong – something you’d never initiate over the phone (even if you had their phone number, calling customers up to ask them if they’re having any problems would still be super creepy…).

Similarly, a customer is unlikely to pick up the phone and call you to tell you there’s a problem with your checkout. That’s a lot of effort to go to for something that will benefit you more than them. Unless the customer really, really wants to make that purchase, chances are they’ll just go and buy it (or something similar) elsewhere.

However, live chat enables you to initiate the conversation and ask your customers to tell you if there’s anything wrong or if there’s anything they have a problem with.

What’s more, live chat analytics tools should enable you to see which pages of your site visitors are on when they begin to chat.

Why is this helpful?

Because… if an unusually large number of chats are stemming from a particular page of your site, this should signal that there’s an issue with that page (or a page linked to it). You’ll want to take a closer look at that page (heat map tools can be helpful here as well) and try to make the necessary improvements to increase effectiveness.

The information you gain, both directly from your customers, and via your analytics, is priceless. Used correctly, it will enable you to quickly identify, and more importantly, tackle problems that could be hindering your growth and hurting your bottom line.

Key Takeaway: All good live chat programs should incorporate analytics tools that will help you extract valuable data from your conversations. Use them!

It can place you ahead of the competition

For something that’s relatively simple to implement and manage, I’m frankly baffled that many companies still don’t offer a live chat function. However, for you, it’s great news.

I may have said it before, but customers love live chat. Not every customer of course, so don’t close down your phone support just yet…

But, if you can offer a line of communication that your competitors can’t, you’ve instantly got one over on them, giving potential customers a reason to buy from you instead of somebody else.

Key Takeaway: Using live chat can help you get one over your competition, but not all customers want to – or will use it. Make sure to offer more traditional forms of contact (such as phone and email) as well.

Are you convinced yet that live chat is worth implementing? Good. Now let’s take a look at what you can do in order to maximize its benefits…

Use triggers to automate page tracking (where appropriate)

Here’s a tip that led Blue Soda Promo to achieve a 60% live chat to sale conversion rate: initiate the chat yourself, when behavior suggests a customer may be encountering problems.

Using Bold Chat software, Blue Soda Promo analyzed their customers’ on-site history and the time they were spending on each page. If the system detected enough signals to suggest a customer may be having problems, or seeking an answer to a question, their live chat feature would automatically activate.

Rather than being intrusive, this careful targeting meant that soon enough, a massive 60% of their live chat conversations were resulting in a sale.

Key Takeaway: It can benefit both you and your customers to initiate a live chat conversation; however, timing is everything. Avoid distracting customers (who many be close to making a purchase) by utilizing “triggers” that automatically initiate conversations at appropriate moments.

Answer customers quickly

As mentioned above, of those customers that prefer to communicate via live chat over other methods of customer support, 79% do so because it “enables them to get their questions answered immediately.”

However, this doesn’t mean that customers never have to wait to talk to a live chat agent. Unexpected peaks in traffic could see your support team becoming overwhelmed, which is why you need to be prepared.

If your team is completely swamped, the worst thing you can do is ignore the customers that are trying to contact you. To overcome this, implement a system that enables you to limit damage resulting from customers waiting in line. At a minimum, the customer should be made aware that you know they’re waiting, that you’re very busy, and that you will be with them as soon as you can.

If possible, they should also be provided with an estimated wait time so that they can make an informed decision about whether to wait around or try back later.

Key Takeaway: Implement a contingency plan that details exactly what will happen should your live chat support become overwhelmed and your operatives are unable to answer all queries in a timely manner.

Utilize historical data

Live chat software will allow you to store previous conversations. Utilize this feature by giving operatives time to scan through historical conversations with repeat customers. This can help them to:

• Identify what problems they’ve had previously. Let’s say a previous problem wasn’t resolved. In this case, the operative can be prepared to pick up the conversation right where it left off.
• Learn what products they’ve previously purchased (and consequently, are likely to purchase this time around).
• Establish the “type” of customer they’re about to talk to and the style of language they use and will respond best to.

Using this information, your operatives can build rapport with the customer and offer an improved, more personalized, and just downright more helpful service.

Key Takeaway: Where historical (chat) data is available, allow your operatives the time to review the information, and train them in how to best utilize it.

Walk like a human, talk like a human

Which of these live chat introductions would you relate to more… This one:

Or this:

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Granted we’re all different, and some people might prefer the formality of the former example. However, I think we can all agree that the second example sounds more natural, and more…. real.

Let’s take a look at the key differences:

• Stock photo vs. real photo. Studies have shown that stock photos are often ignored. One retailer actually enhanced their site with real photos of their customer service agents and increased conversions by 21%. Basically, stock photos suck.
• Operator listed as “admin” vs. operator listed as “their real name.” Yes, the agent introduces herself as Karen, but each time “Karen” types a message, it will be preceded by the very impersonal “admin.” Not ideal from a rapport-building standpoint.
• Customer addressed using their full name vs. customer name not used at all. This is where customers’ preferences may differ. Some prefer a more casual tone, while others might find having a stranger refer to them by their full name to be a little creepy. Err on the side of caution and don’t use their name at all. Or even better, split test both options.
• Robotic and formal language (“How may I help you today?”) vs. more natural and casual sounding language (“I noticed you’re looking at our pricing”). Ultimately, most businesses find that casual, engaging language leads to better results than off-putting, formal expressions.

So how do you get your team on the same page? Some companies choose to hand out “style guides” to live chat operatives. While it can be worth having this information available (operatives, especially new ones, may occasionally become stuck for words and will appreciate the help), relying too much on a style guide could actually cause more problems than it solves. Namely, operatives can fall into the trap of sounding automated.

As you implement live chat, you’ll likely find that you’re asked the same questions over and over again. You might, therefore, be tempted to save time and ask your agents to answer these questions with a canned response when they see them. Believe me, I totally get that.

Unfortunately, this technique doesn’t come across as particularly personal. Actually, scrap that. Canned responses come across as the polar opposite of personal.

As with any form of customer service, live chat presents an opportunity for you to build relationships with your customers – relationships that will encourage them to remember you in a positive light.

Think back to when you’ve received great customer service. Chances are, you won’t remember the times where an operative simply solved your problem. Instead, you’ll remember when operatives went out of their way to help you and treated you as an individual.

Key Takeaway: Provide your agents with style guides and templates to fall back on, but try to deter them from relying on them too much. Encourage your agents to treat each customer as an individual, and inject a little personality into their communications, instead.

In fact, if you want to offer excellent customer service via live chat, the language you use is critical. Let’s talk about that a little more…

Ask open-ended questions

“Can I help you today?” is a pretty standard customer service greeting. It sounds polite enough, but it practically invites the customer to say “No.”

Instead, your opening question should be structured in such a way that it’s impossible to answer with a “Yes” or a “No.”

So instead of “Can I help you?” try “How can I help you?” or “What can I help you with?”

Mirror your customer’s language

This is classic sales psychology – mirroring the customer’s behavior helps to build rapport between the customer and the salesperson. That said, this tactic should always be approached with caution: go overboard and the mirrored may wrongly believe they’re being mocked.

This technique isn’t exclusively useful in sales, either. Any situation in which you want to build a relationship with somebody can benefit from tactile mirroring. This includes customer service and – of course – live chat.

If the customer is using very formal language, then the operative should respond accordingly. Similarly, if the customer is being more casual, the operative should adopt the same tone.

Over time, you should be able to build a clearer picture of the type of language your customers most commonly use. This can then be used to model style guides and be incorporated into your customer service training.

Avoid being sarcastic or making jokes

Even if it’s intended completely innocently, sarcasm can easily be misconstrued, while jokes are often lost in translation. Play it safe and instruct your operatives to avoid them entirely.

Show you’re listening

If you’re speaking to someone in person, eye contact, facial expressions and the occasional nod of the head make it easy to show that you’re paying attention and understand what you’re being told.

On the phone, you can do the same by chipping in regularly with an “okay” or “I understand”.

Those same listening signals shouldn’t be overlooked when it comes to live chat. While the customer is explaining their query, respond by sprinkling in an “I see” or “I’m following”. And don’t be afraid to clarify what you’re being asked before giving a response.

As much as possible, use succinct replies

It’s important for live chat operatives to communicate using messages that are short and to the point (without, of course, succumbing to the use of robotic-sounding responses). Doing so respects your customers’ time and allows your operatives to assist more prospects in the same amount of time.

But since this doesn’t come naturally to all people, take the time to teach your operatives the art of writing succinctly in training.

If a lengthy response is unavoidable, break it up

Inevitably, some queries require a lengthy reply. Your chat agents might need to talk the user through a multi-step process; a five-word response clearly isn’t going to cut it.

In these scenarios, it’s important to remember that brevity is still your friend. Rather than typing out a huge block of text – which looks intimidating and can be hard to follow – break the answer up into short steps. For instance:

“OK, I’ll explain”

*send*

“First, you’ll need to go to your profile by clicking your profile picture in the top right corner.”

*send*

This approach has two benefits:

1. It’s easier for the user to work through the actions you’re recommending
2. If it becomes clear that your solution isn’t what they’re looking for, they can quickly redirect the conversation

Avoid using jargon

Err on the side of caution and assume your customers have zero product knowledge. This doesn’t mean you should be patronizing; it means that you should always try to use the simplest language possible to ensure your message is conveyed clearly. In one manifestation, this means avoiding using industry jargon that could confuse prospects.

Keep your responses direct

For fear of coming across as unprofessional or impolite, it can be all too easy for your live chat presence to be unnecessarily wordy and unclear. But if anything, this will just make your replies less clear. 

Always prioritize direct, to-the-point language over long-winded responses. For instance, use:

• “About” rather than “With respect to”
• “Most” rather than “The majority of”
• “Some” rather than “A certain number of”

Use positive language

Sound obvious? Well okay, anyone working in customer service should make staying positive a priority. That’s hardly groundbreaking advice.

However, there’s more to using positive language than simply “staying positive.” It’s all in how you frame your words.

In 1973, Richard Nixon stated at a conference that “people have got to know whether or not their President is a crook. Well, I’m not a crook.”

By repeating the negative word “crook”, Nixon inadvertently encouraged people to view him as a crook.

The lesson here is to avoid using negative words, even if your intentions are positive.

So let’s recap on how you can use live chat to growth hack your company…

Fundamentally, it comes down to offering a really awesome customer experience. This doesn’t start and end with live chat – it’s one of many tools available to you – however live chat can, and should, be a valuable weapon in your arsenal.

After encountering a negative customer service experience, nine in ten people take some sort of action, with more than half stating that they would never use the company again.

On the other hand, to put it as simply as possible, delivering good customer experiences will make you money. In fact, a typical $1 billion company stands to enjoy an average revenue gain of $775 million over three years, simply through achieving a modest improvement in customer experience. Whether or not your company is worth $1 billion, the point still stands: happy customers will make you money .

Increased sales means more money in your back pocket, or, more money to invest in other means of marketing your products and growing your company.

Used correctly, live chat can even help you to upsell, and to reduce potentially costly returns.

What’s more, live chat can reduce staffing costs – unlike phone operatives (who, for obvious reasons, can only help one customer at a time) the figures suggest that a single agent should be able to manage multiple live chats at the same time.

Of course, implementing live chat isn’t as simple as setting it up and letting your staff loose. The language you use is key, while paying attention to historical data can help you make more informed decisions that serve your customers better.

However, when used correctly, live chat can have a tremendous effect on the quality of service you offer your customers and can, both directly and indirectly, positively affect your bottom line.

Are you using live chat? Has it helped you to improve the service you offer, increase sales, and grow your company? Let me know by leaving a comment below: