Live chat is a tool that can drastically increase conversions for certain businesses. It is not for everyone, but for the businesses that could benefit, the gain can be dramatic. Case studies have shown that conversions can increase by as much as four times after a live chat.
Why Live Chat Increases Conversions
There are many reasons why live chat can increase conversions. First, if people haven’t heard of your brand, they are likely to be somewhat cautious about ordering from you. However, if they have the opportunity to have some human contact, they are a lot more likely to lower their guard and be comfortable with placing an order.
A lot of people who are browsing your website may actually be quite close to buying, but have a question or two that is keeping them from placing the order. They might not want an answer badly enough to telephone or send an email. However, if a chat box is already on their screen, they might readily click on the box and send you a quick message.
These questions could be as simple as asking whether they can get a refund if they are not satisfied, or how the billing will appear on their credit card statement, yet if their question goes unanswered, they won’t order. A live chat box allows you to address all of these issues and turn these near-buyers into actual buyers.
Businesses that Will Benefit from Live Chat
Whether or not to use live chat is mostly a question of return on investment. The question is whether live chat will increase your conversions and therefore worth the cost. Is it worth the monthly or one-time cost of purchasing the live chat software? Is it worth the cost of your time or that of your employees spent on answering customer questions?
Typically companies that would benefit from live chat are companies that have the resources to staff the live chat for as many hours a day as possible. You could man it yourself, but you will likely be distracting yourself from building your business.
Determine Whether it is Right for Your Business
Perhaps the best way to find out is just to test it. Is a fourfold increase in conversions from the percentage of people who use the chat box worth hiring someone for $10 to $20 an hour?
The best way to know is to put one staff member on the project for a month to gauge the return. If it is positive, then hire someone full time to take on the live chat box.
