A new report emerged regarding the Global Live Chat Software Market. The report has been published in the database by Industryresearch.biz and it covers market size, growth and segmentation, demand for live chat software, as well as other indicators, including the Covid-19 impact. We will focus on the key takeaways, trends and prospects relevant to the industry.
Relevant stats about the live chat software market
The global live chat software market size is projected to reach 839.2 million USD by 2026, from 591.6 million in 2020 USD, which represents a growth close to 50%. The annual growth rate for the industry for 2021–2026 has been indicated to be between 6% and 7.2% by various research companies analyzing the report. The general conclusion is that the live chat market is strong, stable, and expanding. Given the growth rate, in less than 10 years the entire live chat industry pie might be worth in excess on 1 billion dollars. And by the looks of things, this is just the beginning.
Live chat has now become the primary contact point with a website
Chat has become the leading online contact source, with 42% of customers preferring live chat versus email or social media. 87% of consumers place live help among the three most important features of a website. Contacting via telephone has come in a measly 4th place in customers’ preferences. The takeaway is clear: live chat on your website or online shop is a must.
Live chat increases customer satisfaction
92% of customers express feeling satisfied when using live chat to interact with businesses, more than any other communication channel. A whopping 93% of consumers feel that real-time help is the most useful aspect of using live chat during their online journey. According to the report, all demographics are comfortable with using live chat to get support, including one third of Older Boomers and the Golden Generation. A communication channel that provides a near 100% customer satisfaction rate? I think any company will want to get aboard.
Live chat is a financially efficient solution
Alright. Let’s talk about money. In the end, it comes down to it. The conclusions of the report when it comes to financial efficiency and profitability are clear cut. Your business could really benefit from the following insights.
Live chat improves financial efficiency
According to the report, live chat is 17%-30% cheaper than a phone call. Phones have a lot of costs associated: from a monthly subscription to extra options and power spent. Live chat is software implemented in your website and beside the subscription, it costs almost nothing. However, the biggest cost associated with phones, in our opinion, is the time spent by your operators on a call. A phone call requires the full attention of your support agent. With live chat, your operators can have up to 6 conversations simultaneously.
62% of customers are more inclined to purchase online if live support is available. Imagine tapping this much market potential. As the statistic suggests, almost two thirds of customers want or need to be assisted. Some of them require more information; others will need assistance regarding actions to take on a website, while others will simply need to feel more confident about your products or services. We have also explained in another post the value of premium customers seeking support. What this statistic means additionally for us: leveraging the power of live chat also means less spending on other promotional channels. Your sales agents could get a user to buy from you after a conversation, without you having to allocate budgets to additional promotions, advertising or remarketing.
Live chat can help grow company revenue
Users who chat spend 4 to 5 times as much as users who don’t chat. The human touch is magic. Whether your operators give your customers additional assistance or they manage to get an upsell, this just means more money in the bank. And all of this because of having live chat as an available option on your website. Hey, not all of your users are going to engage in chat (only a lot of them, if we are to judge by the stats above), but the ones who will, will have a better experience and spend more.
79% of businesses say adding live chat has had a positive impact on customer loyalty, sales, and revenue. Yes, you read that right. 4 out of 5 companies have benefits from installing a live chat solution on their website. The number is extremely positive since it pertains to the 3 key metrics above. We all want loyal, happy, returning customers, who spend more every time and who ultimately help the company with its bottom line.
Companies that use live chat have a 2.4 times greater annual increase in up-sell revenue. Ah, the dream of any salesperson: up-sell an existing client. Think about it: the customer is already qualified, friendly, has bought from you already, but, most importantly, the customer trusts you! What is more important: if you can get extra revenue from up-selling existing customers, you will spend much less on acquiring new customers – an operation which we know is way more costly than catering to old customers.
What this means for your business
Having a live chat service on your website will become mandatory in the eyes of your customers. They will, probably very soon, come to expect this as a given for any entity in the online industry. This could mean that if you don’t have live chat installed in your website, you will probably soon lag behind your competitors.
A live chat service could bring you extra income at virtually no extra cost. Since we have already established the preference of customers for live chat, as well as its financial efficiency, we conclude that a company who will use live chat in the future will make extra money. Think about it: your customers will get the information and support they need, you will get more profitable, loyal and friendly clients – it’s a WIN-WIN situation.
With live chat, you will be able to increase your brand awareness. Nothing gives a brand more awareness than its people. The voice of your people will be heard by your customers since they will be interacting directly with actual human beings, rather than apps or faceless social media accounts. In addition, whatever your customers were thinking about your company, now they will have a new thought: that your company also has great customer service.
The report provides key statistics on the market status, size, share, growth factors of live chat software.
The study took into consideration statistics from the top 10 providers in the market. It provides insight from 6 regions (North America, Europe, Asia Pacific, Oceania, South America, Middle East & Africa) and upward of 34 countries.
Historical years considered for this report were from 2015 to 2019, with estimates for the 2020. The forecast period was from 2021 to 2026.
Key data gathered for this report focused on items such as: market growth rate, driving factors, emerging market size, volumes, revenue, price analysis, market opportunities and threats faced by vendors.
More information about the methodology can be found here.
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