Chatting up Online Shoppers Can Help Turn Them into Buyers

Ann All

While consumers are increasingly willing to buy more goods online, according to a Forrester Research study conducted for Shop.org, a large number of folks apparently still find shopping on the Web a frustrating experience.

 

U.S. e-commerce sales, excluding travel, rose 29 percent to reach $146.5 billion in 2006. Yet a Forrester analyst -- noting that only about 3 percent of folks entering a site make a purchase -- says "e-commerce is succeeding in spite of itself."

 

The report lauds retailers for features that help consumers browse online, such as zoom and rotate capabilities and reviews and ratings by previous customers. But the implication is clear: Online merchants could do a better job at converting browsers into buyers.

 

One strategy that could help is making it easier for people to reach the folks who can offer assistance. Some companies are experimenting with technologies that can do so. Two of the most popular are "click to chat,'' which connects online customers to agents via instant messaging, and "click to call back,'' in which customers enter a telephone number so an agent can call them right away.

 

A vendor of click-to-call products claims that 25 percent to 35 percent of consumers who use the function end up making a purchase, a figure far higher than the 3 percent conversion rate cited by Forrester.


 

The idea, say several experts quoted in a recent destinationCRM.com article, is not to rely too heavily on such features but to use them to supplement more traditional customer service channels. The tools can be used reactively -- waiting for customers to initiate agent contact -- or they can proactively look for signs that customers may need assistance.

 

Such tools can also cut support costs -- dramatically in some cases, as ABN AMRO Service Company found out. The use of text chat helped the company save $500,000 on call deflection in 2006, more than 20 percent than the $23,000 it saved in 2002.

 

Of course, companies may need to tweak existing contact center practices to make the most of such tools. For instance, one expert stresses the importance of utilizing agents with good typing skills who are comfortable with written communications. And don't expect agents to handle too many chats at once; the result could be customers who are still confused and angry to boot.



Add Comment      Leave a comment on this blog post
May 14, 2007 3:30 AM Multichannel Musings Multichannel Musings  says:
Chatting Up Online Shoppers Over at ITBusinessEdge, Ann All shares some thoughts about click to call and click to chat, in light of a new Shop.org survey which finds online retail grew by 29% in 2006 to $146.5 billion.  ... Reply
May 14, 2007 3:47 AM Dan Dan  says:
Great post, Ann. As a vendor of such technology, we couldn't agree with you more. Thousands of enterprises around the world are seeing how Click to Call and Click to Chat can help convert online sales. As a result, both technologies are becoming "must haves" for any serious multichannel organization.However, the question is no longer "if" to deploy Click to Call and Click to Chat, but "when" and "where." It's all about delivering the right form of contact, at the right time based on the customer's needs. Companies considering these solutions also need to take into account the value and complexity of their products and services, and the skills set of their contact center agents.Taking those factors into account, Click to Call may be better for certain scenarios, while Click to Chat is better for others. Reply
Dec 4, 2010 12:44 PM Kara Kara  says:

I think this is a great marketing tool to use for online shopping and e-commerce. Businesses should be able to build a relationship with the consumer regardless in the traditional malls and online especially. For consumers to have trust, businesses need to build that. This new marketing tool for click-to-chat is very helpful for the consumer to speak with a business representative and find out more details than just looking online. This will also help the consumer to answer questions and eventually buy the product. This will help online shopping sites and e-commerce very much. The more people will buy on the Internet rather than in brick-and-mortar retail.

Reply

Post a comment

 

 

 

 


(Maximum characters: 1200). You have 1200 characters left.

 

 

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.


 
Resource centers

Business Intelligence

Business performance information for strategic and operational decision-making

SOA

SOA uses interoperable services grouped around business processes to ease data integration

Data Warehousing

Data warehousing helps companies make sense of their operational data