Last Updated: February 22, 2021
In business and marketing, customer engagement is crucial at every stage. Whether you’re growing your brand identity or providing customer support to existing, already loyal customers, success is all about prioritizing their convenience and comfort.
That’s why we’ve gathered all the must-know live chat statistics and facts: to show the impact live chat has on consumers and businesses worldwide. Nothing makes customers more comfortable than knowing there’s someone they can reach out to when they need immediate assistance. Whether through chat representatives or AI chatbots, chat provides consumers with an open channel of communication.
The Top 10 Key Live Chat Statistics for 2021
- Live chat has an average response time of 2 minutes.
- On average, a chat representative can solve a customer’s concern in 40 seconds.
- Live chat costs businesses 15% to 33% less than implementing phone support.
- Live chat boosts conversions by 20%.
- 71% of consumers are willing to use messaging to get customer support.
- Of the users who prefer chat support, 79% do so because they can get help immediately.
- The live chat stats show greater satisfaction among the customers who use the feature.
- More than half of customers are more likely to make a purchase when a website has live chat available.
- 38% of customers actually end up making a purchase because of a live chat encounter.
- The global live chat market size is projected to reach $839.2 million by 2026.
This is just a preview, read a hundred and one more stats and facts in the infographic!
General Live Chat Stats & Facts
1. There are more than 5 billion active users on messaging apps.
Currently, people use these apps more than they do social network platforms. In fact, messaging apps are among the top five most-used apps by consumers. Through live chat and chatbots, customers can communicate and transact with brands easily on a communication platform they already strongly favor.
2. Online live chat communication has been in existence since the invention of the Talkomatic in 1973.
Talkomatic is the first multi-user online chat system. It was invented by Doug Brown and David R. Woolley at the University of Illinois. At that time, no more than five users could use live chat. However, with the rapid growth of live chat technology, it is now light years ahead of how it used to be. Despite this limitation, it gained popularity.
3. The average live chat response time is 2 minutes.
The immediate attention customers get through live chat certainly makes them feel valued. It’s an easy way for businesses to convey a sense of reliability and build trust. However, 21% of the requests for live chat support go ignored.
4. 70% of the businesses using live chat have less than 5,000 unique monthly visitors on their site.
More than half of businesses with live chat support have only one dedicated chat analyst. Meanwhile, 39% employ around 2–5 analysts. The number of website chat service employees usually depends on the number of working hours and whether a business runs its service 24/7 or not.
5. It takes approximately 40 seconds to solve a problem using chat.
For even quicker results, Acquire suggests that companies make use of co-browsing. Co-browsing allows the customer and representative to see the same screen by giving the representative access to the user’s web browser window. Then, chat reps can highlight parts of the site and guide the customer through it with ease. Conversely, phone calls have an average duration of over two minutes before arriving at a resolution, according to the statistics of using live chat vs. phone.
Statistics and Facts on Consumer Behavior
6. 71% of customers have said they would readily use messaging to get customer support.
However, this willingness comes with a tradeoff. As the technology around customer service gets more advanced, consumers have higher standards. This means that whether it’s a live person or an AI on the other end, the speed and quality of responses still matter, which is why live chat usage has been on the increase.
7. Live chat stats reveal that 63% of Millennials prefer getting customer support through chat.
In general, Millennials are 20% more likely to use chat to seek out customer support than their Baby Boomer counterparts. This young, hip generation represents the heaviest chat users. So if your brand targets a younger demographic, providing chat support is definitely a must.
8. Around 33% of customers consider being put on hold the most frustrating aspect of customer service.
When it comes to the quality of information users get from live chat, people cited that they find repeated information disappointing—33% of them to be exact. Moreover, 19% are dissatisfied with slow response times.
According to the latest eCommerce statistics, a whopping 92% of customers all say they would stop doing business with a brand in the case of a negative experience. Quick response time is crucial to customers.
9. 90% of online consumers expect fast replies from web chat customer service.
And when it’s a marketing or sales inquiry, that number only dips a little to 82%. The definition of immediacy varies, of course. In marketing, 46% of customers view “immediate” as 10 minutes or less. For sales and support, this goes for around 60% of consumers.
10. Econsultancy discovered that 79% of customers who prefer live chat do so because they get immediate assistance.
Another 51% stated it was because engaging in live chat allowed them to get other things done simultaneously. Close to half simply preferred live chat because they saw it as the most efficient method for communication.
11. Is live customer chat helpful? Namely, 83% of consumers prefer to interact with brands through the company website.
(HubSpot) (Talk Business)
This goes the same for sales. The percentage is lower, but 53% of consumers also consider the business website their go-to preference. But it turns out, not everyone is on board with live chat just yet. Another 39% still prefer engaging over the phone.
However, in the battle of live chat and self-help service, live chat is the undisputed winner, with 68% of Americans favoring this communication channel over FAQs and guided support.
12. Harris Research reveals that 62% of customers expect to be mobile using online chat.
And a huge 82% of these customers have asserted that they would readily make use of the feature. According to mobile marketing statistics, there are over 5 billion mobile device users around the world. Keeping these colossal numbers in mind, having chat available on mobile is practically mandatory to succeed in business online.
Chat Statistics for Businesses
13. A study by Aberdeen Group found that live chat improved annual customer care costs by 2.6 times.
The same report found that customer satisfaction went up by 34%. Chat is less invasive than a phone call. It’s also less disruptive to a customer’s online shopping experience since they can easily multitask while they browse.
14. Research shows that live chat is 15% to 33% cheaper than phone support for businesses.
An increasing number of businesses is capitalizing on the cost efficiency of websites with live chat support. Nowadays, businesses take things a step further by enlisting the aid of AI chatbots. Experts had predicted that 85% of consumers would get support with no human interaction in 2020.
15. 38% of consumers wind up making a purchase as a direct result of a live chat session.
(Better than sure)
On the flip side, according to a live chat study by Forrester Research, 57% of customers will abandon a purchase due to a slow response time. As far as brand perception goes, 77% of the consumers using the feature state that they develop a positive opinion of the businesses that make this method of communication available.
16. A chat study from 2017 revealed that businesses should see a 20% boost in conversions and a 30% increase in order values after implementing live chat.
(Better than sure)
The positive impact of live chat isn’t just in the sales numbers either. Gartner found that there was a 12% decrease in phone call queries for companies who use live chat. Additionally, Forrester found data supporting a 70% drop in businesses’ overall cost per transaction.
17. Based on research studying the benefits of live chat for sales, the American Marketing Association determined that live chat has a 305% ROI rate.
As mentioned, live chat agents can solve problems quicker than phone agents. This means shorter queues and waiting times. This translates to higher customer satisfaction. And since customers purchase more after a live chat session, more interactions also mean more sales transactions.
18. A live chat website called Rescue Spa saw a 30% increase in conversion rates after live chat implementation.
This is a testament to how effectively this communication channel helps people feel like they can rely on a brand. Trust builds loyalty. And once a consumer trusts that a business has their interests at heart, they’ll more readily make a purchase.
19. A live chat benchmark report from 2020 found that the overall customer satisfaction increased after using live chat.
Relatively, E-tailing Group discovered that American consumers interacted 59% more with brands using live chat. 52% saw it as an efficient communication channel, while 77% said the chat representatives’ answers were satisfactory.
20. In fact, 51% of customers are more likely to make a purchase on a website with live chat integration.
Another 48% would be more likely to return to websites with chat support, and 41% trust the brand more when this option is available. According to 29% of shoppers, they’re also more likely to make a purchase when they see that a business offers live chat at all.
21. Research finds that live chat has an 82% consumer satisfaction rate.
Stellar customer support leads to nothing but good things, and live chat is the fastest way for people to get it. Therefore the majority of users find it satisfying.
According to the latest live chat conversion statistics, email has a customer satisfaction rate of 61%, while phone support is the least popular, with a rate of only 44%.
22. Experts project the global live chat software market size to reach $839.2 million by 2026.
As businesses are struggling to keep up with the latest technology trends, the live chat market continues to grow. With a worth of over $591.6 million, the live chat market is projected to reach a staggering $839.2 million by 2026.
What used to be a simple customer service tool is now a powerful income generation opportunity across many industries.
How Do Chatbots Stack up Against Live Chat Industry Standards?
23. 1.4 billion messaging app users are willing to engage with chatbots.
When you think about how comfortable we are talking to AIs like Siri and Alexa, this number shouldn’t come as a surprise. Indeed, over 35 million people in the United States alone use voice assistants. In this age of convenience, live chat companies have also begun advocating for well-developed chatbots to support live agents in providing a frictionless customer experience.
24. Chatbots fall under two categories: utility bots and informational bots.
The latter provide updates or relevant news to users. A utility bot, on the other hand, is designed to provide solutions to customers. They can schedule meetings, doctor appointments, add items to users’ shopping carts, or help book vacations. However, the most crucial function of both is still the ability to chat with people in a way a human would.
25. In 2018, Facebook Messenger’s chatbot population reached 300,000 unique bots.
To prevent users from being spammed with messages, communication between bots and consumers is still subject to certain rules on the platform. For example, chatbots only reply when prompted by a user. And if a user fails to opt-in within the first 24 hours, there will be no future interactions.
26. 80% of businesses worldwide wanted to use chatbots to power chat support in 2020.
(HubSpot) (Business Insider)
Back in 2016, only 5% of businesses used chatbots. But don’t be fooled by this seemingly low percentage. Chatbots were already generating interest then. An additional 20% of companies had begun piloting chatbots, and another 32% had future plans to use them. Four years down the road, the majority of global businesses were looking to use chatbots.
27. Within the next decade, the chatbot industry is expected to reach a high of $1.2 billion globally.
Chat statistics for businesses reveal this to be equivalent to a compound annual growth rate of over 24%. With new research and improvements in artificial intelligence and deep learning, chatbots are getting more intelligent. If Salesforce’s Einstein AI is any indication, AI, in general, is becoming more efficient in gathering and sorting customer data.
28. A quarter of all customer support operations were expected to integrate chatbot technology across different channels by 2020.
In line with this growth of the live chat industry, organizations that implemented chatbots or virtual customer assistants (VCAs) report 70% fewer queries by phone, chat, or email. Moreover, customer satisfaction also increased.
29. Developing an app is nearly three times more expensive than instating a bot.
App development costs anywhere from $300,000 to $1 million. Instating a bot to chat online with people costs a third of that and would require less maintenance. Another report by Gartner supports this and predicts that 20% of brands will abandon mobile apps altogether this year.
30. Chatbots can solve 80% of chat queries.
With AI and deep learning continually advancing, chatbots are becoming smarter and more responsive. And they can gather data at lightspeed. But one thing they haven’t yet mastered is empathy. Human live chat representatives are still the best option for handling delicate situations.
With chatbots becoming smarter as AI and machine learning advance, there are rumors abuzz that these bots will soon replace live chats. However, no matter how efficient or quick chatbots are, they’re still unable to replace real human empathy. More importantly, chatbots still get easily thrown by misspellings. The best approach for a 24/7 chat support strategy would be to support live chat representatives with chatbots that answer manageable queries without requiring too many soft skills.
There’s no doubt about it. Live chat is here to stay. Despite it being a years-old phenomenon, a quick look at the live chat statistics proves its worth as a cost-effective way for companies to care for their customers. It creates a balance between the high involvement of phone calls and the more impersonal vibe of emails. Plus, its proven ROI and desirability to users make it a must-have on any website or mobile platform in 2019.