Live Chat Customer Support: What Is Live Chat, and How It Helps

Before I even begin about live chat customer support, let me share some stats with you. 

41% of customers prefer to chat with a company than call.

The monthly chat volume has increased by as much as 150% in some industries. 

In today’s time, buyers are looking to communicate with brands in real-time. It has become one of the most challenging things for small businesses, forcing them to change how they interact with their consumers. 

Live chat customer support is no longer a ‘nice to have’ feature. 

What Is Live Chat?

In simple terms, live chat is a platform that enables businesses to have real-time communication with their customers or visitors.

Rather than speaking with an agent on the phone, visitors can simply interact with agents in a chatbox embedded on your site. 

Using powerful live chat software, you can aim to deliver personalized support to every customer. 

For instance, EngageBay’s live chat software allows you to invite your customers to a live chat proactively.

You can automate and customize the chat messages based on factors like the page they are browsing, their location, new or returning visitors, and much more. 

How Does Live Chat Work? 

It is pretty simple to use. 

Live chat app is embedded on your website as a small chat widget in the lower corner of the page. Visitors can simply click on it, or the box may automatically pop up, and start chatting. 

Visitors do not have to install anything on their devices to chat with you. 

How to Use Live Chat

Live chat has been around since the 1970s. However, its popularity has grown manifold in recent years. 

A survey revealed that live chat customer support had become the leading digital contact method for online customers.

Only 29% and 16% of consumers prefer email and social media, respectively, compared to 46% for live chat

Let us look at some of the ways you can use live chat app to your advantage.

i. Provide Excellent Customer Service

Customer service is what makes you stand out from your competitors. At the end of the day, it is all about convenience for your customers. 

Live support chat gives you the opportunity to speed up problem resolution for your customers. 

When you are using a live chatbox, you can respond to multiple customers at once. You can reply to as many as six customers at once. But with email or phone support, you can only respond to one customer at a time. 

It eliminates the need for customers to spend a long time on hold waiting to ask a simple question. Here’s a chart for the average response time for chats. 


ii. Collect Feedback with Live Chat

Feedback is a powerful guide that can give you insights into what your customers are thinking about your company. Are they happy with your product/service or not? 

Both positive and negative feedback can work in your favor. It makes it easier to adjust and enhance your customer experience over time. 

With live chat, you can easily collect feedback right after the conversation has ended. Besides, it has proven to be more accurate as their feedback is given while the experience is still fresh. 

In other words, live support chat can help collect feedback in real-time. 

iii. Initiate Chats on Product or Service Page

The good thing about live chat is that you don’t have to always wait for customers to start the conversation. Businesses should be active, as well. 

As a customer service representative for the company, you can initiate questions like, “How can I help you?”

Such kind of service makes an impression, and visitors are more likely to reply about their requirements. This is basically known as proactive customer service

Proactive chats are nothing but offering assistance in the same manner, just like in a regular brick-and-mortar store.  

There are two benefits associated with it:

First, it can help you save potential sales. By starting a proactive chat, you can increase their chances of placing an order on your product.  

And second, it can help you understand what kind of trouble your visitors are facing on your website. Otherwise, customers generally leave your website if they are unhappy about something.

Why Is Live Chat Important for Customer Support?

Customer service is an integral part of any business. It plays a crucial role in sustaining the customer base. 

In fact, two-thirds of customers are willing to spend more with brands that provide superior customer service

Here are some of the reasons why live chat is important for customer service

i. Speeds Up Response Time

The faster your response time, the more the leads.

Drift conducted a study that showed a ten times decrease in the number of contacts after 5 minutes without a response. And responding after 15 minutes meant losing nearly all your potential leads. 


There are tons of other businesses doing the same thing as you. So logically, why would customers wait half an hour for your response time? 

Even though the concept of customer support live chat is not new, many companies still don’t use it. Live chat allows you to be available 24*7 for your customers, giving you a competitive edge over others. 

ii. Be Available Even When You Are Not at Your Desk

You may ask how? Well, the invention of bots has made this possible. Clearly, the response time has a great impact on the number of leads you capture

But what if you are away from your desk? All good live chat solutions allow you to customize your responses based on common questions and replies. 

Quite frankly, bots weren’t much use in its earlier phase. However, these bots are now powered by artificial intelligence that can identify the underlying intent behind the text. 

Thus, these AI-powered chatbots can mimic human conversation. 

Live chatbots allow you to keep your customer happy and engaged even if you are not present at your desk.

Besides, you can jump into the conversation whenever it’s convenient for you. That way, you don’t risk losing a potential lead. 

iii. Increases Customer Satisfaction

If you think about it,  customer support live chat facilities have a lot of things to offer to the customers. 

Reduces wait time: All the queries are promptly answered. 

Connects instantly with an agent: They don’t need to press button after button to speak to an agent. 

Allows customers to multi-tasks: It enables them to do something else if, in some cases, they have to wait for the reply. 

In a survey by Comm100, it was discovered that 82% of customers were satisfied with the live chat experience as compared to just 61% of email users. 

If they have any purchase-related queries, they can get it answered immediately on the spot. Such prompt services can directly impact their buying decisions and help them make the right purchase. 

iv. Helps Build Long-Lasting Relationship

89% of customers have stopped doing businesses with a brand that provided lousy customer support services. To build a long-lasting relationship with your customers, you need to make them happy.

Satisfied customers are less likely to switch to the competition. 

The key to your business growth is building a sustainable customer base that stays loyal to your brand. It is directly correlated to how seamless you make their entire experience with your brand. 

How Can Live Chat Software Help My Business?

If you don’t capture your potential customer at the right time, it will be gone. As a small business owner with limited staffing, live chat software allows you to offer instantaneous support to your customer. 

EngageBay’s Livechat feature empowers your team to engage with and service your customers better!

Here are a few benefits of using live chat software

1. Increases Sales and Conversion Rate

One of the most significant advantages of using live chat on websites is that it helps increase sales

Imagine you enter a shoe shop, and you are having a hard time choosing between two types of shoes. The chances are that you might look for a salesperson for recommendation. 

Live chat acts in a similar manner. While browsing your website, prospects might have certain queries about your products or services. You can answer them immediately with the help of live chat software

Live chat gives you an opportunity to help prospects overcome their objections and reach buying decisions. 

In fact, B2B companies that were surveyed saw a 20% increase in conversions when using live chat features. 

2. Improves Page Rank

Without any web traffic, you won’t have any leads to capture and convert them into customers. 

You should aim at increasing your rankings on search engines (including Google, Yahoo, and Bing) result page to improve your visibility.

There are various factors that determine the rank of your web page. One of which includes dwell time — the time a user spends on your site after clicking on your web link from the search result. 

When you engage your visitors via live chat, they stay on the website longer. Thus, it automatically increases your dwell, improving your chance of ranking on top over time. 

3. Reduces Support Cost

Small businesses are generally skeptical about investing in the customer service department because of limited resources. But at the same time, they can’t afford to ignore customer experience

The use of live chat makes it easy to maintain and scale your customer service at a much cheaper rate than any other communication channel.

The cost per user for live chat support is only $5, whereas the price for call center contact is $12 per call. 

Another benefit is that it doesn’t restrict your call reps to handle only one person at a time. Can you answer two people at once? 

Service agents can engage in as many as six consumers or contacts at the same time. Of course, it vastly depends on the complexity of the matter too. 

Thus, it removes the need to hire more staff to handle customer service requests, cutting your support costs

4. Differentiate Your Business

When you are a small business, it can be hard to stand out from your competitors in the market. But the customer experience you offer can make all the difference for you and your company. 

Live chat customer support improves the experience for those visitors who use your live chat option. You can collect data about your contact and analyze this information to further improve your customer experience

Moreover, live chat support ensures that your business is available round-the-clock. It gives you the added advantage to collect feedback immediately after the conversation is over. 

All this information can help you prevent churn rate, thereby increasing retention rate

5. Increases Average Order Value

Not just your sales, but live support chat can help you increase the value of order too. 

When you interact with your customers in real-time, you can better understand their needs. You can use this opportunity to recommend similar products and services, and create potential up-sell and cross-sell sales. 

For instance, if a visitor is looking for an AC, you can increase the average order value by recommending a stabilizer, outdoor stand, and other related accessories.

In fact, a company named Virgin Airlines was able to increase average order value by 15% just by using live chat software


It’s not hidden that live chat is more than just a simple contact tool. It holds a significant amount of importance in increasing sales and enhancing support efforts. 

Live chat customer support has made communicating with customers in real-time possible. They don’t want to wait on hold anymore. 

The good news is that getting a live chat for your website is easier than ever, You just need to choose a live tool, and they will embed the widget right away. 

Try EngageBay for free, and see if it meets your business needs. 

Nikita Agarwal

Nikita is a content specialist who harbors a love for writing, oxford commas, and desserts. She creates engaging and high-quality content for businesses that want to see their Google search rankings surge. In her leisure time, you will find her binge-watching TV series or exploring new cafes in town.

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