Driving Top-line Growth with Live Chat: Best Practices from Top Brands

Transcription

1 A FROST & SULLIVAN EXECUTIVE SUMMARY Driving Top-line Growth with Live Chat: Best Practices from Top Brands In Collaboration With: View the ondemand version of the ebroadcast:

2 MARKET OVERVIEW Four notable industry experts explored live chat s future and utility today: Bill Galey VP, Customer Experience & US Site Director TELUS International Shelby Watts Project Manager Fiserv Jon Browning President Global BPO Solutions Launching chat for customer service and sales can offer untapped revenue opportunities for many companies. Still, chat is far from a panacea. In fact, its economics can be deceptively complex compared to other customer-facing channels, and the keys to success are often misunderstood. Stephen Loynd, global program director, Customer Contact, Frost & Sullivan, was joined by four expert panelists as they explored success factors and lessons learned by top brands, not only in launching chat, but in maximizing chat s value across customer groups, and even across geographies. The panelists discussed the following key questions: n When to launch a chat program for customer service and/or sales n Best practices for using chat to grow revenue n How to integrate chat with other customer service and sales channels n Key considerations for outsourcing a chat program n The economics of chat vs. voice and other channels n How fast-growing companies can utilize chat to maximize growth potential n Tools and techniques for offering quality multilingual chat support To begin the discussion, moderator Stephen Loynd presented the following chart: Shonda Pero Senior Manager, Customer Care Match.com As the chart above illustrates, while there is variance across channels in terms of expected growth or decline, certain major trends about customer interaction channel preferences can be gleaned. First, more traditional channels such as live agent-voice and are projected to decline slightly, while chat, mobile, social media and web self-service the digital channels are all projected to increase as a customer interaction resource. Live chat will remain a key area of focus and investment for organizations worldwide. 2

3 Overall, it was noted that, to remain competitive, companies must offer an omni-channel customer experience. Organizations need to be nimble and able to support customers across all channels. Today s consumer is more influential than ever and the customercentric focus is here to stay, as are vendors who bundle communications applications. The panelists next explored strategies to help customers perceive and receive a seamless experience across communications channels. LAUNCHING A CHAT PROGRAM The broadcast opened with moderator Stephen Loynd posing the question: How do you know when it s time to launch a chat program? As one panelist so aptly replied, If you are asking the question, it s probably time to launch live chat in fact, if you re asking the question, you re probably past ready. This sentiment was widely agreed upon by the other panelists. Bill Galey, VP Customer Experience, TELUS International, suggested that you ask the following: Where are your customers and how are they trying to engage with you? Would it make it a more seamless experience for your customers if you integrated chat online? Would it help your visitors and customers engage at a pace they prefer? If so, it s time to introduce chat. As Shelby Watts, project manager, Fiserv, stated: Understanding your organization s demographics will help you determine if you are ready for chat. If you are, you need a chat strategy or you are behind the game. Understanding your organization s demographics will help you determine if you are ready for chat. If you are, you need a chat strategy or you are behind the game. Shelby Watts Project Manager Fiserv In fact, it is essential to offer the option of live chat with web-based services, as studies show that many customers will browse websites before calling or ing. Live chat presents a unique opportunity to engage and inform both current and potential customers from the outset. THE ECONOMICS OF CHAT: DOES IT REDUCE COSTS? We have already noted the complex economics of chat, and our panelists offered personal experiences to back it up. As Shonda Pero, senior manager, Customer Care, Match.com, explained, implementing chat at her organization did not necessarily bring about big monetary gains, but it did make customers a lot happier. She indicated that it probably reduced costs slightly in the sense that certain customers utilized the chat option instead of the incrementally more expensive channel. But more importantly, she believed that chat increased customer satisfaction overall. So even though there wasn t a noticeable financial gain, it was a true win for customers. 3

4 Watts, of Fiserv, agreed that live chat was not necessarily a financial gain, but provided a better channel for that segment of customers who prefer chat. Another panelist added that live chat often provides an answer in real-time as opposed to , which does not. So the discussion came back to the key theme and goal of overall customer satisfaction live chat is a channel that can help meet that goal. Seamless customer service is a goal of most organizations today. But as the chart below illustrates, this is particularly true in North America. In the communications vertical, companies in North America expect to take as a high priority delivering consistent and seamless customer experiences across channels by their outsourcers, compared to those in Europe. EFFECTIVE WAYS TO PROVIDE MULTI-LINGUAL CHAT TO A DIVERSE CUSTOMER BASE Galey from TELUS International referenced his experience with a real-time language translation service called Ortsbo and cited the advantages; it allowed his organization to access new customers more easily and to speak in the customer s native language. He also noted that there are outstanding technologies available that facilitate translation and chat. In addition, multi-lingual hubs such as those in Lisbon, Athens, and Cairo are becoming more prominent. These are centers staffed with talented people who can speak several languages fluently and can quickly formulate grammatically correct responses. 4

5 KEY CONSIDERATIONS WHEN OUTSOURCING A CHAT PROGRAM It is important to remember that chat agents require a unique skill set, whether outsourced or captive. They need to be able to accurately interpret what a customer is seeking, and they need to know how to respond appropriately. So if you do outsource your chat function, make sure your agents are well trained. A good chat agent should possess the following skill set: n The ability to interpret the customers tone and needs n Good grammar, writing and communication skills n The ability to make a good first impression; chat agents are often the voice of an organization online n An aptitude for balancing script versus free-form communications n Strong technology skills Additionally, when outsourcing a chat program, make sure to choose a reliable vendor with a complementary culture and experience with outsourced chat programs for customer care and sales. Avoid outsourcing to a company that has frequent outages or spotty technology, or your company and your customers will suffer. INTEGRATING YOUR CHAT PROGRAM WITH OTHER CHANNELS LIKE VOICE OR SOCIAL MEDIA It s a given that customers today expect a consistent, omni-channel experience, but this can present challenges in delivery. John Browning, president, Global BPO Solutions, stated that many companies such as Microsoft use a single web platform for support. Ideally the system allows the customer to narrow down the way they would like to get support via , voice or the less expensive option of live chat. Galey from TELUS International noted that it is very important that companies have a memory of their customers their preferred communication channel, information they have already been exposed to, and avoidance of that annoying scenario where the customer is forced to repeat the same information over and over. Ideally, this memory will occur across all customer channels. To extend the metaphor, it s important that organizations not become forgetful when it comes to their customers. 5

6 BEST PRACTICES FOR RUNNING A CHAT PROGRAM WITH THE GOAL OF INCREASING REVENUE Two key approaches emerged throughout the discussion on chat and revenue: Sales opportunities come during the chat process sometimes, so it s important to train agents accordingly to make customers happy. John Browning President Global BPO Solutions 1. As Shonda Pero, senior manager, Customer Care, Match.com, noted, Just because your company offers chat, that doesn t mean you can t offer other less expensive deflection methods, i.e., self-help channels, and integrate them with your chat program. This can help you to push those who want to learn to find answers on their own, while also decreasing chat costs, creating a win-win scenario. 2. Empower your customer contact agents to understand the style of the customer, and to adapt accordingly. For instance, when appropriate, allow agents to lose the script or talk in acronyms if the customer does. Let them get the job done in the easiest, fastest way possible, saving time and, ultimately, money. FOR GROWTH COMPANIES, IS IT APPROPRIATE TO START WITH CHAT, OR SHOULD VOICE ALWAYS BE PART OF THE LAUNCH PLAN? Most customer contact leaders agree there will always be some requirement for voice channels. Voice versus chat channels and their implementation and volume will vary depending on the nature of your business. And whether you launch with chat or voice will also depend on the type of business. If possible, have your organization start with a voice component and then transition down or out of it. Other factors that affect the use and implementation of voice and chat channels are the makeup of your customer base, and the technological aptitude of your customers. For instance, young people who are very tech-savvy will be more comfortable with chat. A third factor to consider is the complexity of your product(s). A complex product may require a strong voice channel. Also, if there is a wide variance to your customer base older and younger users you will definitely need to offer both voice and chat. USING CHAT TO DRIVE SALES The practice of proactive chat was also explored. As online customers are seeking information, there can be a natural progression to sales opportunities. Chat agents can be trained to recognize these moments and fine-tune possible sales presentations. Galey believes that if you treat chat like a serious sales channel and teach your representatives good techniques, you will experience up to a 25-30% sales conversion rate. 6

7 A related key factor was the importance of having chat representatives who had at least some sales experience. There is wide agreement that it is vital to train agents to seize sales opportunities as they come up in chat scenarios, but to avoid having the chat representative chase the customer for a sale. As John Browning, president, Global BPO Solutions, stated, Sales opportunities come during the chat process sometimes, so it s important to train agents accordingly to make customers happy. Another best practice that emerged was that chat representatives are rarely hired from the outside, but instead management preferred to move people already familiar with the organization and its products into a chat role. Tactics behind creating a strategic chat protocol were also referenced. Ideally, organizations should establish a chat trigger protocol encouraging proactive chat without resorting to sales pressure. In other words, chat agents should provide sales guidance without overwhelming the consumer. A desirable chat practice involves personalizing the chat around your customer s past purchases or buying and browsing patterns. It s desirable to train chat representatives to recognize a sales opportunity and help the customer make the right purchase. Lastly, chat can slow down a sales pitch in a good way, allowing the company rep to think about the right approach. SUMMARY Two key approaches emerged throughout the discussion on chat and revenue: 1. The goal of creating a seamless, effortless customer experience. Chat is but one important tool in the overall customer experience realm. 2. Organizations should present an excellent omni-channel experience that addresses, first and foremost, how its customers want to be served. If chat is the channel, make it the best chat possible. 3. Organizations must empower their customer contact/chat representatives. They should be well versed in the nuances and power of the chat channel, including recognizing the customer, being proactive and facilitating but not forcing sales. FINAL THOUGHTS This conversation around the economics and viability of the chat channel for revenue generation revolves around the rise of a new kind of sophisticated, determined, and often impatient consumer. Today's consumer expects effective, seamless support across channels, including online chat. Companies need to work to meet expectations. They should explore how a reactive and proactive chat support strategy might best be implemented. No doubt, careful and strategic planning will be essential. 7

8 ABOUT TELUS INTERNATIONAL With locations throughout North America, Central America, Asia and Europe, TELUS International delivers contact center outsourcing and BPO solutions to some of the world s top brands. Our team members are passionate about sustaining our thriving contact center culture founded upon our value proposition to enable customer experience innovation through spirited teamwork, agile thinking, and a caring culture that puts customers first. Visit for more information. ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company s Growth Partnership Service provides the CEO and the CEO s Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. Learn more at DISCLAIMER This Executive Summary discusses key insights and excerpts from a live presentation and panel discussion on February 12, This summary presents industry insights, best practices, and case studies discussed by the presenters, in the context of the live presentation and panel discussion. For more details, visit Frost & Sullivan is not responsible for the loss of original context or the accuracy of the information presented by the participating companies. 8