The Growth of E-Commerce Fuels the Need for Live Chat

Last Updated: February 6th, 2005
WebsiteAlive Editor Jeff Staub contributed to this article.

E-commerce continues to see explosive growth since its inception on the internet. According to the U.S. Census Bureau, the 4th quarter of 2005 saw 22.3 billion dollars of revenue generated by e-commerce companies based in the U.S. This represents a 5.7 percent increase from the previous quarter and 2.3 percent of the entire retail sales for the country during that time period. Roughly estimated, that is 89+ billion dollars for the fiscal year 2005. For this reason online sales have become exponentially more competitive with each passing day and promise to continue to be so for the foreseeable future. Competition creates survivability questions for online retailers, questions that need answers.

Estimated Quarterly U.S. Retail E-commerce Sales as a
Percent of Total Quarterly Retail Sales:
4th Quarter 1999– 2nd Quarter 2005
Source: http://www.census.gov/mrts/www/data/html/05Q3.html

The question to be asked by those wishing to take advantage of this growing marketplace is how to differentiate your business so that potential buyers will choose your web site over the competition. When dealing with this question one must look at not only the reasons why a consumer buys, but also why they choose not to buy. According to a recent census, the number one reason consumers avoid buying online is a lack of trust. With the multitude of scam, spam, and identity theft issues surrounding the web it is easy to see why this is the largest road block to even higher online sales figures. As an online retailer it is essential that you instill a sense of trust with your potential consumers.

Historically, the way to address this concern was the use of salesmen/saleswomen. The sales people act as liaison to the company and have the ability to dynamically and nimbly react to the questions and concerns of the consumer so as to effectively assure them of their respective purchases. Traditional web sites typically do not have this ability. Online retailers have tried to address this problem by creating static product description pages and extensive FAQ (Frequently Asked Questions) areas to help customers answer their own questions. This tactic has some serious drawbacks; the main one being that this is a very labor intensive and sometimes fruitless process for the buyer. The customer is forced to take the time to research and find the answers on their own and often the questions they have are not clearly answered by the online documentation. In today’s online culture of immediate gratification, these time consuming techniques result in disinterest and countless lost sales.

Think about how many times you were searching for something on a vendor's web site, but quickly became frustrated after digging around for even 10 minutes. Your irritability would have quickly been resolved if you had the chance to connect to a salesperson which used live chat software. Live chat enables your web site to come alive and offer direct and dynamic communication between your sales people and your potential customers. Customers are able to communicate in real-time with a company representative who can answer their specific questions and alleviate any possible fears related to making an online purchase. Live chat is the sales tool of the web-based world, and your sales people who use live help are the sales force backing up your online business.

WebsiteAlive distributes AliveChat, a live chat software solution, for just this purpose. The online store front is now able to interact with visitors via live chat in much the same manner as the widely used instant messaging programs. The cost of implementing a live chat program is considerably less than the use of a traditional telephone lines and has the added benefit of being available to the consumer as they browse the web site without the pressures normally associated with a phone call. Live chat communication can take place at any time over any period of time. This is the flexibility and “hands on” interaction that today’s competitive online markets must have and cannot afford to overlook.

• Lower Customer Support Costs - Reduce phone calls and e-mail volume.
• Capture More Leads - Connect to potential customers before they leave your web site.
• Increase Sales - Convert browsers to buyers by selling via 'Proactive Chat'.
• Build Customer Confidence - Be there for your customers and answer their questions instantly.