The Role of Live Chat in Building Customer Loyalty and Why It Works?

The Role of Live Chat in Building Customer Loyalty and Why It Works?

Share This Post

Publish date :

Blog Categories

The Role of Live Chat in Building Customer Loyalty and Why It Works?

It’s always intriguing to see what factors affect a customer’s purchasing decision. Often, in many cases, the decision to purchase a product or service has already taken place before any influence. Although it may be overstated to say that people are dying for brands, loyalty is a feeling that requires a profound imprint that makes people believe, “I found what I want”.

According to Frederick Reichheld’s best-selling book The Loyalty Effect, every business should strive for customer loyalty. He demonstrates that, depending on the sector, a business that succeeds to retain 5% more customers can increase profits by 25 to 95%. What role does digital communication channels like Live Chat play in this?

Relationship between Customer Satisfaction and Loyalty

According to research from different sectors, there is a relationship between brand loyalty and customer satisfaction. In layman’s terms, satisfied customers buy from you and stay loyal, whilst unsatisfied customers leave. The following statistics show the significance of providing an excellent customer experience:

  • According to a Forrester study, In the United States, 45% of customers would abandon an online transaction if they feel that their questions are not answered or fast enough.



  • According to Parature, it takes 12 positive customer service interactions to compensate for a negative one. This roughly translates to a 1200% increase in efforts to retain a customer.


  • According to McKinsey’s research, 70% of purchases are dependent on customer experience and how they are treated.


  • According to Comm100, Live Chat has the highest customer satisfaction rate of 71%. Although e-mail and phone calls are widely used, their customer satisfaction is only 62% and 45% respectively.


The following results show the influence of satisfied customers:

  1. Customers who are satisfied are more inclined to buy from you again.
  2. Customer satisfaction lowers customer churn and increases customer lifetime value.
  3. Retaining existing consumers is less expensive than acquiring new ones.
  4. Customer satisfaction leads to more positive word of mouth.

How to Keep Your Customers Satisfied?

Retaining customers is more cost-effective than attracting new ones. So, the question is, “How to keep your customers satisfied?” Finding out your customer’s needs and recommending a solution is the answer. The need for communication cannot be stressed enough, but how many businesses do so?

The Need for Communication

Most businesses use the website, newsletters, and social media to communicate. However, much of this is one-way traffic. Listening to your customers rather than showcasing your corporate vision is the best way to learn about their needs and demands. It is an outdated practice to listen to customers by contacting them and asking questions.

This concept is outdated since questions do not come spontaneously; they arise when you are looking for information on your own. That’s why in school, a teacher would tell you that you need to study the topic before class. Give customers a platform where they can take control of the situation and make their own decisions.

While the value of customer satisfaction is well understood, the value of Live Chat is not. Although there is more information available about it today, how can Live Chat help your business improve customer experience?

Building Customer Loyalty through Live Chat

Live chat provides your website visitors with an opportunity to contact your business. This means that you are offering your website visitors an additional means of communication. More direct interaction with the customer, which they desire, naturally leads to increased connection.

Live chat is the first step to forming a connection or bond with your customer since a good experience can result in them becoming returning customers. Any problems with your products, finding information on your website, or providing solutions, all can be done through a Live Chat. This back and forth interaction leads to a mutual relationship.

According to eDigital Research, the more convenient a business makes it for a (possible) consumer to contact them, the more satisfied they are. Live Chat is a great fit for this as it allows customers to contact you while they are on your website. The survey also found that Live Chat has the highest customer satisfaction rating of all customer communication channels. However, there are a few requirements for how Live Chat should be used to improve customer experience and customer loyalty.

Time is of the Essence

The use of Live Chat services does not necessarily guarantee success, it depends on how well you use it. As simple as the tool is, staffing chat is not. When you are on a call or you are away, you cannot respond immediately. If there is no response within 30 seconds, most chat users have already departed the conversation. After 30 seconds, the satisfaction also drops. So, the first response time must be under 30 seconds.

Clear Communication

Businesses that do a great job with Live Chat make sure it’s easy to locate on the website, that customer support is available, and that customers know how long they’ll have to wait. The customer is also given the flexibility to submit all of his or her troubles, queries, or concerns when the live chat is properly managed.

Accessibility and Convenience

Usually, more expensive sales-related conversations occur between 4 pm and 8 pm. You would think that this just applies to B2C sites, however, there is surprisingly a lot of activity on B2B sites as well. This is the peak hour on the internet for buying decisions as most wouldn’t normally make these decisions at work.

The most popular time for people to surf and shop online is on weekends. It is also important to be available to visitors at certain times to make the most out of Live Chat. After all, the visitors are already on your website; why shouldn’t they be assisted there? Also, visitors who had a positive experience with using Live Chat will engage with it again on further visits. The disappointment is amplified when it isn’t accessible at that time. It is important to be there to link connect these visitors to your business in a positive way.

Think About the Potential of Live Chat

Customer satisfaction is well understood, yet businesses still have room for growth. More and more businesses are turning to Live Chat to deliver customer support on the channel customers are currently using. Due to the rise of smartphones and devices, it is only natural for a business to connect with customers on the platforms that they currently use.

Customers appreciate it when they find a Live Chat tool on your website. But creating a better user experience on Live Chat comes with its own set of conditions. If this is not met, the value is diminished and it can be counterproductive. When you add the resources of Live Chat to your customer service, it adds value to your online visitors and customer. Does Live Chat contribute to loyal customers? When used properly: YES!


Looking for a Managed Live Chat solution?

Chat Metrics is the #1 Managed Live Chat solution in the market. Chat Metrics offers much-needed human-to-human interaction with your website visitors. Chat Metrics builds trust through real-time conversations, gathering useful data and influencing their buying decisions.

The Online Sales Executives (OSEs) turn your online visitors into potential customers and deliver them to your email inbox or CRM. By providing useful and relevant information, the OSEs influence your visitors’ user experience. Besides the team is available to answer queries or help your customers to find what they are looking for. The best part is that there is always an OSE to chat with your visitors and customers on your website 24/7.

Don’t know where to begin? Click here to learn more about our proactive lead generation service.

You are also welcome to sign-up for free to see how Chat Metrics is a no-risk way to generate leads.


Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

LivePerson Alternative
Managed Live Chat

LivePerson Alternative?

Discover the Premier LivePerson Alternative: Chat Metrics Are you in search of a LivePerson alternative that offers a seamless, intuitive

Picture of By : Terry Wilson

By : Terry Wilson

I hope you find this article interesting and valuable. If you do - a little love goes a long way - like and share - Feel free to connect with me on LinkedIn.

Related Articles

Get the insights on your revenue-shifting results.

Get our latest weekly updates.

1 Step 1

The Role of Live Chat in Building Customer Loyalty and Why It Works?