Live chat for sales: is it worth the spend?
Pushing your website visitors ahead in the funnel is a process which can benefit from a live chat sales agent.
Potential customers always expect a prompt support. Maybe they lack information to take the final step or they just want to be reassured by a real person.
Whatever the reason, being there every time they need is imperative to close a sale or to capture the lead.
But the game doesn’t come for free. Implementing a live chat for sales requires organizational and technological efforts that, finally, translates into costs to be paid.
If you pay such costs with additional sales, the efforts are worth being made. Otherwise, it’s probably better to consider other ways to provide prompt sales-oriented support.
Live chat for sales: how to evaluate if it’s worth the effort
A live chat for sales requires you to:
- adopt a live chat platform to be integrated on your website;
- have the right sales agent behind the screen.
When you sum the monthly costs for having the sales agent and the monthly cost of the live chat platform, these costs should lead to economic benefits which make the balance positive.
The economic benefit we expect is, basically, a reduced customer acquisition cost. This is true for business selling directly online, for a business like consultancies the expectation is reducing the cost per lead.
I will consider the case of an e-commerce company.
Imagine a CPC campaign running at €1,5 per click and a conversion rate of the actual product/category landing page at 0,5%. The CAC is hence €300.
When implementing a live chat we expect a better conversion rate. For every slight increase in conversion rate, the cost per acquiring the single customer reduces.
That’s great, but still not enough to get to our point.
Since we are bearing additional monthly costs to increase the conversion rate and hence reduce the CAC, we need to know how many additional customers sign the break-even point.
Key drivers to understand if a live chat for sales is worth being implemented
The first key driver to decide whether to implement a live chat for sales is your website traffic.
Increasing the conversion rate of 0,1% results in a great absolute figure if you have high traffic on the website. And this means that you can break-even easily.
The second key driver is the campaign CPC: the greater the CPC, the easier to pay back the costs and drive new profits.
Which costs did I consider to be paid back?
To compute the payback customers, I considered €29/month for the live chat platform and €2.000/month for the live sales agent.
The latter might be too high or too low in your eyes because it much depends on the country. I thought it could be a good average value.
Anyway, you can take the reasoning home and compute the payback customers based on your actual costs.