Nuts & Bolts - E-commerce: Click-to-Call Quantified: Live Service Lifts Sales
On the faceless Internet, one-click live customer service is a premium that may increase revenue, improve retention and reduce customer service costs, according to recent findings from Forrester Consulting. But the most important benefit to the companies surveyed was increased sales.
The study, "The Total Economic Impact of Click to Call and Click to Chat," was commissioned by Arts Technology Group (ATG) to study the impact of click-to-call and click-to-chat services offered by its customers. Forrester combined interviews and data from six of those companies (three retailers and three airlines) into a composite company that it analyzed through financial modeling. While that may be a limited data set, it provides some measure of financial guidance to companies considering one of the hot new e-commerce technologies.
The three-year risk-adjusted financial summary showed that the composite organization experienced ROI of 304 percent, with total costs of $483,011 and total benefits of $1,950,259.
The six companies installed click-to-call and click-to-chat with various goals in mind—some to increase sales and others to save customer service costs. "However, after implementation," the study found in its interviews, "all organizations realized that the incremental increase in sales has become the prominent benefit, resulting from a reduction in shopping cart abandonment and increase in conversion rate."
That incremental sales benefit, which also reflects a 23 percent increase in average order value for customers who used click-to functions, equaled 94 percent of the overall financial gain, according to the survey. Previous Forrester research, a study from Forrester Technographics in 2009, indicated that 88 percent of all customers who use these functions would have abandoned the order without assistance, indicating that few of the additional sales would have been completed without click-to-call or click-to-chat intervention.