Go to a retail website these days and within a few seconds you’re likely to get a pop up inviting you to chat. More than a tech bauble, these chat features can be powerful sales vehicles that become integral parts of contractors’ lead generation.
How powerful? Just adding chat to a website increases the percentage of people who take action on your website from as little as 1% to as much as 8%, according to Ben Barreto, account executive with HomeServicesChats, a firm that specializes in chat services for home services companies. While 8% may not sound like much, consider that Amazon has built it’s empire with only 5% engagement, Barreto said.
“We’ve been able to get above that with chat,” he said. “Just by engaging the customer you can cause them to take more action.”
Anecdotal evidence backs up that contention. Leading web-based shipping solution ShipStation shared that one of their customer’s, Paleo Treats estimates that as much as 20% of their sales occur after a live chat conversation. And others, such as Vita Student, are seeing more than 42% conversion with people they are chatting with on their website, according to stats published in Inc.
The folks at Kitchen Tune-Up Franchise System are finding customers actually prefer chat because it’s more convenient. “We are finding more and more consumers are engaging on the chat as opposed to calling,” said Heidi Morrissey, the franchise’s president. “Many times it is later in the evening or weekends and holidays that you will see the most chats come through.”
Offering that kind of 24/7 service is the reason many companies decide to add chat services to their websites. And many choose a third party system rather than trying to do it in-house. “You need a service has staffing 24/7 and has the technology to implement the chat feature,” Morrissey said. “Most companies would not have this talent in house and I can’t imagine how you would get the 24/7 coverage.”
These days, contractors can choose from a wide variety of chat services. Experts suggest doing careful research before settling on one for your website, which is often where customers form first impressions.
Just as there are many different services, there are many different cost structures. Morrissey said her service costs $16 to $20 for a chat that captures contact information. If the chat service actually books an appointment that cost rises to $20 to $25. “We don’t pay for chats that are not appointment-based,” she said.
HomeServiceChats, meanwhile, starts with an upfront fee of $949 (it also offers a $749 expo special). Then during the first 15 days of service, the company does a “calibration period” in which it determines how many customer-related chats come in; it does not count “spam” chats that are not business related, Barreto said. Once the number is calibrated, contractors pay a flat monthly fee of $249 for up to 15 chats. Additional chats cost $100, though there’s a one or two chat grace area before that cost kicks in.
For that price, the company creates a chat service that blends with the contractor’s site and incorporates logos. It also works with contractors to develop approved “value statements” — for example, “Our company has been in business for 20 years” or “We have an A rating on Angie’s List” — chat operators use when engaging customers. It also operates an in-house phone team that follows up the chat with a call to schedule service, before they start comparison shopping at other websites. Barreto said those calls result in appointments 90 percent of the time.
“When we reach out to them in a short amount of time it just seals the deal,” he said. “Speed to lead is very important.”
So why aren’t more contractors using chat services? Along with the obvious cost concerns, Barreto said it comes down to cost and control. On the cost front, Barreto said contractors need to consider what it’s costing them to miss potential customers. “Within a matter of five minutes you can either lose or gain a lead,” he said. “What we’ve seen is the service pays for itself within no time.”
On the control said, Barreto acknowledged that trusting a third party is difficult for many firms. “Most companies have built up a reputation the way they want it,” he said. “They don’t think a third party can do it.”
To that concern, Morrissey said it’s a matter of constantly evaluating and adapting your chat script to fit your business. “A chat does not replace you. It is a way to engage with the customer in a way they choose at a time they choose,” she said. “You still need to make contact with the customer and determine their needs.”
