The success of instant messaging (IM) as an effective customer engagement tool validates the truth in the otherwise overused adage:

The early bird gets the worm.

Today’s standards place a high currency on speed and the immediate. Today’s generation of consumers are increasingly demanding better products and faster services – now. They want to have this now, they need to know that now, or they move on to a provider who can give them what they need now.

And when it comes to providing immediate answers, nothing can beat the real-time capability of instant messaging.

Instant messaging, also known as live chat, has been around since the 1960s but only entered into popular consciousness in the 1990s. Since then, this simplified and faster form of communication has become a staple in most people’s lives.

In 2010, web email usage dropped 59% among 12 to 17-year-olds and has gone on a steady decline for all Internet users under 55. Patronage shifted to SMS and instant messaging services.

Radicati Group’s “Instant Messaging Statistics Report” reveals that the number of worldwide instant messaging accounts now totals more than 3.2 billion users and projected to reach 3.8 billion in 2019. This figure does not even include mobile messaging.

To add to the statistics pointing to consumers’ increasing preference for instant messaging: 

• Facebook, which has 49 billion monthly active users as of the second quarter of 2015, has crossed the 600 million active Facebook Messenger users mark in January 2015.

• WhatsApp, a popular mobile messaging app, announced that from 700 million in January 2015, its monthly active users have gone up to 900 million this September.

• Tencent’s WeChat recently reported a monthly active user figure of 600 million.

• These days, almost everyone you know has a smartphone, and of this population of smartphone owners, 45% use instant messaging services.

• By 2016, mobile instant messaging is projected to be used by up to 4 billion people.

To scale the potential of self-service technology and address the needs of increasingly demanding consumers, Forrester reports that integrating chat with virtual agent tools is the key.

An article on the Kissmetrics blog also documents the benefits of live chat for businesses: 

• Expense savings through decreased interaction costs, as live chat or instant messaging allows chat representatives to handle multiple customer issues simultaneously

• Sales increases driven by customer satisfaction

• Convenience both for the business and the more IM-driven customers, as live chat is simpler, direct, more personal, and faster

Whatever the verdict may be, the future of instant messaging lies in the hands of the youth.

Despite this terribly overused statement, live chat software expert Gary Martin believes investing in the youth early on is a wise business choice.

After all, today’s youth are the consumers of the future, and as has already been demonstrated by surveys, more and more of them are leaning towards instant messaging.

Martin is the founder and marketing director of live chat software provider Click4Assistance. In this interview with Cloudswave, the programmer turned entrepreneur and marketing expert presents his business approach and vision for the future of live chat solutions.

The Growth of the Live Chat Software Industry

Gary Martin Q&A:

1. What were the origins of live chat software?

Instant messaging has been around since the mid-1960s. This basic form of messaging allowed users to communicate with one another over the Internet. The first major live chat software client was ICQ (“I Seek You”), which was released in 1996. This then spawned into applications such as MSN messenger and Skype.

2. What made you start Click4Assistance?

I became interested in coding at a young age, developing games on the Commodore with 2.5k of memory. This led me to a career in producing desktop and web-based applications for various business sectors and ecommerce platforms.

During the ecommerce bubble, with millions of pounds being invested into web presences, I became aware that websites were lacking the ability for customers to make contact in real time. Let’s be honest, who likes waiting for an email response?

I went with a gut feeling. Although looking back 10 years, the concept was a bit premature for UK businesses. Some thought adding live chat to their website was a crazy idea. I guess Alexander Graham Bell (or should that be Thomas Watson) had the same reaction when they placed a phone on a desk.

Fortunately, the rise of social media, iMessaging and Skype made text-based communication a lot more acceptable and the preferred method regardless of age, location or demographic. It didn’t take long for businesses to realise the potential of a new communication method.

3. What have been some of the biggest changes in live chat software over the last decade?

From a technical perspective, in order for a live chat to take place, there has to be a connection between the visitor and the agent. Unfortunately, web-based applications were stateless in the 90’s, so a mechanism was needed to provide real-time data exchange using just basic JavaScript. This was years before AJAX.

We also had to ensure compatibility with every type of browser without the need to download any software or install any plug-in.

In the UK, the uptake has always been a little slower than the USA. However, in a recent survey, 83% of online consumers said that they had encountered some form of website chat software during their online browsing.  

Live chat software has grown from being a niche tool within customer service to a mainstream channel. And of course, businesses expect this type of software to cater for their integration, customisation, and operational needs.

Recently, with over 50% of consumers using mobile devices, Click4Assistance had to ensure compatibility with phones and tablets while providing a fully customisable and configurable experience in a responsive manner.

4. In your opinion, what is the future for live chat software?

We are not far away from a complete generation that has grown up with text communication. Young adults between the ages of 16 and 25 are more averse to picking up the phone even to chat with friends, let alone make an enquiry to an organisation. Live chat just comes naturally to them.

This has certainly been proven by the UK universities we deal with. They have experienced a huge uptake with international enquiries as there are no spoken language barriers or expensive international phone costs to potential students.

This younger generation are the consumers of the future. They expect instant answers, and their trust and loyalty must be earned over time. I don’t have a crystal ball regarding the future, but my feeling is this generation will shape the Internet, including what they expect from a live chat solution.

As a solution provider, we can’t wait for this to happen. Hence, the reason we have developed a business-class video chat, public community chat rooms, or private, secure conference rooms allowing real-time tendering or reverse bid auctions.

Whatever emerges from this baseline technology, it’s certainly going to be an exciting future.

About Gary Martin:

Gary Martin is the founder and marketing director of Click4Assistance, the UK’s leading provider of live chat software. For more than 10 years now, Click4Assistance has been successfully providing a fully hosted and customisable live chat solution for the websites of SMEs and corporate organisations.

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Play with these ideas and post below to let us know what you think.

The post The Growth of the Live Chat Software Industry: An Interview with Gary Martin of Click4Assistance appeared first on Cloudswave Blog.