Australian retailers miss out on easy revenue

Alan Moore 26 February 2019

Customer Service Agent

Without doubt, most businesses commence the year with the ambition to drive revenue and reduce overheads. What if we told you there is an untapped sales opportunity for you to take advantage of? A relatively simple add-on that could potentially double your revenue?

Live Chat is fast becoming a leading customer service channel with a recent study¹ showing almost 80 per cent of consumers prefer live chat over other service choices for the immediacy it offers. The same study also shows that a staggering 77 per cent of customers won’t make a purchase on a website that does not have a live chat facility.

Chat can be enabled across all your digital channels – from website, email to social media. Typically, in a Live Chat exchange the consumer can ask any question, receive information on complementary products with direct links to purchase and experience a more customer-centric dialogue by engaging in a conversation at a time and format that suits them. The connection can usually extend to hours if required enabling the consumer to fit their interaction around other live demands.

Traditionally Chat has been viewed by businesses as a customer enquiry platform to supplement other communication methods rather than a lead generator in its own right. Businesses that are adopting Chat are realising a 40% increase in conversion rate and a 10% increase in average order value¹. RANDEM insights are also showing that there is an uplift on average of 20% for click and collect orders, after the chat interaction.

These days customers expect to have the same seamless experience regardless of the channel they contact you on – and the demand for chat functionality doubles when consumers access channels from their mobile device.


What is most surprising is that Australia’s leading online stores are yet to embrace chat in its full capacity. In reviewing these top retailers as defined by Smart Company2, with businesses as diverse as clothing to homewares and books to alcohol, only 30 per cent have deployed Chat capability – with only one of these operating till 10.30pm. The CX is also not consistent – with two occasions following a long wait, a request was issued to leave a message for someone from the team to get back. This is not installing Chat at its full capacity – effective Chat relies on immediate response times and a savvy approach to connecting and building rapport to convert.

In our experience, between 6pm and midnight sees a peak in Chat generated reach, with a minimum 20% of these leading to a confirmed sale, with some direct to consumer brands achieving over 30%. In recent work with RANDEM’s partner, Mega Office Supplies – an office equipment and stationery business – Chat has been in place for 3 years, and is now the dominant customer interaction, surpassing telephone enquiries, with customers have access to extended service late into the evening.

From a commercial point of view, the cost to adopt is minimal. A single resource can manage as many 3 customer exchanges / consultations simultaneously. When compared to a Bricks and Mortar store and the associated overheads – servicing per sales staff equates to around $126/hr for the average store staffing requirement. RANDEM’s exclusive partnered model enables a comparable Chat Delivery from 30% of this cost. Create your quote here.

Chat taps into the ‘now’ generation who need answers fast and on their terms, improves customer experience, entices new markets and creates considerable sales opportunities for businesses.

Let’s Chat.