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Chat commerce drives revenue

Research by Aberdeen Research shows that having a chat commerce platform is essential in management of revenues, customer retention, costs and marketing.



Companies that deploy chat in commerce see higher revenue growth, stronger customer retention, reduced service costs, and increased marketing effectiveness than companies that don’t.

This is according to the findings of research carried out by Aberdeen Research in partnership with Clickatell, a global provider of mobile communications and chat commerce service.

Chat commerce is defined as enabling customers to interact and transact with brands through chat apps. According to the research, the adoption of chat commerce is taking place globally, led by Asia, Europe, and Africa, and quickly followed by North America.

The research is discussed in full detail in an on-demand webinar, Leveraging Chat to Manage & Evolve a Customer-First Digital Transformation Program available here.

In a global multi-industry survey of 405 companies, Aberdeen found that at least two-thirds of firms use chat. Additionally, those that use chat in commerce achieve superior financial results while delivering a better customer experience.

Key highlights of the research indicate that companies using chat in commerce, experience:

  • 75% improvement in annual revenue growth
  • 48% bump in customer retention rates
  • 27% improvement in ability to reduce service costs
  • 21x improvement in marketing ROI

The research also shows that many forms of chat — including WhatsApp, live chat, and mobile in-app messaging — rank high in terms of planned adoption as companies seek more connection with consumers. 46% of businesses have implemented messaging apps or plan to do so in the next 12 months.

“We are on the cusp of mass adoption of chat in commerce, and smart brands will create one holistic customer experience across all customer channels, including chat, the interactive channel of choice,” says Jeppe Dorff, Clickatell chief product and technology officer.

While many companies have pursued digital transformation efforts, many have fallen short of goals. Through the deployment of chat — which is now used daily by 8 out of 10 adults according to the research — companies can more quickly respond to changing consumer needs and preferences as they pursue their digital initiatives. This is more critical in the wake of Covid-19, which accelerated the adoption digital commerce around the world.

Chat-enabled data and insights

Chat also enables companies to gather more data and insight, quicker, of the customer experience — allowing companies to respond more readily. The research indicates that the lack of visibility into customer data was cited by 8 in 10 companies as a key challenge.

“Chat enables customer-friendly digital transformation and best practices are applicable in all industries,” says Omer Minkara, Aberdeen vice president and principal analyst. “By making digital transformation efforts customer first, not business first and focused on internal needs, companies will see greater success in satisfying and delighting their customers.”

Companies who used chat in commerce, when compared to those who didn’t, were 84% more likely to improve the number of positive social media mentions for their brand, the research shows.