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  • Writer's pictureSusmita Asad

Streamlining Customer Support with Live Chat Outsourcing

Updated: Aug 25, 2023

live chat outsourcing

95% of customers switch to different brands due to poor service. In a fast-paced environment, companies are always looking for ways to improve their customer service. I am sure that you already realize how many competitors are waiting to steal your potential customers.

There is no better solution than being the best at customer experience. Live chat outsourcing is one of the many strategies for enhancing customer service.

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What is Live Chat Outsourcing?

Live chat refers to assisting customers with their instant message queries. When you assign a third party to take care of your company, live chats are called "live chat outsourcing." Live chat agents use messaging methods to prompt customers to inquire about a service or product, providing them with immediate responses instead of being placed on hold for extended periods of time.

The Benefits of Outsourcing Live Chat

Real-time responses always make customer service faster and smoother. Adding live chat options to your website reduces the bounce rate. There are many more benefits that we are going to talk about in this article.

Live Chat and Customer Experience

live chat customer experience

Live chat is an excellent method of delivering a first-class customer experience. Compare the two businesses mentioned above. Who do you think has more potential to convert the customer into a sale? The answer is simple: "Business B."

Business A failed to respond instantly. Thus, the customer moved on to Business B. Business B took full advantage of their live chat service. It is likely that the customer will come back to business B as they did not fail to keep up good service. This live chat improves brand loyalty among customers.

Improve Revenue Stream with Live Chat

live chat improved roi

Let’s continue with the example of businesses A and B. The customer did not make any purchases from business A since they did not receive a prompt response from them. The business will experience a high bounce rate if more customers keep turning around.

It will cause a declining revenue stream for Business A. Outsourcing live chat on the other hand sorted this issue for business B. Business B will get more satisfied customers, more conventions, and an increasing revenue stream.

Multilingual Support

Live chat multilingual support

Multilingual live chat support can be a wonderful approach to improving customer service and increasing the accessibility of your company. Outsourcing enables you to offer multilingual support to your customers. It will eliminate the barriers caused by the cultural gap. Your business will get the global exposure it deserves.

Live Chat Software vs Live Chat Agent: Which One is Better?

live chat software vs live chat agent

Live chat software is a computer program or platform that enables website visitors to communicate with a company representative or customer service agent through a chat interface in real-time.

A live chat agent, on the other hand, is a human being who responds to customer inquiries and assists them with their needs through live chat software. The software provides the technology for the chat to happen, while the agent uses that technology to provide customer service.

Live chat software has been effective in providing customer services in many ways. Customers however prefer integrated human services.

Live chat agents understand emotions better and the depth of their queries. Obviously, any service backed by artificial intelligence boosts performance. A blend of humans and software provides the best customer experience.

How Much Does Live Chat Cost?

If you are already aware of the value live chat brings to your business, you are probably now waiting to get started. The first thing that comes to mind is the budget. The pricing model of live chat depends on how a business operates.

The cost of outsourcing live chat in the United States is between $16- $100 / per hour. There are three types of cost functions of live chat.

Pay Per Chat

Pay-per-chat pricing costs are based on the number of chats an agent initiates per minute. Businesses with a high volume of chat should avoid this pricing model.

For example,

Scenario 1: Pay per chat cost per hour

  • Per minute chat volume - 5

  • The cost per chat is $ 0.20

  • Cost per minute - ( 0.20 * 5 ) = $ 1

  • Cost per hour - $ 60

In this pricing model, you do not have to fix the number of agents your business requires. Your outsourcing provider will get you as many agents as required to tackle the live chat volume.



​Flexibility of changing budget as volume changes

High cost for high chat volume

Make accurate budget

Easy switching to different models

Volume based pay

Volume-based live chat refers to a pricing model for live chat where the cost is set based on the volume of interactions (e.g., chats, messages) handled by the agents. Live chat provider agencies have value packages for volume based pay.

Scenario 2 : Volume based pay - low vs high volume

Low volume cost

  • Per minute chat volume - 5

  • Cost per minute - $1

High volume cost

  • Per minute chat volume 50

  • Cost per minute - $ 50



​Budget friendly solution for high volume chats

Lack of scalability

​Easily manageable plan

​Unpredictable cost during high volume

Pay per agent

Pay per agent is the most flexible live chat pricing model. In this model, you pay agents on an hourly basis. The cost will increase as the number of agents increases. It is commonly used for businesses with multiple customer service representatives handling live chat interactions.

Scenario 3: Pay per agent pricing cost per hour

  • Agents required - 2

  • Hourly pay per agent - $10

  • Cost per hour - $20



Cheaper than other pricing models

Lack of control over cost

Scalable support service

Hidden cost risk

Key Performance Indicators: Live Chat Outsourcing

live chat kpis

After planning the budget, the next dilemma is ensuring the best performance of live chat outsourcing. Key performance indicators (KPIs) show the progress and outcomes of outsourced jobs. Pre-determine the KPIs. So, your outsourcing provider will have a clear understanding of your expectations. Live chat agents will be briefed accordingly. Here are a few KPIs for live chat representatives:

  • Response time: Response time refers to the average time it takes for live chat agents to respond to customer inquiries.

  • Resolution rate: The resolution rate shows the percentage of customer inquiries that have been solved through live chats.

  • Average handle time ( AHT): AHT is the time a live chat representative takes before disconnecting from a customer.

  • Customer feedback: Review from customers on the quality and effectiveness of live chat support.

  • Net promoter score (NPS): The net promoter score (NPS) is the customer satisfaction metric. It shows customer feedback that measures the likelihood of recommending the company's services to others.

In conclusion, outsourcing live chat support can provide businesses with many outstanding benefits. It's crucial to choose a reliable and trustworthy provider, establish clear communication and performance expectations, and continuously monitor and evaluate the service to ensure quality.

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