Online chat boosts profitability in almost any market — if the market can support it. For chat to work in mobile apps, that means it will be in-app, cloud-based, and with no SDK.
With the typical app costing over a quarter of a million dollars to develop and priced below 50 cents it’s easy to see why app developers might defer an expensive chat investment.[i] Yet it’s also true that online chat is a proven way to increase customer satisfaction, reduce churn, and boost profitability:
- A 5% increase in customer retention can increase a company’s profitability by 75%. (Bain and Co.)
- The top two reasons for customer loss were: 1) Customers feel poorly treated, 2)Failure to solve a problem in a timely manner (Customer Experience Impact Report by Harris Interactive/RightNow, 2010)
- Over half of customers (57%) prefer to receive assistance by online chat versus other methods (eConsultancy)
The question is how to combine chat’s benefits with mobile’s economics. Margins are low; the number of competitors is high; update cycles are rapid; users’ attention is short; and loyalty is fleeting. Chat is great at engaging users and differentiating an app. (According to Harris interactive 75% of customers say it takes too long to reach a live customer agent.) But that only helps if chat can be provided quickly, at low cost, and in a way that keeps users’ attention focused on the app rather than elsewhere.
These requirements fit a lean chat model, one that is:
A cloud-based model means the developer need not build a chat infrastructure but instead can use one that already exists. That dramatically reduces both capital and operating costs, and facilitates rapid implementation and updates.
Rather than make the mobile user open a browser window to start a chat session, putting chat functionality in the app itself keeps the user’s attention in the app, thereby boosting retention.
Using an SDK (software development kit) to implement or update a function takes far more time and money than by using an API (application programming interface) approach instead.
for more info about cloud , in-app and No SDK approach visit www.puristit.com
The result is a win-win. The user gets a better experience compared to other apps. That means less customer churn and higher profitability for the developer minus the out-of-pocket expense and implementation headaches of other approaches.
[i] Sources: Kinvey December 2014 Survey, Flurry Analytics (April 21013)
Next post will talk about churn …