Etude Forrester « Evaluating The Potential For Mobile Chat »

FOR: eBusiness &
Channel strategy
Professionals

Evaluating The Potential For Mobile Chat
To Drive eBusiness Goals
by Diane Clarkson, April 25, 2012

Key TaKeaWays
Mobile Chat eBusiness Benefits Mirror Those of Website Chat
These are early days for mobile chat. eBusiness leaders should be evaluating chat in
their mobile strategy. Mobile chat can achieve the same proven eBusiness benefits
of website chat, including driving engagement, supporting sales by offering live
assistance when a customer needs help, enhancing customer satisfaction, and
improving efficiency.
There are Compelling indicators That Consumers Will adopt Mobile
Chat
Website chat adoption has doubled in the past two years and now has the highest
customer satisfaction rating among online service channels. Mobile chat will
allow consumers to engage with brands on the device of their choice. This will be
increasingly important to reach younger consumers and consumers in emerging
markets.
successful Mobile Chat implementations Will accommodate unique
aspects of The Channel
Operationally, mobile chat is very similar to website chat. However, the smaller
screen creates unique aspects that eBusiness leaders must consider for a successful
mobile chat implementation, including canned answers, queuing strategy, and
agent training.

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 UsA
Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com

FOR eBusiness & Channel Strategy Professionals

April 25, 2012

Evaluating The Potential For Mobile Chat To
Drive eBusiness Goals
by Diane Clarkson
with Zia Daniell Wigder and Lily Varon

Why Read This Report
In the early years of the Internet, online customer service involved the marketing departments writing
content for a handful of online FAQs and including a telephone number in the “contact us” section. Today,
we look back at that naiveté with amusement. At the same time, we risk doing the same again with mobile
strategies. Chat has demonstrated its ability to enhance service, support sales, and improve customer
satisfaction. This report will help eBusiness leaders evaluate the potential for mobile chat to drive their goals.

Table Of Contents

Notes & Resources

2 Mobile Chat Offers Potential Benefits To
Both Business And Consumers

Forrester interviewed four vendors, including
Bold Software, LivePerson, Netop, and
Oracle.

Mobile Chat Can Support eBusiness Goals
Mobile Chat Can Significantly Enhance Mobile
Customer Experiences
6 Mobile Chat Implementation Requires A
Robust Mobile Strategy
Weigh Mobile Chat Technology Options Against
The User Experience And ROI
Mobile Chat Operations Mirror Website Chat
But With Some Key Distinctions

Related Research Documents
Mobile Mandate For eBusiness Professionals
November 16, 2011
Mobile Commerce Forecast: 2011 To 2016
June 17, 2011
Extending Online Customer Service To The
Mobile Channel
September 9, 2010

what it means

8 Mobile Chat Will Have A Compelling Impact
On Mobile Support
8 Supplemental Material

© 2012, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar,
and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To
purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

For eBusiness & Channel Strategy Professionals

2

Evaluating The Potential For Mobile Chat To Drive eBusiness Goals

mobile chat offers potential benefits to both business and consumers
Website chat has demonstrated its ability to drive eBusiness goals and now has the highest customer
satisfaction rating among online support channels.1 While these are early days for mobile chat, savvy
eBusiness professionals are asking: Where should chat be in our mobile customer service strategy?
Mobile Chat Can Support eBusiness Goals
According to Ethan Alexander, vice president of mobile at LivePerson, “If you aren’t engaging your
customers in every channel possible, you’re missing out on sales, support, brand, and engagement.”
Mobile chat has the potential to support these critical eBusiness goals by:

■ Driving engagement by facilitating a live interaction with support or experts. eBusiness

leaders recognize that engagement is critical to building long-term relationships with
consumers on mobile devices. In Forrester’s recent Q4 2011 Global Mobile Maturity Online
Survey, 53% of respondents listed increasing customer engagement among the top three goals
of their mobile strategy.2 Mobile chat can offer a live interaction with support reps or product
experts from a mobile website or within an app. This interaction can elevate a mobile experience
into a truly engaging live interaction with a brand.

■ Supporting sales by offering live assistance when a customer needs help. While mobile

commerce represents a relatively small piece of the eCommerce pie today at 2%, Forrester
forecasts that it will reach $31 billion by 2016.3 US retailers want a piece of this pie: Some 83% of
US retailers say that the goal of their mobile websites and apps is to drive online sales.4 Consider
the history of chat’s corporate goals on websites. Chat was introduced most frequently as a call
deflection channel; eBusiness leaders quickly saw its potential to drive sales by expanding the
reach of sales support. Aveda is an early adopter of mobile chat; its goals include supporting
sales by facilitating mobile chats to gain product recommendations from experts (see Figure 1).

■ Enhancing customer satisfaction by meeting customers’ desire for mobile support channels.

Thirty-seven percent of US online consumers agree with the statement “I would like to have the
same level of online customer service function on my mobile device as on my PC or laptop” (see
Figure 2). This sentiment is particularly pronounced among consumers ages 18 to 32. In today’s
world of multichannel, multidevice customer expectations, a gap between the online customer
service functionality on a website and that on a mobile offering will be increasingly unsatisfying.

■ Achieving operational benefits through concurrency. Because a mobile chat can come

through to the contact center just like a website chat, it can leverage the same operational
benefits. Concurrent chat rates can achieve a lower cost per contact compared with the
telephone. Concurrent chats can also allow organizations to manage peaks of inbound
communication. For example, an airline could manage a travel disruption faster and more cost
effectively via mobile chat than via telephone.

© 2012, Forrester Research, Inc. Reproduction Prohibited

April 25, 2012


3


■ Expanding the reach of live help globally. Emerging markets are driving growing adoption of

the mobile Internet. Forrester forecasts that there will be more mobile Internet users globally
than PC-based Internet users in 2016.5 Mobile chat can expand the opportunity to offer live
help in key emerging markets, including Latin America and Asia Pacific, where consumers will
increasingly be more likely to access the Internet via their mobile devices than through a PC.

Mobile Chat Can Significantly Enhance Mobile Customer Experiences
It may seem an obvious question: Why would a consumer want to engage in chat on a mobile phone
instead of simply telephoning? But consider the following:

■ Speaking to a contact center rep is not always the preferred channel. The availability of a

telephone function doesn’t mean that the telephone is the preferred way to contact a company
for support on a mobile device. Generations X and Y (consumers ages 23 to 45) are equally
likely to prefer online support over support via the telephone. Generations X and Z show
higher satisfaction rates for chatting with a live agent than for speaking on the telephone with
a live agent.6

■ Mobile chat may be more convenient than using the telephone. There are many reasons

a consumer may choose to contact an organization to chat on a mobile device: It could be
on impulse; it could be more convenient; it could simply be a preferred channel. The US Air
Force extends its reach to allow potential recruits the option to chat with a recruiter through
the organization’s mobile website (see Figure 3). In addition, mobile chat could offer a level of
privacy that a telephone conversation may not afford. For example, consumers may prefer to use
mobile chat to discuss private concerns, such as seeking health information or communicating
with their financial services organization.

■ There is demonstrated interest in using mobile devices to contact support via text message.

Twenty percent of US online consumers used SMS text messaging to contact customer support
in 2011.7 This mobile channel is particularly appealing to younger generations: Approximately
one in three consumers who were 31 or younger opted to skip the telephone and send a SMS
message to a company requesting assistance.8 While SMS is asynchronous in nature, mobile chat
offers a potentially more robust support conversation.


April 25, 2012



4

Figure 1 Aveda’s Mobile App Offers Live Mobile Chat With An Expert

Source: Aveda iPhone app
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Source: Forrester Research, Inc.

April 25, 2012


5


Figure 2 Consumers Want Mobile Service Functionality To Match That Of Websites
The spreadsheet associated with this ﬁgure contains additional data.
“I would like to have the same level of online customer service
function on my mobile device as on my PC or laptop.”
(4 and 5 on a scale of 1 [do not agree] to 5 [agree strongly])
Gen Z (18-22)

46%
47%

Gen Y (23-31)
Gen X (32-45)

40%

Younger Boomers (46-55)

32%

Older Boomers (56-66)

27%

Golden Generation (67+)

24%

All

37%
Base: US online consumers

Source: North American Technographics® Customer Experience Online Survey, Q4 2011 (US)
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April 25, 2012


6


Figure 3 The US Air Force’s Mobile Website Offers Live Mobile Chat With A Recruiter

Source: US Air Force mobile site
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mobile chat implementation requires a robust mobile strategy
Forrester believes that immediacy, simplicity, and context are the three key benefits crucial to
delivering the mobile services that will drive eBusiness goals.9 Mobile chat can significantly enhance
these benefits. But adding mobile chat to a non-mobile-enabled website is a waste of resources.
Mobile chat will be successful when it is deployed within a robust mobile strategy that can identify
chat objectives and success metrics.
Weigh Mobile Chat Technology Options Against The User Experience And ROI
To describe mobile technology as complex is an understatement. There are different nuances to
operating systems, which also can vary from country to country. The complexity is further deepened
by variations among mobile devices themselves. Organizations considering mobile chat will face
several technology options. eBusiness leaders must weigh the following technology considerations
against how they will affect the user experience and potential ROI:


April 25, 2012


7


■ SMS texting is asynchronous but has merit. There is debate in the chat vendor community

as to whether SMS texting should be considered chat. Forrester interprets synchronous realtime conversation to be the hallmark of chat. An SMS text is an asynchronous communication.
Because it does not take place in real time, the user can’t see if and when a response will follow.
As a result, it does not lend itself as easily to a customer support conversation. However, SMS
has merit. It is relatively easy to deploy and is a channel with which customers are familiar.
Links or photos can easily be shared via SMS. The technology has proven to be very successful
for alerts, and many industries deploy it, including airlines, restaurants, and transit companies.
Vendors including Bold Software have an SMS module.

■ An “out of the box” solution is a good starting place for mobile chat. Out-of-the-box

solutions are mobile-optimized for a smartphone form factor; for example, they feature larger
buttons to initiate a chat rather than a mouse click. These offer a templated approach in which
you can customize features, such as a dynamic chat button or site branding considerations.
Vendors including LivePerson and Oracle’s RightNow offer these solutions for a wide range of
mobile devices. Netop currently offers mobile support for BlackBerry and other non-Apple
mobile phones that support Flash.

■ Build-your-own mobile chat offers the most customization but requires the most expertise.

This option facilitates building a mobile chat capability that is configurable and customizable.
This approach lends itself to organizations with strong mobile development teams or outsourced
partners. Its most frequent use case is building a native application. Chat vendors including
LivePerson and Oracle’s RightNow have APIs that allow you to build your own mobile chat.

Mobile Chat Operations Mirror Website Chat But With Some Key Distinctions
Operationally, mobile chat mirrors website chat. It can be deployed proactively or reactively. It
can integrate into back-end systems, knowledge bases, and agent desktops. Anecdotally, live
chat vendors have observed that there is currently little difference between the drivers for mobile
chat and for website chat. At the same time, a mobile device offers a different user experience for
chat compared with a website. A successful mobile chat deployment will incorporate its unique
requirements by:

■ Accommodating the device experience with shorter answers. Screen real estate on a mobile

device is fundamentally different than on a website. The smaller device screen means longer
answers will compromise the user experience by requiring scrolling. Instead, canned responses
in a mobile chat session should be shortened.

■ Avoiding content that is not conducive to mobile devices. It is common in a website chat to

include hyperlinks and to page push by sending the consumer’s computer screen to various
website pages during the chat session. However, given the restraints of the device, it is not a best
practice to include this content in a mobile chat.


April 25, 2012


8


■ Queuing mobile chats as priorities. Leading chat vendors have observed that consumers are

less willing to wait for a mobile chat. Agent desktops should indicate if a chat is coming in on a
website or mobile device and prioritize mobile chat. This indicator will also allow the chat rep to
select the transcript or canned answers that are appropriate for a mobile device.

■ Training contact center reps for mobile chat. Mobile websites and apps will likely have content
and navigation that varies from that of the website. Contact center reps will need to be very
familiar with these differences because they could affect the conversation flow. Mobile chat
vendors have observed that the smaller mobile screen size and resulting shorter sentences lead
to a conversation that could be interpreted as having a terse tone. Additionally, consumers
are more likely to make spelling mistakes in a mobile chat. Chat reps’ training should include
practice sessions with mobile chat to be comfortable in this milieu.

w h at i t m e a n s

mobile chat will have a compelling impact on mobile support
Website chat has revolutionized how customers and eBusinesses engage with one another, and
it has quickly grown into one of the most satisfying channels among online customer service
options. Mobile chat can do the same for mobile offerings. Today’s innovative mobile features offer
consumers wide-ranging functionality, such as making access to reviews and product specs as
easy as scanning a QR code, turning passive catalogs into interactive style guides, and proactively
sending mobile coupons. Mobile chat will increasingly enhance these mobile offerings, making
them even more interactive and engaging while also supporting revenue goals. Savvy eBusiness
leaders — particularly those with or considering a website chat implementation — are evaluating
where mobile chat fits into their mobile strategy now. Mobile chat will be an engaging differentiator
in the short term. It will become a key part of an engagement and support strategy in the future.

Supplemental MATERIAL
Methodology
Forrester conducted the North American Technographics® Customer Experience Online Survey, Q4
2011 (US) in October 2011 of 7,638 US individuals ages 18 to 88. For results based on a randomly
chosen sample of this size (N = 7,638), there is 95% confidence that the results have a statistical
precision of plus or minus 1.12% of what they would be if the entire population of US online
individuals ages 18 and older had been surveyed. Forrester weighted the data by age, gender, income,
broadband adoption, and region to demographically represent the adult US online population.
The survey sample size, when weighted, was 7,637. (Note: Weighted sample sizes can be different
from the actual number of respondents to account for individuals generally underrepresented in


April 25, 2012


9


online panels.) Please note that this was an online survey. Respondents who participate in online
surveys have in general more experience with the Internet and feel more comfortable transacting
online. The data is weighted to be representative for the total online population on the weighting
targets mentioned, but this sample bias may produce results that differ from Forrester’s offline
benchmark survey. The sample was drawn from members of MarketTools’ online panel, and
respondents were motivated by receiving points that can be redeemed for a reward. The sample
provided by MarketTools is not a random sample. While individuals have been randomly sampled
from MarketTools’ panel for this particular survey, they have previously chosen to take part in the
MarketTools online panel.
Companies Interviewed For This Report
Bold Software

Netop

LivePerson

Oracle

Endnotes
1

Website chat adoption has nearly doubled in the past two years; at 62%, it has the highest satisfaction rating
among all online customer support channels. In fact, Generations Z and X have higher satisfaction chatting
with a live agent than speaking on the telephone with a live agent. See the January 23, 2012, “Understanding
Customer Service Satisfaction To Inform Your 2012 eBusiness Strategy” report.

2

When respondents were asked for their top three objectives when developing mobile services, 53% said
increasing customer engagement and 39% said satisfaction were their primary goals. See the February 9,
2012, “2012 Mobile Trends For eBusiness Professionals” report.

3

Mobile commerce is expected to reach $31 billion by 2016. While this represents a compound annual
growth rate of 39% from 2011 to 2016, mobile commerce is only expected to be 7% of overall eCommerce
sales by 2016. See the June 17, 2011, “Mobile Commerce Forecast: 2011 To 2016” report.

4

Source: “The State of Retailing Online 2011,” a Shop.org research survey conducted by Forrester Research.

5

Source: Susan Huynh, “Mobile Internet Users Will Soon Surpass PC Internet Users Globally,” Susan Huynh’s
Blog For Market Insights Professionals, February 21, 2012. For more information, see the February 13, 2012,
“Forrester Research World Mobile Adoption Forecast, 2011 To 2016 (Global)” report.

6

Many eBusiness leaders cite expanding future online customer service offering as a tactic to appeal to their
youthful customers. It is true that 37% of consumers ages 18 to 22 prefer online customer service to the
telephone. But don’t assume that a preference for online service over the telephone is restricted to youth;
in fact, Generations X and Y (consumers ages 23 to 45) are equally likely to prefer online support over the
telephone. Savvy eBusiness leaders recognize that developing online customer support channels isn’t a
tactic to build future relationships with today’s younger customers; online customer service is imperative
to appeal to the majority of today’s online shoppers. See the January 23, 2012, “Understanding Customer
Service Satisfaction To Inform Your 2012 eBusiness Strategy” report.


April 25, 2012



10

7

Source: North American Technographics Customer Experience Online Survey, Q4 2011 (US).

8

Online consumers’ preferences for online customer service channels are evolving. More online consumers
have adopted online self-service in the past two years; it has also disappointed more consumers. Consumer
adoption of chat and social customer support has exploded in the past two years. Not all channels are equal
among generations: For example, younger generations are more likely to prefer chat over the telephone
and use social media for support. But a preference of online customer service is not the domain of youth.
Savvy eBusiness leaders recognize that developing online customer support channels isn’t a tactic to build
future relationships with today’s younger customers; online customer service is imperative to appeal to
the majority of today’s online shoppers. See the January 23, 2012, “Understanding Customer Service
Satisfaction To Inform Your 2012 eBusiness Strategy” report.

9

Immediacy delivers content when consumers need it most. Simplicity removes usability barriers, making
mobile invisible to users. Context makes content relevant to the individual. See the July 11, 2011, “eBusiness:
The Future Of Mobile Is User Context” report.


April 25, 2012

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Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to
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