Profitability through customer satisfaction is key for today’s business environment. Technological advances in business are transforming society and making customers aware of more “value for money.” Customers can access products and services with the click of a mouse. Organizations interact with their customers in real-time when they visit the company’s website. The software that enables this process is known as live chat software. Rising consumer expectations for improved customer relationship management (CRM) is leading to the growth of the live chat software market.
Live chat software’s customer response is ~100x times faster than traditional customer services. Having a live chat in a website is like having a virtual sales representative. Customers who generally have a query about a firm’s product or service can be answered immediately. This increases company sales. Providing customer service is becoming expensive for organizations. The average cost per contact in customer service through live chat software is approximately half than call center support. When a customer enters a physical store, he/ she only buys a product or service after developing trust or confidence on the sales representative. Trust is extremely important in today’s business environment. It is human nature not to trust unknown persons. Live chat software provides a remedy to the organization, and customers are comfortable interacting through live chat software.
The global live chat software market has been bifurcated on the basis of gadget type and end-use industries. Based on gadget type, this market is segmented into various types which include mobile phones, tablets, laptops, and personal computers among others. The mobile phones market is growing at a high rate due to increase in disposal income and rising internet penetration across the globe. By end-use industries, the global live chat software market is segmented into pharmaceuticals, telecommunication, IT, ITES and consulting, travel and hospitality, ecommerce, retail, BFSI (Banking, Financial Service and Insurance) and other end-use markets.
By geography, the market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. In 2016, North America was a prominent region in the live chat software market across the world.
The U.S. is the dominant country in live chat software market in North America followed by Canada and Mexico. Retail, e-commerce, and BFSI are the largest live chat software markers in Mexico. Media and entertainment sector is expected to witness high growth in the North American live chat software market. Apart from North America, Europe is another major region in live chat software market. Significant live chat markets in Europe are Germany, the U.K., France, Italy, and Spain. In coming years, Asia Pacific is expected to be the lucrative market across the world during the forecast period.
China is the dominant market in Asia Pacific. Owing to rise in mobile consumers and increasing internet penetration in China and India, the live chat software market is anticipated to grow at a healthy rate across the Asia Pacific region. Other major markets in Asia Pacific are Japan, South Korea, and Taiwan. In India, Freshworks (previously Freshdesk) and Zoho have developed live chat software products such as Cliq which has video, audio, and group conferencing to create a one-stop shop for unified communication system in organizations. The live chat software market in Middle East & Africa (MEA) and South America are also expected to expand significantly during the forecast period.
The major players operating in the live chat software market are SnapEngage (the U.S), Livechat Software (Poland), LogMeIn, Inc. (the U.S), Zendesk (the U.S), LivePerson (the U.S), Olark (the U.S), Kayako Inc. (the U.K.), Freshdesk, Inc., (the U.S), Woopra Inc. (the U.S) and Provide Support LLC. (the U.S) among others.
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