I started this series on Live Chat customer support assuming that everyone was on the same page, but you know what they say "assume" means....

So here is a general explanation of the topic:

Live Chat is like email on steroids or a phone call using text. The users involved are generally responding in real time, using short statements, abbreviations, “emoticons”, and other shared shorthand communications. I've seen it referred to as chat, click-to-chat, online chat, integrated chat, and proactive chat among other designations; and many customers find it helpful for getting information and answers while they shop. Of course a good live chat solution includes an easy way to transfer to phone support.

Live Chat is most appropriate for low to moderately complex product support. Unless you have very knowledgable customers and CSRs supporting a highly complex product may not be great for chat simply because of the miscommunication that can so easily occur, just as with any written communication.Live Chat can also be a means of surveying customers without being intrusive.

Live chat should not be used to deflect all customer service calls, nor should it be used for cutting costs, but as part of a multichannel customer service initiative Live Chat adds another avenue for revenue generation and customer satisfaction.

Using Live Chat in customer support and as part of an incident management strategy has the advantage of automatically capturing all communication, non-intrusively and in real time, instead of relying on the agent to type the issue into a ticket management tool during phone support or relying on the customer to input complete information into a self-service system.

It also allows for brief breaks for action during troubleshooting or training as the customer can leave the screen momentarily to carry out instructions or find information. During the hiatus, the support agent may be able to handle another chat contact while waiting. However, be cautious about encouraging your CSRs to engage in multiple simultaneous chats, especially at the beginning of your live chat effort and when the CSR lacks experience in handling this channel.

Definition of Chat:

Real-time communication between two users via computer. Once a chat has been initiated, either user can enter text by typing on the keyboard and the entered text will appear on the other user's monitor. Most networks and online services offer a chat feature.Webopedia

The real-time nature of the chat experience can help ease user frustration. Unlike email support, it is a conduit for more immediate responses with the additional advantages of sharing documentation to illustrate a point or clarify instructions. If additional assistance is needed, another support agent or a supervisor can collaborate over the channel without confusing the customer with multiple voices.

Survey Findings
Lauren Freedman of the eTailing Group released an Online Chat survey in 2008 that showed how well chat was being implemented for eCommerce:

Good News:

The technology works (for the most part). The only failures were a problem with a couple of downloads. Companies in the survey offered near perfect customer service over the chat channel. The initial question was answered well.

Bad News:

• For e-Commerce sites, live chat was not located to sell. 88% of the companies surveyed only had chat on customer service pages. Only 42% had chat on product pages.
• Proactive chat was not offered frequently enough: only 15% of companies offered it.
• Infrequent attempts to offer alternative or better products. The average rating was 1.7 out of 5.
• Insufficient encouragement to buy: average score was 2.7 out of 5 showing a significant number of possible sales were not taken advantage of.
• Response time unacceptable: Average response time was 39 seconds, much slower than half the companies surveyed who managed to respond in 3 seconds or less.

So here you are, 2 for 1, a definition of Live Chat and a breakdown of how well and how poorly it has been implemented.

Anyone have other ideas to share about the definition of chat?