Chat Apps Are Your Next Sales Channel

Chat is the next big thing for commerce, with 82 per cent of millennials wanting to make purchases via chat apps like the ones they use to talk to friends and family, according to a recent survey by Clickatell, which helps companies engage customers through SMS, WhatsApp and other social channels.

Already, 88 per cent of smartphone users aged 26 to 39 years old use chat to communicate with businesses.

The survey of more than 1,000 U.S. millennials conducted by Dimensional Research underscored the desire of younger consumers to move to chat not only for customer service but to also complete business transactions.

The report revealed that 93 per cent of millennials identified significant benefits to doing business on chat. These included the ability to:

Save time and easily get a quick response:      48%

Respond to a chat when it is convenient for them:     43%

Keep all conversations in the same place:      41%

Use an app they are already using on a regular basis:    38%

Keep conversations in one place so any agent can pick up with all history immediately available:         36%

Not have to install other apps:       34%

Easily have businesses verify their identity or personal information:   25%

Have businesses send offers specific to them or their account:   24%

Not have to speak to a live person:       19%

MEETING CONSUMERS WHERE THEY ARE. A full 71 per cent of millennials use chat apps daily, led by Facebook Messenger, Apple iMessage, WhatsApp, Snapchat and Instagram Chat, the research shows. This is occurring at a time when more than 6.1 billion monthly active chat users outnumber the more than 4.6 billion internet users, according to Statista 2021.

"Younger consumers have moved to chat and are ready to do business on chat," said Pieter de Villiers, CEO and co-founder of Clickatell, in a news release. "This research shows they value the convenience and speed of doing business via their favorite chat apps. Businesses will gain a competitive edge by meeting this increasingly influential group of consumers where they are, which is on chat.”

While millennials are ready, businesses have work to do, the research reveals. Only 10 per cent of millennials say brands "always" offer the digital communication channel of their choice — including chat app, social media and phone.

Other results of the research show that:

• 89% of millennials want to do business on chat.
• 54% of millennials have received a message through a chat app about an order pickup, delivery or package arrival.
• 38% have received a link via chat to make a payment.
• 41% have used a link via chat to book or confirm an order, appointment or a reservation.

The survey results mirror comments stated by research firm Gartner in a recent report titled “What is the Future of Advanced Messaging in CPaaS Solutions?”

The report said: "Advanced messaging APIs constituting of apps, such as WhatsApp Business, Facebook Messenger, WeChat, RCS, RBM, ABC, Signal, Telegram, and Viber, are growing at a significantly faster pace (approximately 90% CAGR) and are projected to reach approximately $800 million by 2024. One key reason for this trend is that end users are increasingly turning to more advanced messaging channels for their daily conversations. Therefore, advanced messaging is a key way for enterprises to reach customers."

De Villers explained, "The macro drivers turning chat commerce into the next big thing are aligning. Consumers are broadly using chat apps with friends and family. They want to do the same with businesses, and leading brands are experimenting. We'll see increasingly rapid uptake in the months and years ahead. In the not-so-distant future, chat apps and commerce will be indelibly linked."

Chat apps work across industries, the research shows. The top things consumers want to do most via chat app include making hotel or airline reservations, asking questions of banks and retailers and ordering from restaurants.