News • 27.01.2020

New research shows live chats can increase sales by nearly 16 percent

Sellers with limited feedback benefit the most

Chatting on the Smartphone
Source: PantherMedia / everythingposs

Live chat tools allow for communication between sellers and buyers. They are popular instruments for e-commerce sites that don't have the advantage of face-to-face communication that brick-and-mortar stores do. New research in the INFORMS journal Information Systems Research says these live chats can actually increase sales and boost profits.

The study, "Impact of Live Chat on Purchase in Electronic Markets: The Moderating Role of Information Cures," looked at data from Alibaba on consumers' purchase decisions of Apple and Samsung tablets from March through June 2013. "We found live chat can increase purchase probability of tablets by 15. percent," said Xue (Jane) Tan of Indiana University. "We see that human interaction results in better sales performance."

Live chats against uncertainty

Tan, Youwei Wang of Fudan University and Yong Tan of the University of Washington says the fact that sellers and buyers cannot speak in person, like brick-and-mortar stores, leads to uncertainty about product quality and seller credibility. Live chat tools allow e-vendors to communicate with customers in real time. The data source, Alibaba, has a reputation of being similar to eBay, where feedback is collected after each transaction. The data consisted of consumer browsing, live chat and purchase histories. The live chat tool is moderated by existing information cues: product sales volume and seller feedback score.

"Sellers with limited feedback benefit more from live chat conversations than sellers with a lot of feedback. And products with high past sales volume sell better after live chat, indicating a reinforcement effect," continued Tan. "It is interesting that a seller can sell multiple products with varying levels of sales performance, and the seller feedback is measured based on all products."

Source: Institute for Operations Research and the Management Sciences

related articles:

popular articles:

Thumbnail-Photo: A completely new experience at ICA Kvantum with Breece...
15.12.2020   #electronic shelf labels (ESL) #price labelling

A completely new experience at ICA Kvantum with Breece

ICA Kvantum in Lerum has invested in new technology: A cloud-based electronic shelf label

ICA Kvantum Lerum has for a long time been looking for a supplier of electronic shelf labels (ESL), so the staff no longer have to spend time and resources on changing paper shelf labels. It was important that it should be a ...

Thumbnail-Photo: Robotic canteen set to change the global food and hospitality industry...
10.12.2020   #food retail #food technology

Robotic canteen set to change the global food and hospitality industry

Karakuri showcasing its pre-production machine

Karakuri, a food robotics company, lifts the lid to unveil the world’s first automated canteen to make meals, the DK-One. Karakuri’s robotic system will revolutionise how and what we eat in restaurants, canteens, buffets, hotels and ...

Thumbnail-Photo: What the payment future is about
08.03.2021   #mobile payment #brick and mortar retail

What the payment future is about

Interview with John Kolthof, Chief Commercial Officer, CCV GmbH

We asked our CCO John Kolthof about the future of the payment industry. What megatrends does John see and how do they influence CCV’s day-to-day business? Read more in our interview. ...

Thumbnail-Photo: Vending machines: Customers alone in the store...
18.01.2021   #sales promotion #food retail

Vending machines: Customers alone in the store

Combi City-Markt makes round-the-clock shopping possible – without staff

Shopping after closing time? That’s possible at the Combi City store Bünting in Oldenburg. At the 24/7 vending machine, late at night shoppers have the opportunity to stock up on everything they need from the supermarket's ...

Thumbnail-Photo: The rise of the virtual fitting room with the corona pandemic?...
30.11.2020   #fashion #virtual reality

The rise of the virtual fitting room with the corona pandemic?

Trying on clothes via AI, AR or VR

The rising usage of smartphones is expected to take the virtual fitting room market to $19,250.4 million by 2030, from $3,128.6 million in 2019, at an 18.5% CAGR between 2020 and 2030.A virtual fitting room is a digital representation of a fitting ...

Thumbnail-Photo: BAUHAUS introduces new click and collect technology...
10.03.2021   #electronic shelf labels (ESL) #price labelling

BAUHAUS introduces new click and collect technology

New solution helps store associates pick items for Click & Collect orders

With help from electronic shelf labels and handheld terminals, it has become much faster and easier for BAUHAUS to navigate through the store to find the right items. A new solution that also saves a lot of time on replenishment.With a product range ...

Thumbnail-Photo: Danish supermarket chain implements ESL in all stores...
10.02.2021   #electronic shelf labels (ESL) #price labelling

Danish supermarket chain implements ESL in all stores

The chain is investing in modernization and more digital initiatives

The privately owned, Danish supermarket chain Løvbjerg is doing well, and has experienced a great development in 2020 with a 18% growth. The chain is therefore also investing in modernization and more digital initiatives. Most recently, ...

Thumbnail-Photo: Southeast Asian online and offline health and beauty partnership...
06.02.2021   #online trading #e-commerce

Southeast Asian online and offline health and beauty partnership

Grab brings beauty products from over 2,200 Watsons stores to customers’ doorsteps

A.S. Watson Group, an international health and beauty retailer, and Grab, Southeast Asia’s super app, announced the largest O+O (online and offline) health and beauty partnership in Southeast Asia, spanning across six Southeast Asian markets ...

Thumbnail-Photo: The intelligent seasoning for your inventory optimization...
10.03.2021   #artificial intelligence #stock level optimization

The intelligent seasoning for your inventory optimization

How to increase your sales with predictive analytics

Predictive tool options for retail and e-commerce are booming. Machine learning and artificial intelligence are used to make very accurate predictions, for example, the expected number of customers in stores, the number of products sold and upcoming ...

Thumbnail-Photo: Successful co-op association has the largest profit in the country...
24.12.2020   #electronic shelf labels (ESL) #price labelling

Successful co-op association has the largest profit in the country

The local Kvickly store has found the recipe for making profit. In the future, even more energy will be spent on customers and staff members

Electronic shelf labels play a crucial role here.

Supplier

iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
GMO Registry, Inc.
GMO Registry, Inc.
Cerulean Tower, 26-1 / Sakuragaoka-cho, Shibuya-ku,
150-8512 Tokyo
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
40476 Düsseldorf
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf