What is Chat?

Chat is real time, text-based, digital communication between two parties. In the context of customer service, a customer can initiate a chat session from a company's website, which will connect them to a contact center agent who will attempt to resolve their issue. A transcript of the interaction can be kept on record for future reference and shared with the customer. This is helpful if the customer contacts the company again about the same issue.

Chat is gaining in popularity as a communication channel between consumers and businesses due to its convenience and effectiveness. For example, a customer might be confused when checking the status of their order online and quickly open a chat session with an agent to get their questions answered. At a 74% first contact resolution rate, chat is a good channel choice. Additionally, NICE research shows that consumers find chat to be one of the top channels for satisfaction and ease of use.

An emerging technology that is impacting and enhancing chat interactions is chatbots. Chatbots can be powered by artificial intelligence (AI), and may be used first to engage customers, answer simple questions, and gather relevant information about the customer and their issue. If a chatbot can't resolve the issue, then the chat interaction is escalated to a contact center agent. Because it passes along the information it gathered, it improves agent productivity. Chatbots are getting more effective every day and savvy businesses are figuring out where they fit in their service models.