Live Chat Software

02 Feb 2024 By: Michael Kansky


Live Chat Software is a tool which helps the conversation between online businesses and their customers. This has over the years developed into a core aspect of customer service and sales strategies implemented by many firms. This also allows businesses to communicate with website visitors immediately guiding them while they are still on site.

While email support is good for businesses, they need a system that would enable them easily communicate with the customers. Furthermore, it should provide instant messaging, embedded analytics, and a set of integrations.

Live Chat Software is usually installed on a website and enables the customers to start a chat with the company’s representatives. It’s an effective approach is to involve customers, answer their questions, and lead them on the web to have a personalized experience.

Let’s find out more ways on how to create a great customer service experience!

Types of Live Chat Software

The market offers different Live Chat Software types with various features and functions. A business chooses the software according to its requirements and goals. This helps your team understand user needs, tailor support, and identify potential leads for engagement. Selecting the appropriate live chat software involves the core features, chatbots, and integrations.

The following are some of the most common types of Live Chat Software:

Text-Based Live Chat Software

Text-based live chat software is the most common tool. It provides customers with an option to type their questions in to a chat box and get instant responses from customer service agents. Such software is famous for being user-friendly and simple.

It also has has different elements. These elements consist of automated responses, chat transcripts and customer analytics. These features help businesses with creating systems and retrieving relevant customer behavior data. This also allows businesses to answer incoming chat queries as soon as possible.

Audio and Video Live Chat Software

Audio and Video Live Chat Software allows businesses to communicate with their customers in the form of calls either by audio or video. This software is especially good for those businesses that need to deliver support or to hold sales consultations.

Some features of Audio and Video Live Chat Software contains elements such as:

  • Screen Sharing
  • Call Recording
  • Multi-party calls.

These help companies to give a closer and more personalized customer service experience and improve their overall branding.

AI-Powered Live Chat Software

AI Powered Live Chat Software applies AI to automate customer conversations. It can comprehend and respond to the requests of the customers without any human intervention. It is an effective tool for managing massive numbers of calls from customers.

The features of AI-Powered Live Chat Software may include

  • natural language processing
  • machine learning
  • predictive analytics.

These features allow the software to be able to learn from past interactions and be able to improve its responses as time passes. Personalization can be done on chat widgets, and customers can use their company logo, modify the welcome message and activate the email capture on the right web-page.

Benefits of Using Live Chat Software

Providing chat support can be difficult for business owners, particularly when they are busy with other activities. It has many benefits for businesses, from better customer service to higher sales. It can also provide immediate answers such as product information, pricing, and shipping details.

This is mostly used these days as it’s different from the usual communication methods. It also serves as an online real-time communication platform and a support service that allows a customer to instantly message or chat with the support staff anywhere on your web page.

Empower the customer by providing self-serve solutions which include FAQs to enable them resolve basic inquiries themselves. A proactive support approach can quickly resolve an issue the customer is facing, encouraging the customer to make a purchase.

Proactive support can address issues quickly, making the buyer’s journey better and motivating them to finalize a purchase.

Improved Customer Service

Live Chat Software enables businesses to give up-to-the-minute support to their customers promptly and effectively. Customers receive instant resolution which in turn enhances their experience and satisfaction.

Features like automated canned messages and chat transcriptions help businesses maintain efficiency. Customer analytics can also be used to help them recognize the typical problems and work on improvements.

Increased Sales

Live Chat Software can remarkably increase the sales of a business. This not only facilitates the decision-making process but also aids in the smooth navigation of the buying process. This tool will improve your customer service and engagement.

This software offers help desk support and social media integration for effective communication between businesses and clients. Although live chat tools are aimed at helping businesses to communicate with clients, they also help increase sales and improve shopping experiences, which results in brand loyalty.

In addition, It enables businesses to initiate conversation with customers. This, in return, can give them personalized recommendations and take advantage of opportunities. This feature helps offer tailored customer service and sales support for your client’s specific needs. This also provides real-time visitor tracking, so businesses can identify their target market easily.

Cost Efficiency

Live Chat Software can enable businesses to cut down on their customer service costs. With automation of customer interactions as well as their service processes, businesses would be able to handle more customer inquiries without the need for additional resources.

Additionally, It eliminates the necessity for costly phone support. Queries of the customer can be resolved by chats, which are usually  more convenient than phone calls due to faster response times.

Further, on a software by software basis, one of the benefits is possible cost savings in comparison with a standalone chat tool since chat can sometimes come as an extra feature with added cost.

Trending now

There are so many benefits of live chat for both customers and businesses. This type of communication is fast and easily accessible and therefore customers are more satisfied with it unlike email and phone support. For businesses, live chat is a cost-effective channel, enhances reputation, and build up brand loyalty through the immediate and personalized interaction. 

Live chat integration into mobile apps improves user experience, marketing, conversions, and negative reviews. Leading companies like Orbitz, Sears, Dell, and TotalGym have recorded increased sales growth post adoption of live chat provision in their applications. Nevertheless, using only outside messaging apps can have some disadvantages, and on-app live chats are the better choice for companies that want to improve user engagement and retention.

Choosing the Best Live Chat Software

Selecting the appropriate Live Chat Software can be quite difficult since there are countless choices in the market. Nevertheless, through the consideration of certain factors, businesses can choose the option that suits their requirements. Your live chat vendor may need to comply with HIPAA, PCI, and GDPR rules, adding modern data security options like IP restriction and blocking.

Seamless integration with your current tools and software is an essential factor in process optimization and efficiency. Look for a software that seamlessly integrates with most CRM, marketing, analytics, and support tools so that it becomes part of your current workflow.


The effectiveness of the Live Chat Software depends largely on its features. Businesses should search for features that go well with their customer service and sales tactics. For example, a business that wants to automate its customer interactions should go for AI-Powered Live Chat Software.

Among the main features to take into account are auto replies, chat logs, customer analytics, audio and video calls, screen sharing, call recording, multi-party calls, natural language processing , machine learning, and predictive analytics.

Its standout features help provide immediate help, track important metrics and help assist in communicating with customers during business hours to provide them with the best shopping experience.


Further consideration should be given to the usability of the Live Chat Software. It has to be user-friendly both for the business and its customers. It has to be simple to use and it should be easy to install and to set up.

Additionally, the application should offer cross-device and cross-browser functionality. Customers should be able to do chat conversations from any browser and device, making it a smooth experience.

Support and Training

Support and training are vital for the effective deployment of Live Chat Software. A software vendor that provides full support and training services should be selected by businesses.

The service provider should provide round-the-clock customer service to deal with any problems promptly. They should also offer educational materials like tutorials, webinars, and documentation that will help businesses take full advantage of the software.


Live Chat Software is a significant solution that can help enhance user experience,  customer service and sales strategies of a business. It can enrich the customer experience and lead to numbers of sales by offering live support and smooth transactions. With its easy set-up feature, businesses can definitely utilize this software and use it across different channels.

Live chat is best suited for experienced sales and marketing teams that need a comprehensive live chat approach characterized by insights data, price efficiency, and customization choices.

Nevertheless, selection of proper Live Chat Software should be done under thoughtful consideration of several factors. Through understanding their specific needs and consideration of different alternatives, businesses can find a perfect solution which will allow them to achieve their goals.

HelpSquad’s Live Chat Services! Fast customer service, 24/7 support with our team of professional bilingual agents. Enjoy the smooth flow of communication and interactions on your website all for just $8.50 per hour. Avail the opportunity to upgrade your customer service. Start your free trial now!

Answering Service
Customer Service
Live chat
Marketing and media
Tech Support
Michael Kansky

Michael Kansky, Founder of LiveHelpNow and HelpSquad, has leveraged his 20 years of industry experience and innovative support strategies to revolutionize customer service approaches, making LiveHelpNow a leading customer service software provider, and establishing HelpSquad as a bridge between businesses and customer needs. You may contact Michael on LinkedIn: