Is Live Video Chat a Good Customer Service Solution for Your Business?

I interviewed Andrew Henshaw, CEO of the live video chat technology provider vee24, about the many competitive advantages businesses get from offering live video chat assistance on their own website, with real-world conversion metrics to share from existing clients.

Humanizing the Online Video Experience – Live Video Chat Building Customer Conversions and Relationships

Vee24 is the company behind the live video chat technology for companies including Land’s End,, and Lexus’ Germany division. They even use their own live video chat solution on their own website. The company also offers a free demo of their program, which was well reviewed recently at Marketing Tech Blog. Below is a also a recent video of Andrew giving a live demonstration of how live video chat works on the vee24 platform, at the Internet Retailer conference earlier this month:


Why should business marketing online consider offering live video chat assistance on their own website?


Vee24 believes that the solution lies with harnessing the high-engagement qualities of video into offering customers a unique and personalized service right in the store’s own website. “We’ve developed systems that enable forward thinking companies and organizations to take full advantage of today’s technology: Providing friendly product advice, personalized support, and helpful assistance just when shoppers need it the most.” says Andrew.

Vee24 refers to this business strategy utilizing live video chat assistance with a specialist as “reactive engagement.” Here are several of the arguments they make:

  • It ensures that opportunities to assist potential buyers are never missed
  • It builds customer confidence and improved customer assistance from one’s online service, and;
  • It’s a powerful sales tool that can radically reduce shopping cart abandonment and product returns, while also increasing website conversion rates.

vee24’s technology solution gives businesses and organizations the newfound ability to engage with customers in real-time. He says that this real-time, reactive engagement is what’s made their own clients substantially increase their website’s conversion rates, sales and profitability.

My Interview with vee24’s CEO, Andrew Henshaw

Why Live Video Chat for Website customer assistance?

Andrew Henshaw, vee24 CEO

Millions in online sales are lost every day through people not being comfortable enough to complete the transaction. Customers will have questions that if not answered will stop the customer from completing the transaction.

With the Vee24 video chat system, you can not only talk to customers over high speed video in real-time, but you can also help them fill-out forms, or add things to their  shopping carts and even manage them right through the check-out process where so many sales are lost every day (typically 50% of sales are lost from within the shopping cart and payment sections.)

Are most businesses today realistically big enough to afford having live video chat assistance for serving customers on their own website?

I don’t think that the cost of the system is relevant to the size of business; it’s more measurable by the cost or complexity of the product or service being offered.

For example, you could be a huge music download business, but the people shopping do not need help or advise on what album or song to buy. Conversely, you could have a small legal practice that can pick up a client who needs to have a little reassurance before committing to take legal action that could generate $1,000’s from a single transaction.

Building and maintaining a website has a cost, driving traffic to the website has a cost, and improving conversion has a cost, but of these 3 outgoings, the cost/return element of the later is the most efficient.

What business would be more suitable to offering live video chat assistance?

From a straight financial perspective, as a quick rule of scale, any business that has more than 2,000 web visits per month and products or services that cost over $50 (or shopping baskets that typically grow to become $50) would see a positive ROI from the use of video chat technology.

From a customer conversion perspective, by way of example customers looking to do the following:

  • Purchase vacations, Cars, furniture, etc.
  • Looking to complete important documents: E.g., a bank loan, mortgage applications or Insurance quotations.

Let’s talk conversion data. What metrics have your own clients shared with how real-time video chat has improved their own sales and revenue?

  • – Internet Retailer reported that customers who use video chat stay 5x longer on the website.
  • Georg Esterhaus from Lexus Germany recently confirmed that the Vee24 video chat system has doubled their Internet lead conversion rate, becoming their most cost-effective lead generation activity.