Let’s talk about Webchat, what should you be asking before implementing

Let's talk about webchat:

Six key principles to help consumer retail financial institutions get the most out of this simple technology.

Are you a firm considering implementing webchat for your customer service functions? If so, there may be a few factors you hadn’t considered. A recent Deloitte survey of tech change leaders revealed that 65% of firms only achieve 50%-75% of expected outcomes when implementing technology projects. Even then, based on our experience helping firms with webchat, rolling out the tech is the easy part. It’s connecting the human dots that makes the difference between ultimate success and failure.
 

1. Expect your vulnerable customers to gravitate to webchat – and plan ahead for engagement and accessibility
 

In a post-Consumer Duty world, firms increasingly want to let customers interact through their channel of choice – adapting their approaches to each customer’s needs. Webchat can often be seen as the preferred option for customers who are short on time, physically unable to use a phone, or uncomfortable engaging through telephony (due to difficulties in discussing the situation, or general social anxiety barriers). We have found that vulnerable customers typically gravitate towards webchat rather than telephone when given a choice. This is understandable given webchat’s greater anonymity, control and convenience, its ability to reduce customer anxiety, and the written records of the conversation it generates for future reference. 

However, the degree to which vulnerable customers use webchat, the complexity of their situations, and the length of time the chats are likely to take can have a negative impact on Service Level Agreement (SLA) and efficiency benefits that might be expected through the implementation of webchat. We have seen that the users of webchat (particularly in Collections) are quite often “new engagers” or a result of being failed in an online journey, and not always those who have switched from a telephony journey where volumes can often be seen to remain stable. Further, quite often web chat agents can have limited scope to deal with specific issues or agree solutions, or functionality, meaning failure within the chat pushes telephony volumes back up. 

Firms should also not underestimate the behaviour change required in customers to transition from traditional contact methods such as telephony, to online and then onwards to webchat. Therefore, any efficiency calculations of implementing webchat based on moving existing customers to other solutions should be cautious enough to capture customers’ aversion to change. 

Furthermore, there will still be customers who need either to be transferred to a call or will require a follow-up call, so telephony volumes may not fall by as much as forecast in the business case.

On a positive note, it does mean firms have been able to increase their overall engagement and reach to customers in several areas – including those who need support who may not have previously accessed it.
 

2. Webchat is NOT just ‘typed telephony’, and you can’t simply flip resources between the two channels
 

Webchats lack the fluidity of telephone conversations, making it harder to convey tone and emotion which can make it difficult for agents to determine customers' levels of stress and vulnerabilities.

Chats can take up to two to three times longer than a telephony journey, as it takes longer to read a message than it does to listen to it, and similarly to respond. This is especially relevant when using asynchronous (Async)¹ messaging versus live chat. We have seen instances where this specific dynamic has not been fully accounted for in efficiency expectations to ensure agents make good use of this time. Alternatively, there is an expectation that this can be offset by agents managing several conversations at once, the consideration for which are discussed below; and

To successfully manage webchats, agents need a combination of telephony and written skills. Only with both these skills can they strike a balance between the fluidity of a telephone conversation and the grammar and language skills of a competent written channel agent. Agents must be able to mirror the customer's approach and language, maintain the firm's approach, avoid being overly formal or using template responses, and "read between the lines" (since verbal cues won't be available).
 

3. Multiple chats can multiply the risks
 

Another much touted benefit of webchats is the efficiency savings from agents’ ability to manage multiple conversations at once. However, whilst this may work in some more transactional areas of customer service, in more complex areas (such as complaints or collections) multiple conversations may be difficult where agents are having to pivot between complex customer situations and needs. This creates an increased risk of the agent making errors, potentially leading to poor outcomes. Therefore, it is important to keep in mind that webchat is more than just maintaining a few concurrent conversations. Firms need to consider the level of control required to ensure agents can appropriately manage the risk in the service provided that may result from dealing with multiple, complex situations at once.
 

4. A career in webchat brings new challenges for employee engagement and wellbeing
 

In addition to the operation challenges described above, there are also employee wellbeing and productivity impacts to consider for webchat agents. We know there can be challenges in coaching and productivity in a remote working environment and whilst firms are gradually finding ways to address this, chat creates a new dynamic:

• Agents who were once used to the atmosphere of a busy call centre may now find themselves interacting purely digitally. They have lost the voice connection they may have had, increasing the risk of isolation;
• Chat conversations can be slow and repetitive, leading to potential boredom and a lack of motivation. However, with the right agents and appropriate amount of ‘filler’ work between chats, webchat can have positive impacts, including increased sense of control, reduced stress, and improved job satisfaction; and
• Motivated agents deliver the best outcomes and that means giving them flexibility in managing conversations and using their time, during and between chats.
   

5. To monitor success, define upfront what customer outcomes you’re targeting
 

The additional risks associated with using webchat will require specific consideration to be made to the quality and assurance framework used to monitor it and how the approach should differ from a telephony framework. You will need to define what a successful outcome for a webchat looks like – acknowledging that it’s likely to differ from a telephone call, bearing in mind the nature of a written exchange versus a verbal one. However, the agent performance models should be the same across both channels and implementing webchat can provide a great opportunity to review these and move away from volume driven metrics to outcome-based metrics.

The monitoring and assessment of individual chats are likely to take less time than those of telephone calls, which can take longer than the duration of the call, and technology such as conversational analytics can be used to support the assurance process. Increasingly, AI quality assurance is being used for real-time monitoring of conversations to identify coaching interventions, risk triggers, and vulnerable customer alerts. Investment in the time to build the appropriate framework will ensure the efficiencies are realised and risks understood in the monitoring of chat conversations.
 

6. Assume that the demand for webchat will be close to 24/7
 

Customers will expect to be able to access webchat at a time more suitable for them which will differ to the availability of traditional telephony channels. Demand is likely to be 24/7 and resourcing this may not be offset by savings generated through any reduction in telephony demand (see above).

Even if chats are not live 24/7 and the customer must wait for a response, backlogs caused at the start of day may impact SLAs for live ‘in operational hours’ chats. Customers in very vulnerable situations may not be able to wait for, or access, a response delivered many hours after their initial contact.
 

To sum up
 

Implementing webchat for your customer service functions can have significant benefits for both your business and your customers. Just don’t overlook the unique challenges that are emerging as these technologies are deployed on larger scales. Then make sure to design and execute the channel with these factors in mind. By doing so, you can maximize the benefits of webchat while minimizing the potential drawbacks and ensuring good customer outcomes.
 

How can Deloitte help?
 

For firms that would like to discuss this topic or require help or guidance, Deloitte has a highly experienced team of SMEs that can support firms through the provision of advice, review and challenge, assurance and/or design of channel strategies and frameworks across the customer journey to help firms navigate the challenges in this area.

If you would like to hear more about Deloitte’s work optimising webchat for consumer retail financial institutions, our key contacts are