New Live Chat Feature for Small Businesses Will Be Added to Microsoft Teams

Microsoft Teams is set to unveil a Live Chat feature that will allow small businesses to connect directly with customers on their websites. Announced through the Microsoft 365 admin center, this new tool will first be accessible by the end of this month for U.S. customers using Microsoft 365 Business subscriptions.

The Live Chat widget, which will be integrated into all Microsoft 365 Business plans, provides a direct line for small businesses to interact with website visitors directly from Teams. Businesses will be able to set up the widget via the Microsoft Teams Admin App, found in the Teams App Store, with Microsoft ensuring an “out-of-the-box” implementation process.

Along with essential communication functions, the widget will enable users to gather visitor contact details, manage cases, and conclude chats via Teams Chat. Employees will also have the ability to share customer inquiries and transcripts in the Teams channel for real-time support and escalation. Furthermore, managers can oversee all customer interactions within a specified time frame through a centralized dashboard.

Visitors to the company’s website can use this new live chat widget to start a conversation with the business team. The customer support team will be able to respond via the existing Microsoft Teams chat and channels.

The new chat tool will streamline the process of gathering contact details from website visitors. It will automatically assign incoming inquiries to available team members in Microsoft Teams for real-time interaction. Additionally, teams will manage customer conversations directly within Microsoft Teams, including reassignment or closing of chats when necessary.

Moreover, this new feature will enable sharing of customer inquiries and chat transcripts in a designated Teams channel for follow-up. A centralized dashboard will allow teams to monitor all customer interactions over a designated period.

The widget will be rolled out across all Microsoft Business Plans, including Business Basic, Standard, and Premium offerings. However, it will not be available for businesses on Enterprise plans, as Microsoft emphasizes this solution is tailored to enhance customer service for small-to-medium businesses. The initial rollout will begin in mid-January for the U.S., with a global expansion planned for March 2025.

Setting Up the New Live Chat Feature in Microsoft Teams

Microsoft emphasizes that the new live chat widget will be disabled by default in Microsoft Teams. IT administrators will be responsible for configuring this feature for end users within their organizations via the Teams Admin app.

The anticipated rollout of this chat integration to small businesses globally is expected to be completed by late March 2025, with availability across all platforms, including desktop, web, iOS, and Android.

Recently, Microsoft also announced updates to recording policies in Microsoft Teams. The company plans to implement distinct recording policies for Town halls and webinars, which will be available to commercial customers by late February. Enterprise administrators will be able to configure these recording policies through the Teams admin center or PowerShell.

A Strategic Move Toward a Simplified Contact Center via Teams

Microsoft already provides a standalone CCaaS platform for large enterprises through the Dynamics 365 Contact Center.

However, small-to-medium businesses typically do not require the extensive features offered by a full CCaaS platform.

In recognition of this fact, Microsoft introduced its Queues Apps for Teams last year. Priced at $10 per user per month, this add-on allows customer service teams to manage and monitor, and handle both incoming and outgoing customer interactions through their UCaaS platform.

Now, with the addition of live chat, Teams is evolving into a “Contact Center Lite” specifically for SMBs.

While major UCaaS competitors—Cisco, RingCentral, and Zoom—have constructed adjacent CCaaS platforms targeting larger companies, Microsoft can reach out to smaller brands that often depend on bolt-ons services for customer support.

Many of these companies might not have formal customer service departments, relying instead on all employees to engage with clients. For such businesses, a Teams Lite Contact Center could be beneficial, allowing staff to connect with customers using the first app they access in the morning. The familiar UI will also reduce training needs significantly.

Elsewhere… Microsoft to Launch SMS Message for Teams

In addition to the live chat feature, Microsoft is planning to introduce another communication channel: SMS.

This feature will allow users to send and receive SMS messages natively within their Teams client, with messages appearing in the app regardless of operating system.

The SMS functionality will be available to all Microsoft Teams Phone for Calling Plan users in the U.S. and Canada, with a launch expected at the end of February 2025.

A date for the global rollout of SMS in Teams Phone has not yet been announced.

“For someone in the UK with an iPhone and WhatsApp, I can’t remember the last time I sent an SMS to someone, especially not for business purposes.”

Nonetheless, some niche businesses may find this option useful, alongside those transitioning from competing UC platforms that currently provide this service.

Additionally, this could serve as a stepping stone for establishing an SMS channel should Microsoft choose to enhance its contact center lite offerings within Microsoft Teams in the future.