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Why you should use Intercom to increase customer retention and satisfaction

Chat Customer Retention Strategy

Photo by Volodymyr Hryshchenko on Unsplash

Your business is running, you have a website up, and now you’re looking for ways to increase your revenue. You may be considering spending on online advertising as one of your action plans for your Conversion Rate Optimization (CRO). But what if we told you can increase your sales this week without having to spend a single dollar on advertisement?

Customer retention and satisfaction are vital to the life of a business. After all, you’ve already spent so much effort getting your customers through the door, it makes perfect sense to work on making sure that they keep coming back.

Did you know that it costs at least 5 times more to attract a new customer than it does to keep an existing one? This means that an easier sale may be available if you offer your products to your current customer pool. Therefore, the benefits of customer retention are undeniable. It doesn’t only save you both time and man-hours, it increases profitability as well.

Research suggests that increasing retention rates by 5% increases profits by 25% to 95%. Therefore, the customers that you already have are great sales leads. Why wouldn’t you do whatever it takes to keep them coming back?

Customer retention defined

Infographic by Smart Insights 

Customer retention is the rate at which your business can keep its paying customers. Considered over a given period of time, it measures how successful companies are at satisfying existing customers.

To reduce customer defections, businesses undertake actions through customer retention programs. These initiatives help companies retain as many customers as possible for as long as possible. Customer and brand loyalty programs are two examples of these endeavors.

As consumers, we are familiar with promotions offered to us. We’ve been given deals because of our loyalty to a certain company. Placing your consumer hat on, wouldn’t it be more likely that you are going to take advantage of this offer? Aren’t you enticed because it is given by a brand you trust? Do you find yourself interested in similar deals with a purchase you just made with this company?

The way to customer retention

Customer satisfaction, on the other hand, is the measure of how your products meet expectations. At times, it can also take into account how your services surpass your customers’ expectations. With this metric you can quantify the degree to which a customer is happy with the product or service you have provided them. The more satisfied a customer is, the more likely there will be a repeat purchase.

Photo by Lidya Nada on Unsplash

We also have to keep in mind that a satisfied customer will spread a favorable word of mouth. On the contrary, a customer who is dissatisfied will spread unfavorable reviews against your business. These testimonies are crucial for your reputation. They may be reaching your target market and could be used to guide their decisions.

It is therefore important to have high customer satisfaction rates because it translates to a good customer retention score. With healthy numbers for these two comes healthy profits for your business as well.

So having understood the meaning and benefits of both customer retention and satisfaction, it’s time to focus on your customer retention program, which should be part of your digital marketing strategy.

What are the best customer retention programs out there? Are promotions and deals enough to entice your current customers to buy again? Is it enough to send them email surveys to determine their satisfaction?  Is it necessary to provide a dedicated customer support number?

First, it’s essential that you are able to reach your existing customers. Being able to talk to them at opportune times could very well be the key to the sale. And in order to do this, you would need the proper tools at your disposal.

What is Intercom?

Founded by Eoghan McCabe, Intercom is a customer messaging platform for businesses. They believe that chatbots can still prove transformative, especially for businesses. As such, they build customer messaging apps for sales, marketing, and customer support.

Intercom Homepage

Aside from the Business Messenger, they offer several other service solutions, including Lead Generation, Customer Engagement, and Customer Support. With offices in the US, Europe, and Australia, Intercom has established itself as a premium tool for Customer Retention and Satisfaction.

If you’re still not convinced of Intercom’s credentials, we’ll tell you why you should think again. Having discussed the value of Customer Retention and Satisfaction, here are 6 reasons why you should use Intercom:

1. People have questions

In a study conducted by The Economist, they’ve uncovered that people need to have their questions answered immediately to stay satisfied. While people have always had questions, now they have numerous sources where they can research and buy things. It’s important for businesses to provide the best possible customer experience wherever their market may be.

In addition, technology shapes the expectations of people. And it also shapes the expectations of clients and customers. If they see your business as responsive, they will be more likely to trust you and keep trusting you.

A Business Messenger allows you to be able to establish a presence. This allows you to be there should your leads have questions or concerns about your product. In a scenario where a potential customer is unsure of a product’s benefits, they could just opt to do nothing. That, in itself, is a lost sale.

Or maybe an existing customer might think that a product has a defect, when in fact it is an innate design. Being able to talk to someone from your company would address any dissatisfaction and clear any doubts about their purchase.

To address your customers’ questions immediately, the messenger allows you to deliver fast answers at scale, which is vital to any customer retention program. You can even enlist the help of conversational bots that route and respond to messages for you. These can prove in handy if you’re not planning on having representatives online 24/7.

2. Live chat is more customer-centric

Intercom Customer Profile

Compared to emails, chat allows you to target, personalize, and contextualize every interaction. Tools from the Business messenger provide you with behavioral and customer data. The Customer Data Platform allows you to answer your customer’s user-specific questions.

Order status and other contact details can be incorporated into the customer’s profile. So the next time you talk to them, it will be like picking up a conversation where you left off.

Because your customers feel they are receiving personalized service, it will increase their satisfaction. And they would feel that their loyalty is valued because of such simple interaction.

3. You can continuously improve your profits

Real-time feedback from live chat can increase customer retention and upsell opportunities.

So it’s vital for Conversion Rate Optimization to ensure that your chat boxes are strategically located throughout your site. It’s particularly crucial that you reach customers when they are at a point in deciding on a purchase.

With Intercom, you also have vital information at your fingertips. Past purchases data will allow you to better communicate about your new product, and it will help you to better position the benefits of an upgrade or accessory to that product or service.

Knowing when customers are more likely to buy based on their history, will allow you to be ready for them. When that time comes, you know how to present the appropriate pitch.

With its Customer Data Platform, Intercom provides you with information that gives you the edge. Make sure you use this data to concretize the sale when the opportunity presents itself.

4. Live chat lead quality is superior

When a customer lands on your page, they already have the motivation to seek you out.

It doesn’t necessarily mean that they already have the intention to purchase. They just might have a query in mind, and they could just be gathering information for now.

But it’s already the perfect opportunity to tell them why you are the superior choice!

Being available through Intercom would allow you to explain product benefits and specifications. If needed, they can easily raise questions and get immediate answers. Strategically-placed chat boxes in your site or in your app allow you to reach these kinds of visitors, enabling you to point them in the right direction.

5. Intercom allows app integrations

Intercom App Store

If you’re already using other apps in your business, you can integrate these in Intercom. Intercom connects your tools and workflows like Facebook, Hubspot, Trello, Jira Cloud, and Salesforce.

The work, thus, becomes more seamless, and you can focus more on the details of your interaction.

6. Intercom offers other solutions

There are various other ways to defend against churn, and Intercom offers solutions like customer engagement. As part of customer engagement, they can help onboard and activate customers, so they can easily transition to using your products and services.

Intercom also has resources like books, guides, and webinars that offer industry insights. In addition, they offer educational courses for topics that could be useful for your teams, such as marketing handbooks and starter kits.

These features allow you to do more for your customers so you can better know and retain them.


Successful businesses have a clear understanding of the benefits of customer retention and its role in Conversion Rate Optimization. They invest in the best customer retention programs that are focused on the customer experience.

This is because customers have a lot of choices for products and services out there. It is also worth mentioning that aside from having a thorough knowledge of your market, you should also look into what your competitors are doing.

In order to keep and satisfy your existing customer base, you have to be there for them. Technology has changed the way your customers seek answers, and Intercom allows you to be present and fully equipped. Clearly it is an indispensable tool for digital marketing, allowing your business to provide outstanding customer service each time.

If you’re looking for an agency that offers Digital Marketing Services, The Optimizr is here to help. Get in touch with us so we can work on your Customer Retention Program today!

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